Glencore-Merafe Chrome Venture recommissions 50% of Lion smelter capacity in Steelpoort
Ferrochrome production resumes following NERSA-approved interim electricity tariff
Glencore has confirmed that the Glencore- Merafe Chrome Venture has successfully recommissioned 50% of the Lion Smelter’s operating capacity in Steelpoort, Limpopo Province, achieving its first ferrochrome production tap on 16 February 2026.
The restart follows approval by the National Energy Regulator of South Africa of a 12-month interim electricity tariff of 87.74c per kWh, enabling short-term operations at Lion Smelter. The Venture anticipates that the smelter will return to full operational capacity by the end of March 2026.
However, the approved interim tariff is insufficient for long-term commercial viability, a challenge that also affects the Boshoek and Wonderkop smelters. The Venture notes that all three smelters require a tariff of 62c per kWh to operate sustainably over time.
The Venture continues to engage constructively with stakeholders, including Eskom, the Department of Energy and Electricity, and labour organisations, to secure a durable, long-term electricity pricing solution ahead of the 28 February 2026 Section 189 consultation deadline, which also affects Boshoek, Wonderkop, and Glencore’s Carbon Division (Chartech).
In parallel, the Venture is progressing with restructuring and operational optimisation initiatives to strengthen resilience amid challenging global market conditions. The company reaffirmed its commitment to protecting jobs, supporting local economies, and securing the future of South Africa’s ferroalloys industry.
“The level of collaboration across all stakeholders must not be underestimated. Everyone is working very hard to reach a sustainable solution, especially Eskom, labour organisations and the Department of Energy and Electricity,” said Japie Fullard, CEO of Glencore Ferroalloys.
