Glencore-Merafe Moves Closer to 62c/kWh Power Tariff Approval for SA Ferrochrome Sector
Eskom board backs revised tariff terms as NERSA review and extended S189 process shape industry’s future
The Glencore-Merafe Chrome Venture (the Venture) has reached a key milestone in securing revised electricity pricing for South Africa’s ferrochrome industry, marking a significant step toward operational stability.
The Venture confirmed it has received formal communication from Eskom’s board outlining updated terms and conditions linked to the proposed 62c/kWh electricity tariff. The terms have been provisionally accepted, pending clarification on specific conditions.
This development represents meaningful progress in ongoing efforts to sustain ferrochrome beneficiation in South Africa, an energy-intensive sector that has faced mounting cost pressures.
The Venture acknowledged the constructive engagement and support received from Eskom, government, and labour unions throughout the process. It reiterated its commitment to preserving local beneficiation, protecting jobs, and supporting the long-term sustainability of the communities in which it operates.
Final acceptance of the proposed tariff remains subject to alignment across the broader ferrochrome industry, as well as regulatory approval from the National Energy Regulator of South Africa. Eskom’s submission of the revised tariff structure to NERSA brings the sector closer to a more sustainable operating framework.
Given the significance of the outcome for employees, communities, and the wider ferrochrome industry, the Venture has called for an expedited regulatory process, targeting completion within 30 days.
To align with this timeline, the termination date of the Section 189 process has been extended to May 11, 2026.
The Venture emphasised its commitment to transparent engagement as the process unfolds, noting that safeguarding jobs and ensuring the long-term viability of ferrochrome operations remain its highest priorities.
