Baar, Switzerland, April 22, 2026, 15:13 CEST
- After Eskom agreed to a 62c/kWh tariff, Glencore-Merafe’s idle South African ferrochrome production is now edging toward a restart.
- South Africa’s energy regulator, NERSA, still has to sign off on the lower power price.
- Glencore’s first-quarter production numbers are due out April 30, just after the decision.
Glencore plc’s ferrochrome operations in South Africa are edging toward a restart as Eskom, the state utility, agreed to a lower power tariff—offering some relief after high electricity costs threatened smelters and jobs. Japie Fullard, chief executive at Glencore Ferroalloys, told Argus the company plans to resume production, having secured tariff support for the Glencore-Merafe Chrome Venture from Eskom.
Why does this matter? Ferrochrome, that chromium alloy vital for stainless steel, is turning into a litmus test for South Africa’s ability to hang on to big energy-hungry industry. Glencore reported in January that its attributable ferrochrome production dropped 63% in 2025, a direct hit from the Boshoek and Wonderkop smelters shutting down back in May and June.
On April 10, Eskom announced it had reached a deal for a 62 cents/kilowatt-hour electricity tariff with Samancor Chrome and Glencore-Merafe Chrome’s ferrochrome smelters, sending the agreement to the National Energy Regulator of South Africa for sign-off. The utility said the new tariff would help shore up liquidity—no need for higher standard rates, additional borrowing, or more government cash.
Glencore-Merafe says it has provisionally agreed to the new terms, though it’s still seeking clarifications and has set out some conditions. The company has now pushed back the termination date for its Section 189 retrenchment process to May 11. Section 189 is the required South African legal route for companies looking at major job cuts.
Fullard told Argus the 62c/kWh tariff is only enough for the venture to break even—“just a breakeven”—but it’s what’s keeping staff on the payroll. Samancor and Glencore produced roughly 1 million tonnes of ferrochrome in 2025, Fullard said, but with the new arrangement, output could jump to as much as 4.5 million tonnes a year. Argus Media
The tariff reduction would help level the playing field for Glencore-Merafe in its rivalry with Samancor, its top local competitor, while South African smelters still contend with competition from China. Back in February, Reuters pointed out that South Africa—once the world’s leader in chrome ore output—has seen its edge in chrome processing slip to China, due mostly to high power prices.
The deal still hangs in the balance. According to Engineering News, NERSA has set its sights on reaching a decision by the end of June, following public consultation. For Glencore-Merafe, the regulator’s process injects plenty of uncertainty—timing, commercial terms disclosure, and final approval all remain up in the air before any large-scale restart gets the green light.
Another worry lingers: lowering the tariff might not be enough to bridge the long-term cost divide. Fullard told Argus that Glencore must “aggressively” pursue other technologies, cautioning that if Chinese energy prices drop again, South Africa risks losing its edge once more. Argus Media
There’s an upcoming checkpoint for the market: Glencore has set April 30 for its first-quarter production report, according to the company’s corporate calendar. Investors are expecting fresh details on copper, coal, ferroalloys, and the rest.
Glencore shares in London changed hands at 558.10 pence, a gain of 9.00 pence, as of 12:50 GMT according to the company’s lagging price page. Over in Johannesburg, the stock was marked at 124.14 rand, up 2.44 rand.
