JOHANNESBURG, April 25, 2026, 19:06 SAST
- Glencore-Merafe is urging authorities to fast-track Eskom tariff relief for ferrochrome smelters in South Africa.
- Nersa has started a review of Eskom’s pricing deals with Glencore-Merafe and Samancor.
- Job cuts and unused capacity remain front and center, with the May 11 labour-process deadline hanging over the sector.
Glencore plc’s chrome business in South Africa is throwing its support behind efforts to accelerate regulatory sign-off on Eskom’s power-tariff relief proposal, as a key May 11 labor deadline looms over the bid to revive shuttered ferrochrome smelters.
Time is tight: South Africa’s energy regulator Nersa published an April 22 call for stakeholders to weigh in—written comments, plus a public hearing—on proposed changes to Eskom’s negotiated pricing deals with Samancor Chrome and the Glencore-Merafe Chrome Venture. These negotiated pricing agreements? They’re custom electricity contracts struck with major power consumers.
Glencore-Merafe Chrome Venture voiced its backing for Eskom’s push to fast-track the process, telling Mining Weekly that “timely regulatory consideration” is crucial for sector stability. The company has kept several smelters offline for over a year, the report noted, highlighting mounting pressure on South Africa’s ferrochrome industry and signaling threats to jobs and downstream supply lines. Engineering News
Ferrochrome, a combination of chromium and iron, is a key ingredient in stainless steel production. Glencore doesn’t treat its South African operations as a minor asset—far from it. The group reports a 79.5% stake in the Glencore-Merafe Chrome Venture, with smelter sites spanning Boshoek, Wonderkop, Rustenburg, Lion, and Lydenburg.
Earlier this month, the venture said it had given a provisional nod to updated terms tied to a proposed 62 cents per kilowatt-hour tariff. That’s still contingent on further clarification, industry consensus, and Nersa’s sign-off. On top of that, it pushed the cut-off for its Section 189 process—the country’s mandated step ahead of major layoffs—out to May 11.
That creates a tight timeline. The venture warned that more holdups could put jobs in jeopardy, adding it won’t be able to push the process past the end of May if the current schedule holds. It also stressed the need for regulatory clarity to keep pathways open for ongoing operations and jobs.
The planned 62c/kWh tariff comes after an earlier cut, taking the rate from 1.36 rand per kWh down to 87.74 cents by the end of 2025, according to Reuters in February. Eskom targeted the reduction at Samancor and the Glencore-Merafe joint venture, responding to skyrocketing power prices that sidelined a large chunk of South Africa’s smelting output.
Japie Fullard, chief executive of Glencore Ferroalloys, told Argus the 62c rate would mean “just a breakeven” for the company—but, he said, it’s enough “to keep our people in jobs.” In 2025, Samancor and Glencore together turned out roughly 1 million tonnes of ferrochrome. Fullard added production could climb to as much as 4.5 million tonnes a year if the new deal sticks. Argus Media
The competition is unforgiving. Samancor faces the identical regulatory process, and South African smelters have steadily lost share to Chinese rivals. Reuters notes South Africa—still the top chrome ore producer—no longer leads in converting chrome into ferrochrome, hit hardest by expensive power.
Investors see more at stake here than a single tariff. The real question: can Glencore keep its energy-hungry South African operations afloat without getting saddled with unsustainable power bills? And on the other side, is Eskom able to supply industrial power users like Glencore without pushing extra costs onto households or the government?
The deal isn’t a lock yet. Nersa signoff isn’t guaranteed, industry players still need to agree on the final terms, and cheaper tariffs might just delay problems if ferrochrome prices sag or Chinese rivals squeeze costs lower again. Back in March, Glencore-Merafe called the earlier tariff plan conditions commercially unworkable, saying they wouldn’t allow smelter restarts on competitive terms.
Glencore wrapped up Friday in London at 557.50 pence, losing 0.89% just ahead of the weekend break. While the stock tracks global commodity moves, eyes in South Africa are turning to regulatory developments as the next major catalyst.
