Baar, Switzerland, April 22, 2026, 15:13 CEST
- Glencore-Merafe’s shuttered South African ferrochrome output is closer to restarting after Eskom’s 62c/kWh tariff deal.
- The lower power price still needs approval from South Africa’s energy regulator, NERSA.
- The decision lands before Glencore’s April 30 first-quarter production report.
Glencore plc’s South African ferrochrome business is moving closer to restarting shuttered capacity after state utility Eskom backed a lower electricity tariff, easing a power-cost squeeze that had put smelters and jobs at risk. Glencore Ferroalloys chief executive Japie Fullard told Argus the group would restart production after Eskom guaranteed tariff relief for the Glencore-Merafe Chrome Venture.
The development matters now because ferrochrome — a chromium alloy used mainly in stainless steel — has become a hard test of whether South Africa can keep energy-intensive industry at home. Glencore said in January its attributable ferrochrome output fell 63% in 2025 after the Boshoek and Wonderkop smelters were suspended in May and June.
Eskom said on April 10 it had concluded a 62 cents per kilowatt-hour electricity tariff for Samancor Chrome and Glencore-Merafe Chrome ferrochrome smelters, and had submitted the deal to the National Energy Regulator of South Africa for approval. The utility said the arrangement would improve its liquidity without higher standard tariffs, more borrowing or extra government support.
Glencore-Merafe has provisionally accepted the revised terms, subject to clarifications and conditions, and extended the termination date of its Section 189 job-cut process to May 11. Section 189 is the South African legal process companies must follow when considering large-scale retrenchments.
Fullard told Argus the 62c/kWh tariff gives the venture “just a breakeven” and helps “keep our people in jobs.” Samancor and Glencore together produced about 1 million tonnes of ferrochrome in 2025 and could produce as much as 4.5 million tonnes a year under the new deal, Fullard said. Argus Media
The tariff cut would also put Glencore-Merafe on a more even footing with Samancor, its main domestic peer, while South African smelters continue to face pressure from Chinese producers. Reuters reported in February that South Africa, the world’s biggest chrome ore producer, had lost its top position in chrome processing to China, largely because of electricity costs.
But the deal is not done. NERSA has said it aims to decide by the end of June, after public consultation, Engineering News reported. The regulator’s process means timing, disclosure of commercial terms and final approval remain the main risks for Glencore-Merafe before any broad restart can be locked in.
There is a second risk: even a cheaper tariff may not solve the long-term cost gap. Fullard told Argus that Glencore needs to look “aggressively” at alternative technologies, warning that South Africa could again be uncompetitive if Chinese energy costs fall further. Argus Media
The market has a near-term marker. Glencore’s own corporate calendar lists its first-quarter production report for April 30, giving investors a scheduled update point for output trends across copper, coal, ferroalloys and other units.
Glencore’s London shares were quoted at 558.10 pence, up 9.00 pence, at 12:50 GMT on the company’s delayed share-price page. Its Johannesburg-listed stock was shown at 124.14 rand, up 2.44 rand.
