After months of uncertainty and mounting anxiety among workers, the threat of large-scale job losses at Glencore Merafe Chrome Venture’s ferrochrome smelters has been lifted.
South Africa’s energy regulator, the National Energy Regulator of South Africa (Nersa), has approved a significantly reduced electricity tariff for the country’s ferrochrome industry — a move widely seen as critical to stabilising a sector that has been under severe pressure from soaring power costs.
Glencore confirmed on Friday that Nersa had approved a new electricity tariff of 62c/kWh for the ferrochrome industry, down sharply from the previous 87c/kWh under the existing Negotiated Pricing Agreement (NPA). The reduction represents a major cost relief for energy-intensive smelting operations.
For the Glencore Merafe Chrome Venture, the decision directly safeguards approximately 1,500 jobs that had been at risk. It also provides much-needed support to other ferrochrome producers, including Samancor Chrome, jointly owned by Anglo American and South32.
“This approval represents a significant milestone and an important step towards stabilising operations and supporting a more sustainable future for the Venture’s smelting business,” Glencore said in a statement.
As a result of the tariff approval, the venture confirmed that it has lifted its Section 189 consultation process — the formal procedure under South African labour law that precedes retrenchments.
“In parallel, and in line with this progress, the Venture confirms that the Section 189 process has been lifted, marking a further step towards stabilising operations and progressing the phased restart of the business,” the company said.
However, discussions with Eskom are ongoing to finalise the detailed terms and conditions of the revised Negotiated Pricing Agreement. Glencore stressed that the final structure of the agreement remains crucial.
“These terms remain critical in determining the commercial viability and long-term sustainability of the tariff solution,” the company noted.
While the reduced tariff offers immediate relief, industry leaders caution that it is only the first step toward rebuilding South Africa’s ferrochrome sector. The industry has been battered by escalating electricity prices, which have risen nearly tenfold since 2008. As a result, South African producers have struggled to compete with lower-cost operators in China.
According to industry reports, only 11 of South Africa’s 66 ferrochrome smelters remain operational — a stark illustration of the sector’s decline.
Japie Fullard, head of Glencore’s ferroalloys division in South Africa, has previously emphasised the need for innovative financing models and structural reforms to restore competitiveness and attract investment back into the industry.
The Nersa tariff decision now offers renewed hope that mothballed furnaces could eventually be restarted, preserving critical industrial capacity and supporting mining communities that depend on ferrochrome production.
For thousands of workers and their families, the ruling provides immediate relief — and a renewed chance for stability in a sector vital to South Africa’s mineral economy.
