The Glencore Merafe Chrome Venture (“the Venture”) supports Eskom’s public call for an expedited regulatory process in respect of the proposed electricity tariff (“proposed tariff”) relief for the South African ferrochrome industry. Timely regulatory consideration is critical for the stabilisation of the sector and supporting its long-term sustainability.
Several of the Venture’s smelters have been idle for more than a year, highlighting the severity of the challenges confronting local ferrochrome producers, and the increasing risk to employment and downstream value chains.
Eskom has submitted the proposed tariff and revised terms and conditions to the National Energy Regulator of South Africa (“NERSA”). The Venture believes it is essential that NERSA’s public participation and review process is truncated and concluded as efficiently as possible, within the regulatory framework.
Considering the planned employment termination date of 11 May 2026, an expedited regulatory process is very important, and as such this date was chosen to specifically accommodate ongoing negotiations and the NERSA approval process.
Regulatory certainty within this timeframe is critical to enable responsible decision-making and to preserve options for sustaining operations and employment where possible. Continued delays materially increase the risk of the loss of jobs.
The Venture is currently considering the latest NERSA approval timelines but are not in a position to extend this process beyond the end of May 2026 as envisaged in their timetable.
The Venture remains committed to constructive engagement with Eskom, government, organised labour, regulators, and other stakeholders, and supports all efforts aimed at ensuring the continued viability of the South African ferrochrome industry and the communities that depend on it.
