South Africa's intensive energy users received a major lifeline after the National Energy Regulator of South Africa approved a deeply discounted electricity tariff for the domestic ferrochrome industry.
The approved rate slashes power tariffs by roughly 54% to 62 cents per kilowatt-hour.
The decision has prompted the Glencore-Merafe Chrome Venture to withdraw its Section 189 retrenchment consultations, effectively saving up to 1,500 jobs that had been at risk since the joint venture initiated restructuring proceedings in September 2025.
South African smelters, which rely on immense baseload power to process chrome into ferrochrome for global steel production, have seen electricity costs skyrocket tenfold since 2008.
This, alongside aggressive competition from Chinese producers, decimated local supply-side capacity, leaving only 11 of the country's 66 smelters operational.
The structural unviability forced Merafe Resources to suspend production at its Boshoek, Wonderkop, and Lion smelters in May 2025.
While NERSA's sweeping regulatory approval extends to the entire South African ferrochrome sector following joint negotiations by top producers Merafe and Samancor Chrome, the commercial rollout remains subject to power grid realities.
Glencore-Merafe noted that it is still in ongoing discussions with state utility Eskom Holdings to finalize the specific terms and conditions of a negotiated price agreement.