Glencore Merafe Chrome Venture Extends Retrenchment Deadline Amid Ongoing Eskom Electricity Tariff Negotiations

Glencore Merafe Chrome Venture extends Section 189 process as Eskom seeks a final 62c/kWh tariff agreement to save ferrochrome smelting jobs.

By: AXL Media

Published: Mar 31, 2026, 9:30 AM EDT

Source: The information in this article was sourced from Engineering News

A Critical Reprieve for the Ferrochrome Sector

The Glencore Merafe Chrome Venture has signaled a cautious optimism regarding the future of its smelting operations by agreeing to once again delay a widespread retrenchment process. This decision follows a formal request from the state utility, Eskom, to extend the current Section 189 process, which was originally slated for conclusion on March 31. The extension provides a vital window for Eskom to navigate its internal governance hurdles as it attempts to finalize a specialized electricity tariff package designed to keep South Africa’s energy-intensive ferrochrome producers globally competitive.

Navigating Governance and "Workable" Solutions

The ongoing dialogue between the Venture and Eskom has been centered on the feasibility of a proposed 62c/kWh electricity rate. While Glencore Merafe initially described certain terms and conditions of Eskom’s first offer as "unworkable," the recent move to extend the deadline suggests significant progress is being made toward a compromise. In a public statement, the Venture emphasized its confidence that a balanced solution is within reach, provided that the final terms align with the operational realities of the smelters. Eskom has attributed the delay in finalizing the offer to the strategic weight of the decision, which requires multi-layered approvals before being presented to national regulators.

The Role of Nersa and Public Transparency

Once Eskom concludes its internal deliberations, the proposed tariff must be submitted to the National Energy Regulator of South Africa (Nersa) for final approval. This regulatory phase will include a public participation process where the specific details of the agreement—including the nature of the subsidies or performance conditions—will be made available to the broader South African public. For ferrochrome giants like Glencore Merafe and Samancor, the outcome of this Nersa review will be the ultimate determinant of long-term fiscal stability and employment security for thousands of workers.