Glencore-Merafe Ferrochrome Venture Extends Retrenchment Deadline Amid Eskom Tariff Negotiations

The Glencore-Merafe Chrome Venture delays retrenchment decisions until April 9 as Eskom reviews electricity tariff counter-proposals to save the smelting sector.

By: AXL Media

Published: Apr 7, 2026, 10:26 AM EDT

Source: Information for this report was sourced from Mining Weekly

Extensions Driven by Power Pricing Talks

The Glencore-Merafe Chrome Venture has agreed to a second extension for its Section 189 retrenchment consultations, moving the termination date from April 7 to April 9, 2026. This follows a statement from JSE-listed Merafe confirming that the delay was requested by Eskom. The extension provides a narrow window for the parties to finalize negotiations over electricity pricing, which the venture claims is critical to avoiding large-scale job losses and the permanent closure of ferrochrome smelters.

The Search for a "Workable" Tariff

At the heart of the dispute is a proposed 62c/kWh tariff offer introduced by Eskom on February 27. While designed to provide relief to energy-intensive users like Glencore-Merafe and Samancor Chrome, the producers initially labeled the accompanying terms and conditions as "unworkable." However, recent communications from Merafe suggest a growing optimism that a balanced solution—potentially involving a revised version of the 62c/kWh rate—could be reached to ensure the global competitiveness of South Africa’s ferrochrome sector.

Broader Industry Hardship: The Case of Transalloys

The struggle for affordable power is not limited to ferrochrome. The National Energy Regulator of South Africa (Nersa) has launched a public process to amend the Negotiated Pricing Agreement (NPA) for Transalloys, a manganese ferroalloys producer. Transalloys reported financial hardship in late 2025, citing "take-or-pay" contractual terms that became unsustainable as market conditions forced production cutbacks. The company’s electricity usage is expected to fall below the mandatory 80 GWh threshold, prompting a request for a temporary amendment to its contract.