Merafe Resources has withdrawn its retrenchment notice after a breakthrough on electricity pricing for the ferrochrome industry.
Through the Glencore-Merafe Chrome Venture, Merafe Resources sent out Section 189 notices warning that up to 3 000 jobs could be cut due to the temporary shutdown of the Wonderkop and Boshoek smelters, which were badly affected by high electricity costs.
Section 189 consultation process withdrawn
The mining company, specialising in chrome mining and beneficiating chrome ore into ferrochrome, confirmed that it has withdrawn the Section 189 consultation process.
“As communicated previously, Nersa advised that a public participation process in respect of the proposed tariff was to be held on 25 May 2026, and the final decision in respect of the proposed tariff would be published by 15 June 2026.
“After discussion between the Glencore-Merafe Chrome Venture (the “Venture”) and Nersa, the Venture requested that Nersa conclude the submission by the end of May 2026. The Venture is pleased to announce the approval of the proposed tariff for the South African ferrochrome industry as a whole by NERSA,” the company said.
Tariff reduction to ease pressure on smelters
Nersa approved a proposed lower electricity tariff of 62 cents per kilowatt-hour for the ferrochrome industry.
The tariff is expected to ease pressure on energy-intensive smelters, which have struggled with high power costs in recent years. Electricity is one of the largest expenses in ferrochrome production, and steep tariffs had raised fears of plant closures and job losses.
Step towards stabilising operations
Merafe said the withdrawal of the Section 189 process marks an important step towards stabilising operations. The company is now looking to move ahead with a phased restart of its business.
However, discussions with Eskom are still ongoing to finalise the detailed terms of a negotiated pricing agreement. These terms will be critical in determining whether the lower tariff can support the long-term sustainability of the industry.
“Discussions with Eskom are ongoing to finalise the detailed terms and conditions of the Negotiated Price Agreement to give effect to the Proposed Tariff. These terms remain critical in determining the commercial viability and long-term sustainability of the tariff solution,” the company said.
- Merafe Resources has withdrawn its Section 189 retrenchment notices after a breakthrough on electricity pricing for the ferrochrome industry.
- The company warned that up to 3,000 jobs were at risk due to high electricity costs causing temporary shutdowns of the Wonderkop and Boshoek smelters.
- The National Energy Regulator of South Africa (NERSA) approved a reduced electricity tariff of 62 cents per kilowatt-hour for the ferrochrome sector, easing cost pressures on smelters.
- Merafe views this tariff approval as a key step toward stabilizing operations and plans a phased restart of its business.
- Finalizing a negotiated pricing agreement with Eskom remains critical to ensure the sustainability and commercial viability of the new tariff.
