Tuesday dawns as the end of the latest week-long reprieve in drawn-out talks to save 3,000 jobs in SA’s ailing ferrochrome smelter industry.
The joint Glencore-Merafe ferrochrome venture agreed last Tuesday to a formal request from Eskom for a 7-day freeze in its section 189 retrenchment processes.
A 62 c/Kwh tariff “has been approved in principle by Eskom, and the current focus remains on finalising the associated terms and conditions of the tariff, to ensure that the commercial arrangements are workable, financially sustainable, and operationally viable for both Eskom and the Venture,” says a statement dated March 31 on the Glencore website.
“As part of this process, Eskom’s internal governance approvals are still under way.
“Given the strategic importance of the decision, these are taking longer than initially anticipated.”
“The Venture welcomes the progress made to date and remains confident that a balanced and workable solution can be reached.
“Engagement with Eskom, the government and all relevant stakeholders will continue to ensure that a sustainable resolution is achieved as soon as possible.”
Eskom had a rather longer view on the whole process, however, and phrased things more gingerly on its website:
“As a first step, a time-bound tariff intervention of 87.74c/kWh was introduced in January 2026 for a period of 12 months,” explains the most recent statement, which is attributed to group CEO Dan Marokane on February 27.
“While this helped stabilise operations temporarily, it also highlighted the urgency of establishing a more sustainable, long‑term solution.
“Eskom and the Board have supported a framework towards a tariff of 62 cents per kilowatt-hour, with specific terms and conditions attached.
“The proposed contract and framework aim to provide stability to the ferrochrome industry by supporting its recovery, while Eskom identifies viable pathways toward a more appropriate price trajectory for industries in distress, subject to NERSA approval.
“This framework reflects Eskom’s ongoing commitment to enabling industrial growth in line with our nation’s priorities,” Marokane added.
“This solution is a culmination of collaborative work across relevant stakeholders. The safeguarding of households and businesses from unintended cost impacts remains central to Eskom’s mandate.”
The State-owned utility said the nature and content of these terms and conditions would be made public as part of the Nersa public participation process. - DDR
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