Merafe Resources extends consultation on ferrochrome smelter crisis until 2026

MERAFE Resources said Tuesday the consultation period for a government-aided intervention to prevent its joint venture ferrochrome smelters from closing will be extended to February 28, 2026.

- EDWARD WEST

Last week, Merafe Resources said retrenchment notices would be issued for more than 2 000 workers at the Boshoek and Wonderkop smelters after an earlier government proposal on electricity tariffs to save the Glencore Merafe Chrome Venture's (JV) ferrochrome smelters from closing, would only benefit one of its three smelters.

The JV has been negotiating for years for lower electricity tariffs. Merafe's smelters account for about a third of South Africa's ferrochrome exports.

Merafe said a new Memorandum of Understanding (MOU) has been signed with Eskom following recent engagements. Estimates are that some 300 000 to 350 000 jobs have been lost due to the closure of 14 smelters across the country. Eskom said Monday in a statement that the MoU establishes a joint multi-stakeholder task team comprising Eskom, Samancor Chrome and the JV, and government representatives.

The team aims to develop an intervention "that ensures that electricity pricing solutions do not impose additional burdens on other customers."