South Africa Approves Discounted Power Tariffs for Ferrochrome Producers

June 1, 2026

Mintesinot Nigussie

South Africa’s electricity regulator has approved discounted power tariffs for two major ferrochrome producers, offering temporary relief to an industry strained by rising energy costs and declining domestic smelting activity.

State utility Eskom said on Friday that the National Energy Regulator of South Africa, known as Nersa, approved interim electricity tariffs for Samancor Chrome and a joint venture between Glencore and Merafe Resources.

A Nersa spokesperson told Reuters the approved tariff was set at 0.62 rand per kilowatt-hour, equivalent to about 0.0383 US dollars.

The agreements differ in duration, with Samancor Chrome receiving a five year arrangement while the Glencore-Merafe venture secured a three year term.

The move comes as South Africa’s ferrochrome industry struggles with steep increases in electricity prices that have eroded its competitiveness against China.

Eskom said electricity costs for smelters have increased roughly tenfold since 2008, contributing to the closure of dozens of plants.