South Africa's Power Play: Eskom's Tariff Reduction to Resuscitate Ferrochrome Sector

In a decisive move, South Africa's energy regulator approved Eskom's application to slash electricity tariffs by 35% for two ferrochrome operations, alleviating high power costs which have previously shuttered numerous smelters across the nation.

The state utility, in December, sought approval to aid Samancor Chrome and a Glencore-Merafe joint venture, aiming to avert additional smelter closures and save jobs amidst viability challenges exacerbated by high electricity costs.

The tariff reduction, effective from January 2026, mandates government intervention to fund the discrepancy between current and reduced tariffs. Majola emphasized the need for this cost not to burden standard customers, as the nation fights to reclaim its former status as the top ferrochrome processor.