Eskom's Tariff Slash Aims to Revive South Africa's Smelting Sector

In a strategic move to stabilize South Africa's smelting industry, Eskom has enacted a 29% reduction in electricity tariffs for two beleaguered ferrochrome companies. This decision targets Samancor Chrome and the Glencore-Merafe Resources joint venture, slashing rates to 62 South African cents per kilowatt-hour.

This tariff adjustment represents a significant decrease from the interim rate of 87.74 cents per kilowatt-hour and aims to address the crippling energy costs that have forced numerous plants to shut down. Eskom's intervention is anticipated to rejuvenate the sector, with expectations to increase operational smelters from 11 to 45 by December 2023.

Electricity Minister Kgosientsho Ramokgopa indicated the government might extend broader relief to the smelting industry, which has seen a 900% rise in electricity costs since 2008. Such efforts aim to reclaim South Africa's position in chrome processing from China.