Optimistic of ‘workable’ tariff solution, Glencore Merafe agrees to week-long Section 189 extension
The Glencore Merafe Chrome Venture has agreed to again delay a retrenchment process under way at its ferrochrome smelters after Eskom formally requested an extension to conclude internal governance processes relating to a proposed 62c/kWh electricity tariff offer to the South African ferrochrome industry.
In a statement, Glencore Merafe, which earlier sent a counter proposal to what it described as “unworkable” conditions linked to Eskom’s initial offer, welcomed the progress being made and said it remained confident that a balanced and workable solution could be reached.
“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. Eskom has therefore formally requested a one-week extension to conclude the process,” the Glencore Merafe statement reads.
“Given the importance and urgency of achieving a viable outcome, the Venture has agreed to extend the ongoing Section 189 process until 7 April 2026,” it added.
The Section 189 deadline was initially extended to March 31 from the end of February after Eskom announced on February 27 that it had made a 62c/kWh tariff offer to ferrochrome producers Glencore‑Merafe Chrome Venture and Samancor.
Eskom indicated that negotiations on the precise terms and conditions still needed to be finalised before the package could be submitted to the National Energy Regulator of South Africa (Nersa) for approval.
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.
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