Eskom gains approval for ferrochrome power discounts
South African utility Eskom received approval from regulator Nersa to provide discounted electricity rates to major ferrochrome producers Samancor Chrome and the Glencore-Merafe venture. The interim tariff is set at 0.62 rand per kilowatt-hour to support the struggling sector without requiring additional government fiscal support.
South Africa regulator Nersa approved a discounted power tariff of 0.62 rand per kilowatt-hour for ferrochrome smelters. The interim rate targets producers Samancor Chrome and a joint venture between GLENCORE PLC and MERAFE RESOURCES LTD. Lower energy costs aim to restore competitiveness after power prices rose tenfold since 2008, forcing dozens of local plants to close.
South Africa previously lost its status as the top global ferrochrome processor to China mainly due to high electricity costs. Samancor Chrome will operate under a five-year discounted tariff agreement. The Glencore-Merafe venture secured a three-year term.
