The Glencore-Merafe Chrome Venture has agreed to a further extension of the Section 189 retrenchment consultation deadline to April 9, marking the second delay in a week as negotiations over a reduced electricity tariff continue.
The extension follows an initial postponement from March 31 to April 7, which was announced last week. "Shareholders are hereby advised that, at Eskom's request, the Glencore-Merafe Chrome Venture has agreed to a further extension of the Termination Date to 9 April 2026," Merafe said in a statement to shareholders.
Eskom is reportedly considering a counter-proposal to the terms and conditions of its 62c/kWh tariff offer, first announced on February 27.
The utility made the offer in an effort to prevent further closures of smelting capacity by ferrochrome producers Glencore-Merafe and Samancor Chrome.
Glencore-Merafe had described the initial conditions as "unworkable" but later expressed optimism that a balanced solution could be reached.
Separately, the National Energy Regulator of South Africa (Nersa) has launched a process related to the terms of a negotiated pricing agreement (NPA) between Eskom and ferroalloys producer Transalloys. Nersa confirmed that Transalloys approached Eskom in November 2025, citing financial hardship under the take-or-pay terms of its NPA.
The company, which operates manganese ferroalloys smelters in Mpumalanga, has been vocal in calling for any tariff relief in the ferrochrome sector to be extended to the broader ferroalloys industry.
Transalloys indicated that production cutbacks were required, given prevailing market conditions, which would reduce its electricity consumption below the 80 GWh minimum threshold stipulated in its NPA. Nersa has set a closing date of April 30 for written comments on a proposed temporary amendment to the agreement.
The electricity regulator approved a 12-month extension of temporary tariff relief to Samancor Chrome and the Glencore-Merafe Chrome Venture in January after both companies demonstrated hardship under their existing NPAs with Eskom.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
