Eskom has extended negotiations over a temporary 62c/kWh electricity tariff for ferrochrome smelters until after Easter on 7 April 2026. The measure aims to prevent mass job losses at producers like Glencore-Merafe and Samancor, but the manganese and silicon sectors are excluded. Eskom chief Dan Marokane backed the proposal with specific conditions.
Eskom introduced a time-bound tariff of 87.74c/kWh for 12 months in January 2026 as a first step for ferrochrome smelters. The utility now supports a framework for 62c/kWh, negotiating with Glencore-Merafe and Samancor to protect thousands of jobs.
Glencore-Merafe must suspend its Section 189 retrenchment processes and reactivate about 40% of furnace capacity. An internal memo indicates Eskom's board needs more time for a counter-proposal, leading to the deadline extension past Easter.
"As a first step, a time-bound tariff intervention of 87.74c/kWh was introduced in January 2026 for a period of 12 months," Marokane explained. He added: "Eskom and the board have supported a framework towards a tariff of 62 cents per kilowatt-hour, with specific terms and conditions attached." Wyzetalk CEO Merel van der Lei warns cheaper power alone is insufficient.
Manganese producer Transalloys in eMalahleni pays R2.06/kWh and risks 600 jobs. Ferroglobe CEO Marco Levi threatens to cease operations without relief. The 62c/kWh requires a state subsidy of R5.2-10 billion from Eskom's R230-billion debt relief package.
