Eskom has secured a medium-term new power agreement with ferrochrome producers, including Samancor Chrome and Glencore-Merafe, at a discounted tariff of 62c/kWh to revive operations and save thousands of jobs. The deal, which requires Nersa approval within 30 days, aims to restore up to 1,500MW of load by year-end. CEO Dan Marokane hailed it as a boost to Eskom's liquidity without needing higher tariffs or more borrowing.
Eskom and ferrochrome smelters announced a new power agreement on 10 April 2026, following intense negotiations. The deal provides a 62c/kWh tariff, down from an initial 87.74c/kWh lifeline, enabling producers like Glencore-Merafe to restart furnaces at sites including Lion Smelter, Boshoek, and Wonderkop.
Eskom CEO Dan Marokane stated the agreement "improves Eskom’s liquidity without requiring higher tariffs, additional Eskom borrowing, or further government support". He added that Eskom would work with stakeholders "to balance Eskom’s financial sustainability and regulatory responsibilities so that it can play its part in delivering electricity to drive economic growth".
The ferrochrome sector, which contributes significantly to Eskom's revenue, saw production collapse, with Glencore-Merafe reporting a 63% drop to 112 kilotonnes in FY2025 amid high standing charges of R633 million. Electricity accounts for 40% of smelter costs, at 450MWh per tonne. Glencore ferroalloys CEO Japie Fullard issued a memo on 9 April directing employees to continue shifts as talks progressed, noting the Section 189 retrenchment process remained on hold.
Energy minister Kgosientsho Ramokgopa noted on 8 April that government intervention was sought, with Eskom seeking a five-year commitment. Glencore-Merafe has provisionally accepted the deal, but long-term viability remains questioned, with calls for independent power producers.
