Glencore-Merafe restarts two ferrochrome smelters after more than a year idle
Merafe Resources said on Tuesday that the Boshoek smelter restarted in September and Wonderkop in October. The restarts follow new power pricing deals with Eskom, and production should ramp up through the final quarter of 2026.
Merafe's attributable ferrochrome production fell 46% to 61 000 tonnes in the nine months to September. In the same period of 2025 it was 112 000 tonnes. Glencore reported its own attributable ferrochrome production of 235 000 tonnes last week.
Eskom concluded the new pricing agreements with the venture in June, under a three-year electricity pricing framework. The National Energy Regulator of South Africa approved a temporary tariff of 87.74c/kWh in January for the Glencore-Merafe and Samancor smelters. At the end of May it approved a tariff of 62c/kWh, which allowed the retrenchment consultation to be withdrawn.
Eskom said the deal restores demand from the smelters and gives it predictable electricity sales. It said this improves its liquidity without higher tariffs for other customers or more government support. Whether targeted relief will reverse the industry's decline against China is not yet clear.
Key facts
- Who
- Merafe Resources (company reporting the smelter restarts); Glencore-Merafe (venture operating the Boshoek and Wonderkop ferrochrome smelters); Eskom (electricity utility that concluded new pricing agreements with the venture); National Energy Regulator of South Africa (regulator that approved temporary electricity relief in January and a 62c/kWh…)
- What
- Merafe Resources said on Tuesday that the Boshoek smelter restart began in September and Wonderkop followed in October, with production expected to ramp up through the final quarter of 2026. Merafe's attributable ferrochrome production fell 46% to 61 000 tonnes in the nine months to September.
- When
- 3 November 2026
- Where
- South Africa
- Status
- Reported