Cheaper electricity will spark ferrochrome revival, says Ramokgopa

Electricity Minister Kgosientsho Ramokgopa. Picture: GCIS Electricity and Energy Minister Kgosientsho Ramokgopa has unveiled an electricity tariff framework aimed at stabilising and revitalising South Africa’s struggling ferrochrome industry, describing the intervention as a “game changer” for the economy. Addressing the media on Friday, Ramokgopa announced government support for electricity tariff relief measures that will see significant reductions in power costs for major ferrochrome producers.

Proposed tariffs of around 62 cents per kilowatt-hour are being considered for large smelters such as Samancor Chrome and the Glencore-Merafe venture. This marks a sharp drop from the interim tariff of 87.74 cents per kilowatt-hour approved by the National Energy Regulator of South Africa (Nersa) in January 2026. Producers had previously been paying around R1.35 per kilowatt-hour.

The minister stated that the competitive benchmark is closer to 62 cents per kilowatt-hour, in line with international competitors, such as China. The intervention follows retrenchment processes initiated by major ferrochrome producers, including Glencore and Samancor Chrome, which cited unsustainable electricity prices as their primary grievance. Ramokgopa said the tariff relief is intended to stabilise operations, prevent job losses and attract smelters back into production.

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“It’s something that I could not have been able to announce about 18 months ago, and this has been made possible by the men and women of Eskom… for having the foresight in ensuring that we are able to design an acceptable framework that will make it possible for us to intervene in the South African economy,” he said. He stressed that the measures are structured within the existing fiscal framework, including the debt relief programme, and will not require new funding or shift costs onto residential consumers. “We are not asking for new money. We have no intention of socialising this cost… we are working within the existing framework,” Ramokgopa said.

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