Merafe Ferrochrome Output Falls 46% After Smelter Halts
Boshoek and Wonderkop smelters have restarted after new electricity pricing agreements with Eskom were concluded.
Updated on Nov. 3, 2026 in Manufacturing
Merafe reported attributable ferrochrome production of 61,000 tonnes for the nine months ended 30 September 2026, down 46% year on year. The decline followed the suspension of the Boshoek and Wonderkop smelters in 2025, which resumed operations in September and October 2026 respectively.
Why it matters
The restart of the Glencore Merafe Chrome Venture smelters follows new electricity pricing agreements with Eskom that give full effect to a 62c/kWh tariff approved by the National Energy Regulator of South Africa. The ramp-up is expected to continue through 31 December 2026, a development relevant to South Africa's ferrochrome and chrome ore industry.
Merafe's nine-month figures show ferrochrome output of 61,000 tonnes, chrome ore output of 658,000 tonnes and 10,200 oz of platinum group metals concentrate, with declines of 46%, 7% and 8% respectively. The approved electricity tariff for the venture is 62c/kWh, and the extraction does not indicate how production will track over the remainder of 2026.
The players
Merafe Resources
Merafe Resources is a South African ferrochrome and chrome ore producer that holds an interest in the Glencore Merafe Chrome Venture.
Glencore
Glencore is a multinational commodities company that is a partner in the Glencore Merafe Chrome Venture with Merafe.
Eskom
Eskom is South Africa's state-owned electricity utility, which concluded new pricing agreements with the venture.
National Energy Regulator of South Africa
The National Energy Regulator of South Africa is the national body that regulates electricity tariffs and approved the 62c/kWh tariff.
The details
Production at the Boshoek smelter was suspended from 1 May 2025 and at the Wonderkop smelter from 31 May 2025. New electricity pricing agreements with Eskom were concluded in June 2026, after which Boshoek restarted in September 2026 and Wonderkop in October 2026. Lower run-of-mine production and reduced feed from upper-group-two reef concentrators also reduced chrome ore output.
Timeline
1 May 2025: Boshoek smelter production suspended.
31 May 2025: Wonderkop smelter production suspended.
June 2026: New Eskom electricity pricing agreements concluded.
September 2026: Boshoek smelter restarted operations.
October 2026: Wonderkop smelter restarted operations.
Market Landscape
The restart follows the implementation of the 62c/kWh tariff approved by the National Energy Regulator of South Africa, which made electricity pricing the decisive condition for resuming ferrochrome smelting at the Glencore Merafe Chrome Venture. Production has not yet returned to 2025 levels, with output still 46% lower for the nine-month period.
For South African electricity users and industrial buyers, the concluded Eskom pricing agreements show the approved 62c/kWh tariff being applied to a major ferrochrome producer. The restart of two smelters affects the availability of ferrochrome supply from the venture as output recovers through the rest of 2026.
The takeaway
Restarting energy-intensive smelters depended on electricity pricing agreements that gave full effect to a regulator-approved tariff. Output is recovering but remains well below the prior year, so the pace of the ramp-up through December 2026 will show how much capacity returns.
What happens next
The ramp-up of production at both smelters is expected to continue through 31 December 2026.
Further reading
For broader context on the country's metals output, see Manufacturing coverage for South Africa.
