South Africa’s energy regulator Nersa has approved a discounted electricity tariff of $0.038 per kilowatt-hour for ferrochrome producers Samancor Chrome and the Glencore-Merafe joint venture. Utility company Eskom applied for the reduced rate in April, with a public hearing held in late May. The deal will run for five years for Samancor Chrome and three years for the Glencore-Merafe venture. South Africa is the world’s largest chrome ore producer and was the largest processor of the metal into ferrochrome. However, it has since lost this position to China, largely due to electricity costs that have surged roughly tenfold since 2008, forcing dozens of smelters to close. Eskom said the arrangement includes risk-sharing provisions tied to market performance and will not require taxpayer support or place additional financial burdens on other electricity customers.
Reuters
