{"id":451705,"date":"2026-05-29T21:17:11","date_gmt":"2026-05-29T21:17:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/451705\/"},"modified":"2026-05-29T21:17:11","modified_gmt":"2026-05-29T21:17:11","slug":"south-africa-approves-discounted-eskom-power-tariff-to-save-chrome-industry-from-china-competition","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/451705\/","title":{"rendered":"South Africa approves discounted Eskom power tariff to save chrome industry from China competition"},"content":{"rendered":"


\n In a move aimed at preventing further decline in the country\u2019s ferrochrome sector, energy regulator NERSA has approved a discounted power tariff for Samancor Chrome and the Glencore-Merafe ferrochrome joint venture<\/a>, giving the companies access to electricity at 62 South African cents ($0.038) per kilowatt-hour. \n <\/p>\n


\n For South Africa, the stakes go far beyond chrome. \n <\/p>\n


\n The country holds the world\u2019s largest chrome ore reserves and remains the biggest producer of the raw mineral. \n <\/p>\n


\n Ferrochrome is a crucial ingredient in stainless steel production, making it an important part of global manufacturing supply chains. \n <\/p>\n


\n South Africa\u2019s ferrochrome industry has been under pressure for more than a decade as electricity prices surged. \n <\/p>\n


\n The closures have had ripple effects across mining communities, suppliers and exporters, raising concerns about job losses and the long-term erosion of the country\u2019s industrial base. \n <\/p>\n


\n A battle for beneficiation \n <\/p>\n


\n The latest intervention comes at a time when African governments are increasingly trying to process more of their mineral resources domestically instead of exporting raw materials. \n <\/p>\n


\n The issue has become even more important amid a global race for critical minerals and industrial supply chains, with countries seeking greater control over value-added manufacturing. \n <\/p>\n


\n South Africa\u2019s chrome industry sits at the centre of that debate. \n <\/p>\n


\n While the country continues to mine vast quantities of chrome ore, much of the value generated from processing that ore increasingly accrues elsewhere. \n <\/p>\n


\n Industry groups have long argued that high electricity costs are one of the biggest obstacles preventing local producers from competing internationally. \n <\/p>\n


\n By approving the discounted tariff, regulators are effectively attempting to preserve local processing capacity and prevent further migration of production overseas. \n <\/p>\n


\n Eskom<\/a> said the agreements will run for different periods, five years for Samancor Chrome and three years for the Glencore-Merafe venture, but will operate under similar pricing and risk-sharing arrangements. \n <\/p>\n


\n The utility argues that keeping ferrochrome smelters operational is not only important for industrial output but also for employment, export revenues and electricity demand. \n <\/p>\n


\n \u201cThe framework is structured within a regulated environment, includes appropriate risk-sharing mechanisms and does not place additional financial obligations on standard tariff customers or taxpayers,\u201d Eskom Chief Executive Dan Marokane said. \n <\/p>\n


\n Eskom further stated that the revenue impact of the discounted tariff will be ring-fenced and cannot be recovered from households or businesses through future tariff adjustments. \n <\/p>\n


\n Eskom\u2019s turnaround creates room for intervention \n <\/p>\n


\n The approval also highlights how dramatically Eskom\u2019s position has changed in recent years. \n <\/p>\n


\n Just a few years ago, South Africa\u2019s electricity crisis was dominated by rolling blackouts that crippled mining and manufacturing activity. \n <\/p>\n


\n However, improvements in plant performance and generation availability have significantly reduced power disruptions, giving the utility more flexibility to support strategic industries. \n <\/p>\n


\n Marokane acknowledged that Eskom\u2019s operational recovery played a role in making the arrangement possible. \n <\/p>\n


\n \u201cWithout the success of Eskom\u2019s turnaround over the past three years, driven by the commitment of our 40,000 employees, we would not have been in a position to support the ferrochrome industry or help prevent significant job losses,\u201d he said. \n <\/p>\n


\n It is a test of whether the country can retain more value from its mineral wealth, protect industrial jobs and remain relevant in a global ferrochrome market increasingly dominated by China. \n <\/p>\n


\n The outcome could shape not only the future of South Africa\u2019s chrome industry but also wider debates across Africa about how resource-rich economies can compete in the race to process, rather than simply export, their natural resources. \n <\/p>\n","protected":false},"excerpt":{"rendered":" In a move aimed at preventing further decline in the country\u2019s ferrochrome sector, energy regulator NERSA has…\n","protected":false},"author":2,"featured_media":451706,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-451705","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/451705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=451705"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/451705\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/451706"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=451705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=451705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=451705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}