The Energy Regulator (NERSA) approved a two-year Negotiated Pricing Agreement (NPA) between Eskom Holdings SOC Limited and Manganese Metal Company (Pty) Ltd (MMC).
NERSA also approved that Eskom can charge the company a special base tariff, as from the 1st of August 2026.
The tariff rate will be escalated annually on the 1st of April by Producer Price Index (PPI) + 1% for the duration of the agreement.
The company plans to produce high-quality, selenium-free electrolytic manganese metal in Mbombela from the 1 August 2026 until July 2028.
Willy Majola, Full-Time Regulator Member Primarily Responsible for Electricity Regulation, said the approval will help safeguard critical industrial capacity, preserve thousands of direct and indirect jobs, support local beneficiation and mitigate broader negative economic and social impacts on affected communities and the national economy.
MMC would remain liable for a minimum consumption payment based on 80% of normal consumption, measured over each calendar quarter, and adjusted for substantiated significant events that prevented operating at normal levels, and will equally share with Eskom on an annual basis any gross profits above projections (6%), limited to the rebate provided against the Megaflex tariff.
Majola also said Eskom is required to submit progress reports on the implementation of the special price three months after the effective date and every three months thereafter until the end of the NPA period.
Picture: Phonix Capture