On Wednesday, the 28 May 2025, the energy regulator (NERSA) conducted public hearings on Eskom’s request for a temporary amendment to Samancor Chrome Ferrochrome Limited and Glencore-Merafe Chrome Venture Ferrochrome Smelters’ Negotiated Pricing Agreement Take-or-Pay Terms.
This is in line with approved 6 -year pricing agreements between NERSA and four of Glencore-Merafe chrome venture ferrochrome smelters as well as six of Samanchor’s.
Part of Eskom’s arguement supporting a price slash in prices of the commodity, presented by Dharmesh Bhana, Chief Engineer, is that there is an oversupply of the market globally, which has led to a sharp decrease in price, in the last quarter of 2024.
The situation is exacerbated by Chinese smelters now flooding the market.
Bhana said this will necessitate a cut in production, further slowing supply.
Bhana also said both Glencore and Samancor, have issued notices in terms of Hardship, stating the unaffordability to produce Ferrochrome, due to price.
In addition, market conditions in the “Take it Pay” agreement, are unsustainable.
South Africa has between 70-80% of the world’s chrome ore reserves.
Chrome ore is processed to produce stainless steel.
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Picture: Mineral-Loy