Eskom signed a Memorandum of Understanding (MoU) with ferrochrome producers on Monday, following discussions with the Minister of Electricity and Energy and organised labour, on Friday.
The sector has been struggling with hefty electricity costs and applied to the energy regulator (NERSA), to have adjusted tariffs for smelters.
Daphne Mokwena, Eskom Spokesperson, said a task team made up of Eskom, two producers (Samancor Chrome and the Glencore–Merafe Chrome Venture) and government representatives, will develop a sustainable, long-term intervention for the ferrochrome sector.
The parties agreed to present a proposed solution within three months to NERSA, who is currently processing an application for an interim tariff adjustment for the smelters.
“Once the interim tariff is approved, the smelters have committed to suspend the Section 189 retrenchment process and bring about 40% of their furnace capacity back online while the long- term solution is developed under the MoU” said Mokwena.
Picture: Glencore