Lion Smelter recommissions to its 50% ferrochrome operating capacity
Sandton – Merafe has reported that the Lion Smelter in Steelpoort, Limpopo Province (“Lion Smelter”) achieved its first ferrochrome production tap on 16 February 2026, following the successful recommissioning of 50% of its operating capacity. This follows the approval by the National Energy Regulator of South Africa (NERSA) of a 12 month interim electricity tariff of 87.74c per kWh (“Interim Tarriff”).
The Glencore-Merafe Chrome Venture (“Venture”) anticipates that the Lion Smelter will return to full operational capacity by 31 March 2026.
While the Interim Tariff enables the Lion Smelter to return to full operational capacity in the short term, it remains insufficient to support sustainable operations over the long term. The same position applies to Boshoek or Wonderkop smelters. All three smelter operations would require a tariff of 62c per kWh to operate on a commercially sustainable and viable basis over the long term.
The Venture therefore continues to engage constructively with all relevant stakeholders to secure a long term solution that supports the stability and viability of all smelters and remains hopeful that a feasible tariff solution will be secured by 28 February 2026, being the deadline for commencement of the consultation process, in terms sections 189 and 189A of the Labour Relations Act, 66 of 1995, affecting the Boshoek and Wonderkop smelters.
In the interim, the Venture will continue to implement its current business restructuring, streamlining and right-sizing initiatives designed to strengthen its long term operational viability against a very challenging global market environment.
The Venture reaffirms its commitment to working collaboratively with government, regulators, labour and community stakeholders to implement sustainable, long term solutions that protect jobs, support local economies and secure the future of South Africa’s ferroalloys industry.
