Glencore-Merafe Chrome Venture announces temporary suspension of production operations at Boshoek, Wonderkop and Lion smelters.

At its recent meeting Cabinet has approved that the Department of Electricity and Energy finalise a government-industry agreement for tariff re-alignment in support of the ferrochrome sector, as well as the restoration of South Africa’s industrialisation and beneficiation capacity in this sector.

It was also confirmed in the Cabinet statement that chrome ore exporters would be required to obtain a permit from the International Trade Administration Commission of South Africa, or Itac, and that a chrome ore export tax would be developed.

Besides the proposed electricity incentive, the special economic zone smelters incentives framework and regulations would also be expanded, the Cabinet statement added.

Suspension of production operations at Boshoek, Wonderkop and Lion smelters
Meanwhile the Glencore-Merafe Chrome Venture has announced the temporary suspension of ferrochrome smelting operations at the Boshoek Smelter, effective 1 May 2025, and the Lion and Wonderkop Smelters, effective 31 May 2025. During this suspension, essential maintenance will be conducted at the Wonderkop and Boshoek Smelters and the Lion Smelter will undertake its scheduled annual maintenance and planned rebuilds.

This decision, while extremely difficult, has been necessitated by challenges facing the South African ferrochrome industry which pose a serious threat to the long-term sustainability of the industry.

South Africa holds approximately 80% of the world’s known chrome ore reserves, positioning the country as a key player in global ferrochrome production. However, without urgent and coordinated action, this strategic advantage is at risk.

The Venture remains committed to engaging with all relevant stakeholders, including regulatory authorities, industry bodies, organised labour, and suppliers, to explore viable solutions. Our goal is to identify cost-saving measures and policy interventions that can help safeguard the future of South Africa’s ferrochrome sector.

We will continue to provide updates as the situation evolves and remain dedicated to working collaboratively to find sustainable solutions for the industry.