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[Ferro-Alloys.com] 

Power pricing predictability reached for Glencore-Merafe ferrochrome smelter

The application of State electricity utility Eskom for a six-year negotiated pricing agreement for the Glencore-Merafe ferrochrome smelter operation in Rustenburg, in the North West Province, has been approved by South Africa’s energy regulator Nersa.

This follows the ruling by the North Gauteng High Court on November 10 that Eskom is the supplier of the Rustenburg smelter and not the Rustenburg municipality.

Eskom submitted a six-year negotiated pricing agreement application for each of the five Glencore-Merafe ferrochrome smelter operations in Mpumalanga, Limpopo and North West in line with the interim framework for long-term negotiated pricing in May.

The negotiated pricing agreement under the interim framework facilitates the offering of incentive pricing for South African industries to operate competitively in their respective sectors.

In doing so, it increases price and planning predictability for the smelter and certainty to Eskom of the smelter’s demand. 

• [Editor:邢亞敏]