JOHANNESBURG, Dec 8 (Reuters) - South Africa is working on ways to support its ferrochrome industry, state power utility Eskom said on Monday, as it announced an agreement with Samancor Chrome and the Glencore-Merafe Chrome Venture.

Eskom said in a statement that the memorandum of understanding with the two companies followed constructive engagements on Friday with the country's minister of electricity and energy and trade unions.

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Samancor Chrome and the joint venture between Glencore (GLEN.L) , opens new tab and Merafe Resources (MRFJ.J) , opens new tab have said they are considering job cuts because of pressures including the cost of electricity.

Energy regulator Nersa is currently reviewing an interim power tariff adjustment for the two firms, and the government is working on a longer-term mechanism to support competitive pricing for the ferrochrome sector, Eskom said.

South Africa holds approximately 80% of the world's known chrome ore reserves, according to Glencore, positioning the country as a key player in global ferrochrome production.

Once an interim tariff for Samancor Chrome and the Glencore-Merafe Chrome Venture is approved the companies have committed to suspend layoff processes and bring back about 40% of their furnace capacity while a long-term solution is being developed, Eskom added.

https://www.reuters.com/sustainability/boards-policy-regulation/south-africa-is-working-ways-help-ferrochrome-firms-eskom-says-2025-12-08/