GLENCORE has given Eskom less than a week to accept revised terms on a power discount deal that would keep its South African ferrochrome smelters running and protect thousands of workers from retrenchment, said Business Day in an article on Thursday.
The miner warned certain conditions in Eskom’s smelter relief package were “commercially unworkable and unsustainable for ferrochrome producers” and said it had submitted a counterproposal to the utility and the government earlier this month. The revised terms still require approval by the National Energy Regulator of South Africa (Nersa).
If no revised proposal is submitted to Nersa by March 31, Glencore said it would proceed with retrenching 2,500 workers as originally planned. The deadline had already been extended from February 28 at “significant cost”, with all affected employees paid in full despite certain smelting operations having been halted since April 2025, said the newspaper.
Glencore Ferroalloys CEO Japie Fullard had previously warned the company might walk away from talks owing to unfavourable conditions. The group said on Wednesday it would “continue to do everything within its control” to prevent the deal from collapsing.
Eskom’s relief package, which includes a 54% electricity tariff reduction for Glencore and Samancor, is designed to level the playing field with China.
Energy minister Kgosientsho Ramokgopa has said a broader sector revival could add R18bn to Eskom’s revenues and R76bn to South Africa’s export earnings.
