Glencore Merafe Chrome Venture responds to NUMSA statement regarding potential retrenchments following tariff outcome

The Glencore Merafe Chrome Venture (“ the Venture ”) notes the media statement issued by the National Union of Metal Workers of South Africa ( “NUMSA ”) on 23 March 2026 regarding potential retrenchments in the ferrochrome industry as a result of certain conditions attached to the proposed 62 c/Kwh tariff announced by Eskom and Government on 27 February 2026 (“ proposed tariff solution ”) for the South African Ferrochrome Industry .

At the outset, the Venture would like to publicly acknowledge NUMSA ’s, other unions and Government’s involvement in the extensive process leading to the announcement of the proposed tariff solution. This support has been invaluable and is much appreciated .

However, and as communicated publicly, the Venture is currently engaged in urgent discussions with Eskom and Government regarding the Terms and Conditions . Whilst Eskom and Government confirmed their in-principle approval for the tariff solution , they simultaneously also indicated that the detailed terms, conditions and contractual framework still need to be finalised with ferrochrome producers and approved by NERSA before implementation thereof .

After a careful review of the conditions attached to the proposed tariff solution, the Venture identified several of these conditions that would make it commercially unworkable , uncompetitive and unsustainable for our business .

In order for the terms and conditions to support the long -term viability of our ferrochrome operations, it must be reasonable and commercially sound to sustain stable production over the long term . The current conditions attached to the approved tariff solution unfortunately do not allow us to reopen our smelters on a competitive basis .

As a result on 12 March 2026, the Venture submitted a final counterproposal to Eskom, aimed at ensuring a balanced and sustainable outcome for Glencore Ferroalloys.

If endorsed by the Board, the revised terms or conditions of the approved tariff solution will then be submitted to NERSA for final approval.

These steps need to be completed before the extended Section 189 termination date of 31 March 2026, which the Venture moved at significant cost from 28 February 2026 in good faith .

The Venture further notes that, despite the suspension of smelter operations since April 2025, the Venture has continued to pay affected employees in full to date to mitigate the impact on them and their families.

Finally, the Venture regrets to confirm that unless agreement is reached with Eskom on commercially viable tariff terms, and unless the revised proposal is submitted to NERSA for approval within the required timeframe, the Venture will unfortunately have no alternative but to proceed with Section 189 terminations .

This remains the last resort, and the Venture continues to do everything within its control to avoid this outcome .