Glencore statement regarding the recommissioning of Lion Smelter and Ferroalloys industry in South Africa

The Glencore-Merafe Chrome Venture (“the Venture”) is pleased to confirm that the Lion Smelter in Steelpoort, Limpopo Province, achieved its first ferrochrome production tap on 16 February 2026, following the successful recommissioning of 50% of its operating capacity. This milestone follows the National Energy Regulator of South Africa’s (NERSA) approval of a 12-month interim electricity tariff of 87.74c per kWh (“interim tariff”). The Venture anticipates that the smelter will return to full operational capacity by the end of March 2026.

While the interim tariff of 87.74c per kWh enables Lion Smelter to return to operation in the short term, it unfortunately remains insufficient for it to operate sustainably over the longer term. The same applies to Boshoek and Wonderkop smelters. All three operations would require a tariff of 62c per kWh, to operate on a commercially viable basis over the long term.

The Venture therefore continues engaging constructively with all relevant stakeholders to secure a long-term solution that supports the stability and viability of all smelters and remains hopeful that a feasible tariff solution will be secured before the 28 February 2026 deadline for the Section 189 consultation process affecting the Boshoek and Wonderkop smelters and Glencore’s Carbon Division (Chartech).

In the interim, the Venture will continue implementing its current business restructuring, streamlining, and right-sizing initiative designed to strengthen its long-term operational viability against a very challenging global market environment.

The Venture reaffirms its commitment to working collaboratively with government, regulators, labour, and community stakeholders to implement sustainable, long-term solutions that protect jobs, support local economies, and secure the future of South Africa’s ferroalloys industry.

“The level of collaboration across all stakeholders must not be underestimated. Everyone is working very hard to reach a sustainable solution, especially ESKOM, Labour organisations and the Department of Energy and Electricity, said Japie Fullard, CEO  Glencore Ferroalloys."