However, no viable tariff reduction or support mechanisms have been proposed so far, and Meraf believes that this situation is unsustainable for an industry that is already under severe price pressures. The company emphasized that a competitive price for electricity is essential to maintain the efficiency of its ferrochrome plants in the face of rising electricity prices.
Abbreviations and possible production stops
If urgent support is not provided, Merafe Resources says it will have to begin the reduction process in the coming weeks.
The company has already outlined operational response measures, according to which Wonderkop and Boshoek Steel Plants will be transferred to care and maintenance, while only the Lion smelter will remain operational.
Merafe said it would maintain transparent communication. with employees, trade unions, and government stakeholders as the situation develops.
