After consulting with South African electricity company Eskom, the company concluded that the proposed electricity tariff structure would allow only the Lion smelter to continue operating, leaving the Boshoek and Wonderkop smelters without sustainable progress. As a result, the company has issued conditional reduction notices and approved a voluntary exit package (VSP) from December 1, 2025, with decisions becoming final on December 8, unless there is government interference. If no decision is made, the official cuts will take effect on December 9, and the Boshoek and Wonderkop divisions will be transferred to care and maintenance from January 1, 2026.
Merafe emphasized that it will continue to engage with stakeholders to maintain operational sustainability wherever possible.
Smelters that are uncompetitive after the increase in electricity prices
Minerals South Africa, the mining industry employers' organization, said the ferroalloy industry urgently needs globally competitive electricity prices to restore viability. Over the past 17 years, electricity tariffs in South Africa have increased by more than 900 percent, making domestic smelting operations uncompetitive compared to international producers. According to the industry association, there are no measures
