Merafe reports 63% slide in ferrochrome production amid industry crisis
Mining
A section of the Glencore Merafe Chrome Venture. Challenges such as high energy costs and increased competition from China have led to the suspension of the group's smelting operations
Image: Supplied
Merafe Resources' attributable ferrochrome production decreased by a substantial 63% in the year to December 31, 2025 due to the closure of smelters.
Merafe's attributable ferrochrome production from the Glencore Merafe Chrome Venture for the fourth quarter to December 31, 2025 was 147 tons, resulting in a decrease of about 63% in production for the year, compared to the year before, the company said in an update Tuesday.
Merafe holds a 20.15% stake in the Glencore Merafe Chrome Venture. The company's attributable chrome ore production from the Venture in the fourth quarter was 222kt, resulting in a decrease of about 2% in production compared to the prior comparative period.
This decrease in production was mainly due to temporary equipment breakdowns, the company said. Most of South Africa's ferrochrome smelters have been shut down in the past 18 months mainly due to soaring electricity costs, unreliable power supply and competition from cheaper Chinese producers.
In December, Merafe told its shareholders that Glencore Ferroalloys, acting also on behalf of Merafe, were holding talks with Eskom Holdings and other relevant stakeholders, to find a workable energy solution to prevent the collapse of the ferrochrome industry, with the aim of reaching a solution by no later than February 28, 2024.
Merafe's attributable platinum group metals (PGMs) concentrate production from the Venture was 4koz in the fourth quarter, resulting in an increase of approximately 5% in production compared to the prior comparative period. This increase was largely due to higher feed tonnages.
Merafe's share price was lower by 0.89% to R1.11 on Tuesday morning. A year ago the share traded at R1.56.
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