Glencore-Merafe Partnership to Suspend Operations at Two South African Smelters

Written by Emily J. Thompson, Senior Investment Analyst

Source: SeekingAlpha

Updated: Dec 02 2025

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Source: SeekingAlpha

Closure of Smelters: Merafe Resources announced plans to close two smelters in its joint venture with Glencore due to rising electricity prices, while the Lion smelter will remain operational.
Job Cuts: The company has issued retrenchment notices and voluntary severance packages to employees, effective December 9, unless a viable solution is proposed by the South African government.
Impact of Electricity Prices: The proposed electricity tariff increases threaten the long-term viability of the Boshoek and Wonderkop smelters, highlighting challenges faced by South Africa's ferrochrome processing industry.
Context of Industry Struggles: South Africa, the leading producer of chrome ore, has seen its processing sector negatively impacted by high electricity costs and competition from China, the largest ferrochrome supplier.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.