South African ferrochrome producer Glencore-Merafe Chrome Venture, a joint venture between Glencore and Merafe Resources, has announced the closure of its Boshoek and Wonderkop ferrochrome smelters, citing unsustainable electricity costs. Layoffs and voluntary redundancy packages were issued to employees on December 1, with workforce reductions scheduled for December 9.

Merafe attributed the closures to the failure of negotiations with state-owned power company Eskom to secure more favorable electricity prices. Eskom’s proposed electricity pricing scheme on November 28 could only support the continued operation of the Lion smelter, leaving Boshoek and Wonderkop without a long-term solution.

Affected by ongoing market and economic pressures, the Boshoek and Wonderkop smelters had previously suspended operations on May 1 and May 31, respectively. The Lion smelter also halted production temporarily for maintenance on May 31.

With no viable electricity arrangement, Boshoek and Wonderkop will enter maintenance mode starting January 1, 2026.