MRF Operational Update Neutral

MERAFE RESOURCES LIMITED - Conclusion of negotiated pricing agreements with Eskom and restart of smelting operations

Merafe Resources Limited
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What this filing means

Good news, but not entirely new news. The Glencore Merafe Chrome Venture has concluded the Negotiated Pricing Agreements with Eskom, giving binding commercial effect to the NERSA-approved 62c/kWh tariff and enabling the restart of the Boshoek and Wonderkop smelters. The share had already run up on the earlier tariff-approval announcement, so this is confirmation of a known recovery path rather than a fresh re-rating trigger.

Bull case

  • NERSA's 62c/kWh tariff for the SA ferrochrome industry now has full commercial effect via the NPAs, removing a key electricity-cost overhang on smelting economics.
  • Conclusion of detailed NPAs with Eskom finalises the commercial framework, converting the approved tariff into binding terms.

Bear case

  • The three-year tariff framework locks Merafe into a fixed pricing schedule with no disclosed escalator, removing renegotiation flexibility if ferrochrome prices weaken over the term.
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Category
Operational Update
Event posture
Constructive
Published
Jun 26, 2026

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