Glencore restarts Lion Smelter amid push for cheaper power

Glencore has confirmed that it has restarted its Lion Smelter in Steelpoort, Limpopo Province,

The smelter achieved its first ferrochrome production tap on Monday (16 February), following the successful recommissioning of 50% of its operating capacity, the mining company said in a statement.

This was made possible by the approval of an interim lower electricity tariff by the National Energy Regulator of SA (Nersa).

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The agreement covers 12 months at a tariff of 87.74c per kilowatt-hour (kWh).

Glencore notes that this rate remains insufficient for it to operate the smelter sustainably over the longer term.

As Glencore Alloys CEO Japie Fullard explains to Stephen Grootes, they continue to engage with the relevant stakeholders to get to a tariff of 62c per kWh.

"This was really great news for us - all our furnaces were down for the last six months and this 87c interim relief is sufficient for us to start Lion Smelter. We started with one furnace and will be starting the rest within the next couple of weeks... We're working well with government to get to the required 62c rate, but our time is running out."

Only a long-term solution that supports the viability of all its smelters, Glencore says.

However, they remain hopeful that a feasible tariff solution will be secured before the 28 February deadline for the Section 189 consultation process affecting the Boshoek and Wonderkop smelters and Glencore’s Carbon Division (Chartech).

Scroll up to the audio player to listen to the full conversation