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Further update regarding the company’s ferrochrome smelter operations
MERAFE RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1987/003452/06)
JSE and A2X share code: MRF
ISIN: ZAE000060000
("Merafe" or the "Company")
FURTHER UPDATE REGARDING THE COMPANY'S FERROCHROME SMELTER OPERATIONS
Shareholders of Merafe ("Shareholders") are referred to the Company's previous announcements, the
most recent of which was published on SENS on 9 December 2025, in terms of which Shareholders
were advised, inter alia, of the Memorandum of Understanding entered into with Eskom Holdings SOC
Limited to extend collaboration and engagement aimed at identifying a workable energy solution for the
ferrochrome industry by no later than 28 February 2026.
Shareholders are hereby advised that the Lion Smelter in Steelpoort, Limpopo Province
("Lion Smelter") achieved its first ferrochrome production tap on 16 February 2026, following the
successful recommissioning of 50% of its operating capacity. This follows the approval by the
National Energy Regulator of South Africa (NERSA) of a 12 month interim electricity tariff of
87.74c per kWh ("Interim Tarriff"). The Glencore-Merafe Chrome Venture ("Venture") anticipates that
the Lion Smelter will return to full operational capacity by 31 March 2026.
While the Interim Tariff enables the Lion Smelter to return to full operational capacity in the short term,
it remains insufficient to support sustainable operations over the long term. The same position applies
to Boshoek or Wonderkop smelters. All three smelter operations would require a tariff of 62c per kWh
to operate on a commercially sustainable and viable basis over the long term.
The Venture therefore continues to engage constructively with all relevant stakeholders to secure a
long term solution that supports the stability and viability of all smelters and remains hopeful that a
feasible tariff solution will be secured by 28 February 2026, being the deadline for commencement of
the consultation process, in terms sections 189 and 189A of the Labour Relations Act, 66 of 1995,
affecting the Boshoek and Wonderkop smelters.
In the interim, the Venture will continue to implement its current business restructuring, streamlining
and right-sizing initiatives designed to strengthen its long term operational viability against a very
challenging global market environment.
The Venture reaffirms its commitment to working collaboratively with government, regulators, labour
and community stakeholders to implement sustainable, long term solutions that protect jobs, support
local economies and secure the future of South Africa's ferroalloys industry.
Sandton
18 February 2026
Sponsor
One Capital
Date: 18-02-2026 08:30:00
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