South Africa offers cut-price power to chrome producers after losing ferrochrome crown to China

South Africa is making an unusual bet to save one of its most important mining industries: cheaper electricity.

In a move aimed at preventing further decline in the country’s ferrochrome sector, energy regulator NERSA has approved a discounted power tariff for Samancor Chrome and the Glencore-Merafe ferrochrome joint venture, giving the companies access to electricity at 62 South African cents ($0.038) per kilowatt-hour.

For South Africa, the stakes go far beyond chrome.

The country holds the world’s largest chrome ore reserves and remains the biggest producer of the raw mineral.

Ferrochrome is a crucial ingredient in stainless steel production, making it an important part of global manufacturing supply chains.