Transalloys wants electricity tariff relief extended to full ferroalloys sector
Transalloys, which produces manganese ferroalloys at a smelter complex in Mpumalanga, has again warned that its operations are at risk of closure should the electricity tariff relief granted and being contemplated for the ferrochrome sector not be extended to other ferroalloy producers.
In a statement released ahead of the 2026 Budget, CEO Konstantin Sadovnik said while he was not optimistic that meaningful electricity tariff relief for the wider smelting sector would be announced by the Finance Minister, such relief was urgently needed.
“Should no tariff relief be forthcoming, the company will be compelled to retrench approximately 600 employees, placing an estimated 7 000 livelihoods at risk.”
Shutting down the R5-billion plant, Sadovnik added, would also represent an irreversible loss of manganese beneficiation capacity in a country that holds roughly 80% of the world’s known manganese resources.
Some ferrochrome smelters had recently received relief that took the interim tariff to 87c/kWh, while discussions were under way on ways to reduce the tariff further to 62c/kWh.
“If Transalloys is granted relief on par with that expected for ferrochrome, manganese smelting can be saved,” Sadovnik said.
This, despite silicomanganese smelting being about 30% more energy-intensive.
He also argued that short-term relief and long-term reform should be considered within the country’s broader fiscal and industrial policy frameworks.
“Electricity pricing reform for energy-intensive sectors is not a concession.
“It is an investment in preserving productive capacity, export earnings, tax revenue and maintaining an attractive investment climate.
“A competitive framework strengthens the national balance sheet over time,” Sadovnik said.
Finance Minister Enoch Godongwana will release his 2026 Budget on February 25.
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