South Africa’s mature chrome value chain which provides over 200 000 jobs and contributes over R42 billion in Gross Domestic Product is under threat and its rapidly declining market share is putting jobs at risk, Ferrochrome producers alleged in a meeting held with North West Premier Mme Thandi Modise in Mahikeng this week.
The producers appealed to the North West provincial government to support their proposal for implementation of an export tariff of 100 US Dollars / ton of chrome ore to raise the level of domestic beneficiation and safeguard jobs.
The delegation from Xstrata alloys, Hernic Ferrochrome and Samancor alleged that exports of un-beneficiated South African chrome ore to China are rising and creating jobs in that country while reducing job creation opportunities in South Africa’s ferrochrome industry .
According to the delegation, India has already introduced policy to reduce un-beneficiated chrome ore exports while Oman and Turkey both of whom are chrome ore exporting countries are exploring similar interventions.
In responding to the request for support and impressing upon the chrome producers the need to improve relations with communities around their mining operations, retain jobs and realise real beneficiation, Premier Modise advised the producers to pursue engagements with National Treasury.
The North West Province has six smelters that employ about 35 000 employees and that account for 50% of the ferrochrome production in the country.
According to Roskill, ICDA Company filings, South Africa had 72% of the world’s chrome ore reserves and accounted for 47% production and 42% ferrochrome production in 2010.
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S A Ferrochrome producers seek support for export tarriff
Province
