The Minerals Council South Africa has warned that the government’s proposed export tax on chrome ore could severely impact the profitability of miners and trigger significant job losses across the sector. South Africa remains the world’s top exporter of chrome, primarily used in stainless steel manufacturing.
Although the country once led global ferrochrome production—a key alloy of chrome and iron—it has since been overtaken by China, due largely to South Africa’s high electricity costs that forced several smelters to shut down.
On June 26, South Africa’s cabinet approved a plan to reduce electricity tariffs for chrome smelters and to introduce an export tax on chrome ore. The move is aimed at revitalizing the struggling ferrochrome industry. However, the Minerals Council argues that the tax would not meet these objectives and would instead damage producers and undermine their contribution to the national economy and employment.
According to the Council, the chrome industry provides 25,000 direct jobs and generated R85 billion (approximately $4.85 billion) in export revenue in 2024. That year, South Africa exported a record 20.5 million metric tons of chrome concentrate, primarily to China, the world’s largest consumer.
Key industry players include Glencore, Tharisa Plc, and South32.