REPORT ON SOUTH AFRICA CHROME ORE

Ferro-alloys.com:

Industry Analysis of South Africa Chrome Ore

• Strengths:

1. South Africa has the largest chromite reserves in the world at about 70%.
2. The country is the largest producer at 75% of ferrochrome worldwide for the export and local markets.
3. Investments by international mining companies thus creating job opportunities.
4. Underground mining technology expertise, mechanised high seam and scraper low seam mining methods, is recognized as being in the forefront of chromite extraction.
5. Beneficiation of the chromite concentrate to charge chrome results in high grade products in demand worldwide.

• Weaknesses:

1. Beneficiation facilities are remote from the mining operations resulting in high transport costs of chromite concentrate.
2. Lack of the final beneficiation process by some chromite producers impacts negatively on the country’s potential export earnings as well as giving competitors marketing advantages.
3. The delay in issuing New Order Mining Rights by the Department of Mineral Resources hampers mine development in times of bullish product prices.

• Opportunities:

1. Increased production of high quality charged chrome will increase South Africa’s export earnings thus having a positive effect on the balance of payments: increased credit rating potential.
2. Elimination of competitors through increased production of charged chrome into the market place.
3. Construction of on-site smelting facilities to decrease the input costs (transport) of chrome concentrates into the beneficiation process.

• [Editor:Zhao Xiaobo]