Johannesburg: Mineral and Petroleum Resources Minister Gwede Mantashe has issued a stark warning about the perilous state of South Africa’s ferroalloy industry, revealing that more than half of the nation’s chrome furnaces have fallen silent in recent decades. Addressing a National Union of Metalworkers of South Africa (Numsa) bargaining conference, Mantashe painted a picture of a once-proud sector now battling a multitude of challenges, with the chrome industry bearing the brunt of the decline.
The Minister lamented that “at least 30 out of 59 chrome furnaces in our country have been placed under care and maintenance, whereas some have been completely shut down, contributing to job losses.” This dramatic contraction, he argued, necessitates urgent and coordinated action from all stakeholders to prevent further erosion of the sector’s capacity and its potential to drive economic growth.
Despite the current headwinds, Mantashe struck an optimistic note regarding future demand for ferroalloys, the products of manganese and chrome beneficiation. He highlighted the burgeoning demand driven by green technologies, particularly batteries, alongside traditional sectors like construction. He asserted that through increased local beneficiation, these abundant resources could be the engine for “inclusive economic growth, industrialisation, and sustainable jobs” within South Africa.
To address the crisis, Mantashe announced the formation of a high-level Ministerial Task Team. Comprising representatives from the departments of Trade, Industry and Competition, Electricity and Energy, Transport, and the National Treasury, the team has been charged with urgently crafting a revival plan for the smelting sector and ensuring its long-term viability.
The task team’s focus, according to Mantashe, spans several critical areas. These include a comprehensive review of electricity pricing models, a perennial challenge for energy-intensive industries; improvements to the often-criticised rail and port infrastructure vital for efficient exports; the introduction of incentives to encourage greater local beneficiation of raw minerals; and a modernisation of legislative tools to empower the government to intervene strategically when necessary.
Significantly, Mantashe revealed that discussions are underway with manganese and chrome producers regarding potentially impactful policy interventions. These include the contentious introduction of an export tax aimed at discouraging the shipment of unprocessed minerals, and the implementation of quotas to limit the volume of raw materials leaving South African shores. These measures signal a potential shift towards a more assertive government stance in promoting domestic value addition.
Looking beyond local players, Mantashe highlighted ongoing engagement with international investors, particularly from China, with the aim of attracting beneficiation facilities, advanced technology, and increased industrial capacity to South Africa. He stated that these discussions are being formalised within a memorandum of understanding with the Chinese government, with a clear focus on achieving a more balanced cooperation that actively supports South Africa’s industrialisation ambitions.
Interestingly, Mantashe made no direct mention of the United States’ recent moves to bolster its own domestic mining and processing sectors. President Donald Trump’s recent executive order, designed to reduce US reliance on China for critical minerals essential for various high-tech industries and national security, presents a potentially shifting global landscape for mineral beneficiation. Whether this will create further headwinds or opportunities for South Africa’s ferroalloy sector remains to be seen.
For now, the focus remains firmly on the urgent need to revitalise South Africa’s struggling manganese and chrome value chain. Mantashe’s pronouncements signal a growing recognition within government that decisive action is required to prevent the further decline of a once-dominant industry and to harness the country’s mineral wealth for meaningful economic transformation. The coming months will be crucial in determining whether the proposed interventions can reignite the furnaces and secure a sustainable future for South Africa’s ferroalloy sector.
