Mining industry raises alarm over ferrochrome export tax as electricity tariffs receive nod

THE Minerals Council of South Africa has raised concerns over the approval by government of an export tax on ferrochrome concentrates and welcomed the Cabinet's adoption of preferential electricity tariffs for ferrochrome smelters.

- TAWANDA KAROMBO

Chrome mining has been one of the best-performing subsectors of the South African mining sector, with data from Statistics SA showing that chrome production increased by an average of 8.4% between 1994 and 2024 on an inflation adjusted basis.

This reflects an accelerated pace of growth than the 1.3% recorded for non-gold production in South Africa over the same period.

It was against this backdrop that the Minerals Council on Thursday said it was concerned by the approval by Cabinet of an export tax on ferrochrome concentrates.

“A particular concern in the Cabinet statement is the approval of the concept of an export tax on chrome concentrate. There remains no reason why export taxes would support increased beneficiation in South Africa now,” said the Council in a statement.

The tax has previously been raised by government but extensive engagements with the chrome mining sector players resulted in the proposal being set aside.