SA chrome miners reject proposed export tax, blame industry collapse on electricity tariffs

SOUTH Africa's chrome mining sector has pushed back against government plans to impose a tax on chrome ore exports, arguing that the decline of the domestic ferrochrome industry is the result of crippling electricity tariffs rather than ore availability or pricing.

- TAWANDA KAROMBO-

The Glencore-Merafe JV ferrochrome smelter has started retrenchments while Samancor Chrome could also close down.

The Minerals Council South Africa says high power prices, combined with logistical inefficiencies at ports and rail, have left smelters uncompetitive, even though transport conditions have marginally improved in recent months.

Chrome miners face a government tax on chrome ore exports. In October, Cabinet made decisions aimed at reviving South Africa’s chrome industry and invited comments for on a proposal to “place chrome ore under export control by the International Trade Administration Commission” of South Africa.

“This and other interventions are designed to improve the long-term viability and competitiveness of the chrome value chain in the Republic of South Africa,’ argued the government.