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South Africa’s mining industry is raising alarms over a proposed tax on chrome ore exports, warning it will harm miners’ profitability and put thousands of jobs at risk in a sector vital to the nation’s economy.
As the world’s largest exporter of chrome — a key ingredient in stainless steel manufacturing — South Africa’s chrome sector is crucial to economic growth and employment. The country’s Minerals Council, representing major mining companies, criticized the tax proposal, arguing it will undercut efforts to sustain the ferrochrome industry and preserve jobs.
While South Africa’s ferrochrome production has declined, overtaken by China primarily due to high electricity costs forcing smelter closures, the government recently moved to reduce power tariffs for chrome smelters. However, the introduction of an export tax on chrome ore appears contradictory and could damage the sector further.
The Minerals Council highlighted that the chrome industry directly employs approximately 25,000 people and generated R85 billion (about $4.85 billion) in export revenue in 2024. That year, South Africa exported a record 20.5 million metric tons of chrome concentrate, mostly destined for China, the world’s largest importer.
Industry leaders contend that rather than achieving the government’s goal of revitalizing the ferrochrome sector, the export tax risks exacerbating its decline, potentially leading to job losses and reduced foreign exchange earnings.
As South Africa balances industrial policy, energy costs, and global market demands, the debate over the chrome export tax underscores the complexities of sustaining its mining sector amid evolving economic pressures.
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