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Mining of Chrome Updated Report Available
BY Alex Conradie
South Africa
29 July 2015
R 2 040.00 (ZAR)  
estimated $ 123.55 (USD) *
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The Mining of Chrome in South Africa


This report focuses on the chrome ore mining sector in South Africa. The country holds 72% of global chromite resources, which includes more than 41% of the world’s reserves, and during 2014 the industry produced 15Mt of chromite, exporting 7Mt valued at US$1.1bn. Also produced during 2014 was 3.7Mt of ferrochrome, an alloy of iron and chromium, and 3.6Mt of this, worth US$3.2bn was exported.


Challenges and Investments


Challenges faced by the sector include unreliable and reduced electricity supply, rapidly escalating input costs and the impact of strikes. As well as rising productions costs, South African ferrochrome producers have to deal with low ferrochrome prices because of the inability of the steel mills to absorb higher prices. Despite these difficulties on the domestic front, the sector has seen stakeholders investing in production capacity and the introduction of new energy-efficient technologies. The industry also saw newcomer Bauba Platinum arranging its first shipment of chromite to ASA Metals during March 2015 and Assore undertaking trials to re-establish open-cast mining at the Zeerust Chrome mine in the North West province. The export market for chromite remains strong but stakeholders have expressed concern that Chinese imports of South African chromite have resulted in China becoming the world’s largest producer of ferrochrome.


Report Coverage


The report on the Chrome sector describes the current market, outlines developments within the sector and focuses on factors influencing the success of the local industry. The report also profiles nine companies, including the world’s largest ferrochrome producer Glencore Operations South Africa (Pty) Ltd, which employs 9,500 people at its seven chrome mines and five ferrochrome plants, and the second-largest producer, Samancor Chrome, which owns two mines and three ferrochrome plants.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 9
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 13
4.2. Continental 13
4.3. International 14
5. INFLUENCING FACTORS 17
5.1. Government Support and Intervention 17
5.2. Labour 17
5.3. Economic Environment 19
5.4. Rising Input Costs 20
5.5. Information Technology 21
5.6. Environmental Concerns 21
5.7. Mine Safety 21
5.8. Power Supply 22
6. COMPETITION 22
6.1. Barriers to Entry 24
6.2. Research and Development (R&D) 24
6.3. Innovation 25
7. SWOT ANALYSIS 25
8. OUTLOOK 26
9. INDUSTRY ASSOCIATIONS 27
10. REFERENCES 27
10.1. Publications 27
10.2. Websites 28
ORGANOGRAM 29
COMPANY PROFILES 30
ASSMANG (PTY) LTD 30
DILOKONG CHROME MINE (PTY) LTD 33
GLENCORE OPERATIONS SOUTH AFRICA (PTY) LTD 35
HERNIC FERROCHROME (PTY) LTD 40
INTERNATIONAL FERRO METALS (SA) (PTY) LTD 43
LANXESS CHROME MINING (PTY) LTD 46
MARICO CHROME CORPORATION (PTY) LTD 48
RUSTENBURG MINERALS DEVELOPMENT COMPANY (PTY) LTD 50
SAMANCOR CHROME LTD 52