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    • Mining Iron Ore Chrome South Africa

    Mining of Iron Ore and Chrome in South Africa 2026

    Alex Conradie | South Africa | 16 February 2026

    Mining of Iron Ore and Chrome in South Africa 2023

    Alex Conradie | South Africa | 07 December 2023

    Mining of Iron Ore and Chrome in South Africa 2020

    Stephen Timm | South Africa | 18 December 2020

    Mining of Iron Ore and Chrome in South Africa 2019

    Alex Conradie | South Africa | 15 November 2019

    Mining of Iron Ore and Chrome in South Africa 2016

    Alex Conradie | South Africa | 18 October 2016

    Mining of Iron Ore and Chrome in South Africa 2015

    Alex Conradie | South Africa | 20 November 2015

    Mining of Iron Ore and Chrome in South Africa 2015

    Alex Conradie | South Africa | 29 July 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on mining iron ore and chrome in South Africa provides information on reserves, production, prices, exports, investment and developments, notable players and corporate actions. It discusses several influencing factors including demand and the effects of smelter closures, rail and port issues, input costs and environmental issues. There are profiles of 16 companies. These include iron producers such as Assmang, Kumba, Black Mountain Mining and Palabora Copper, and chrome producers such as ARM, Glencore, Samancor, Valterra, Sibanye-Stillwater and Tharisa.

    Introduction

    • South Africa was the world’s largest producer of chrome ore and concentrate in 2025, producing 45.8% of the global total.
    • Chrome production is on the rise, largely due to growing demand in China, which has led to higher prices.
    • The growth in iron ore output slowed in 2025.
    • Export volumes increased but the value declined due to lower prices.
    • Low iron ore export volumes were largely due to underperformance by Transnet on export lines and at ports.
    • This affected chrome exporters to a lesser degree as they have more export logistics options.

    Trends

    • A number of PGM producers are increasing their production of chrome concentrate to increase their revenue.
    • Chrome exporters are increasingly using road transport to Maputo to avoid using Transnet’s rail and port services.
    • Chrome prices are increasing.
    • Chrome production and exports are on an upward trend.
    • Companies are increasing the use of renewable energy.
    • ESG considerations are becoming increasingly important.
    • Exporters are increasingly exporting chrome in containers via Durban.
    • Iron ore prices are declining, which is expected to continue for at least the next two years.
    • Iron ore production has been on a downward trend for at least 10 years.
    • The majority of chrome production is exported, mostly to China.
    • The majority of iron ore production is exported, mostly to China.

    Opportunities

    • Increasing demand for chrome, largely due to rising ferrochrome production in China.
    • The introduction of export permits should help curtail illegal chrome mining.
    • The planned introduction of private train operating companies to Transnet’s network over the next few years should lead to higher iron ore production and exports.

    Challenges

    • Company performance is being affected by Transnet’s underperformance on the rail lines and at ports.
    • Input costs are rising, mostly caused by increasing electricity tariffs.
    • The possible introduction of an export tax on chrome ore and concentrate.

    Outlook

    • The expected increase in stainless steel production should lead to growth in chrome demand and higher chrome prices.
    • South Africa’s chrome production and exports are expected to increase in response to higher demand and prices.
    • Exporters are expected to increasingly use road transport to Maputo to avoid Transnet’s rail and port services.
    • A small increase in world steel production is expected to lead to increased iron ore demand.
    • Demand is forecast to outpace supply growth, driven by the new Simandou mine in Guinea and higher output from Australia and Brazil.
    • The iron ore price is expected to drop in 2026 and 2027.
    • South Africa’s output and exports will to a large extent be determined by Transnet’s performance.
    • The introduction of private train operating companies to Transnet’s network over the next few years should lead to higher production and exports.

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    Mining of Iron Ore and Chrome in South Africa
    Mining of Iron Ore and Chrome in South Africa 2026

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    Industry Landscape

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    Mining of Iron Ore and Chrome in South Africa 2023-12-07

    R 6 500.00(ZAR) estimated $398.02 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2020-12-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2019-11-15

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2016-10-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-11-20

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-07-29

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 5
    2.3. Size of the Industry 7
    3. LOCAL 8
    3.1. State of the Industry 8
    3.2. Key Trends 15
    3.3. Key Issues 16
    3.4. Notable Players 16
    3.5. Trade 21
    3.6. Corporate Actions 24
    3.7. Regulations 25
    3.8. Enterprise Development and Social Development 26
    4. AFRICA 27
    5. INTERNATIONAL 30
    6. INFLUENCING FACTORS 35
    6.1. Economic Environment 35
    6.2. Rail and Port Issues 36
    6.3. Input Costs 38
    6.4. Illegal Mining 39
    6.5. Labour 40
    6.6. Environmental Issues 41
    6.7. Technology, R&D and Innovation 42
    6.8. Mine Safety 43
    7. COMPETITIVE ENVIRONMENT 43
    7.1. Competition 43
    7.2. Ownership Structure of the Industry 45
    7.3. Barriers to Entry 45
    8. INDUSTRY SUMMARY 46
    9. OUTLOOK 47
    10. INDUSTRY ASSOCIATIONS 47
    11. REFERENCES 47
    11.1. Publications 47
    11.2. Websites 48
    ANNEXURE 1 50
    Industry Legislation 50
    APPENDIX 1 54
    Mining of Iron Ore 54
    APPENDIX 2 56
    Mining of Chrome 56
    COMPANY PROFILES – Mining of Iron Ore 59
    AFRIMAT LTD 59
    ASSMANG (PTY) LTD 67
    BLACK MOUNTAIN MINING (PTY) LTD 71
    IRONVELD MINING (PTY) LTD 73
    KUMBA IRON ORE LTD 75
    PALABORA COPPER (PTY) LTD 79
    COMPANY PROFILES – Mining of Chrome 83
    AFRICAN RAINBOW MINERALS LTD 83
    DWARSRIVIER CHROME MINE (PTY) LTD 88
    EASTERN PLATINUM LTD 90
    GLENCORE OPERATIONS SOUTH AFRICA (PTY) LTD 93
    IMPALA PLATINUM HOLDINGS LTD 97
    NORTHAM PLATINUM HOLDINGS LTD 103
    SAMANCOR CHROME LTD 106
    SIBANYE STILLWATER LTD 108
    THARISA PLC 114
    VALTERRA PLATINUM LTD 118

    Report Coverage

    This report on the mining of iron ore and chrome in South Africa includes information on geographic locations, production and export trends, major players, corporate actions, African and international statistics, steel and stainless steel demand, prices, and influencing factors such as rail and port issues and input costs. There are profiles of 19 companies including chrome producers such as Glencore, Samancor Chrome, Anglo American Platinum, Bauba Resources, Impala Platinum and Sylvania Platinum. Iron Ore companies profiled include Kumba, Assmang, Afrimat, Ironveld Mining and Thabazimbi Iron Ore Mine.

    Introduction

    • Chrome ore production is on an upward trend, largely due to growing demand in China.
    • The increase in production in 2022 was mostly driven by higher prices.
    • South Africa is the world’s largest producer and exporter.
    • Over the past ten years, iron ore production has been in decline.
    • Lower iron ore export volumes in 2022 were largely due to underperformance by Transnet on the export line and at the port.
    • This issue affects chrome ore exporters but to a lesser degree as they have more export logistics options.

    Trends

    • Chrome ore exporters are increasingly using road transport to Maputo to avoid using Transnet’s rail and port services.
    • Most local PGM producers are increasing their production of chrome ore to increase revenue.
    • Over the past ten years, iron ore production has been on a downward trend.
    • Producers using the iron ore export channel are reducing their production levels to match Transnet’s performance.
    • South Africa’s chrome ore production and exports are on an upward trend in response to higher demand and prices.

    Opportunities

    • Increasing demand for chrome ore, due to rising ferrochrome production in China.

    Challenges

    • Increasing input costs, in particular electricity, water, diesel, logistics and labour.
    • Limited exports due to collapsing rail lines and ports used by chrome ore and iron ore mining companies.

    Outlook

    • Increased demand for stainless steel should lead to growth in chrome ore demand and, consequently, higher chrome ore prices.
    • South Africa’s chrome ore production and exports are expected to increase in response.
    • Exporters will increasingly use road transport to Maputo to avoid using Transnet’s rail and port services.
    • The rate of iron ore demand growth is expected to slow, and iron ore supply is forecast to grow at a faster rate than demand, leading to lower iron ore prices.
    • South African iron ore production was expected to decrease marginally in 2023.
    • Beyond 2023, output will to a large extent be determined by Transnet’s performance.

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    Mining of Iron Ore and Chrome in South Africa
    Mining of Iron Ore and Chrome in South Africa 2023

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    R 6 500.00(ZAR) estimated $398.02 (USD)*

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    Industry Landscape

    R 4 550.00(ZAR) estimated $ 278.62 (USD)*

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    Historical Reports

    Mining of Iron Ore and Chrome in South Africa 2026-02-16

    R 20 000.00(ZAR) estimated $1224.68 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2020-12-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2019-11-15

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2016-10-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-11-20

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-07-29

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 4
    2.3. Size of the Industry 6
    3. LOCAL 7
    3.1. State of the Industry 7
    3.2. Key Trends 9
    3.3. Key Issues 9
    3.4. Notable Players 9
    3.5. Trade 14
    3.6. Corporate Actions 15
    3.7. Regulations 17
    3.8. Enterprise Development and Social Development 18
    4. AFRICA 20
    5. INTERNATIONAL 22
    6. INFLUENCING FACTORS 28
    6.1. Demand for Stainless Steel and Steel 28
    6.2. Economic Environment 29
    6.3. Rail and Port Issues 30
    6.4. Mine Safety 32
    6.5. Input Costs 33
    6.6. Labour 33
    6.7. Environmental Issues 35
    6.8. Technology, R&D and Innovation 36
    6.9. Illegal Mining 37
    7. COMPETITIVE ENVIRONMENT 37
    7.1. Competition 37
    7.2. Ownership Structure of the Industry 38
    7.3. Barriers to Entry 38
    8. INDUSTRY SUMMARY 39
    9. OUTLOOK 40
    10. INDUSTRY ASSOCIATIONS 41
    11. REFERENCES 41
    11.1. Publications 41
    11.2. Websites 42
    APPENDIX 1 - Mining of Chrome and Production of Ferrochrome 43
    APPENDIX 2 - Mining of Iron Ore 48
    COMPANY PROFILES - Mining Of Chrome 51
    Anglo American Platinum Ltd 51
    Bauba Resources (Pty) Ltd 56
    Clover Alloys (SA) (Pty) Ltd 59
    Eastern Platinum Ltd Incorporated in Canada 61
    Glencore Operations South Africa (Pty) Ltd 64
    Impala Platinum Holdings Ltd 68
    Jubilee Metals Group PLC 73
    Northam Platinum Holdings Ltd 77
    Samancor Chrome Ltd 80
    Sibanye Stillwater Ltd 82
    Sylvania Platinum Ltd 88
    Tharisa PLC 91
    COMPANY PROFILES – Mining Of Iron Ore 95
    Afrimat Ltd 95
    Assmang (Pty) Ltd 103
    Black Mountain Mining (Pty) Ltd 107
    Ironveld Mining (Pty) Ltd 109
    Kumba Iron Ore Ltd 111
    Palabora Copper (Pty) Ltd 115
    Thabazimbi Iron Ore Mine (Pty) Ltd 119

    Report Coverage

    This report focuses on the mining of iron ore and chrome in South Africa and includes comprehensive information on the size and state of the sector, production, trade and other statistical information and detailed information on corporate actions and developments and regulation, including the proposed export tax on chrome. There are profiles of 21 companies including Anglo American’s Kumba Iron Ore, which mines about 70% of all iron ore in the country and other players such as Assmang and Palabora Copper. Chrome producers profiled include Glencore, Samancor Chrome and Afarak, as well as smaller chrome ore producers such as Lanxess and Tharisa.

    Introduction

    South Africa produced an estimated 77 million tons (Mt) of iron ore and 17Mt of chrome ore in 2019, making the country the sixth-largest and largest producer respectively, according to the United States Geological Survey (USGS). Data obtained from the International Trade Centre’s Trade Map shows that iron ore exports amounted to 66.5Mt in 2019, earning an estimated US$5.7bn, while 14.9Mt of chrome ore valued at almost US$2bn was exported. According to the Minerals Council South Africa, 19,092 people were employed by the iron ore mining sector in 2019, while the chrome ore mining sector had 19,673 employees. In recent months local mines have begun ramping up iron ore and chrome production following the lifting of most lockdown measures imposed due to the coronavirus pandemic. While high iron ore prices have lifted export earnings, the local chrome sector is struggling amid global demand challenges and rising electricity costs. The ferrochrome sector is particularly hard hit, having lost over 31,000 jobs with the recent closure of five smelters that previously contributed over R11bn a year to gross domestic product (GDP).

    Strengths

    • In H1 2020, the average iron content of Kumba’s ore was 64.4%, compared to figures ranging between 64.4% and 57.8% for its main competitors.
    • Kumba Iron Ore’s main competitive advantage is its high lump-to-fine ratio, which was 65:35 in H1 2020, while main competitors were between 3:97 and 72:28.
    • Some local ferrochrome companies are among the lowest-cost producers in the world.
    • South Africa has world-class ferrochrome manufacturing facilities boasting state-of-the-art technology.
    • South Africa holds 35% of the world’s chromite reserves.
    • South Africa is the world’s largest exporter of chrome ore and ferrochrome.
    • South Africa is the world’s largest producer of chrome ore and the second-largest producer of ferrochrome.
    • South Africa is the world’s third largest exporter of iron ore.

    Weaknesses

    • Demand for chrome ore and ferrochrome is heavily reliant on demand for stainless steel, which is largely determined by economic conditions.
    • Ferrochrome sales to China are affected by exports of chrome ore from South Africa, which is enabling the growth of the ferrochrome industry in China.
    • Shortage of skills in certain disciplines.
    • Since South African iron ore producers are small compared to the dominant companies, they are price-takers rather than price-setters.

    Opportunities

    • China’s demand for iron ore and chrome has been growing after the country restarted business activity in March 2020.
    • Demand for higher-grade iron ore is increasing in China.
    • In 2020 the iron ore price was at its highest in years amid a global supply shortage and growing demand from China.

    Threats

    • Added costs for ferrochrome producers in the form of the carbon tax.
    • Concern that iron ore demand will run out as China transforms to a developed economy.
    • Continuing uncertainty regarding South Africa’s mining regulatory framework.
    • Rapidly increasing production costs, in particular electricity, water and labour costs.
    • The coronavirus pandemic has suppressed stainless steel demand.
    • The mooted imposition of a tax on chrome exports.
    • Unreliable electricity has led to load shedding.

    Outlook

    Iron Ore According to Australia’s Resources and Energy Quarterly report, global trade in iron ore is forecast to increase by 4% in 2020 to 1,616Mt, before increasing to 1,741Mt in 2021. On the back of strong steel demand in China, iron ore trade is expected to remain robust over the next few years, despite the pandemic. While Brazilian production is slowly rising, it is not expected to return to normal levels until late 2022. The price of iron ore is therefore forecast to climb to US$90.7 per ton in 2020 and slip slightly to US$85.5 in 2021, from an average of US$83 in 2019. Kumba Iron Ore will generate 37Mt of iron ore in 2020, compared to production of 42.4Mt in 2019. In December 2020 the company lowered its forecasted output for 2021 by 2Mt to between 40Mt and 41Mt, adding that it expects targeted output for 2022 and 2023 to remain the same as that of 2021. Chrome Merafe Resources says the coronavirus pandemic has disrupted economies globally, but that there are signs of a recovery which is expected to be slow. According to the International Stainless-Steel Forum world stainless steel demand is forecast to continue to grow steadily in 2021. Roskill, which provides market analysis, said in June 2020 that after several years of 4% to 10% growth per annum in demand driven by stainless steel production, the longer-term chromium market is forecast to move into a period of more modest demand growth of 2% to 3% per year. Despite this, the outlook for ferrochrome in South Africa, with a possible export tax on chrome looming, is bleak.

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    Mining of Iron Ore and Chrome in South Africa
    Mining of Iron Ore and Chrome in South Africa 2020

    Full Report

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 81.44 (USD)*

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    Historical Reports

    Mining of Iron Ore and Chrome in South Africa 2026-02-16

    R 20 000.00(ZAR) estimated $1224.68 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2023-12-07

    R 6 500.00(ZAR) estimated $398.02 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2019-11-15

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2016-10-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-11-20

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-07-29

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 7
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Trade 19
    4.1.2. Corporate Actions 21
    4.1.3. Regulations 23
    4.1.4. Enterprise Development and Social Economic Development 27
    4.2. Continental 28
    4.3. International 30
    5. INFLUENCING FACTORS 36
    5.1. Coronavirus 36
    5.2. Economic Environment 38
    5.3. Mine safety 40
    5.4. Technology, Research and Development (R&D) and Innovation 40
    5.5. Environmental Concerns 41
    5.6. Labour 42
    6. COMPETITION 44
    6.1. Barriers to Entry 46
    7. SWOT ANALYSIS 47
    8. OUTLOOK 48
    9. INDUSTRY ASSOCIATIONS 49
    10. REFERENCES 49
    10.1. Publications 49
    10.2. Websites 50
    APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 52
    Mining of Chrome and Production of Ferrochrome 52
    Mining of Iron Ore 55
    COMPANY PROFILES - MINING OF CHROME AND PRODUCTION OF FERROCHROME 57
    AFARAK GROUP OYJ 57
    ANGLO AMERICAN PLATINUM LTD 61
    ASSORE LTD 65
    BAUBA RESOURCES LTD 69
    EASTERN PLATINUM LTD 72
    GLENCORE OPERATIONS SOUTH AFRICA (PTY) LTD 75
    IMPALA PLATINUM HOLDINGS LTD 79
    JUBILEE METALS GROUP PLC 84
    LANXESS CHROME MINING (PTY) LTD 87
    NORTHAM PLATINUM LTD 89
    SAMANCOR CHROME LTD 94
    SIBANYE STILLWATER LTD 96
    THARISA PLC 101
    THUTSE MINING (PTY) LTD 105
    COMPANY PROFILES - MINING OF IRON ORE 106
    AFRIMAT LTD 106
    ASSMANG (PTY) LTD 112
    ASSORE LTD 116
    KUMBA IRON ORE LTD 120
    MANNGWE MINING (PTY) LTD 124
    PALABORA COPPER (PTY) LTD 126
    SEDIBENG IRON ORE (PTY) LTD 129
    STRATA AFRICA RESOURCES (PTY) LTD 131

    Report Coverage

    This report on the mining of iron ore and chrome includes comprehensive information on the size and state of the industry, its major players, and their activities and corporate actions in South Africa, on the continent and globally. There are profiles of 21 companies including Kumba Iron Ore, which dominates the iron ore sector, and other players such as Assmang and Palabora Copper. Chrome producers profiled include integrated ferrochrome producers Glencore (Glencore-Merafe), Samancor and Afarak.

    Introduction

    During 2018, South Africa produced 74.3 million tons (Mt) of iron ore and 17.9Mt of chrome ore, making the country the sixth-largest and largest producer respectively, according to the United States Geological Survey (USGS). Data obtained from the International Trade Centre’s Trade Map shows that iron ore exports in 2018 amounted to 63.4Mt, earning US$4.2bn, while 12.4Mt of chrome ore valued at US$1.9bn was exported. According to the Minerals Council South Africa, 18,613 people were employed by the iron ore mining sector in 2018, while the chrome ore mining sector had 18,935 employees. Rapidly rising input costs and policy and regulatory uncertainty are some of the challenges faced by the iron ore and chrome ore mining sectors.

    Strengths

    • In 2018, the average iron content of Kumba’s ore was 64.5%, compared to figures ranging between 64.1% and 57.7% for its main competitors.
    • Kumba Iron Ore’s main competitive advantage is its high lump-to-fine ratio, which was 68:32 in 2018, while the global average was 20:80.
    • Some local ferrochrome companies are among the lowest-cost producers in the world.
    • South Africa has world-class ferrochrome manufacturing facilities boasting state-of-the-art technology.
    • South Africa holds 36% of the world’s chromite reserves.
    • South Africa is the world’s largest exporter of chrome ore and ferrochrome.
    • South Africa is the world’s largest producer of chrome ore and the second-largest producer of ferrochrome.
    • South Africa is the world’s third largest exporter of iron ore.

    Weaknesses

    • Demand for chrome ore and ferrochrome is heavily reliant on demand for stainless steel, which is largely determined by economic conditions.
    • Demand for iron ore is heavily reliant on demand for crude steel, which is largely determined by economic conditions.
    • Ferrochrome sales to China are impacted by exports of chrome ore from South Africa, which is enabling the growth of the ferrochrome industry in China.
    • Shortage of skills in certain disciplines.
    • Since South African iron ore producers are small compared to the dominant companies, they are price-takers rather than price-setters.

    Opportunities

    • Demand for higher-grade iron ore is increasing in China.
    • Expected growth in demand for both chrome ore and ferrochrome due to increasing stainless steel production.

    Threats

    • Added costs in the form of the carbon tax.
    • Continuing uncertainty regarding South Africa’s mining regulatory framework.
    • Lower world economic growth leads to decreased demand for iron ore and chrome ore.
    • Rapidly increasing production costs, in particular electricity, water and labour costs.

    Outlook

    Iron Ore According to Australia’s Resources and Energy Quarterly report, global trade in iron ore is forecast to decrease by 4.2% in 2019 to 1,529Mt, before increasing to 1,568Mt in 2021. As production from Vale and Australia increases over the next two years, the seaborne market is expected to become oversupplied, due to lower steel production and increasing scrap usage in China. The price of iron ore is therefore forecast to drop to US$61 per ton in 2020 and US$57 in 2021, from an average of US$80 in 2019. Kumba Iron Ore is targeting iron ore sales volumes of between 43Mt and 44Mt for 2019, compared to sales of 43.3Mt in 2018. Chrome According to KPMG, world stainless steel supply is expected to grow from 48.4Mt in 2017 to 57.7Mt in 2022, while the demand for ferrochrome is forecast to increase up to 2022. Merafe Resources expects the current surplus in the ferrochrome market to decrease or turn into a deficit as a result of a decline in output in certain countries in the next 12 months. This should lead to an increase in prices. The expected increase in demand for ferrochrome should lead to growth in chrome ore demand and, consequently, chrome ore prices.

    Read More..
    Mining of Iron Ore and Chrome in South Africa
    Mining of Iron Ore and Chrome in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 81.44 (USD)*

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    Historical Reports

    Mining of Iron Ore and Chrome in South Africa 2026-02-16

    R 20 000.00(ZAR) estimated $1224.68 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2023-12-07

    R 6 500.00(ZAR) estimated $398.02 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2020-12-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2016-10-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2015-11-20

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2015-07-29

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 1
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 8
    4.1. Local 8
    4.1.1. Trade 13
    4.1.2. Corporate Actions 15
    4.1.3. Regulations 17
    4.1.4. Enterprise Development and Social Economic Development 21
    4.2. Continental 22
    4.3. International 23
    5. INFLUENCING FACTORS 30
    5.1. Economic Environment 30
    5.2. Labour 31
    5.3. Mine Safety 33
    5.4. Environmental Concerns 34
    6. COMPETITION 35
    6.1. Barriers to Entry 37
    7. SWOT ANALYSIS 38
    8. OUTLOOK 39
    9. INDUSTRY ASSOCIATIONS 39
    10. REFERENCES 39
    10.1. Publications 39
    10.2. Websites 40
    APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 42
    Mining of Chrome and Production of Ferrochrome 42
    Mining of Iron Ore 45
    COMPANY PROFILES - MINING OF CHROME AND PRODUCTION OF FERROCHROME 47
    AFARAK GROUP OYJ 47
    ANGLO AMERICAN PLATINUM LTD 51
    ASSORE LTD 55
    BAUBA RESOURCES LTD 59
    EASTERN PLATINUM LTD 63
    GLENCORE OPERATIONS SOUTH AFRICA (PTY) LTD 66
    IMPALA PLATINUM HOLDINGS LTD 70
    JUBILEE METALS GROUP PLC 75
    LANXESS CHROME MINING (PTY) LTD 79
    NORTHAM PLATINUM LTD 81
    SAMANCOR CHROME LTD 86
    SIBANYE GOLD LTD 89
    THARISA PLC 95
    THUTSE MINING (PTY) LTD 99
    COMPANY PROFILES - MINING OF IRON ORE 101
    AFRIMAT LTD 101
    ASSMANG (PTY) LTD 107
    ASSORE LTD 111
    KUMBA IRON ORE LTD 115
    MANNGWE MINING (PTY) LTD 119
    PALABORA COPPER (PTY) LTD 121
    SEDIBENG IRON ORE (PTY) LTD 124
    STRATA AFRICA RESOURCES (PTY) LTD 126

    Report Coverage

    The Mining of Chrome and Production of Ferrochrome describes current conditions in the local sector, recent investments and expansion projects in anticipation of increasing prices, and factors influencing the success of the industry. The report includes profiles on seven companies including the Finnish Afarak Group Plc which has three Chrome mines and one Ferrochrome plant in South Africa.

    Introduction

    This report focuses on the mining of chrome ore, also known as chromite, and the production of ferrochrome in South Africa. During 2015 the South African chrome mining sector produced 15 million tonnes (Mt) of chromite, which was 49% of the global total, and exported 8.9Mt worth US$1.2bn. In total, 14.6Mt worth R16.2bn was sold locally and exported. According to the latest available data, more than 18,000 people were employed by the chrome mining sector during 2014. This sector is confronted by rapidly increasing input costs, policy and regulatory uncertainty, and the negative impact of labour strikes and community protests.

    Strengths

    • Local ferrochrome companies are among the lowest-cost producers in the world.
    • South Africa has world-class ferrochrome manufacturing facilities boasting state-of-the-art technology.
    • South Africa holds more than 41% of the world’s chromite reserves.
    • South Africa is the world’s largest exporter of both chromite and high carbon ferrochrome.
    • South Africa is the world’s largest producer of chromite and ferrochrome.
    • The largest chromite and ferrochrome producing companies are well-established in South Africa.

    Weaknesses

    • Ferrochrome sales to China are impacted by exports of chromite from South Africa, which is enabling the growth of the ferrochrome industry in China.
    • Shortage of skills in certain disciplines.
    • The industry is heavily reliant on demand from global stainless steel production, which is largely determined by economic conditions.

    Opportunities

    • Expected growth in demand for both chromite and ferrochrome due to increasing stainless steel production.

    Threats

    • Increasing costs, of electricity and labour in particular, pose a threat to the sector’s profitability and sustainability.
    • Increasing incidence of community protests.
    • South Africa’s mining regulatory framework is complex and contains many uncertainties.

    Outlook

    According to Merafe Resources, world stainless steel production is expected to grow by 2.8% in 2016 and 3.1% during 2017, while the demand for ferrochrome is forecast to increase by 2.4% and 0.3% in 2016 and 2017 respectively. Global ferrochrome output is expected to rise by 0.4% during 2016 and by 3.4% in 2017, and high carbon ferrochrome prices are forecast to average US93c/lb during 2016, rising to an average of US$1.01/lb in 2017. The expected increase in ferrochrome production should lead to growth in chromite demand and, consequently, chromite prices. According to one respondent whose company recently invested in a chromite mine, the company is positive about the future of the sector despite the difficulties confronting it.

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    Mining of Iron Ore and Chrome in South Africa
    Mining of Iron Ore and Chrome in South Africa 2016

    Full Report

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 81.44 (USD)*

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    Historical Reports

    Mining of Iron Ore and Chrome in South Africa 2026-02-16

    R 20 000.00(ZAR) estimated $1224.68 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2023-12-07

    R 6 500.00(ZAR) estimated $398.02 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2020-12-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2019-11-15

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-11-20

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-07-29

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 1
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 6
    4.1. Local 6
    4.1.1. Corporate Actions 11
    4.1.2. Regulations 12
    4.1.3. Enterprise Development and Social Economic Development 15
    4.2. Continental 16
    4.3. International 17
    5. INFLUENCING FACTORS 19
    5.1. Economic Environment 19
    5.2. Labour 20
    5.3. Mine Safety 22
    5.4. Technology, Research and Development (R&D) and Innovation 23
    5.5. Environmental Concerns 23
    5.6. Community Protests 24
    6. COMPETITION 24
    6.1. Barriers to Entry 25
    7. SWOT ANALYSIS 26
    8. OUTLOOK 26
    9. INDUSTRY ASSOCIATIONS 27
    10. REFERENCES 27
    10.1. Publications 27
    10.2. Websites 28
    COMPANY PROFILES 29
    AFARAK GROUP PLC 29
    ASSORE LTD 33
    GLENCORE OPERATIONS SOUTH AFRICA (PTY) LTD 37
    HERNIC FERROCHROME (PTY) LTD 41
    LANXESS CHROME MINING (PTY) LTD 44
    RUSTENBURG MINERALS DEVELOPMENT COMPANY (PTY) LTD 46
    SAMANCOR CHROME LTD 48

    Report Coverage

    The report on the iron ore 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 six companies, including Kumba Iron Ore which in July 2015 announced the decision to close its Thabazimbi mine after a review of its operations. Other players profiled include Assmang, Palabora Copper and the vertically integrated steel and vanadium producer Evraz Highveld Steel and Vanadium which initiated voluntary business rescue proceedings in April 2015 and in July 2015 announced a temporary halt to its mining and steelmaking operations.

    Introduction

    This report focuses on the mining of iron ore in South Africa where the minerals haematite and magnetite are exploited for their iron content. During 2014 the South African iron ore mining sector produced 78 million tonnes (Mt) of iron ore, according to the United States Geological Survey (USGS), while Trademap figures show that 67.2Mt of iron ore worth US$6.7bn were exported. According to the latest figures statistics from the Department of Mineral Resources (DMR), more than 21,000 people were employed by the iron ore mining sector in 2013. Challenges faced by this sector include unreliable and reduced electricity supply, falling iron ore prices, and rapidly escalating production costs.

    Strengths

    • South Africa is the world’s third largest exporter of iron ore.
    • South African lump iron ore gains a premium in the market due to its excellent physical strength and high iron content.
    • The largest iron ore producing companies are well-established in South Africa.

    Weaknesses

    • Capacity constraints on the Sishen Saldanha Iron Ore Export Channel limit producers’ ability to increase exports.
    • Shortage of skills in certain disciplines.
    • Since South African iron ore producers are small compared to the dominant companies, they are price-takers rather than price-setters.
    • South African producers are situated further from the port and further from China than producers in Australia, leading to higher transportation costs.
    • South Africa’s mining regulatory framework is complex and contains many uncertainties.
    • The industry is heavily reliant on demand from crude steel production which is largely determined by economic conditions.

    Opportunities

    • Increased import duties on steel products should lead to lower imports and increased local production of those products, leading to higher local demand for iron ore.

    Threats

    • Implementation of a carbon tax.
    • Low iron ore price.
    • Lower world economic growth leads to decreased demand for iron ore.
    • Rapidly increasing production costs.
    • The lack of consistent and reliable electricity supply.

    Outlook

    According to Australia’s Department of Industry and Science, global trade in iron ore is forecast to increase by 1.5% in 2015 to 1,379Mt, and by 3.0% during 2016 to 1,420Mt. The department also estimated that Australia’s exports of iron ore will grow to 824Mt in 2016 from 762Mt in 2015 while those of Brazil will increase to 412Mt during 2016 from 390Mt in 2015. These two countries will account for a combined 87% of the global seaborne iron ore trade in 2016 from an estimated 84% in 2015. Kumba Iron Ore is targeting iron ore export sales volumes of 43Mt for 2015, alongside the 6,25Mt contracted to AMSA. Assmang is planning to export 14Mt of iron ore during its 2016 financial year. Australia’s Department of Industry and Science further forecast that China’s imports of iron ore will increase slightly to 936Mt in 2015 and to 950Mt in 2016 due to a drop in domestic iron ore production and a rise in the use of seaborne iron ore in steel making. Kumba Iron Ore estimated that global crude steel production would grow comparatively slowly at a compound annual growth rate of 2.8% from 2013 to 2018 while Anglo American forecast that the global surplus in iron ore would increase to almost 150Mt by 2017. Iron ore prices will average US$52.9/t in 2015, dropping to US$51.2/t by 2016, according to Australia’s Department of Industry and Science. Kumba Iron Ore sees little prospect of iron ore prices increasing for at least five years. To meet the challenges of still lower prices the company plans to increase production and to fully utilise the available rail capacity while keeping its iron ore above an average of 64% iron content and its lump to fine ratio around 67:33. This makes its iron ore more attractive to customers, especially in an over-supplied market, which helps to improve its realised prices. The company expects that these measures will enable it to retain its market share and increase its sales volumes despite the challenging market conditions.

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    Mining of Iron Ore and Chrome in South Africa
    Mining of Iron Ore and Chrome in South Africa 2015

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 81.44 (USD)*

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    Historical Reports

    Mining of Iron Ore and Chrome in South Africa 2026-02-16

    R 20 000.00(ZAR) estimated $1224.68 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2023-12-07

    R 6 500.00(ZAR) estimated $398.02 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2020-12-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2019-11-15

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2016-10-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

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    Mining of Iron Ore and Chrome in South Africa 2015-07-29

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 1
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 3
    4. STATE OF THE INDUSTRY 5
    4.1. Local 5
    4.1.1. Corporate Actions 7
    4.1.2. Regulations and Government Programmes 8
    4.1.3. Enterprise Development and Social Economic Development 12
    4.2. Continental 12
    4.3. International 13
    5. INFLUENCING FACTORS 15
    5.1. Government Support and Intervention 15
    5.2. Labour 17
    5.3. Economic Environment 18
    5.4. Information Technology 20
    5.5. Environmental Concerns 21
    5.6. Mine Safety 21
    5.7. Power Supply 22
    5.8. Technology, Research and Development (R&D) and Innovation 22
    6. COMPETITION 23
    6.1. Barriers to Entry 24
    7. SWOT ANALYSIS 24
    8. OUTLOOK 25
    9. INDUSTRY ASSOCIATIONS 26
    10. REFERENCES 26
    10.1. Publications 26
    10.2. Websites 27
    COMPANY PROFILES 28
    ASSMANG (PTY) LTD 28
    EVRAZ HIGHVELD STEEL AND VANADIUM LTD 32
    FERRUM CRESCENT LTD 36
    KUMBA IRON ORE LTD 39
    PALABORA COPPER (PTY) LTD 42
    SEDIBENG IRON ORE (PTY) LTD 45

    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.

    Introduction

    This report focuses on the mining of chrome ore, also known as chromite, in South Africa. Chromite contains the elements chromium and iron and is the sole commercial source of chromium. During 2014 the South African chrome mining sector produced 15 million tonnes (Mt) of chromite and exported 7Mt of the material worth US$1.1bn, while employing more than 18,000 people in 2013. Challenges faced by this sector include unreliable and reduced electricity supply, falling prices, rapidly escalating production costs, and the impact of strikes. As well as rising productions costs, South African ferrochrome producers have to deal with low ferrochrome prices they have to agree to because their steel mill customers cannot afford higher prices.

    Strengths

    • Local companies are among the lowest-cost producers in the world.
    • South Africa has world-class ferrochrome manufacturing facilities boasting state-of-the-art technology.
    • South Africa holds more than 41% of the world’s chromite reserves.
    • South Africa is the world’s largest exporter of both chromite and HC ferrochrome.
    • South Africa is the world’s largest producer of chromite and the second-largest producer of ferrochrome.
    • The largest chromite and ferrochrome producing companies are well-established in South Africa.

    Weaknesses

    • Ferrochrome sales to China are impacted by exports of chromite from South Africa, which is enabling the growth of the ferrochrome industry in China.
    • Shortage of skills in certain disciplines.
    • The industry is heavily reliant on demand from stainless steel production, which is largely determined by economic conditions.

    Opportunities

    • Expected growth in demand for both chromite and ferrochrome due to increasing stainless steel production.
    • Ferrochrome production and exports can be increased if production costs can be lowered or at least maintained.
    • The EU’s anti-dumping duties on stainless steel from China should result in increased European demand for South African ferrochrome.

    Threats

    • Implementation of a carbon tax.
    • Low ferrochrome price.
    • Lower world economic growth leads to decreased demand for chromite and ferrochrome.
    • Rapidly increasing production costs.
    • South Africa’s mining regulatory framework is complex and contains many uncertainties.
    • The lack of consistent and reliable electricity supply.

    Outlook

    According to Merafe Resources, world stainless steel production is expected to grow by 5% in 2015 and 2016, while the demand for ferrochrome is forecast to increase by 8.3% and 5.1% in 2015 and 2016, respectively. The apparent consumption and demand for stainless steel is forecast to grow, at least till the end of 2016. The expected increase in ferrochrome production will lead to growth in chromite demand and, consequently, chromite prices. The resultant higher production costs for Chinese ferrochrome producers should result in higher ferrochrome prices, while the European Union’s recently imposed anti-dumping duties on stainless steel from China should result in increased European demand for ferrochrome and also put upward pressure on ferrochrome prices. Should prices not increase, the ferrochrome producers globally will come under severe pressure because of production cost increases. According to International Ferro Metals, growth projections beyond 2015 show that additional ferrochrome production will be required and that chromite availability will present a challenge because of a stagnant chromite supply pool and a lack of investment in new mines. Ferrochrome production levels in South Africa are expected to stabilise around the 4Mt per annum level going forward as most local producers are operating at optimal production levels.

    Read More..
    Mining of Iron Ore and Chrome in South Africa
    Mining of Iron Ore and Chrome in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 81.44 (USD)*

    Buy Now +

    Historical Reports

    Mining of Iron Ore and Chrome in South Africa 2026-02-16

    R 20 000.00(ZAR) estimated $1224.68 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2023-12-07

    R 6 500.00(ZAR) estimated $398.02 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2020-12-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2019-11-15

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2016-10-18

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Mining of Iron Ore and Chrome in South Africa 2015-11-20

    R 1 900.00(ZAR) estimated $116.34 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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

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