South Africa’s ferroalloys sector could enter another fruitful era

While speaking at the inaugural McCloskey Steel & Ferroalloys Conference in Cape Town, I drew attention to the strategic importance of South Africa’s (SA) ferroalloys sector. This industry is driven by SA’s massive manganese and chrome deposits, which are critical to steel manufacturing globally. China is currently leading in steel production, using raw chrome and manganese ores from South Africa.  On the other hand, SA has the biggest deposits of chrome and manganese ores but very limited beneficiation capacity. Not having enough beneficiation capacity is a major loss for SA.

Through raw materials exported from SA, China can support its steel output and create jobs. However, SA has not been able to benefit from the same opportunities due to several challenges, including rising electricity costs and the lack of consistent power supply over the years. Unfortunately, this has led to smelters being either closed or mothballed, significantly reducing the country’s  beneficiation capacity.

The ferroalloys industry is crucial to the country’s economy and stability. It still has the potential to thrive. For the industry to be sustainable, it requires affordable power and other critical reforms like reliable freight rail services. SA’s ferroalloys industry can expand production, enhance global competitiveness, and contribute significantly to the country’s economy by dealing with its challenges.  

View the presentation below: