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Export Tax May Destroy Chrome ore Mining

  • Thursday, March 22, 2012
  • Source:

  • Keywords:Chrome ore S.A.
[Fellow]
[Ferro-Alloys.com]The proposed $100/t tax on the export of raw chrome ore would destroy the South African chrome ore mining business and allow competitors from other producing countries to benefit, insiders said recently. They complained that South Africa’s ferrochrome production was being displaced by Chinese ferrochrome production.
 
The hard-hit South Africa ferrochrome industry, which has already temporarily closed 30% of its furnace capacity, has asked the South African government to impose the tax as a short-term relief measure.
 
Last year South Africa supplied more than half of the 9.4-million tons of raw chrome ore that China imported, with this country’s 300 000 t supply loss exactly matching China’s 300 000 t gain.
 
Half of the South African supplies to China arose from platinum miners producing chrome as a byproduct of their mining of the UG2 reef, 30% from integrated ferrochrome producers and 20% from independent chrome-ore miners
 
  • [Editor:editor]

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