The Minerals Council South Africa notes with regret certain statements in the Industrial Development Strategy 2026 released on Monday (8 June) by the Department of Trade, Industry and Competition.
The Strategy includes proposals on a tax and quotas on chrome ore exports as well as linking conditions regarding beneficiation to the issuance of mining rights.
The Minerals Council, whose members represent 90% of South Africa’s annual mineral production by value, will study the Strategy before engaging the government on its contents.
“It is an unfortunate policy intention from the Department of Trade, Industry and Competition, which, while not yet a law, adds to the incessant policy uncertainty that is constraining investment and growth of the mining industry and the economy,” says Mzila Mthenjane, CEO of the Minerals Council.
The proposal regarding the issuance of mining rights with “conditions that must facilitate beneficiation” could potentially damage future investments in exploration and mining.
The Minerals Council is engaged in talks with the Department of Mineral and Petroleum Resources about the contents of the Mineral Resources Development Bill to ensure mining laws make South Africa a globally competitive exploration and mining jurisdiction, attracting investment, growth and creating job opportunities.
“Mining and beneficiation are separate and distinct economic sectors in the mineral value chain. Beneficiation cannot, and must not, be imposed on mining because beneficiation forms part of manufacturing and overall industrialisation. As such, specific measures must be introduced to incentivise and attract investments to stimulate industrialisation and the diversification of our economy,” says Mthenjane.
The Minerals Council reiterates that the supply of chrome ore for South Africa’s ferrochrome industry is not the reason for the reduced level of smelting of the key ingredient for stainless steel production. Electricity tariff increases of more than 900% since 2008 have made South Africa’s ferroalloys industry globally uncompetitive and shut unprofitable smelters. The de-industrialisation trajectory is also attributable in part to unaffordable electricity.
The reduction in electricity prices for Glencore Ferroalloys and Samancor to restart their smelters is a much-needed intervention and underscores the Minerals Council’s position that competitive electricity tariffs and not restrictions on chrome ore (or other mineral) exports will support the ferroalloys industry and future beneficiation and industrialisation.
