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South African miners say proposed Chrome Export Tax threatens jobs

The Minerals Council of South Africa has warned that the proposed tax on chrome ore exports will reduce profitability for miners and cause job losses in the industry.

Africa's most developed economy is the largest exporter of Chrome, which is mainly used to manufacture stainless steel.

South Africa used to be a major producer of ferrochrome (a mixture of chrome and iron), but has lost this position to China. This is mainly due to the high cost of electricity, which forced many smelters into closure.

As part of its efforts to stem the decline of the chrome industry, the South African cabinet announced on June 26 that it had agreed to lower the power tariffs for the chrome smelters and impose a proposed tax on the export of chrome ore.

Minerals Council South Africa (MCSA), which represents the largest miners in the country, stated that the tax would not "achieve the government's goals of maintaining the ferrochrome sector and the preservation jobs".

This would "have a detrimental impact on chrome producers, and the significant contribution that this industry makes both to South Africa's economic growth and the jobs they sustain and grow".

According to the Minerals Council, the South African chrome industry directly employs 25 000 people and will generate 85 billion rand (4.85 billion dollars) in export revenues by 2024.

In 2024, it exported a record number of 20.5 million tons of chrome concentrator, mainly to China, which is the largest importer in the world.

South32, Tharisa Plc, and Glencore are among the companies that mine and process chrome in South Africa.

(source: Reuters)