Mineral and Petroleum Resources Minister Gwede Mantashe reports that discussions are under way within government and with manganese and chrome producers in an effort to halt the decline in domestic value addition, epitomised by the closure of more than half of the country’s 59 chrome furnaces in recent decades.

Speaking at the National Union of Metalworkers of South Africa’s bargaining conference, Mantashe argued that demand for the ferroalloys produced from both minerals was poised to rise, partly on the back of green technologies such as batteries but also from traditional sectors such as construction.

He argued that, through higher levels of local beneficiation these resources could “drive inclusive economic growth, industrialisation, and sustainable jobs”.

“However, we are facing a set of serious challenges that require coordinated action among all stakeholders.

“Our ferroalloy industry that was once globally competitive and a source of pride for our economy, is facing a myriad of challenges with the chrome industry being the hardest hit.

“Currently, at least 30 out of 59 chrome furnaces in our country have been placed under care and maintenance, whereas some have been completely shut down and in so doing contributing to job losses.”

Mantashe reported that a Ministerial Task Team, comprising of the departments of Trade, Industry and Competition, Electricity and Energy, and Transport and the National Treasury, had been convened to urgently develop a revival plan for the smelting sector and to ensure its long-term sustainability.

He said the task team was focused on several areas, including reviewing electricity pricing models; improving rail and port infrastructure; incentivising local beneficiation; and modernising legislative tools to give government the power to intervene where necessary.

Some of the policies and incentives being discussed with industry included the introduction an export tax to restrict the export of non-beneficiated minerals and/or quotas to restrict the amount of raw minerals that can be exported from South Africa.

“We continue to engage with investors, including Chinese investors, to bring beneficiation, technology, and industrial capacity into South Africa . . . These matters are not just words — they are being formalised as part of a memorandum of understanding under discussion with the Chinese government, where we are actively seeking more balanced cooperation that supports South Africa’s industrialisation goals.”

No mention was made by Mantashe of the US government’s intentions to bolster its own domestic mining and processing sectors, with President Donald Trump having recently signed an executive order to “boost American mineral production, streamline permitting, and enhance national security”.

The order is guided by a strategy aimed at reducing the US’s dependence on China for critical minerals used in everything from fighter jets, semiconductors, electric vehicle batteries, and cell phones.

As tensions between South Africa and the US began to mount following Trump’s inauguration and his hostile social media posts (which have subsequently been followed up with executive orders halting aid to South Africa and offering Afrikaner farmers refugee status on unsubstantiated allegations regarding land confiscations), Mantashe suggested that South Africa and Africa should retaliate by withholding mineral exports to the US.