Key Points
- Merafe’s ferrochrome production reached 301,000 tons in 2024.
- High electricity costs hinder South Africa’s ferrochrome competitiveness.
- SmeltDirect technology could cut emissions and reduce production costs.
Merafe Resources announced that the Glencore Merafe Chrome Venture’s ferrochrome production increased by a slight 0.3% in the year that ended on December 31, 2024. The most recent report from the Johannesburg Stock Exchange-listed company said that 301,000 tons of production were attributable.
Merafe’s 2024 ferrochrome production rises slightly despite industry pressures
Operational smelters operating in the winter drove a 2% year-over-year increase in production to 76,000 tons in the third quarter that ended on September 30. Over the course of nine months, 230,000 tons were produced, which is more than the 225,000 tons produced in 2023.
As stated by Mining weekly, once the world leader in ferrochrome manufacturing, South Africa today provides raw chrome to China, which is the biggest manufacturer of stainless steel worldwide. Industry analysts blame the change on the inability of the public sector to supply dependable, reasonably priced electricity and the high electricity prices from state utility Eskom.
South Africa’s market share has decreased despite private sector investments in beneficiation capacity. The ferrochrome sector, which was formerly a major source of foreign cash, is currently dealing with dwindling output, job losses, and demands for structural changes.
SmeltDirect and other new technologies give promise for stopping the industry’s downturn. African Rainbow Minerals (ARM) developed SmeltDirect, which is more environmentally friendly because it requires 70% less electricity and emits a lot less carbon dioxide.
SmeltDirect offers hope for sustainable and cost-effective ferrochrome production
According to Dr. Patrice Motsepe, executive chairperson of ARM, “SmeltDirect is intended to reduce expenses and allow the utilization of low-grade materials, opening the door to reviving dormant smelters.”
Widespread use of the technology, according to experts, may help South Africa regain market dominance, create tens of thousands of jobs, and strengthen domestic beneficiation initiatives.
Stakeholders stress that ferrochrome capacity must be maximized as South Africa embarks on a new phase of public-private cooperation. Experts have hailed SmeltDirect’s Machadodorp Works demonstration factory as a possible game-changer.
In order to stay competitive, industry executives emphasize the significance of implementing greener technologies as the Carbon Border Adjustment Mechanism (CBAM) draws near. If dormant smelters are reopened using sustainable methods like SmeltDirect, South Africa’s ferrochrome value chain, which formerly supported over 200,000 employment, may see a rejuvenation.
Merafe’s modest 2024 rise in ferrochrome production demonstrates the difficulties the South African ferrochrome sector faces. With global competitiveness on the rise, innovative technologies like SmeltDirect provide a route to sustainability, cost effectiveness, and job development.
