Gwede Mantashe, the Minister of Mineral Resources and Energy of South Africa, revealed that the government is in discussions with manganese and chromium producers on how to curb the decline in the domestic industry. Over the past few decades, more than half of the country's 59 chromium plants have closed.
Mantashe stated at the negotiation meeting of the South African Metalworkers' Union that the demand for alloy products of these two metals will increase, partly due to the rapid growth of green technologies such as batteries, but also due to the growth in traditional industries such as construction.
He believes that through high-level domestic processing, these resources can "drive inclusive economic growth, industrialization, and sustainable employment."
"However, we face a series of challenges that require coordinated action from all parties."
"Our alloy industry once had global competitiveness and was the pride of our economy, but now it faces numerous challenges, with the chromium industry being the hardest hit."
"Currently, at least 30 of our country's 59 chromium furnaces are in shutdown maintenance, some of which have been completely closed, resulting in job losses."
Mantashe revealed that a ministerial task force composed of the Department of Trade, Industry and Competition, the Department of Mineral Resources and Energy, the Department of Transport, and the National Treasury has convened to urgently develop a revival plan for the smelting industry and ensure its long-term sustainability.
He said the main tasks of the task force include: reviewing pricing models; improving rail and port infrastructure; incentivizing local beneficiation; and promoting legislative modernization to empower the government to intervene when necessary.
Some policies and incentives discussed with the industry include: imposing export taxes to limit the export of unprocessed minerals, and/or implementing quotas to restrict the amount of raw ore exported from South Africa.
Mantashe stated that the government has been in consultations with investors to bring processing, technological, and industrial capabilities to South Africa, with the aim of advancing the country's industrialization.
Mantashe did not mention the US government's policy to expand domestic mining and processing industries. Recently, Trump signed an executive order to "expand US mineral production, streamline approvals, and ensure national security."
Critical minerals are widely used in the production of fighter jets, semiconductors, power batteries, and smartphones. Trump's executive order aims to reduce dependence on foreign sources of critical minerals.
Since Trump took office, tensions between the US and South Africa have escalated. In retaliation against the US, Mantashe called for South Africa and African countries to suspend mineral exports to the US.
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