[important] full restoration of South African freight railway

On May 2, South African time, Minister, Fikile Mbalula responded to regulations issued by President Nkosazana Dlamini-Zuma, which brought into effect alert level 4 for the risk adjustment strategy against the COVID-19 pandemic, and the transport system downgraded the coronavirus COVID-19 alert to level 4.

In the response adjustment of the five major departments, manganese ore and chromium ore have a positive impact on the supply of manganese ore.

1. Railway track

Transport Minister Fikile Mbalula pointed out that with the gradual recovery of economic activity in some sectors and the allowed movement of freight, the whole country will allow the full recovery of freight railways.

The commuter railway will gradually resume operation in accordance with the detailed plan submitted by the passenger railway operator. Stringent measures will be introduced to ensure limited services for social segregation and other mitigation measures.

2. Sea transportation

From now on, goods will be allowed to be transported from the seaport to the warehouse or final destination in accordance with existing rules. The direction of regulating the movement of the ship will remain unchanged. However, the ban on passenger ships and cruise ships remains in force, and only ships carrying cargo can call at South African ports.

3. Cross-border transport

The definition of basic goods has been extended under level 4 regulations issued on 29 April to allow goods to cross the South African land border with immediate effect, but cross-border road passengers are still prohibited.

Among them, the relaxation of rail transport and cross-border transport has exceeded market expectations. The renewal policy not only accelerates the recovery of manganese ore supply from South Africa to China, but also facilitates manganese ore transport in neighboring countries, such as Zambia (some mineral resources from South Africa's neighboring countries will be shipped to South African ports). According to SMM estimates, South Africa's supply of chromium and manganese mines to China will be restored (with reference to the arrival time from South African mines to Chinese ports) from the previous estimate in mid-to late June to early June. At the same time, according to SMM, chromium mines and manganese mines in Jigang, South Africa, will arrive in China one after another on May 20-26.

At present, the supply of chromium and manganese mines in South Africa is basically free before the epidemic in terms of transport policy. In a short period of time, the supply of minerals in South Africa is still restricted by the full capacity of local ports and the restrictions on mine production capacity imposed by the Ministry of Mineral Resources. Under the South African disaster Management regulations, after allowing mines to increase production capacity to 50 per cent, the Labour Court has ordered employers in the mining industry to comply with section 9 (2) of the Mining Health and Safety Act and will issue new guidance to mines by the Chief Mine Prosecutor in the official Gazette on 18 May 2020.