In its mid-year performance report, Merafe stated that the global demand for ferrochrome continues to increase, but South Africa is losing its once leading position.

August 14, 2025 News:

According to *Mining Weekly*, Zanele Matlala, CEO of Merafe Resources, stated at the company's interim results presentation: "Global stainless steel production has increased, driving up demand for ferrochrome. However, due to unfavorable market conditions, South African ferrochrome production has declined significantly, especially as ferrochrome prices are below production costs."

Ferrochrome commands a five-fold multiplier over the raw price of chrome ore, yet South Africa is increasingly shifting towards exporting chrome ore, which has a much lower value. Due to smelter shutdowns, South African ferrochrome production has fallen by 27%, and despite ferrochrome prices rebounding by approximately 10% from their lows in Q1 2025, it is still not enough to resume ferrochrome smelting. In contrast, South Africa's chrome ore exports are expected to rise in the future.

"Given the structural changes in the business, chrome ore production and costs will be included in future updates," Matlala said. Due to the decline in chrome ore prices and reduced costs of reducing agents, the production cost per mt of ferrochrome has decreased by 5% since December 2024. To drive the redevelopment of ferrochrome, engagement with stakeholders continues. "The government has expressed support for the industry. However, the implementation dates for the proposed measures have not yet been determined,"

Matlala said. "The government's proposed interventions include adjusting electricity prices, including chrome ore in export controls, imposing an export tax on chrome ore, and expanding special economic zones. These are not quick fixes," he added, noting that the workforce at Glencore-Merafe's idle Boshoek and Wonderkop smelters remains.

"With the suspension of the smelters, there will be increased focus on chrome ore mining operations, and our reporting is being revised to reflect this," Matlala informed.

Merafe FD Ditabe Chocho reported that despite a significant decline in sales in H1, ferrochrome still accounted for 51% of total revenue. However, ferrochrome revenue for the half-year declined by 60%, and chrome ore revenue fell by 17%.

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