New Smelting Technology in South Africa Ready to Become a Reality, Reducing Power Consumption by 70%

September 10, 2025 News:

According to Mining Weekly, South Africa's diversified mining company ARM is commercializing a new smelting technology (SmeltDirect). This technology can save over 70% of electricity consumption required for smelting, reduce approximately 60% of carbon emissions, and position enterprises at the bottom of the cost curve, enabling South Africa to regain its status as an economically feasible producer of ferroalloys and green steel.

To put South Africa back on track, Johannesburg Stock Exchange-listed diversified mining company African Rainbow Minerals (ARM), led by Executive Chairman Dr. Patrice Motsepe, has brought SmeltDirect to the forefront to help the country reclaim lost market share in the ferroalloy sector it once dominated.

Unlike traditional systems requiring 4 MW, producing one mt of alloy now only needs 1.2 MW of electricity, creating around 700 jobs annually per 200,000 mt of alloy production. This technology has the potential to reindustrialize South Africa, is now ready for commercialization, and could reverse the widespread shutdown of ferroalloy smelting operations caused by high electricity prices.

Consequently, SmeltDirect has attracted global attention. Advantageously, SmeltDirect not only possesses all the conditions to reverse South Africa's declining ferrochrome and ferromanganese (FeMn) trends but could also revitalize enterprises like Highveld Steel and Vanadium, paving the way for the return of local production of high-manganese steel rails and the introduction of green steel.

"We have now moved far beyond the R&D phase—we've actually completed a fully fundable feasibility study for ferrochrome production at Machadodorp Works," ARM Ferrous CEO Andre Joubert enthusiastically stated in last week's FY2025 dividend yield report when responding to questions from Mining Weekly.

ARM's Machadodorp facility in Mpumalanga Province is a site dedicated to commercializing SmeltDirect, enabling ore to be processed in its country of origin, effectively halving the mt transported to market.

In the early 2000s, South Africa held over 70% of global chrome ore and manganese ore reserves, ranking as the undisputed top producer of chrome ore and ferrochrome, with 90% of inputs (including technology and equipment) sourced locally. The chrome value chain alone created more than 200,000 direct and indirect jobs, with 20% of mining-related foreign exchange coming from ferrochrome sales.

In 2010, the chrome value chain contributed 42 billion rand to South Africa's GDP and generated 36 billion rand in foreign exchange earnings, with ferrochrome production accounting for 80% of the chrome value chain's value.

"We are collaborating with various partners to jointly commission such a new plant and commercialize our new technology. If you aim to produce the same quantity of ferrochrome, it can save over 70% of power consumption, reduce approximately 60% of carbon emissions, and position you at the bottom of the cost curve.

"So, we are undertaking extensive efforts. We are working with other ferrochrome producers, partnering with the South African Industrial Development Corporation and international stakeholders to commercialize this technology."

"However, this requires considerable effort, as chrome smelters are now shutting down one after another. We ourselves have cut FeMn production. The last personnel left the plant by month-end August, so I believe large-scale collaboration at both industry and government levels is essential to revitalize South Africa's industrialization and smelting sector."