The Minerals Council SA has come out against proposals for an export tax on chrome, particularly on chrome concentrate.
The cabinet has recently announced measures to support the ferrochrome industry, including “the placement of chrome ore under export control, which will require exports to obtain the International Trade Administration Commission permitting.”
The MCSA responded that the proposal had been raised a number of times in the past, but had been rejected. Research had “unequivocally demonstrated why such taxes would not achieve the government’s aims of sustaining the ferrochrome industry and the preservation of jobs, but would instead have a negative impact on chrome producers and the significant contribution this industry makes to both SA’s economy and the jobs it sustains and grows.”
It went on to say that mining had been a good economic performer, with chrome production having done particularly well, increasing by some 8.4% on average between 1994 and 2024. It had also grown its employment numbers.
“For this reason, export taxes have not been implemented to date and there remains no reason export taxes would support increased beneficiation in SA.”
The MCSA said that it was “disappointed” that there had been no consultation on the matter.
It welcomed the measures “to the extent” that they prevented the illegal export of chrome, and it also welcomed the introduction of preferential electricity tariffs for ferrochrome smelters.
[Image: https://stockcake.com/i/flowing-chrome-waves_1692557_1232078]