JOHANNESBURG (miningweekly.com) - South Africa’s National Union of Mineworkers (NUM) on Friday called for “urgent” restrictions on chrome exports, particularly to China.

The union’s national executive committee said in a statement that China was stockpiling chrome, mainly sourced from South Africa, to dictate future market prices. “This, the NUM believes is tantamount to colonisation of a special type.”

The export of raw chrome has been highlighted as one of the biggest challenges facing South African ferrochrome producers. Of the eight-million tons of chrome ore imported by China last year, 3.1-million tons were sourced from South Africa.

JSE-listed ferrochrome producer Merafe Resources CEO Stuart Elliot said that last month China, which does not have its own chrome ore sources, was positioning itself as one of the lower-cost ferrochrome producers through the import of cheap ore from South Africa.

“Ultimately, South Africa, which produces about 45% of the world’s ferrochrome, will lose its position in the world market, which will inevitably lead to job losses and less investment in the country,” he said in an August 2 interview.

South African ferrochrome producers have contracted independent consultants to study chrome exports, the findings of which will be taken to the Mineral Resources Department.

The NUM said that China’s investments into South Africa had to be viewed with caution and appealed to the government to review the role of China in the country’s economy.

The union also said that all stakeholders needed to work together to accelerate beneficiation in South Africa’s mining industry.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.