Lessons from South Africa’s chrome resource management

📅 Published: August 18, 2025

📰 Source: theindependent

Curated by AllZimNews.com

South Africa has the largest chrome reserves in the world.

Zimbabwe has about 12% of global deposits.

South Africa and Zimbabwe cumulatively hold over 90% of the world’s chrome reserves.

By that virtue, these two countries should not settle for producing chrome at unviable prices, at any stage within the value chain.

Rather, they should ensure chrome production is done at prices sufficiently beneficial to their respective governments.

Sadly, chrome production has become unviable in South Africa and Zimbabwe.

Several smelting companies have closed due to the unavailability of electricity, depressed prices, and expensive electricity.

Overall, South Africa’s industrial energy users, including mines, mineral smelters, and refineries, consume a combined 30% of electricity.

Some of these industrial entities consume the 17,27% portion of grid electricity.

What is shocking is this 17,27% only generates 8,5% of revenue from electricity sales.

In essence, this implies some industrial entities are accessing grid electricity at heavily discounted prices.

Existing chrome smelters who are still open, survive on discounted electricity.