We audit, verify and approve buyers, mine owners, blenders, washers and traders of chrome
With a combined 60 years in the mining industry, our team has engaged in every aspect of the supply chain, from mining, blending and wash plant management, to local transport and export logistics.
Our services include:
Although chromium is a metal, it does not occur naturally in metallic form. Chromium can be found in many minerals, but the only economically significant chromium-bearing mineral is chromite. Chromite has been mined from four different deposit types: stratiform chromite, podiform chromite, placer chromite, and laterite deposits. Most of the world’s resources, however, are located in stratiform chromite deposits, such as the Bushveld Complex in South Africa. The economic potential of chromite resources depends on the thickness and continuity of the deposit and on the grade of the ore. Many of the major stratiform chromite deposits also contain economic levels of platinum, palladium, rhodium, osmium, iridium and ruthenium. Chrome Traders regions of expertise include the Bushveld complex in South Africa as well as the Great Dyke region in the Midlands province of Zimbabwe.
Chrome ore production is on an upward trend, largely due to growing demand in China. The increase in production in 2022 was mostly driven by higher prices. South Africa is the world’s largest producer and exporter. Over the past ten years, iron ore production has been in decline. Lower iron ore export volumes in 2022 were largely due to underperformance by Transnet on the export line and at the port. This issue affects chrome ore exporters but to a lesser degree as they have more export logistics options.
Opportunities
Increasing demand for chrome ore, due to rising ferrochrome production in China.
Challenges
Increasing input costs, in particular electricity, water, diesel, logistics and labour.
Limited exports due to collapsing rail lines and ports used by chrome ore and iron ore mining companies.
Trends
Chrome ore exporters are increasingly using road transport to Maputo to avoid using Transnet’s rail and port services. Most local PGM producers are increasing their production of chrome ore to increase revenue. Over the past ten years, iron ore production has been on a downward trend. Producers using the iron ore export channel are reducing their production levels to match Transnet’s performance. South Africa’s chrome ore production and exports are on an upward trend in response to higher demand and prices.
Outlook
Increased demand for stainless steel should lead to growth in chrome ore demand and, consequently, higher chrome ore prices. South Africa’s chrome ore production and exports are expected to increase in response. Exporters will increasingly use road transport to Maputo to avoid using Transnet’s rail and port services. The rate of iron ore demand growth is expected to slow, and iron ore supply is forecast to grow at a faster rate than demand, leading to lower iron ore prices. South African iron ore production was expected to decrease marginally in 2023. Beyond 2023, output will to a large extent be determined by Transnet’s performance.
Report Coverage
This report on the mining of iron ore and chrome in South Africa includes information on geographic locations, production and export trends, major players, corporate actions, African and international statistics, steel and stainless steel demand, prices, and influencing factors such as rail and port issues and input costs.