Chrome market participants have been surprised by the South African government's proposal to introduce an export tax on chrome ore to support its chrome sector but sought further detail about what it involves and when it would be carried through.
The proposed export tax on South African chrome ore is designed to support domestic ferro-chrome production and its chrome value chain, the South African government said on Thursday October 22.
The interventions include the proposed introduction of the export tax on chrome ore, the usage of energy efficiency technologies on smelters and the adoption of co-generation and self-generation technologies, Jackson Mthembu, minister in the presidency, said on October 22.
The news was welcomed by many participants in the chrome industry outside of China.
"This is very good news in realizing potential for what South Africa has in terms of beneficiation of its natural resources," one market participant told Fastmarkets. "South Africa will benefit from this."
But there was no clarity about the level at which the new tax would be imposed or when - and even if - it would actually come to fruition.
"We need...