The chrome market was shocked in October 2020 when the South African government revealed plans to impose a chrome ore export tax, but the subsequent lack of news probably hides activity behind the scenes rather than indicating that the plan has been quietly dropped.
There was uproar in the chrome market after Jackson Mthembu, South Africa's minister in the presidency,
announced that the government planned to impose an export tax on chrome ore.
Proponents believed that it would bring much-needed tax income into the government, while boosting the competitiveness of the downstream ferro-chrome industry by adding to the costs of competitors, chiefly China.
And this could be achieved with minimal negative effects on South Africa's existing ore industry because of the resource-rich country's huge reserves.
Detractors, meanwhile, said that the tax would
boost the competitiveness of other countries with ore reserves, such as Zimbabwe and Turkey, and harm South Africa's mining sector.
They also pointed out that South Africa would need to make its electricity supply fit for purpose if it were to attract investment in its energy-intensive ferro-alloy sector.
Since October 2020, the South African government has been quiet...