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A working group with industry has been established to improve the operating environment for long-term sustainability of South Africa's ferrochrome industry, Trade, Industry and Competition Minister Parks Tau has reported in an article in Business Day, which has been published at a time when the testing of highly convincing new home-grown smelting technology is well advanced.

The Proudly South African SmeltDirect is said to have the potential to re-establish South Africa as the global ferrochrome hub that it once was - and a more environmentally friendly one at that.

SmeltDirect is characterised by chemical reactions rather than large electricity volumes and can be retrofitted to the many existing ferrochrome smelters now on care-and-maintenance because of high electricity tariffs.

"It's not a time for retreat but for reinvention," Tau wrote, while also reiterating that chrome is exempt from the new US tariff structure.

In March, pilot testing of the new smelt technology was said to be "looking great" and its commercialisation prospects will likely be known by the end of next month.

It has to be emphasised that South Africa hosts more than 70% of the world reserves of chrome ore and was dominant in ferrochrome production until 2010.

In the early 2000s, South Africa was the undisputed No 1 chrome ore- and ferrochrome-producing country, with 90% of the inputs, including technology and equipment, locally sourced.

More than 200 000 direct and indirect jobs were created across the chrome value chain and 20% of mining-related foreign exchange was earned from ferrochrome sales.

In 2010, the chrome value chain contributed R42-billion to South Africa's GDP and generated R36-billion worth of foreign exchange earnings, with ferrochrome production contributing 80% of the value of the chrome value chain.

Ferrochrome is a key ingredient of stainless steel, which is environmentally friendlier that carbon steel because of its long life.

Interestingly, South Africa is the largest producer of titanium-bearing stainless steel outside of China and Europe, whereas the US produces nickel-bearing stainless steel.

South Africa's titanium-bearing stainless steel is used in the automotive catalytic converters that South Africa manufactures in Gqeberha, which Tau quotes Naamsa as saying represent this country's largest automotive component export.

From 2018-2022, South Africa exported R14.1-billion to R23.9-billion worth of catalytic converters to mainly the EU and UK, which despite the current turmoil in global trade, remain reliable trading partners, the Minister pointed out.

The vehicle exhaust emission control devices convert toxic gases and pollutants in exhaust gas from an internal combustion engine

The first widespread introduction of catalytic converters, which prevent air pollution, was in the US automobile market, dating back to 1975.

These auto catalytic converters use South Africa's platinum group metals (PGMs), which are also not subject to the new US tariffs and which Tau urged should be re-imagined into alternative applications, particularly in emerging clean energy technologies.

"There's a need to adapt to a shifting global paradigm and the transformative potential of green hydrogen, to unlock economic growth," the Minister wrote.

New applications are constantly being found for PGMs, which are the biggest employer of South Africa's mineworkers.

As last month's PGM Industry Day heard, PGMs such as ruthenium is unlikely to be able to continue to hide its light under a bushel. It is now seen to have a bright future in green hydrogen, green chemistry and electronics.

Tau placed great emphasis on the need for South Africa to adapt to the shifting global paradigm and the transformative potential it is bringing for green hydr...