Our competitive advantage
Elements influencing the global demand for and pricing of ferrochrome:
- Lowest-cost producer in South Africa
- Flexibility provided by variety of cost-efficient technologies
- Savings in energy consumption per tonne of alloy produced as a result of major investments in energy efficiency (Lion Complex and two pelletising and sintering plants)
- Lion II achieves further energy efficiencies
- Significant chrome ore reserves and access to UG2
Ferrochrome production and its role in stainless steel
Produced by high-temperature reduction (smelting) of chromite, ferrochrome contains iron, chrome, minor amounts of carbon and silicon, and impurities such as sulphur, phosphorous and titanium.
Chrome is a metallurgical marvel. It brings critical properties to the metals with which it is alloyed. Add it to carbon steel in the form of ferrochrome and the steel becomes "stainless" – corrosion resistant, mechanically strong, heat resistant, hard wearing and shiny. Stainless steel is used almost everywhere in modern life from nuclear reactors to exhaust pipes, architecture, kitchenware and a host of other applications.
Specialty steels produced for applications such as tools, injection moulds, camshafts, etc also derive the high mechanical strength, hardness and heat resistance required from their chrome content.
Key statistics for 2021
- Global ferrochrome production increased from 12.5mt in 2020 to approximately 14.4mt
- Ferrochrome demand increased from 13.1mt in 2020 to 14.5mt
- South Africa produced approximately 3.7mt OF FERROCHROME (2020: 2.8mt)
- China imported approximately 12mt CHROME ORE from South Africa (2020: 11.7mt)