Merafe Resources Integrated Annual Report 2018

MERAFE RESOURCES INTEGRATED ANNUAL REPORT 2018 7 European Union China South Korea India Taiwan Japan South Africa SOUTH AFRICAN CHROME INDUSTRY Facts Approximately 3.9mt of the world’s ferrochrome production of 13.4mt was supplied by South Africa in 2018 Over 72% of the world’s chrome reserves are in South Africa Provides over 200 000 direct and indirect jobs Challenges faced by South African ferrochrome producers • Increasing production costs – electricity – labour • Socio-political challenges • Legislative uncertainty • Commodity prices and demand • Chrome ore exports • Electricity supply For more information on ferrochrome production, consumption stainless steel production and chrome ore imports, see the CEO's strategic review on page 10 and the tables on pages 11 to 13.