{"id":421143,"date":"2026-01-12T20:36:14","date_gmt":"2026-01-12T19:36:14","guid":{"rendered":"https:\/\/climatescience.press\/?p=421143"},"modified":"2026-01-12T20:36:44","modified_gmt":"2026-01-12T19:36:44","slug":"dismantlement-of-south-africas-ferrochrome-industry","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=421143","title":{"rendered":"Dismantlement of South Africa\u2019s Ferrochrome Industry"},"content":{"rendered":"\n
\"A<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

By Lars Schernikau and Vijay Jayaraj<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

South Africa\u2019s once dominant ferrochrome industry is on the brink of collapse and requires a government bailout. That decline is not because the world no longer needs ferrochrome. It is because South Africa\u2019s leaders tied their industrial policy to a \u201cgreen\u201d agenda that undermines reliable, affordable energy and sacrifices economic strength.<\/p>\n\n\n\n

What is happening in South Africa should concern every country that still cares about manufacturing jobs, supply chains and energy costs for ordinary people.<\/p>\n\n\n\n

Ferrochrome \u2013 made largely of chrome ore, coal products and with lots of electricity \u2013 is not a boutique commodity. Valued for its hardness and resistance to corrosion, ferrochrome is a critical component of stainless steel, the alloy used in the making of kitchen appliances, industrial tools, passenger vehicles and construction infrastructure. It is difficult to imagine modern manufacturing without ferrochrome.<\/p>\n\n\n\n

All it took was for South Africa to build a leading stainless steel industry was its domestic access to this valuable commodity. South Africa has two strengths worthy of envy: the world\u2019s largest known chrome ore reserves and a ferrochrome production base second only to China\u2019s. That combination should secure the competitive advantage of South African ferrochrome. Yet, the industry is dissolving.<\/p>\n\n\n\n

Reporting a decline of more than 25% in ferrochrome production from 2024 to 2025 wasGlencore PLC, a London-based titan in the sector that owns 80% of what was the world\u2019s largest producer, the Glencore-Merafe Venture in South Africa.<\/p>\n\n\n\n

The drop in the South African operation\u2019s output \u2013 to 430,000 tons from 600,000 \u2013 stems from the government\u2019s hostility toward coal and preference for technologies like wind turbines and solar panels \u2013 positions that ignore the fundamental laws of energy.<\/p>\n\n\n\n

Robert Cartman, a senior analyst at Fastmarkets<\/em>, predicts that South Africa\u2019s total ferrochrome production could fall from 3.3 million tons in 2024 to a pitiful 1 million tons in 2026. At that point, South Africa ceases to be a major player. Mines will close. The expertise will migrate. The revenue will vanish.<\/p>\n\n\n\n

Ferrochrome production is an energy-intensive beast that needs a steady, cheap power supply for electric arc furnaces, which won\u2019t tolerate the intermittent whims of wind and solar. When the clouds roll in or the wind dies, a smelter operating at 1,700 degrees Celsius cannot simply \u201cpause.\u201d<\/p>\n\n\n\n

Just as importantly, coal is not only a power source for this industry. Metallurgical coal is a chemical necessity that provides carbon as a reductant for stripping oxygen from chromium ore. Without coal, there is no ferrochrome.<\/p>\n\n\n\n

There is no practical alternative to fossil fuels for the ferrochrome industry, but South Africa\u2019s energy regime is discouraging the use of these economical energy sources and compromising the reliability and affordability of electricity.<\/p>\n\n\n\n

Electricity rates have been rising for years. In 2025 alone, the National Energy Regulator approved an increase of nearly 13%, continuing a long trend of hefty hikes that stretch household budgets and corporate balance sheets.<\/p>\n\n\n\n

While South African furnaces go cold, the demand for stainless steel continues to grow. However, a significant portion of the market has moved away from South Africa, allowing China to surpass it as the leading ferrochrome producer.<\/p>\n\n\n\n

China understands what Pretoria has forgotten: Industrial dominance requires reliable, affordable power that can be dispatched when users need it, none of which can be provided by solar or wind. The Chinese government happily imports South African chrome ore, processes it using its own coal-fired power plants, and sells the finished ferrochrome to the world. South Africa is effectively exporting a large portion of its gross domestic product, outsourcing jobs to China and perpetuating domestic poverty.<\/p>\n\n\n\n

Under the pressures of South Africa\u2019s woke ESG (environmental, social and governance) demands, global investment firms and banks are abandoning the country\u2019s resource sector. Coal-dependent industries in South Africa are deprived of insurance and financial services while massive amounts of coal fuel the Asian industrial machine.<\/p>\n\n\n\n

It is a rigged game. South Africa tangles itself in \u201cgreen\u201d tape and \u201ccarbon\u201d taxes to appease foreign elites, while global competitors double down on the fossil fuels necessary to build strong economies. South Africa\u2019s newest Integrated Resource Plan 2025 (IRP2025) continues to favor wind and solar.<\/p>\n\n\n\n

Electricity Minister Kgosientsho Ramokgopa<\/a> recently admitted that skyrocketing electricity bills are hurting. \u201cThe Department of Electricity and Energy acknowledges that the rising cost of electricity presents a serious challenge to households, businesses, and the broader economy,\u201d he said.<\/p>\n\n\n\n

This admission is a rare moment of clarity from a government that usually deals in obfuscation. Whether promises of \u201cpolicy and structural measures\u201d to \u201cover time\u201d reduce the cost of electricity are ever fulfilled remains to be seen. What is clear is that the current trajectory means the complete collapse of the South African ferrochrome industry is a mathematical certainty.<\/p>\n\n\n\n

Policies that aim to save industry after the damage is done are reactive, not strategic. South African leaders must pivot to an energy agenda that accepts the present reality: Coal and natural gas are indispensable for industrial competitiveness \u2013 at least until affordable, reliable, on-demand alternatives can match their performance and cost.<\/p>\n\n\n\n

This commentary was first published by Real Clear Markets<\/a> <\/em>on January 7, 2026.<\/p>\n\n\n\n

Dr. Lars Schernikau is an <\/em>energy economist<\/em><\/a>, entrepreneur, commodity trader, author, strategic advisor and member of the <\/em>CO2 Coalition<\/em><\/a>, Fairfax, Virginia. He is a coauthor of a recent analysis of South African energy policy. Vijay Jayaraj is an energy-environment analyst and Science and Research Associate at the <\/em>CO2 Coalition<\/em><\/a>.<\/em><\/p>\n\n\n\n

Vijay Jayaraj is a Science and Research Associate at the <\/em>CO2<\/sub> Coalition<\/em><\/a>, Fairfax, Virginia. He holds an M.S. in environmental sciences from the University of East Anglia and a postgraduate degree in energy management from Robert Gordon University, both in the U.K., and a bachelor\u2019s in engineering from Anna University, India.<\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

South Africa\u2019s once dominant ferrochrome industry is on the brink of collapse and requires a government bailout. That decline is not because the world no longer needs ferrochrome. It is because South Africa\u2019s leaders tied their industrial policy to a \u201cgreen\u201d agenda that undermines reliable, affordable energy and sacrifices economic strength.<\/p>\n","protected":false},"author":121246920,"featured_media":421145,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"South Africa's ferrochrome industry faces collapse due to misguided energy policies. Explore how green agendas threaten manufacturing jobs.","jetpack_seo_html_title":"South Africa's Ferrochrome Industry Faces Collapse Amid Policy Failures","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":true,"token":"eyJpbWciOiJodHRwczpcL1wvY2xpbWF0ZS1zY2llbmNlLnByZXNzXC93cC1jb250ZW50XC91cGxvYWRzXC8yMDI2XC8wMVwvMEFRTWc0OTM4dWJDY1p6T0tIZUd1WmFUamMteU8yQ0xNdGpPR05KVGN1bzc3NmpMQlBTcV9OLWFGMmVESWptWlRHcVoxUzJtNzBSODlxQ0tOZVRfT2huekNHODZsVkFKdTVFS1owUWt3cUV4WFBaYkx2S0g1UjFUdndGMk1Pbm5qLTEtMTAyNHg3OTIuanBlZyIsInR4dCI6IkRpc21hbnRsZW1lbnQgb2YgU291dGggQWZyaWNhXHUyMDE5cyBGZXJyb2Nocm9tZSBJbmR1c3RyeSIsInRlbXBsYXRlIjoiaGlnaHdheSIsImZvbnQiOiIiLCJibG9nX2lkIjoxNTU4MTI0NDl9.quxgbgrJDkmFzGD5MnFA1r4TdE4HkgdxT-G438fIqL0MQ"},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691837899,691820296,691824443,691840687,691840689,691819095,691840690,691840688],"class_list":{"0":"post-421143","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-green-agenda-2","9":"tag-coal-fired-power-plants","10":"tag-electricity-bills","11":"tag-ferrochrome-industry","12":"tag-solar-or-wind","13":"tag-south-africa","14":"tag-south-africas-woke-esg","15":"tag-stainless-steel-industry","17":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/0AQMg4938ubCcZzOKHeGuZaTjc-yO2CLMtjOGNJTcuo776jLBPSq_N-aF2eDIjmZTGqZ1S2m70R89qCKNeT_OhnzCG86lVAJu5EKZ0QkwqExXPZbLvKH5R1TvwF2MOnnj-1.jpeg?fit=1216%2C940&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1LyD","jetpack-related-posts":[{"id":238553,"url":"https:\/\/climatescience.press\/?p=238553","url_meta":{"origin":421143,"position":0},"title":"\u201cSouth Africa is the perfect laboratory\u201d for Green End of Coal Plans","author":"uwe.roland.gross","date":"01\/08\/2023","format":false,"excerpt":"UN funded climate activists are trying to turn South Africa into a playground for their failed energy ideas.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-341.png?fit=800%2C400&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-341.png?fit=800%2C400&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-341.png?fit=800%2C400&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-341.png?fit=800%2C400&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":411968,"url":"https:\/\/climatescience.press\/?p=411968","url_meta":{"origin":421143,"position":1},"title":"U.S. Energy Shift Offers Economic Hope to Global South","author":"uwe.roland.gross","date":"11\/07\/2025","format":false,"excerpt":"For decades growth strategies in poorer countries of the Global South \u2013 Asia, Africa and South America \u2013 leaned heavily on energy-intensive industries powered by fossil fuels and, in a handful of cases, by nuclear power. 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