Sheraz Neffati, Executive Director, International Chromium Development Association
ICDA’s mission:
The International Chromium Development Association (ICDA) is a not-for-profit organisation with more than 40 years of history, established in 1984 through an industry-led initiative. Its founding members included leading chrome ore and ferrochrome producers from around the world, several of whom remain active within both the industry and the association today.
The ICDA is a unique global network representing the entire chromium value chain, from mining and ferrochrome production to stainless and specialty steel manufacturing, trading companies, and service providers. With over 110 member companies, including many of the world’s leading industry players, the ICDA serves as the voice of the global chromium industry.
The association’s mission is to support the sustainable and responsible production and use of chromium in all its forms. It provides leadership on environmental, social, and governance matters through research initiatives, scientific publications, technical guidance, and workshops. The ICDA is also a recognised source of market intelligence, delivering weekly, monthly, and quarterly reports that help members navigate market developments.
In addition, the ICDA works to safeguard the long-term interests of chromium markets, promote innovative applications for chromium-containing products, and foster cooperation with stakeholders across end-use industries. Through its extensive programme of conferences, seminars, and networking events, the association provides an invaluable forum for stakeholder engagement worldwide.
Chromium rarely features in mainstream critical minerals conversations. Why should it, and why now?
Chromium is already listed as critical, strategic, or both, by several jurisdictions, including the USA, Canada, China, India, Japan, and Russia, among other major economic powers.
Historically, assessments of mineral criticality have largely focused on the availability of the commodity. However, this approach is limited, as it does not account for several additional key parameters. These include the geographic concentration of resources, the political and socio-economic stability of producing jurisdictions, the broader geopolitical environment, the risk of supply chain disruptions, and the essential end-uses that the mineral enables.
A key paradox of chromium is that it is relatively abundant, with global resources estimated at over 12 billion tonnes of shipping-grade chromite. However, these resources are highly concentrated, with approximately 72% located in South Africa, 12% in Zimbabwe, and around 7% in Kazakhstan. Finland accounts for roughly 5%, while other jurisdictions such as India and Türkiye hold smaller shares. Overall, around 84% of global chromite resources are concentrated in Southern Africa.
It is also important to note that the USA and China, both major economic powers, have no, or very limited, chromium resources domestically. China has developed a strategic approach by establishing joint ventures in ore-producing countries, as well as investing in beneficiation, to support supply security.
Chromium is critical to global stainless steel and high-performance alloy production. It is the key element, and to date the only one without a true substitute, that provides stainless steels and related alloys with high resistance to corrosion, alongside strong mechanical strength, durability, and resistance to both extreme high and low temperatures.
These alloys are used across a wide range of applications, from the smallest precision components to large structural parts. They are essential in strategic sectors such as defence, aerospace, energy, engineering, industrial manufacturing, infrastructure, water distribution, medical technologies, agriculture, and food processing. Collectively, these uses make chromium highly relevant to national security, economic development, and industrial stability.
NATO has classified chromium as a high-risk supply material for a range of military applications—specifically fighter aircraft, battle tanks, missiles, submarines, corvettes, artillery, and torpedoes. In addition, chromium is listed among the top five raw materials required for military aircraft jet engines.
Therefore, any jurisdiction concerned with national security must consider chromium as strategic and critical and ensure supply chain stability. I believe the current geopolitical context has placed national security, as well as the reshoring of industrial activities to prevent external dependency, at the top of the agenda. For these reasons, chromium is unambiguously critical, and I expect the EU to classify it as such.
How can African producers shift from exporting raw ore to capturing more value through processing and ferrochrome production?
When discussing African chromium producers, the focus is primarily on South Africa and Zimbabwe. While there may be chromium occurrences in countries such as Sudan, and there have recently been reports of potential chrome-bearing deposits in Morocco, South Africa and Zimbabwe remain by far the most significant players, both on the African continent and globally.
The two countries have adopted different approaches to the development of their chromium industries, reflecting their distinct historical, economic, and political contexts.
South Africa, which hosts approximately 74% of the world’s known chromium reserves, was for decades a leading ferrochrome producer and had the potential to further integrate its value chain into stainless steel production. Despite its vast resource base, however, the country today has only one stainless steel producer. It has been widely reported that a combination of policy shortcomings, infrastructure constraints, and governance challenges has contributed to a decline in the competitiveness of the domestic ferrochrome industry. One of the most significant factors has been the country’s electricity crisis. Rising power costs, coupled with supply instability, have placed considerable pressure on energy-demanding industries. Eskom tariffs have increased dramatically over the past two decades, significantly affecting the economics of ferrochrome production.
While there are reasons to remain optimistic about South Africa’s long-term prospects, it is also important to acknowledge that global market fundamentals have evolved. During the period in which South Africa faced growing structural challenges, other countries, particularly China and, more recently, Indonesia, capitalised on the opportunity to expand both ferrochrome and stainless steel production capacity.
In 2025, China’s ferrochrome production capacity was estimated at approximately 18.3 million tonnes, with actual production reaching around 9.9 million tonnes, leaving substantial room for further growth. In addition, China has developed a highly integrated value chain, ranging from raw material processing to finished stainless steel products. As a result, Chinese manufacturers are often able to export finished stainless steel products at prices that are highly competitive in international markets.
If South Africa wishes to strengthen its position in downstream beneficiation, it will need to carefully assess both global and regional market realities. Future competitiveness will depend not only on resource availability, but also on the ability to offer reliable and affordable electricity, efficient logistics infrastructure, including rail, road, and port networks, political and socio-economic stability, and a regulatory environment that encourages investment. Equally important will be the ability to position South African production as a source of lower-carbon ferrochrome and stainless steel, in line with growing sustainability requirements across global supply chains. Regional cooperation with neighbouring countries, including Zimbabwe and Mozambique, could also play a valuable role in supporting future industrial development.
At the same time, it is important to maintain a balanced perspective regarding the relationship between ore exports and domestic beneficiation. These activities are not necessarily mutually exclusive and can coexist within a healthy industry ecosystem. Chrome ore exports make a significant contribution to South Africa’s economy by generating export revenues, supporting employment, and attracting investment. Moreover, chrome ore producers, including those with integrated ferrochrome operations, generally operate according to high environmental, social, and governance standards and play an important role in supporting local communities and regional development.
Given the scale of South Africa’s chromium resource base, a pragmatic and balanced approach that recognises the value of both ore exports and downstream processing is likely to be the most sustainable path forward.
Zimbabwe has adopted a markedly different approach from its neighbour South Africa in the development of its chromium sector. While the country remains an important supplier of chrome ore, primarily to China, it has also established itself as a significant ferrochrome-producing nation. Today, Zimbabwe is home to 19 ferrochrome producers and several major projects under development, many of which are majority-owned by Chinese companies. This reflects the strong diplomatic and economic ties between Zimbabwe and China, an important consideration from a geopolitical perspective.
China is the largest foreign investor in Zimbabwe’s mining sector and has played a key role in supporting the country’s industrialisation ambitions. Chinese companies are actively investing in local processing facilities and downstream beneficiation projects, aligning closely with the Zimbabwean government’s objective of increasing domestic value addition and reducing reliance on raw material exports.
At present, Zimbabwe operates 43 ferrochrome furnaces with an estimated annual production capacity of approximately 790,000 tonnes. Looking ahead, the country has announced several ambitious projects, the most significant being an integrated ferrochrome and stainless steel development funded by a leading Chinese ferrochrome producer. The project aims to ultimately produce up to 1 million tonnes of stainless steel per year and expand ferrochrome production capacity to approximately 2 million tonnes annually. While the project remains in the development phase, it illustrates the scale of Zimbabwe’s industrial ambitions.
As part of its Vision 2030 strategy, Zimbabwe seeks to build a vertically integrated metals industry with a strong focus on value addition. The government’s long-term objective is to move further up the value chain by developing domestic capabilities in ferrochrome, steel, and stainless steel production, thereby creating higher-value products for both local consumption and export markets. This approach is intended not only to increase export revenues but also to stimulate industrial development, attract foreign investment, create employment opportunities, and strengthen the country’s manufacturing base.
However, several challenges could affect Zimbabwe’s ability to fully realise these ambitions.
First, logistics remain a key constraint. As a landlocked country, Zimbabwe depends heavily on regional transport corridors and neighbouring countries’ port infrastructure to access international markets. The efficiency and reliability of rail, road, and port networks will therefore be critical to supporting future industrial growth and export competitiveness. Strengthening cooperation with neighbouring countries, particularly Mozambique and South Africa, will be important to ensure efficient access to export markets.
Second, access to reliable and affordable electricity remains essential. Any constraints on power availability or affordability could impact the viability of future projects and limit the country’s attractiveness to investors. As production capacity expands, ensuring adequate and green energy supply, in line with global sustainability requirements, will become increasingly important.
Third, political and regulatory stability will remain a decisive factor in attracting long-term investment. Large-scale mining and metallurgical projects require substantial capital commitments and long investment horizons. Investors therefore seek policy consistency, transparent regulations, legal certainty, and a stable business environment.
Despite these challenges, Zimbabwe possesses several significant advantages. The country benefits from substantial chromium resources, a growing ferrochrome industry, strong foreign investment interest, and a clear governmental commitment to beneficiation and industrialisation. If Zimbabwe can successfully address its infrastructure, energy, and investment environment challenges, it has the potential to become an increasingly important player in the global chromium, ferrochrome, and stainless steel value chain.
What are the most significant market forces and geopolitical factors shaping the global chromium supply chain?
In terms of the market forces and geopolitical factors shaping the global chromium value chain, it is essential to begin with the global supply-demand balance. As previously noted, China and Indonesia are increasingly pivoting towards greater self-sufficiency in ferrochrome and stainless steel production, with a clear strategic focus on strengthening domestic value chains and reducing import dependency.
South Africa, by contrast, has experienced a gradual retreat from smelting activity in recent years, largely driven by structural cost pressures and energy constraints. However, following recent adjustments in electricity tariffs, ferrochrome smelting activity has seen a partial recovery. Despite these developments, global demand conditions remain uncertain, with broader macroeconomic weakness continuing to weigh on industrial activity.
The chromium market, like many other commodity markets, can no longer be assessed solely through a conventional supply-demand framework. A more integrated and holistic perspective is required, incorporating structural shifts in industrial policy, trade dynamics, and geopolitical realignment.
Trade measures, including tariffs and broader protectionist policies, are expected to progressively reshape global commodity flows. In parallel, the ongoing reshoring and regionalisation of industrial production, particularly in the United States and other major economies, will continue to influence both demand patterns and supply chain configuration.
Geopolitical risk is also exerting an indirect but material impact on chromium markets through its influence on energy prices and logistics costs. Volatility in oil markets continues to affect freight rates and overall transport economics, increasing the cost of international trade flows and introducing additional downside risks for globally traded industrial commodities such as chromium.
These dynamics highlight a market that is increasingly shaped by the interaction between resource fundamentals, industrial policy, and geopolitical developments. This requires a more nuanced analytical approach.
What practical steps can governments take to create conditions that support in-country beneficiation without deterring investment?
Governments seeking to support in-country beneficiation must first recognise that beneficiation and investment competitiveness are closely linked. Downstream processing, particularly ferrochrome and stainless steel production, requires significant capital investment, long-term planning, reliable infrastructure, and a stable operating environment.
The first practical step is to ensure access to reliable and affordable electricity, while also supporting the development of clean energy sources. Ferrochrome production needs continuous and stable energy supply, therefore any constraints on power availability, supply stability, or affordability can directly affect current operations or future projects viability. As production capacity expands, the availability of adequate and increasingly green energy will also become more important, particularly as global supply chains rightly place greater emphasis on sustainability and low-CO2 footprint production.
The second priority is efficient logistics infrastructure. Reliable rail, road, and port networks are essential to move raw materials, intermediate products, and finished products. This is particularly important for landlocked countries such as Zimbabwe, which depend heavily on regional transport corridors and neighbouring countries’ port infrastructure to access international markets. Strengthening regional cooperation with countries such as Mozambique and South Africa will therefore be important to support future industrial growth and export growth.
Third, governments must provide political and regulatory stability. Large-scale mining and metallurgical projects require substantial capital commitments and long investment horizons. Investors therefore need policy consistency, transparent regulations, legal certainty, and a stable business environment. A regulatory framework that encourages investment is essential if countries want to move further up the value chain without discouraging the capital needed to build processing capacity.
It is also important to maintain a balanced perspective on the relationship between ore exports and domestic beneficiation. These activities are not necessarily mutually exclusive and can coexist within a healthy industry ecosystem. Chrome ore exports can generate export revenues, support employment, and attract investment, while downstream processing can help create higher-value products, support industrial development, employment, and strengthen manufacturing capacity.
Ultimately, governments should adopt a pragmatic and balanced approach. Countries with substantial chromium resources can capture more value through beneficiation, but this will only be sustainable if they also provide reliable electricity, efficient logistics, policy stability, regional cooperation, and an investment environment that supports long-term industrial development.
Why do platforms like MOTA matter for a sector like chromium, which often sits outside the spotlight of major mining forums?
A platform such as MOTA is particularly important for a sector like chromium, as it provides an opportunity to raise awareness of a mineral that is widely known by name but often unfairly underestimated in terms of its critical role in vital and strategic applications. Chromium is the key enabling element in the production of stainless steel and other specialty alloys, which would not exist without it.
In addition, platforms such as MOTA offer a valuable forum to engage with like-minded professionals and industry leaders outside of our immediate ecosystem, all of whom share a broader interest in the mining and metals sector.
While participants may operate across different commodities, the industry is increasingly interconnected through shared priorities such as high sustainability standards, decarbonisation objectives, supply chain resilience, and evolving regulatory frameworks. In this context, alignment across the broader materials industry is becoming more evident, even where individual market dynamics differ.
