Business Report writes that Save SA Smelters has warned that 80,000 direct jobs would be on the line if the government continued to delay the implementation of the tax on raw chrome ore exports.
According to the group, as a result of the delay in the imposition of the export tax on raw chrome, SA was losing R15 billion of annual income. Last October, the Cabinet proposed a tax on the exportation of primary chrome ore as part of measures to support the ferrochrome industry. However, ChromeSA took exception to the proposal, saying the tax would be detrimental to SA’s primary and UG2 chrome ore producers given that they sold the bulk of their production for export. But, Save SA Smelters said the absence of imposing tax on the export of chrome ore would likely cause smelters to close down. Save SA Smelters convenor Powers Motsileng indicated that last year the Lydenburg and Meyerton smelters shut their doors, resulting in thousands of job losses. The Glencore-Merafe Chrome joint venture placed the Lydenburg smelter in indefinite care and maintenance, while South32 placed Meyerton, the metalloys smelter, on temporary care and maintenance to consider the future of metalloys. According to Motsileng, even more smelters and even more retrenchments were likely should the government fail to act on the crisis in the sector.
- Read the full original of the report in the above regard by Dineo Faku at Busiiness Report
- Read too, SA ferrochrome furnaces need to regain competitive advantage, warns Roskill, at Mining Weekly
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