S.Africa's Tharisa sees strong chrome demand from China despite COVID curbs

Jupiter Mines

11/10/2022 12:46

Oct 11 (Reuters) - South Africa's Tharisa Plc  THST.L 
continues to see strong demand from China for its chrome,
despite COVID-19 lockdowns and a real estate crisis in the
latter that have dimmed the outlook for steel, Chief Executive
Phoevos Pouroulis said on Tuesday.
    South Africa is the world's biggest producer of chrome, an
essential ingredient in the manufacture of stainless steel.
    "When we look at the demand throughout the period of
COVID-19 and lockdowns, it’s been very robust. We look at
Chinese port stocks as a key measure of the supply and demand
balance and that has been at relatively low levels," Pouroulis
told Reuters.
    On Tuesday, Tharisa reported a 5.1% increase in chrome
production to 1.583 million tonnes in the year through Sept. 30,
from 1.506 million tonnes a year earlier. Platinum group metal
output was 13.6% higher at 179,200 ounces, from 157,800 ounces
the previous year.
    Pouroulis said an ongoing strike at freight rail and port
operator Transnet had not yet impacted Tharisa, although this
could change if the industrial action dragged on. 
    Transnet declared force majeure last week after its workers
went on strike demanding a wage increase. Before the strike, the
state-owned freight rail operator was operating below capacity
because of a shortage of locomotives, poor maintenance,
vandalism and theft of its infrastructure, costing miners
billions of rand in potential export revenue.
    Tharisa, like most of South African chrome producers, now
uses trucks instead of trains to transport 80% of its chrome to
port, a shift seen over the past two years due to Transnet's
poor performance, he said.
    "Historically, it was the other way around. Two years ago,
it was 80% rail and 20% road. Unfortunately, we’re putting more
trucks on the road, but it’s a necessity to export and move
product to end-users," Pouroulis told Reuters.
    Miners Thungela Resources  TGAJ.J , Kumba Iron Ore  KIOJ.J  
and Jupiter Mines  JMS.AX  have warned that the Transnet strike
could impact coal, iron ore and manganese production and
exports. 
 (Reporting by Nelson Banya
Editing by Bernadette Baum)
 ((Nelson.Banya@thomsonreuters.com;))