Thesis (M.Com. (Development Theory and Policy))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Economic and Business Sciences. / South Africa has been referred to as a country of “geological superlatives” because of its rich and diverse mineral resource base. Despite its unique endowment of precious metals and mineral resources, the country has fallen short of translating these resources into the required economic linkages that will lead to sustainable employment creation and economic emancipation for the majority of its people. Whilst the country has established, successful critical upstream industries based on its natural resource advantage, it has not managed to develop successful downstream value additions in most of its strategic value chains, most notably the chromium mineral value chain. This paper explores the significance of the chromium mineral value chain in the context of South Africa’s economic development trajectory, the dynamics between the mining and manufacturing sectors, the ongoing structural constraints, and the implications all these have on stainless steel fabrication. South Africa is a dominant player in chrome, consuming approximately 80% of the world’s chromite ore reserves and is undeniably one of the major producers of ferrochromium globally, with production accounting for approximately 34% of total world production. Despite a mature ferrochromium industry that boasts world-class ferrochromium manufacturing facilities and contributes massively to the domestic and global economies, a declining market share to China threatens the sector. The availability (or lack thereof) of power supply, high energy costs, uncompetitive domestic prices amongst other structural issues are contributing to this decline. The challenge remains in government, the mining industry, labour and all other affected stakeholders to engage robustly in order to preserve a value chain that possesses enough potential to enhance the development of the country, both socially and economically.

M.Phil. (Natural Economics) / Due to the overwhelming influence of gold on the national economy of South Africa, the importance of the other mineral resources are often underestimated. South Africa is the largest exporter of metals essential to the modern World industry - metals such as chrome, manganese and vanadium. Our vast reserves of these and other ferrous metals might yet prove to provide this country with substantial political and economic powers in years to come. The importance of the availability of ferrous metals for the continued existence of the modern global civilization is not always realised. These metals, in the form of various steels and other alloys, form an integral part of our daily lives in modern communities. This important role and the numerous problems faced by the global ferrous metals industry provided me with a challenging field of study. The phenomenon of cyclical volatility is inherent in mineral commodity markets and is eminently present in the markets for steel and related alloys, due mainly to the sensitivity of these markets to general economic welfare. In turn, and due to the derived demand relationship that exists between these metals and steel, the ferrous metals are particularly susceptible to economic prosperity and depression. More often than not, a period of economic prosperity is characterised by ferrous metal supply shortages, while excess supply is typical during periods of economic recession. Interest in the study of the complexities of ferrous metal markets was kindled whilst in the employ of the Minerals Bureau of the Department of Mineral and Energy Affairs.