Misplaced export taxes hurt trade
Eskom has had to ask existing ferrochrome producers to extinguish their furnaces during the most serious supply crises, to leave a bit of electricity for the rest of us
The cabinet, in its less-than-infinite wisdom, has agreed that SA should consider an export tax on chrome ore, to be imposed next year.
The aim is laudable: to preserve supplies of the stuff so that there can be a surge in local production of ferrochrome, an alloy comprised of iron and chromium which is used primarily in the manufacturing of stainless steel. To make ferrochrome, you need chrome...