Where we come from
Samancor Chrome’s history goes back as far as 1975, when it was established as a listed entity on the Johannesburg Stock Exchange, as a result of a merger between SA Manganese Ltd and Amcor Ltd. SA Manganese was formed in 1926 to mine manganese ore deposits in the Northern Cape, whilst Amcor was established in 1937 to exploit mineral deposits for the steel industry and to process those minerals into ferroalloys.
Samancor remained listed until it was delisted from the Johannesburg Stock Exchange in 1998 when the minority shareholders were bought out by the then majority shareholders, Billiton and Anglo American. The principally Manganese and Chrome operations were run as separate businesses of Samancor Limited until 2004 when bids were invited for the purchase of the Chrome Assets. The successful bidder, the Kermas Group, acquired Samancor Limited from Billiton and Anglo American after the unbundling of the manganese business during 2005 and 2006 and renamed the company, now holding only the chrome business, Samancor Chrome Limited. In the process, Samancor Chrome Holdings Proprietary Limited was established as the 100% shareholders of Samancor Chrome Limited. Shareholding in Samancor Chrome Holdings Proprietary Limited consists of Terris Chrome, being the majority shareholder, Hanwa/Jogmeg being a Japanese consortium and Black Empowerment Shareholders, representing entrepreneurs, employees, women in mining and communities.
During the early part of 2016 and latter part of 2017, Samancor Chrome successfully acquired the ferrochrome smelting assets and chrome mining assets from the business rescue practitioner of International Ferrometals, and likewise the smelting assets from the business rescue practitioners of ASA Metals through a series of transactions, the latter together with Sinosteel.
As a successful company that is active in the global arena, Samancor Chrome pays close attention to business ethics. These determine the way that business objectives and profitability are achieved.
What we do?
South Africa currently supplies in excess of 30% of worldwide ferrochrome demand. This position can be ascribed to the following factors:
- The Bushveld Igneous Complex, which contains nearly 70% of the estimated world reserves of chromite;
- The development, in the early sixties, of the AOD process which facilitated the introduction of South African charge chrome into the stainless steel industry; and
- Historically cheap power, driven by the existence of extensive steam coal reserves.
Ferrochrome is the main ingredient into the production of stainless steel, a steel alloy, which typically contains 18% chrome and 8% nickel. The chrome content in stainless steel gives it its lustre, shiny appearance and resistance to corrosion.
Over 90% of Samancor Chrome’s chrome ore output is consumed in the production of ferrochrome in South Africa. The remainder of the ore is exported. Some 90% of chrome alloy production is exported to stainless steel producers across the globe.
Our outputs include the chrome ore extracted by our mines and chrome alloys produced by our plants. Samancor Chrome’s five fully integrated and self-reliant chrome alloy plants have a combined annual production capacity of more than 2.0 million tons of charge chrome.
The company’s total chromite resources exceed 900 million tons and are expected to support current mining activity for well over 100 years at the current rate of extraction. Some ores and concentrates are exported, but main allotments are destined for conversion into ferrochrome at the alloy plants.
Who are we?
Samancor Chrome’s core business is the mining and smelting of chrome ore. With an annual capacity of some 2.4 million tons of ferrochrome, Samancor Chrome is the largest integrated ferrochrome producer in the world. We produce ferrochrome, which is used in different areas of the stainless steel smelting process.
Samancor Chrome is a private company. The previous shareholders, BHP Billiton (60% ownership) and Anglo American (40% ownership), sold the company to the Kermas Group in June 2005 after evaluating several offers to arrive at the option promising the most prosperous future for the company and the best value for shareholders. Samancor Chrome is currently owned by Samancor Chrome Holdings Proprietary Limited, which is, in turn, held by Terris Chrome Limited (which holds an excess of 70%), a minority shareholder, and various Black Economic Empowerment Shareholders.
The company’s corporate office is based in Sandton, Johannesburg. Six ferrochrome plants and two chrome ore mining complexes operate as separate business units in different locations in South Africa:
- Western Chrome Mines in the Rustenburg area in the North West Province.
- Eastern Chrome Mines near the Lydenburg /Steelpoort area of the Limpopo Province.
- TC Smelter in the Rustenburg area of the North West Province.
- Ferrometals near eMalahleni in the Mpumalanga Province.
- Middelburg Ferrochrome near Middelburg in the Mpumalanga Province.
- Tubatse Ferrochrome in the Lydenburg / Steelpoort area of the Limpopo Province.
- Tubatse Alloy in the Burgersfort Area of the Limpopo Province.
- Dikwena Chrome in the Brits area of the North West Province.
Where we're going?
Samancor Chrome is the largest ferrochrome producer in the world, producing, subject to market conditions, can produce in excess of 2 million metric tons (Mt) of charge chrome per annum. In addition, Samancor Chrome sells more than 0.5 Mt of speciality grade chrome ore per annum on the local and export market.
The potential of the company’s mineral resources, its dynamic leadership, and the technological innovation, infrastructure and knowledge capital developed over the years, combine to depict a very positive future for Samancor Chrome.
Samancor Chrome continues to develop and implement best practices in all areas of operation.