AFRICAN Rainbow Minerals is pursuing commercial partnerships for its revolutionary SmeltDirect technology, which could transform South Africa’s struggling industrial sector, said News24 in a report last week.
The mining group, led by billionaire Patrice Motsepe, has completed a comprehensive bankable feasibility study for ferrochrome production at its Machadodorp facility, the publication said.
Andre Joubert, head of ARM’s Ferrous Division, confirmed the company is now courting various partners to either establish new plants or commercialise the innovative process.
The patented technology, under development since 2012, delivers remarkable efficiency gains by reducing electricity consumption by over 70% whilst slashing carbon emissions by 60% compared to conventional ferrochrome production methods, said News24.
ARM is engaging with fellow chrome producers, the Industrial Development Corporation, and international parties regarding potential collaboration. The technology’s applications extend beyond ferrochrome to green steel production, with major steel manufacturers also in discussions.
However, Joubert warned that revitalising South Africa’s smelting sector would require substantial effort, particularly as chrome operations continue shuttering due to prohibitive electricity costs. Recent closures include Glencore’s South African facilities, threatening thousands of jobs.
ARM itself has suspended ferrochrome production at its Cato Ridge works, jointly owned with Assore, closing operations in late August. The company is also winding down its Beeshoek iron ore operation following ArcelorMittal’s steel business closure.
The technology push comes amid challenging financial results, with ARM reporting a 47% earnings decline to R2.7bn for the year ending June 2025. The final dividend was reduced to R6 per share from R9 previously, whilst net cash fell to R6.6bn.
