Location :  Richards Bay

Capacity : 135,000 tonnes per annum

Focus : Ferro-Chrome Plant

Setting up of Ferro Chrome plant in South Africa by Tata Steel

Tata Steel’s involvement with Chrome started in 1949. It was a Geological Team from Tata Steel that discovered Chromite Ore in Sukinda Valley, Orissa. Over the next 50 years, Tata Steel has emerged as the largest player in all aspects of the value chain of Chrome Business in India, starting from mining of Chromite, beneficiation, and manufacturing of Ferro Chrome to marketing of Chrome ore, concentrate and Ferro Chrome in both domestic as well as international market. Tata Steel has identified Minerals and Metals as a growth area, and has aspirations to expand this business to global level. In line with its growth aspiration, a Plant is proposed at Richards Bay, South Africa to produce High Carbon Ferro Chrome, for global consumers.

South Africa is the ideal location for production of Ferro Chrome, primarily due to two reasons – cheap electricity and strong technical/ marketing dominance. South Africa is the largest producer of Ferro Chrome globally, accounting for more than 55%of the world’s production, and Richards Bay is the biggest and most efficient port in South Africa. Competitive power cost, efficient and developed port facilities, developed base for technology & equipment and developed infrastructure were the key reasons for selection of Richards Bay (in uMhlathuze Municipality), as the proposed location for the project in South Africa. The business model of the plant include taking high quality Chrome Ore from India and elsewhere, convert it into Ferro Chrome in Richards Bay, and export the finished product to various customer destinations. Being at Richards Bay allows Tata Steel to have a shore-based plant and cut out on all infructuous land-transport cost, and thus stay highly competitive.

Richards Bay is the most important industrial hub of South Africa, with two large Aluminium smelters, Heavy Minerals plants, Fertilizers plants etc., and some large projects are on the anvil. Availability of support services is excellent in Richards Bay, and the area has a pool of skilled labor. All these factors have contributed to the selection of Richards Bay as the suitable location for the proposed project.

The proposed plant in South Africa will manufacture High Carbon Ferro Chrome with a Chrome content of +64%, and the annual production capacity will be 134,500 Metric Tonnes Per Annum (MTPA) in Phase I. The construction period of this plant is 17 months from the date of groundbreaking.