Who We Are
The Ferro Alloy Producers Association (FAPA) is an industrial association of ferroalloy smelting operations involved in the beneficiation of South Africa’s ores and minerals into ferroalloys for local consumption and export markets. This beneficiation step is the key factor of the whole valuation chain and should be a key focus point of governments across the world. FAPA members are typically involved in the production of ferromanganese (FeMn) and silicon-manganese (SiMn) from manganese ores mined in the Northern Cape, ferrochrome (FeCr) from chromite ores mined on the eastern and western limbs of the Bushveld Igneous Complex, silicon alloys (Silicon-metal and Ferrosilicon) from local silica quartz, and the production of calcium carbide (CaC2) from limestone. These industries have been the backbone of the metallurgical industry within the country and at a stage, had been the leaders in global production of specifically manganese and chrome alloys. Although the industry has suffered severely from increased power prices and strong Asian competition, the Association remains firm in its strategic intend.
Our Purpose
The Organisation exists due to the common interest we share as South African producers with regard to enhancing our Beneficiation Technology in South Africa and by virtue of subscribing to common Government Legislative requirements like Environmental Legislation, Safety Regulations as well as critical beneficiation inputs such as Electricity Supply. We campaign strongly to ensure the survival of this key industry and ready to expand back to full capacity in order to ensure maximum local beneficiation, associated with local job creation as prescribed in the National Development Plan. We also strongly support the newly promulgated Integrated Resource Plan of the government that recognizes local beneficiation as a key industrial step for economic revival.
The Importance of our
Industry
As is well-known, South Africa is endowed with mineral resources, which amongst many others include Manganese, Chrome ores, and Quartzite, the mining and exporting of which contributes considerably to the economy of South Africa. The further beneficiation of these minerals into basic metals and ferroalloys, the process in which the metallurgical or smelting industry is involved, is an important value-adding component to the minerals value chain with a considerably larger multiplier effect than the mining of the associated mineral. As much as 80 – 90 % of all ferro-alloys being produced locally at smelters are being exported, making the smelting industry an important earner of foreign revenue to the South African economy.
This sector of the South African business accounts for approximately 30% of the world’s Ferro-Chrome production and a significant amount of the world’s Ferro-Manganese capacity as well as other alloys such as Silicon Metal capacity. Other industries that consume products produced by FAPA are directly dependent on this Sector and local raw material suppliers (Coal, Anthracites, Coke, Ore Minerals, Steel) are also reliant on our Sector.
The smelter industry is a provider of well-skilled and well-paid jobs, an essential earner of foreign revenue, and a potential driver for building and developing wealth in South Africa in line with the National Development Plan. At the same time, the smelter industry is also an important baseload consumer of electricity from Eskom. The smelting industry is also a valuable ‘reserve’ source of power during times of high demand, as load reductions at the smelters immediately make power available that is utilised somewhere else on the network and reducing the need for Load Shedding.
The smelting of the metallurgical industry almost exclusively operates outside the larger metropolitan areas with many smelters concentrated in North-West, Mpumalanga, and Limpopo. Often the whole economy of an area is almost exclusively dependent on the operation of these smelters within the area, with Rustenburg, Witbank, and the Steelpoort Valley being good examples.