Criminal chrome Part 2: Stainful steel — Illegal chrome mining free-for-all taints the world’s stainless steel value chain
While odourless, at least some stainless steel carries the stench of crime, environmental and community degradation and ruthless exploitation. Like diamonds and gold, the vast majority of the world’s chrome supplies are legitimate, and the clean producers do not want to see supply chains sullied by the dirty stuff.
Illegal chrome mining in South Africa is contaminating the global stainless steel supply chain, according to recent reports. While most chrome supplies are legitimate, the tainted material is primarily destined for China. Chrome ore is transformed into ferrochrome, a crucial component of stainless steel, which has numerous industrial applications.
The issue of illegal chrome mining is particularly concerning because stainless steel is ubiquitous, from kitchenware to medical equipment. Sibanye-Stillwater CEO Richard Stewart emphasized the need for greater scrutiny throughout the supply chain to prevent illicit chrome from infiltrating legitimate markets. However, accurately determining the extent of illicit chrome exports is challenging, with only an estimated $700 million gap in South Africa's chrome exports to China in 2024.
The lack of traceability and due diligence mechanisms further exacerbates the problem, as forged documents and low-quality counterfeit loads have been employed to conceal the illicit nature of the chrome. Corruption and customs evasion also play a role, enabling the illicit trade to thrive. Greater transparency and stricter enforcement are necessary to address this pressing issue and protect the integrity of the stainless steel industry worldwide.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
