Tharisa to boost chrome output by nearly 50% in 3-5 yrs

South Africa’s Tharisa sees chrome production surging nearly 50% over the next few years from 2024’s record output, as the miner expands its Bushveld mining operations.

“We see our chrome growth in the next 3-5 years getting to 2.5 mt driven by this really tight balanced market,” said Tharisa CEO Phoevos Pouroulis at a Johannesburg conference.

The estimate is significantly higher than last year’s 1.7 mt record output. For this year, Tharisa is targeting steady production at between 1.65-1.80 mt for financial year ending 30 September 2025.

Pouroulis said he expected 40-42% chrome prices to hover at around current levels of between $265-275/t CIF China in the short term. McCloskey on Friday assessed the 40-42% chrome price at $285/t CIF China, up from $265/t in the previous week.

“I foresee it staying relatively stable,” he said. “We have seen prices react responsibly to this tight balance of supply and demand, so the outlook is positive.”

Tharisa, which sells metallurgical and chemical grade chrome concentrate from its Bushveld mines, is expanding its underground operations, with capital allocations set to be approved by the company’s board this year.

Pouroulis estimated funding of around ZAR2bn ($106m) over a 36-month period to develop the mine further, increasing production by around 250,000 t of run-of-mine chrome per month.

Tharisa remains bullish on chrome, despite the ongoing trade wars launched by the United States.

“Even with the tariff environment, a lot of the stainless steel consumption is within the Asia Pacific,” Pouroulis said.

The chrome market could get a further boost with the current substitution of carbon steel rebar with ferritic stainless steel rebar.

“Those specifications are now mandated in China because of the corrosive resistant nature of the infrastructure projects that they are currently deploying,” Pouroulis said. “So, these are huge demand drivers that are not picked up in day-to-day commentary.”