Japie Fullard, CEO of Glencore Ferroalloys, used his platform at Mining Indaba 2026 to sharpen the industry’s stance on chrome beneficiation: tax policy alone will not revive South Africa’s ferrochrome sector without deeper structural reform.

Speaking during a panel titled “Can tax policy catalyse chrome beneficiation?” and in subsequent media engagements, including an interview with MITV, Fullard outlined a clear position - beneficiation must be enabled through competitiveness, not forced through blunt regulatory tools.

Export taxes risk unintended consequences

Debate around a potential chrome ore export tax has intensified in recent months, with policymakers exploring ways to redirect ore into domestic smelters. However, Fullard cautioned at Mining Indaba that such interventions must be approached carefully.

He characterised export taxes as a “blunt instrument,” warning they could distort the value chain and inadvertently harm non-integrated producers who depend on export markets. The central policy question raised during the Indaba session was how to advance beneficiation “without adversely impacting existing operations” - a concern that sits at the heart of Fullard’s argument. Rather than redistributing value within the sector, he emphasised that policy should support a balanced ecosystem spanning miners, smelters, and downstream players.

Beneficiation remains a strategic priority

Despite his caution on tax measures, Fullard reaffirmed strong support for beneficiation as a strategic imperative for South Africa. At Mining Indaba, discussions highlighted that the country already has sufficient chrome ore supply, and the opportunity lies in capturing greater value locally through ferrochrome production. Beneficiation, he argued, is critical to:

• Industrialização
• Job creation
• Export value enhancement

In multiple engagements around the event, Fullard also stressed that unlocking this value requires alignment between industry, government, and investors to ensure long-term competitiveness and responsible investment.

Energy - not ore - is the real constraint

A consistent theme across Fullard’s Mining Indaba contributions was that South Africa’s beneficiation challenge is not resource-driven - but cost-driven. The core constraint, he noted, is access to reliable and competitively priced electricity. Conference discussions reinforced this view, highlighting that while chrome ore feedstock is abundant, the sector’s viability hinges on energy economics. 

Ferrochrome smelting is highly energy-intensive, and South African producers have lost ground to global competitors - particularly China - where power costs are lower and more predictable. Fullard also pointed to the importance of evolving energy strategies, including renewables and self-generation, as part of the solution to restoring competitiveness.

Defining “smart frameworks”

Rather than rejecting policy intervention, Fullard used Mining Indaba to advocate for what he describes as “smart frameworks” - coordinated, multi-dimensional approaches that address the root causes of decline in the ferroalloys sector. These frameworks would include:

Energy reform as a foundation: Competitive tariffs, energy security, and support for alternative power solutions
Market-aligned policy design: Avoiding artificial distortions such as poorly structured export restrictions
Whole-of-value-chain support: Ensuring policies do not favour one segment at the expense of another
Clear national beneficiation roadmap: Integrating energy, logistics, skills, and capital into a single strategy

Fullard’s broader message is that beneficiation must be economically viable on its own merits, rather than dependent on protective measures.

Collaboration at the centre

A key takeaway from Mining Indaba 2026 was the importance of collaboration - a theme echoed by Fullard both on stage and in industry discussions. He highlighted the need for partnerships between industry, government, and stakeholders to strengthen the ferrochrome sector and unlock long-term value. This aligns with wider Indaba sentiment that structural challenges - particularly energy and infrastructure - require coordinated solutions rather than isolated interventions.

From policy debate to implementation

As South Africa weighs policy options to support chrome beneficiation, Fullard’s position offers a clear framework for decision-makers. Export taxes may still play a role, but only as part of a broader, carefully calibrated strategy. Without addressing underlying cost pressures - especially electricity - such measures risk failing to deliver their intended outcomes.

A competitiveness-driven future

Ultimately, Fullard’s contribution at Mining Indaba 2026 signals a shift in the beneficiation debate. The focus is moving away from coercive policy tools toward competitiveness-driven frameworks that enable sustainable growth. For South Africa’s chrome sector, the implication is clear: the path to beneficiation lies not in forcing localisation, but in making it globally competitive.

Watch all of our MITV video interviews from MI26