New smelting technology could revive South Africa’s ferroalloy industry

Thursday, 12 March 2026 15:08:31 (GMT+3)   |   Istanbul

A new smelting technology known as SmeltDirect is being presented as a major breakthrough for the ferroalloy industry, with the potential to significantly reduce energy consumption and emissions in metal production, according to media reports. Developed by South African mining company African Rainbow Minerals (ARM), the technology is designed to cut electricity use in ferroalloy smelting by up to 70 percent compared with conventional processes.

Traditional ferroalloy smelting is one of the most electricity-intensive stages in the mining and metals value chain, making power costs a critical factor for the competitiveness of producers.

Lower energy use and emissions

According to industry researchers, the SmeltDirect process could also reduce carbon emissions by around 60 percent, while lowering operating costs and improving production efficiency.

In conventional smelting operations, producing one metric ton of alloy may require about four MW of electricity, while SmeltDirect reduces this requirement to roughly 1.2 MW per ton.

The technology also allows the use of fine ores, slimes and lower-grade raw materials, which are often difficult to process using traditional smelting technologies.

Potential to revive South Africa’s ferroalloy sector

Analysts suggest that SmeltDirect could play an important role in reviving South Africa’s ferroalloy industry, which has struggled in recent years due to high electricity prices and unreliable power supply. The country holds some of the world’s largest reserves of chrome and manganese, key inputs for steelmaking, but many local smelters have reduced production or shut down because of rising energy costs.

If commercialized at scale, the technology could enable local producers to process more raw materials domestically, supporting mineral beneficiation and increasing the value generated within the country’s mining sector.

Industry stakeholders believe SmeltDirect could help reopen previously idle smelters, strengthen the competitiveness of South African ferroalloy producers and support the production of lower-carbon raw materials for the global steel industry.


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