Chromite ore is mined to produce chromium, a key component in stainless steel production. Chromium is alloyed with steel to make it corrosion resistant or harder. Chromium is also used to make heat-resisting steel. So-called "superalloys" use chromium and have strategic military applications. Chromium also has some use in the manufacture of certain chemicals and in the textiles industries. There is no good alternative for chromium in the manufacture of steel or chromium chemicals.

In the western hemisphere, chromite ore is produced only in Brazil and Cuba with modest production by only one company in the United States, in Oregon. (The Stillwater Complex in Montana is the biggest chromium deposit in the United States, however, it is not producing chromite ore at this time (Y2006/2007)). By comparison, in 2006 approximately 80% of world production of chromite came from South Africa, India, Kazakhstan and Turkey. South Africa itself produces about half of this.

The supply demand fundamentals for ferrochrome are highly positive with supply shortages envisaged for the next 10 years. Stainless steel demand is projected to grow by just under 6% per annum to 2020 with ferrochrome demand growth slightly lower, at 5.2% per annum, because of the impact of recycling. Heinz Pariser Research is forecasting average ferrochrome price of 79 cents per pound (US$1600/t) to 2017.

Commodities Research Unit's data for a stainless steel presentation prepared by Xstrata gives a similarly expansive forecast for demand and the big three iron ore producers (BHP, Rio Tinto and CVRD) are reported to be factoring expansion into their mining and infrastructure planning for at least the next three years.