Currently, around 95% of South Africa’s acid grade fluorspar production is exported and the remaining 5% is beneficiated to other fluorochemical products.

Although South Africa supplies 10% of the fluoride source to the $16 billion global fluorochemical industry, it earns less than 0.5% of its value due to the low levels of beneficiation in the country. FEI attempts to redress this deficiency through the establishment of value-adding
world-class fluorochemical industries in South Africa.

FEI is an initiative from the Department of Trade and Industry which is included as a key program ("fluorspar beneficiation") in Government’s Industrial Policy Action Plan of 2010-11 (IPAP2) and is well supported by The Department of Science and Technology. Other important partners in FEI are the University of Pretoria, University of Kwazulu-Natal and the Industrial Coporation (IDC) of South Africa.

The Department of Science and Technology has tasked Pelchem to manage a 3 year research and development program for FEI. The aim of this FEI R&D program is to develop cutting edge technology in fluorochemicals and to accelerate skills development in fluorine chemistry and engineering by engaging in world class research. Collaboration with international companies and institutes are welcomed.

In addition to the FEI R&D program is the establishment of a multipurpose fluorination pilot plant also funded by the DST, which would form the core of a centre of competence for fluorochemical development in South Africa. Some of the outputs of the pilot plant will include the production of semi commercial quantaties of new fluorochemical products for market penetration, demonstration of new technology developed in the laboratories and developing data for commercial scale-up purposes.