http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.68Change: -0.07
R/$ = 12.39Change: -0.02
Au 1167.77 $/ozChange: -4.12
Pt 1062.50 $/ozChange: 1.30
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 07, 2012

07/09/2012 (On-The-Air)

Back
SAFM_070912
 
 
 
Engineering|Gold|Africa|Building|Education|Engineering News|Export|Mining|Mining Weekly|Petroleum|Resources|SECURITY|Sustainable|System|transport|Africa|China|South Africa|Infrastructure|Martin Creamer|Engineering News
Engineering|Gold|Africa|Building|Education|Export|Mining|Petroleum|Resources|SECURITY|Sustainable|System|transport|Africa||Infrastructure||
engineering|gold|africa-company|building|education-company|engineering-news|export|mining|mining-weekly-company|petroleum|resources|security|sustainable|system|transport|africa|china|south-africa|infrastructure|martin-creamer|engineering-news-published-medium
© Reuse this

Every Friday morning, SAfm’s AMLive’s radio anchor Xolani Gwala speaks to Martin Creamer, publishing editor of Engineering News and Mining Weekly. Reported here is this Friday’s At the Coalface transcript:
Gwala: South Africa’s once-proud ferrochrome industry is on its knees, struck down by China.

Creamer: That was the news now in Johannesburg, in the throes of a global ferrochrome conference in Johannesburg. The news coming out of that is that South African ferrochrome profitability is down to zero or below. On top of the world now are China.

We were the biggest producers in the past. This is an industry that has 200 000 jobs, it contributes R42-billion to GDP. The forex that it puts into our economy is comparable with what gold puts in, but it is seriously on the decline and knocking it down are the electricity issues and also the whole infrastructure here that has been developed is now lying idle.

We are helping the Chinese, the Chinese don’t have the chrome ore of their own, 50% of that ore now comes from South Africa. This flies directly in the face of our beneficiation policy. This was an example of beneficiation; you add six-fold value to your normal chrome and you export ferrochrome, but it is an industry that people are saying the situation is worse now for ferrochrome then when it was during the global meltdown.

Present were representatives of the Department of Mineral Resources and they are saying that they are now two weeks into rescue talks. The Indians used to be the biggest suppliers of this chrome to China, but they stopped in 2006 and said that they are going to impose taxes on the export of it.

What has been asked for by the industry is that in the interim please just impose and export tax of $100 a ton. That still hasn’t happened so the talks now are progressing and hopefully something will come out of this. The government is saying that the they will look at it holistically and make sure that South Africa Incorporated wins.

There is very expensive infrastructure that has been built for about R13-billion with much of it lying idle. This is good environmentally, because it doesn’t spew carbon dioxide in the air. The furnaces that the Chinese have does just that.

They have smaller furnaces, so even environmentally there is an argument for South Africa retaining this market. Hopefully they will put their heads together and do something. There was a lot of activity going on calling for restructure of the industry in Johannesburg. I don’t see that happening, but still I think there will be some sort of rescue from government.

Gwala: There has to be, because there are jobs here and all sorts of benefits that we should have as a country.
Should migrant mine workers be flown home during their off periods? That’s the suggestion from new thinkers in the mining sector.

Creamer: Marikana has got people thinking out of the box. This situation of a hundred year old culture still being developed in labour here is just not on anymore. People are saying that migrants having to live dual lives, one around the mine and they never seem to get home for long periods of time and also to going back every now and again to their home.

They say that should be looked at, because in other countries people are flown thousands of miles to back to their families every 10 to 15 days. Look at Argentina where they will fly people 2 500 km to Buenos Aires from Patagonia area. The suggestion now is let’s look at the economic feasibility of this versus the living-out allowance, which has caused such a lot of problems.

Here you have got the mines saying that they don't contribute the squatter camps around the area, but if you are giving a living-out allowance, then how do you know? Because people are going to just develop their own homes because their families are in distant areas, maybe in the Eastern Cape, or Lesotho or Mozambique, so they think, let me get the cash, I don’t mind how our live here, even though I may be suffering from TB which is going to make it worse.

So they are saying, lets relook at that because they can have mass transport arrangements, getting people back to their families at greater frequencies of 10 to 15 days. One of the protagonists of these are AngloGold Ashanti’s newly appointed social and sustainable development executive David Noko, who is also very keen on trying to bolt-on an education type school onto mines.

Like we have academic hospitals where people would go in there and do research and advance themselves, can’t we have bolt-on education in mining activities and maybe even academic mines to try and uplift this situation of employing minimally educated people.

This has probably been the biggest down-fall of the mining industry employing minimally educated people and now expecting high productivity. By appointing these minimally educated people you are building lack of productivity into the system. That has to be rethought.

A lot of comment coming up now even from Patrice Motsepe saying that you have probably got to draw the line with labour demands. A lot of these labour demands are becoming unreasonable and Motsepe, from African Rainbow Minerals, is saying that there are now times that you have got to look your labour in the eye and say we can not pay you what you want because it is totally unreasonable.

So with the movement in of less mature unions and sometimes not unions at all, these demands don’t seem to be based on any rationality and the line now is starting to be drawn and new thinking coming into the industry to take us out of that mould that we were in, that probably was a 100-year-old-culture.

Gwala: South Africa needs more oil-refining capacity, the South African Petroleum Association says.

Creamer: This is also a very critical thing. Sapia says that we need this extra capacity. We note that some of our refineries are 50 years old, ageing and not much has been done to upgrade them.

There is the new Clean Fuel 2 legislation coming in by 2017. Around all that activity people are saying what are we going to do to ensure that we are going to have security of supply of fuels. We need more capacity and the industry needs to talk to government.

Gwala: Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly, he’ll be back with us at the same time next week.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other SAFM
More
 
 
Latest News
State-owned entity Transnet National Ports Authority (TNPA) has started the registration process for its integrated port management system (IPMS), which is scheduled to go live in the Port of Durban at the end of July. TNPA started issuing registration instructions...
The development of rural road infrastructure and public transport services remains critical to the delivery of South Africa’s – and other African States’ – developmenta agenda, requiring meticulous planning that ties in with the socioeconomic needs of the host...
South Africa-focused mineral explorer and developer White Rivers Exploration (WRE) has signed a memorandum of understanding (MoU) with Windfall Energy to facilitate the joint exploration and development of WRE’s Heilbron and Kroonstad gas assets in the Witwatersrand...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96