http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.10
R/$ = 10.50Change: 0.05
Au 1294.90 $/ozChange: -0.67
Pt 1407.50 $/ozChange: -21.00
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 15, 2012

Stimulating mining investment urgent – National Development Plan

Back
Johannesburg|South Africa|Consumables Manufacturers|Downstream Producers|Energy|Energy Efficiency|Improved Mining Methods|Machinery Uses|Mining|Secure And Reliable Rail Services|Secure Reliable Electricity Supply|Stable Mining Regulatory Framework|Trevor Manuel
johannesburg|south-africa|consumables-manufacturers|downstream-producers|energy|energy-efficiency|improved-mining-methods|machinery-uses|mining|secure-and-reliable-rail-services|secure-reliable-electricity-supply|stable-mining-regulatory-framework|trevor-manuel
© Reuse this



JOHANNESBURG (miningweekly.com) – The stimulation of mining investment in South Africa is needed urgently, the National Development Plan 2030 states.

The plan, released by Minister in the Presidency Responsible for National Planning Trevor Manuel, finds that South Africa's substantial unrealised opportunity and global market dominance in mineral deposits offers an opportunity for growth of 3% to 4% a year and the creation of 300 000 additional jobs.

However, in order to grow investment, outputs, exports and minerals cluster jobs, property rights certainty and the passing of amendments to the Minerals and Petroleum Resource Development Act of 2002 are required to ensure a predictable, competitive and stable mining regulatory framework.

The report stipulates that the growth must be carried out in a way that is environmentally sound and that promotes forward and backward linkages and emphasises the need for secure, reliable electricity supply.

It points out that there is scope for the private sector to supply themselves with an estimated 2 500 MW of additional potential power capacity by 2015 and adds that private-sector participation also has the potential to help with secure and reliable rail services.

It sees an opportunity for South Africa’s minerals cluster to develop, deepen and enhance linkages with capital goods and consumables manufacturers, suppliers of mining-related services and downstream producers, especially in the case of platinum-group metals (PGMs) and chrome ore, for which an export tax can be considered.

It advocates the provision of focused research and development support to enable improved mining methods that lengthen mine life, better energy efficiency and lessen water intensity.

It points out the potential for alternative new energy and manufacturing uses for especially PGMs and titanium and favours increased regional involvement by encouraging the development of alternative providers of partially processed intermediate inputs in other countries in the region.

It wants active engagement and resolution on issues that the Mining Industry Growth and Development Task Team raises and urges an improved alignment of Mining Charter requirements to ensure effectiveness in near-mine communities.

It laments mining’s contribution to gross domestic product has declined from 21% in 1970 to only 6% in 2010, resulting in the number of people employed directly in mining – excluding upstream and downstream industries – falling from 660 000 in 1970 to 440 000 in 2004 and stabilising at that level.

It calculates that mining, minerals and secondary beneficiated products account for almost 60% of export revenue.

Despite South Africa’s clear potential, it points out that the country’s mining sector has failed to benefit fully from the commodities boom over the past decade or more and urges exploitation of mineral resources to create employment and generate foreign exchange and tax revenue.

Given the energy-intensive nature of mining and mineral beneficiation, it says that South Africa will also need to invest heavily in helping the industry to reduce its carbon footprint and to use water more efficiently.

It says that concerns about the impact of a resource curse should not be confused with an essential commitment to expanding minerals production and exports and reasons that the resource curse will be addressed partly through stimulating forward and backward linkages to expand industrial and services capabilities.

It calculates that the South African mining industry is smaller now than it was in 1994 after performing poorly during the commodity boom from 2001 to 2008, which resulted in the local mining industry shrinking 1% a year while its top-20 peers enjoyed an average growth rate of 5% a year.

This is an opportunity lost, as estimates show the mining sector could expand by 3% to 4% a year to 2020, creating a further 100 000 jobs. The Human Sciences Research Council's most optimistic estimates show that mining employment could expand by 200 000 by 2024, potentially stimulating a further 100 000 jobs through linkages, and more if they are actively stimulated. This relies substantially on PGMs.

The central constraints are uncertainty in the regulatory framework and property rights, electricity shortages and prices, infrastructure weaknesses, especially in heavy-haul rail services, ports and water, and skills gaps.

Beneficiation or downstream production can raise the unit value of South African exports. In this regard, resource-cluster development, including the identification of sophisticated resource-based products that South Africa can manufacture, will be critical.

Electricity is the main constraint, as most of these activities are energy intensive. As long as electricity is scarce, there will be a trade-off between beneficiation and other more labour­-absorbing activities. In general, beneficiation is not a panacea because it is also usually capital intensive, contributing little to overall job creation.

Substantially more attention will be devoted to stimulating backward linkages or supplier industries (such as capital equipment, chemicals and engineering services). Demand is certain; there is an opportunity for specialised product development, and the product complement is diverse. They are also more labour-absorbing than typical downstream projects. Such products have the potential for servicing mining projects globally, which is an advantage should the commodity boom persist.

Mining companies have an explicit requirement to participate in local development, and have the resources to do so in South Africa and the region. The sector could stimulate local economic development more substantially if the Mining Charter was aligned to these goals. More could be done on human-resource development, local economic development and procurement.

Notwithstanding the difficulties, it should be possible to create about 300 000 jobs in the minerals cluster, including downstream and upstream indirect jobs.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Mining News
While government is stating that acid mine drainage (AMD) in South Africa is not an insurmountable problem and that the country will certainly win the struggle, industry experts and activists are concerned that the true extent of the challenge has not yet been...
Labour Minister Mildred Oliphant
The leaders of South Africa's striking mining union and the chief executives of the world's three biggest platinum producers were set to meet on Thursday, in a renewed drive to end a crippling strike entering its thirteenth week. "They will be meeting directly with...
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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