http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.06Change: 0.07
R/$ = 10.65Change: 0.06
Au 1282.23 $/ozChange: -1.94
Pt 1418.50 $/ozChange: 0.50
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 15, 2012

Stimulating mining investment urgent – National Development Plan

Back
Engineering|Johannesburg|Africa|Industrial|Platinum|Ports|Projects|Resources|Water|Africa|South Africa|Consumables Manufacturers|Downstream Producers|Energy|Energy Efficiency|Equipment|Improved Mining Methods|Machinery Uses|Manufacturing|Mining|Product|Products|Secure And Reliable Rail Services|Secure Reliable Electricity Supply|Services|Stable Mining Regulatory Framework|Infrastructure|Power|Rail|Trevor Manuel|Water
Engineering||Africa|Industrial|Platinum|Ports|Projects|Resources|Water|Africa||Energy|Equipment|Mining|Products|Services||Infrastructure|Power|Rail|Water
engineering|johannesburg|africa-company|industrial|platinum|ports|projects|resources|water-company|africa|south-africa|consumables-manufacturers|downstream-producers|energy|energy-efficiency|equipment|improved-mining-methods|machinery-uses|manufacturing|mining|product|products|secure-and-reliable-rail-services|secure-reliable-electricity-supply|services|stable-mining-regulatory-framework|infrastructure|power|rail|trevor-manuel|water
© 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 (150 word limit)
 
 
 
 
 
 
 
 
Other Mining News
Shaun Newberry and Martin Creamer
Updated 3 minutes ago South Africa’s Witwatersrand Basin contains another 1.3-billion ounces of gold, almost as much gold as has been mined there since 1886 – but miners can only get to another 200-million ounces of it using today’s mining methods. Only 1.7-billion ounces of the...
Matola Coal Terminal
Updated 7 hours ago ASX-, Aim- and JSE-listed Coal of Africa Limited (CoAL) has reached a $10-million agreement with Grindrod subsidiaries Grindrod Corridor Management and Terminal de Carvão da Matola for the settlement of historic and future liabilities relating to CoAL’s take or...
Updated 2 hours 43 minutes ago Government says it is ready to regulate and monitor companies that have expressed an interest in exploring shale gas in the country. Thibedi Ramontja, the Director-General of the Mineral Resources Department, said the draft regulations will, once finalised, be...
More
 
 
Latest News
Updated 11 minutes ago If approved, the much debated Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill, currently before President Jacob Zuma for final endorsement, was likely to create ambiguity and uncertainty around the overarching legislation governing the oil and...
Updated 16 minutes ago Industrial gases and welding products company African Oxygen (Afrox) on Wednesday announced the arrival of the German-engineered cold box for its R300-million air separation unit (ASU) at the Coega industrial development zone (IDZ), in the Eastern Cape. The...
Updated 50 minutes ago The JSE-listed Imperial group breached the R100-billion revenue mark for the first time in the past financial year, ended June 30. Revenue was up 12% on the previous financial year, to R103.6-billion, with operating profit up 2%, to R6.2-billion.
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MODDERFONTEIN NEW CITY Modderfontein New City will aim to exemplify an integrated city node and improve infrastructure utilisation through mixed-use spaces
The multibillion-rand development of the Zendai Modderfontein New City, east of Johannesburg, will aim to exemplify an integrated city node, says property group Zendai South Africa COO Wenhui Du. The development will focus on the Modderfontein Gautrain station to be...
The South African Civil Aviation Authority (CAA) hopes to have finalised regulations for the flying of Unmanned Air Vehicles (UAVs) – also designated Remotely Piloted Air Systems (RPAS) and popularly called drones – in the country’s civilian airspace by the end...
Various stakeholders have expressed optimism that the Small Business Development Ministry, created after the national elections in May, will add much needed impetus to enterprise development in South Africa, where a strengthening of the entrepreneurial culture is...
BOB SCHOLES To ensure that emissions plateau by 2020 and then decline until a net negative emission level is achieved by the end of the century, CO2 capture and storage in addition to major emission reduction efforts will be needed
Capturing and storing carbon dioxide (CO2) is the only way through which the world will achieve the lowest of the United Nations Framework Convention on Climate Change’s (UNFCCC) global warming predictions, called the representative concentration pathway (RCP) 2.6....
PARKS TAU Ongoing investigations had identified at least 30 large power users in Johannesburg as having defrauded the city
The City of Johannesburg has recovered R107-million following the arrest of 22 people allegedly involved in corruption, collusion, fraud and tampering with the city’s electricity systems, which had ultimately cost the city R200-million in lost revenue.
 
 
 
 
 
 
 
 
 
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