http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.78Change: 0.21
R/$ = 13.14Change: 0.02
Au 1124.48 $/ozChange: -1.37
Pt 1001.00 $/ozChange: 19.50
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 15, 2012

Stimulating mining investment urgent – National Development Plan

Back
Engineering|Johannesburg|Africa|Charter|Export|Industrial|Mining|Petroleum|Platinum|Ports|Projects|rail|Resources|Water|Africa|South Africa|Consumables Manufacturers|Downstream Producers|Energy|Energy Efficiency|Equipment|Improved Mining Methods|Machinery Uses|Manufacturing|Product|Products|Secure And Reliable Rail Services|Secure Reliable Electricity Supply|Services|Stable Mining Regulatory Framework|Infrastructure|Power|Trevor Manuel
Engineering||Africa|Charter|Export|Industrial|Mining|Petroleum|Platinum|Ports|Projects|rail|Resources|Water|Africa||Energy|Equipment|Manufacturing|Products|Services||Infrastructure|Power|
engineering|johannesburg|africa-company|charter|export|industrial|mining|petroleum|platinum|ports|projects|rail|resources|water|africa|south-africa|consumables-manufacturers|downstream-producers|energy|energy-efficiency|equipment|improved-mining-methods|machinery-uses|manufacturing|product|products|secure-and-reliable-rail-services|secure-reliable-electricity-supply|services|stable-mining-regulatory-framework|infrastructure|power|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 (150 word limit)
 
 
 
 
 
 
 
 
Other Mining News
Updated 7 hours ago Engineering and construction group Murray & Roberts (M&R) says it has no intention of shifting its strategy away from the international natural resources market, notwithstanding the prevailing weak climate for commodities and a bleak immediate outlook. Speaking to...
After last month announcing a programme of shaft closures and workforce reduction aimed at cutting its cost base amid a depressed platinum pricing environment, Lonmin says 1 400 employees have left the business, with a Section 189 consultation process on the...
South Africa-focused coal miner Universal Coal has brushed off an indicative takeover offer from shareholder IchorCoal, calling it inadequate and opportunistic. Earlier this month, IchorCoal announced its intentions to make an all-cash offer of A$80-million to...
More
 
 
Latest News
Updated 6 hours ago South African water utility Rand Water’s Sedibeng Regional Sanitation Scheme will be undergoing major upgrades to unlock residential and business developments in the Vaal area, as well as parts of the south of Johannesburg, the Gauteng provincial Department of Human...
Updated 6 hours ago State-owned entity Land Bank has posted a 9.3% drop in profit from continuing operations year-on-year, citing a decline to R352.5-million in the 2015 financial year from R388.6-million in the 2014 period. The bank’s net cash position improved from R1.47-billion to...
Updated 6 hours ago Power lines connecting the east African states of Tanzania, Uganda, Rwanda, Kenya and Ethiopia are expected to be completed within the next three years, helping improve supplies and power trading, a senior Kenyan official said on Thursday. Power shortages are common...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
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.
 
 
 
 
 
This Week's Magazine
Parliament’s Portfolio Committee on Public Enterprises has welcomed the turnaround strategy of State-owned regional carrier South African Express (SAX). This was reported in a media statement issued by the Committee, following a briefing it received from the airline...
KARSTEN WELLNER The acquisition was aligned with the Ascendis international growth strategy of diversifying across different markets
Health and care brands group Ascendis Health last week announced its first international acquisition – an initial 49% stake in Spanish pharmaceutical group Farmalider for R210-million.
CYRIL RAMAPHOSA Attention needs to be paid to basic and secondary education, as well as higher education, vocational training and adult education
Deputy President Cyril Ramaphosa chaired a Human Resources Development Council (HRDC) meeting at the Pick n Pay regional offices in Johannesburg earlier this month, where it was revealed that baker was the third scarcest occupation in South Africa.
BRETT WALLACE Festo customers can physically test any electric drive applications in a controlled environment
The applications centre at multinational industrial automation company Festo’s Isando offices, in Ekurhuleni, will test and prove concepts and systems for clients to ensure that the systems deliver the intended value once installed, says Festo South Africa MD Brett...
Several Chinese companies plan to invest in infrastructure projects in Malawi, the Southern African country's investment and trade promotion body has revealed. Malawi Investment and Trade Centre CEO Clement Kumbemba says the prospective investors include China...
 
 
 
 
 
 
 
 
 
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