Analysis of the key factors affecting beneficiation in South Africa
Date
2016
Authors
Tom, Zonwabele Zweli
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Abstract
South Africa has the wealthiest mining jurisdiction in the world with mineral resources valued at $2.5 trillion. Despite these assets, the level of value added mineral beneficiation undertaken in South Africa is low, with activities in the mining industry dominated by primary production and exports of raw or partially processed minerals.
This study undertook to determine, evaluate and analyse the constraints to mineral beneficiation and downstream operation in South Africa. The study also considered the key drivers of mineral beneficiation.
Downstream mineral beneficiation is defined as the transformation of a mineral or a combination of minerals to a higher value product which can either be consumed locally or exported to international markets.
Primary data was collected by a combination of quantitative and qualitative method using a questionnaire. The questionnaire was purposefully distributed to stakeholders considered to have expert knowledge in the mining and manufacturing sectors. Data was tested for reliability and validity before it was analysed and specific constructs were developed from the questionnaire.
The study found that mining industry will continue to play a vital role in the economy of the country. The level of mineral beneficiation was found to be dismally low considering the country’s mineral endowment and this resulted in the country missing out on the opportunity to earn more from exports of finished products, create employment, and address the problems of inequality and poverty. Amongst the factors found to constrain beneficiation were the country’s labour laws, lack of adequate skills, corruption, unstable labour force, research and development, the lack of entrepreneurship activity, inadequate infrastructure, and energy problems. In addition the study provided practical recommendations to help policy makers make informed decisions that will support the beneficiation programme.
This study undertook to determine, evaluate and analyse the constraints to mineral beneficiation and downstream operation in South Africa. The study also considered the key drivers of mineral beneficiation.
Downstream mineral beneficiation is defined as the transformation of a mineral or a combination of minerals to a higher value product which can either be consumed locally or exported to international markets.