The implications of mineral resources beneficiation in South Africa
Date
2015
Authors
Shandu, Richard Dumisani
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Abstract
South Africa is ranked amongst the top five mineral-rich countries in the world. It
takes first position when it comes to platinum reserves. Most of the mineral
resources are exported in raw form to foreign destinations and they are then
imported back into the country as finished goods. Government has come up
with a local mineral beneficiation strategy that has in it about ten mineral
resources that have been identified as the initial minerals that need to be
beneficiated in the country. This study investigated challenges that would be
faced by the country when implementing mineral beneficiation. The study was a
qualitative study that was done through field interviews that were conducted on
industry practitioners and related industries. Fourteen interviews were
conducted in this study. The study found that there are challenges that are
faced by local industries around pricing of mineral resources. They feel that they
are overcharged, yet they are at the doorstep of mining. They feel that
overcharging emanates from import parity pricing that is imposed on the raw
material making them pay a price that is equivalent to that that is paid by
importers of South African raw minerals in foreign destinations. The other
challenges that were identified are energy, market, water utilities and
government regulations. Energy was identified as the most serious challenge
that is facing the country and that will definitely negatively affect implementation
of a local mineral beneficiation strategy. Local beneficiation will be good for the
country’s economic growth, employment, skills development, and many other
benefits, but the challenges have to be taken care of first before embarking on
implementation of the strategy.
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Keywords
Mineral industries -- South Africa. Mines and mineral resources -- South Africa. Ore-dressing -- South Africa.