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433369666-The-Case-for-Investing-in-South-Africa

South Africa's investment proposal

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INVESTMENT OPPORTUNITIES IN MINING AND MINERALS<br />

BENEFICIATION CONTINUED<br />

Iron and steel value<br />

cha<strong>in</strong><br />

Manganese<br />

Vanadium<br />

Titanium value cha<strong>in</strong><br />

Plat<strong>in</strong>um group metals<br />

(PGMs) and chrome<br />

value cha<strong>in</strong>s<br />

Jewellery<br />

manufactur<strong>in</strong>g<br />

• <strong>The</strong>re are opportunities to improve the competitiveness of the domestic steel <strong>in</strong>dustry so as<br />

to access grow<strong>in</strong>g regional markets.<br />

• <strong>The</strong>re are also <strong>in</strong>vestment opportunities <strong>in</strong> revitalis<strong>in</strong>g downstream manufactur<strong>in</strong>g capacity,<br />

such as <strong>in</strong> foundries and m<strong>in</strong>i-mills, supported by government <strong>in</strong>centives.<br />

• Increased iron ore beneficiation is a strategic objective of the government.<br />

• <strong>South</strong> <strong>Africa</strong>’s dom<strong>in</strong>ant supply-side position from a global perspective (about 29%<br />

of world reserves) and low-cost resources offer m<strong>in</strong><strong>in</strong>g development opportunities.<br />

• Investment appeal is enhanced by value cha<strong>in</strong> l<strong>in</strong>kages with the global steel value<br />

cha<strong>in</strong>. <strong>The</strong> favourable outlook <strong>for</strong> the world economy, as well as improved steel<br />

producer marg<strong>in</strong>s <strong>in</strong> Ch<strong>in</strong>a, are expected to keep global steel production growth<br />

elevated.<br />

• <strong>South</strong> <strong>Africa</strong> is endowed with vast, largely untapped, vanadium resources.<br />

• Potential high growth opportunities exist l<strong>in</strong>ked with the global energy storage<br />

value cha<strong>in</strong>, with significant market growth potential <strong>for</strong> energy storage solutions<br />

on the <strong>Africa</strong>n cont<strong>in</strong>ent.<br />

• <strong>South</strong> <strong>Africa</strong> has the second-largest titanium reserves <strong>in</strong> the world. <strong>The</strong><br />

development of the titanium value cha<strong>in</strong>, <strong>in</strong>clud<strong>in</strong>g the establishment of a smelter<br />

and downstream production, is a strategic objective of the Industrial Policy Action<br />

Plan and national beneficiation strategy.<br />

• Substantial <strong>in</strong>vestment has been facilitated by the government towards value cha<strong>in</strong><br />

development, specifically <strong>for</strong> the production of titanium dioxide pigment as a key<br />

<strong>in</strong>gredient <strong>in</strong> pa<strong>in</strong>t manufactur<strong>in</strong>g.<br />

• Primary resource development opportunities exist <strong>in</strong> the Bushveld Igneous<br />

Complex (BIC).<br />

• Value cha<strong>in</strong> development opportunities <strong>in</strong>clude commercial beneficiation<br />

applications such as the use of PGMs as catalysts <strong>in</strong> fuel cell manufactur<strong>in</strong>g.<br />

• <strong>South</strong> <strong>Africa</strong> produces chrome <strong>in</strong> the BIC as a by-product of PGM m<strong>in</strong><strong>in</strong>g.<br />

• Domestic ferrochrome production and competitiveness have lagged, result<strong>in</strong>g <strong>in</strong><br />

<strong>in</strong>creased exports of unprocessed chrome. <strong>The</strong> government considers <strong>in</strong>creased<br />

beneficiation of the country’s chrome resources a strategic objective, with the aim<br />

of reposition<strong>in</strong>g <strong>South</strong> <strong>Africa</strong> as a global leader <strong>in</strong> ferrochrome production.<br />

• <strong>South</strong> <strong>Africa</strong>’s resource base supports commercial fabrication of gold, PGMs and<br />

diamonds. A suite of <strong>in</strong>centives is available to support the growth and development<br />

of export-oriented jewellery manufactur<strong>in</strong>g.

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