08.11.2019 Views

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

South Africa's investment proposal

South Africa's investment proposal

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

70 |<br />

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.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!