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

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70 | INVESTMENT OPPORTUNITIES IN MINING AND MINERALS BENEFICIATION CONTINUED Iron and steel value chain Manganese Vanadium Titanium value chain Platinum group metals (PGMs) and chrome value chains Jewellery manufacturing • There are opportunities to improve the competitiveness of the domestic steel industry so as to access growing regional markets. • There are also investment opportunities in revitalising downstream manufacturing capacity, such as in foundries and mini-mills, supported by government incentives. • Increased iron ore beneficiation is a strategic objective of the government. • South Africa’s dominant supply-side position from a global perspective (about 29% of world reserves) and low-cost resources offer mining development opportunities. • Investment appeal is enhanced by value chain linkages with the global steel value chain. The favourable outlook for the world economy, as well as improved steel producer margins in China, are expected to keep global steel production growth elevated. • South Africa is endowed with vast, largely untapped, vanadium resources. • Potential high growth opportunities exist linked with the global energy storage value chain, with significant market growth potential for energy storage solutions on the African continent. • South Africa has the second-largest titanium reserves in the world. The development of the titanium value chain, including the establishment of a smelter and downstream production, is a strategic objective of the Industrial Policy Action Plan and national beneficiation strategy. • Substantial investment has been facilitated by the government towards value chain development, specifically for the production of titanium dioxide pigment as a key ingredient in paint manufacturing. • Primary resource development opportunities exist in the Bushveld Igneous Complex (BIC). • Value chain development opportunities include commercial beneficiation applications such as the use of PGMs as catalysts in fuel cell manufacturing. • South Africa produces chrome in the BIC as a by-product of PGM mining. • Domestic ferrochrome production and competitiveness have lagged, resulting in increased exports of unprocessed chrome. The government considers increased beneficiation of the country’s chrome resources a strategic objective, with the aim of repositioning South Africa as a global leader in ferrochrome production. • South Africa’s resource base supports commercial fabrication of gold, PGMs and diamonds. A suite of incentives is available to support the growth and development of export-oriented jewellery manufacturing.
| 71 EMERGING GROWTH OPPORTUNITIES IN SUSTAINABLE MINING IN SOUTH AFRICA • Challenges associated with rising mining depths and declining mineral ore yields have created opportunities for the infiltration of next-generation digital technology applications into the local mining sector. • This trend has led to the increasing deployment of large data analytics and digitisation to counteract sustainability challenges, particularly in the deep-level and labour-intensive gold and platinum mining sub-sectors. • Urgency to improve the global competitiveness of local mining operations has placed South Africa at the forefront of technological developments in deep-level continuous and mechanised mining. This has attracted capital investment from various large global hard-rock capital equipment manufacturers such as Caterpillar and Komatsu. • Increased focus on mine health and safety has led to growth in the deployment of new-generation Proximity Detection Systems (PDS), led locally by Booyco Electronics. These systems aid in the detection of pedestrians, as well as in the risk management of collisions, supporting the mining industry’s goal towards zero harm in mines. • Notable commercial new-generation mining projects in South Africa include De Beers’s Venetia Underground Project in Limpopo province, Ivanhoe’s Platreef Project in Mokopane, Vedanta Zinc International's Gamsberg Project, as well as the Waterberg Platinum Group Metals Project north of Mokopane. • In general, mine digitisation and systems development have unlocked numerous investment opportunities for the development of next-generation mining equipment clusters locally. This will drive the exploitation of the country’s vast, untapped mineral resources and, by potentially increasing life of mine, also extend the socio-economic contribution of mining-related activities. DIGITAL MINING TECHNOLOGY Digital technology is advancing rapidly in South African mining: • Artificial intelligence applications are helping in the development of driverless mining equipment to access hazardous mineral deposits. • Technology applications are providing real-time feedback on equipment utilisation rates. • Drone technology is replacing traditional surveying methods and assisting to provide more detailed information on resource geology, allowing for efficient resource development and management. • Data analytics are finding increasing use for the analysis and optimisation of mine operational statistics.
Page 1 and 2:
THE CASE FOR INVESTING IN SOUTH AFR
Page 3 and 4:
CONTENTS 1. WHY INVEST IN SOUTH AFR
Page 5 and 6:
10 REASONS WHY YOU SHOULD INVEST IN
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| 3 WORLD-RENOWNED FOR INDUSTRIAL I
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| 7 SOUTH AFRICA AT A GLANCE • So
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| 9 SOUTH AFRICA AT A GLANCE: INFRA
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| 11 SOUTH AFRICA AT A GLANCE: SOCI
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3. ECONOMIC OVERVIEW
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18 | - Manufacturing output increas
Page 24 and 25: 20 | FISCAL POLICY GEARED TOWARDS F
Page 26 and 27: 22 | GLOBAL ECONOMIC DEVELOPMENTS
Page 28 and 29: 24 | RELATIVE PERFORMANCE OF SELECT
Page 31: 4. POLICY FRAMEWORK
Page 34 and 35: 30 | MICROECONOMIC POLICY INTERVENT
Page 36 and 37: 32 | INDUSTRIAL POLICY SUPPORT Attr
Page 38 and 39: 34 | TRADE POLICY: MAIN BENEFITS OF
Page 41: 5. ENABLING ENVIRONMENT
Page 44 and 45: 40 | EASE OF DOING BUSINESS: SOUTH
Page 46 and 47: 42 | ATTRACTIVE INCENTIVES TO SUPPO
Page 49: 6. OPPORTUNITIES FOR INVESTORS
Page 52 and 53: 48 | SECTORAL STRENGTHS OF SOUTH AF
Page 54 and 55: 50 | EXPORT-ORIENTED SECTORAL OPPOR
Page 56 and 57: 52 | SOUTH AFRICA AS A KEY REGIONAL
Page 59: 6.1 AGRICULTURE AND AGRO-PROCESSING
Page 62 and 63: 58 | SA GDP, 2018 WELL-ESTABLISHED,
Page 64 and 65: 60 | AGRICULTURE AND AGRO-PROCESSIN
Page 67: 6.2 MINING AND MINERALS BENEFICIATI
Page 70 and 71: 66 | A HIGHLY DEVELOPED AND DIVERSI
Page 72 and 73: 68 | BASE METALS AND METALS FABRICA
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Page 78 and 79: 74 |
Page 80 and 81: 76 | MANUFACTURING SECTOR’S EXPOR
Page 82 and 83: 78 | AUTOMOTIVE INDUSTRY: EXPORT-OR
Page 84 and 85: 80 | AUTOMOTIVE VALUE CHAIN: INVEST
Page 86 and 87: 82 | ELECTRICAL MACHINERY AND EQUIP
Page 88 and 89: 84 | CHEMICALS AND CHEMICAL PRODUCT
Page 90 and 91: 86 | CLOTHING, TEXTILES, FOOTWEAR A
Page 92 and 93: 88 | ADVANCED MANUFACTURING • The
Page 94 and 95: 90 | ADVANCED MANUFACTURING: OPPORT
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Page 100 and 101: 96 | Contribution to the economy St
Page 102 and 103: 98 | BUSINESS PROCESS OUTSOURCING (
Page 104 and 105: 100 | FINANCE AND INSURANCE • The
Page 106: 102 | OCEANS ECONOMY • Several fa
Page 111 and 112: | 107 AN EXTENSIVE INFRASTRUCTURE D
Page 113 and 114: | 109 INFRASTRUCTURE DEVELOPMENT PL
Page 115: GREEN INFRASTRUCTURE INVESTMENT OPP
Page 119 and 120: SOUTH AFRICA: BUILDING PARTNERSHIPS
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