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

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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.