S mining and energy raw
S mining and energy raw form, resulting in lost potential for local value creation and job opportunities. Key points regarding beneficiation in South Africa: Economic diversification. Investing in chrome ore beneficiation facilities can help diversify our economy by adding value to its mineral resources. By processing chrome ore domestically, the country can unlock additional revenue streams and reduce its reliance on exporting raw materials. Job creation. Establishing beneficiation plants and downstream industries creates employment opportunities across various sectors, including manufacturing, engineering and logistics. This can contribute to skills development, particularly in regions where mining activities are prevalent. Value addition. Beneficiation adds value to raw materials by upgrading them into higher-quality products with enhanced market value. For chrome ore, beneficiation processes can involve concentration, smelting and refining to produce ferrochrome, which is used in stainless steel production and other industrial applications. Industrial development. A robust beneficiation industry fosters the growth of ancillary sectors such as equipment manufacturing, technology development and infrastructure investment. This can stimulate overall industrial development and economic growth. Export revenue maximisation. While beneficiation may initially require investment in infrastructure and technology, the longterm benefits can outweigh the costs. By producing higher-value products domestically, South Africa can maximise export revenues and mitigate the risks associated with commodity price fluctuations. associations, to understand their concerns regarding the potential implementation of an export tax. Collaboration between government and industry can help ensure that any tax policy is effectively implemented and achieves its intended objectives. S A chrome ore tax could generate billions of rands in revenue for government. What is your view on this? Implementing an export tax on chrome ore could have several implications for the South African chrome industry and the broader economy, such as: Price advantage. An export tax would give domestic chrome producers a price advantage over foreign competitors, particularly Chinese firms. This could incentivise local beneficiation and value addition, as domestic producers may find it more profitable to sell processed or beneficiated chrome products domestically rather than exporting raw ore. Revenue generation. A chrome ore export tax has the potential to generate significant revenue for the South African government. The revenue generated from such a tax could be directed towards infrastructure development, social programmes or other priority areas, contributing to economic growth. Competitiveness. An export tax could also affect the competitiveness of South African chrome ore in the global market. Higher export prices resulting from the tax could make South African chrome less attractive to international buyers, potentially leading to decreased demand and market share. Balancing revenue generation. Policymakers would need to carefully balance the revenue generation potential of an export tax with its potential impact on the competitiveness of the chrome industry. Any tax policy should be designed in a way that minimises negative effects on industry competitiveness while maximising revenue generation for government. Stakeholder views. Policymakers need to consult with industry stakeholders, including chrome producers, exporters and trade PINAGARE MOGODI I am a dreamer who firmly believes in the power of hard work. I understand that while dreaming is free, achieving those dreams requires relentless hustle and dedication. I do not believe in handouts; instead, I advocate for the value of earning one’s success through diligent effort. Central to my ethos is a deep commitment to helping others, a trait for which I am known. I prioritise philanthropy and strive to make a positive impact wherever I can. As a leader, I am dedicated to nurturing and empowering my team and supporting their growth and development. I lead by example, adhering to simple yet profound beliefs that fully honour God. 14 | Service magazine
mining S Building for a brighter future Matsapa-A-Botshelo is a general construction and mining group committed to building a stronger South Africa through a commitment to reliability and high standards. MMatsapa-A-Botshelo has two main divisions covering coal (domestic supply and export) as well as construction and trucking. MAB started as a construction company and then added to its portfolio, mining and trucking departments in 2016. What started as a humble building block, has now become a powerful brand that has created several milestones in its areas of operation. The MAB Group CEO and executive head of coal operations is Pinagare Mogodi. The executive chairman is Setene Ketlele, who brings to the company considerable knowledge of the property management environment as a property manager and investor, with experience in arranging financing and administration. MAB COAL MAB supplies coal to Eskom (on medium-term contracts) and Kelvin Power Station (a privately operated facility in Johannesburg) and is one of South Africa’s largest emerging exporters of thermal coal. The company’s goal is to produce 36-million tons by 2028. The biggest proportion of MAB’s current saleable mix is local power-station coal (36-mpta), followed by export thermal coal (8-mpta) and semisoft coking coal (1.2-mpta). Products include duff, peas, small nuts and semi-coke. MAB Coal is strategically positioned for both domestic and export coal markets, currently exporting to countries such as India, China, Hong Kong and Israel. The company is exploring opening offices in India in support of its export operations. MAB is the most diversified multiproduct producer in terms of sized product at mine/DMS wash plant level and export product mix at Richards Bay Multi-Purpose Terminal and Richards Bay Coal Terminal. Our newest largest contract is a five-year coal export contract for 150 000 tons with three different clients. Our strategic partner is Clarksons, one of the world’s biggest shipping services providers that offers strategic maritime consultancy and shipping solutions in 23 countries. MAB is in the process of optimising its product mix to supply higher-value segments and to customers. MAB CONSTRUCTION AND TRUCKING Established in April 2010, with its main priority being to curb the high rate of unemployment in the metropolitan region of the city of Tshwane, Matsapa-A-Botshelo is the original building block of the company and continues to be committed to providing a reliable service in projects, construction and quality management. MAB has since grown to become one of the largest black-empowered and diversified construction and mining companies in South Africa. The company operates facilities and offices in South Africa and has made mining acquisitions in other African countries. MAB’s offering spans engineering and construction activities throughout the built environment. The trucking division works with a mix of sub-contractors and trucks working directly under the company.A total of 688 trucks are working to deliver goods as sub-contractors while 150 leased vehicles are the sole responsibility of MAB. MAB’s construction capabilities span a broad range of industries: building, concrete structure, road and rail, environmental, heavy industry, mining; water reticulation, housing/township development, infrastructure and other related projects. Clients include governments, parastatals and local authorities, major mining houses, leading industrial and other corporations, financial institutions and property developers. Among MAB’s clients are the Rustenburg Local Municipality, the Kruger National Park and the Moses Kotane District Municipality. Since 2010, projects to the value of R2.5-billion have been dealt with efficiently by MAB. SERVICES MAB offers the finest quality design, site preparation, cost estimates, construction, repair and alteration to clients needing large-scale construction services, whether it is office buildings, warehouses, large apartment complexes or public works. • Earthworks • Civil works • Refurbishment • Water systems S (010) 447 3799 info@m-a-b.co.za enquiry@m-a-b.co.za Service magazine | 15
