Transcript the mineral beneficiation policy

THE MINERAL BENEFICIATION POLICY
PRESENTATION AT THE 3RD MINING LEKGOTLA
14 JULY 2014
Gallagher Convention Center,
Midrand
INTRODUCTION
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The mineral beneficiation strategy was adopted by Government as policy
The strategy represents an opportunity for South Africa - a fulcrum to
catalyse industrialisation and contribute towards a knowledge based
economy.
The strategy is complementary to IPAP-series and other development
programmes of Government
Provides strategic focus for the minerals’ industry i.t.o beneficiation
Presents a coherent plan to:
– capture & maximise the “window of opportunity” inherent in natural resources
(before they’re exhausted):
– align strategies for resources with the National Industrial Policy Framework
– unlock downstream beneficiation of minerals
– facilitate economic diversification
– encourage the movement towards a knowledge based economy.
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MINING VALUE ADD FRAMEWORK
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Beneficiation is part of a
broader
policy
and
legislative framework that
leverages more value from
the mining sector beyond
taxes and royalties.
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This
framework
will
enhance the beneficiation
element of the framework
and leverage on others
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BROAD VISION - BENEFICIATION
Increase a ratio of beneficiation extent to mineral production, localise exports,
increase export revenue
Facilitate economic diversification
Attain incremental GDP growth in mineral value addition and increase the
country’s productive capacity
Expedite progress towards a consolidated knowledge based economy
Create opportunities for new enterprise development and a basis for radical
economic transformation
Contribute to creation of decent jobs and poverty alleviation
Aligned to the New Growth Path
“Premised on the notion that Mineral Resources are finite, but creativity
is unlimited”
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INTERVENTIONS
1. SECURITY OF RAW MATERIAL SUPPLY
 Strengthening beneficiation provisions contained in Section 26 of the
MPRDA, in order to:
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Empower government to avail requisite, qualities, quantities and
timeframes of minerals for local beneficiation cost competitively
2. QUANTIFICATION OF SA NEEDS – INDUSTRIALISATION AND BENEFICIATION
An example of such a quantification/target is the objective set for SA to
work towards capturing 25% of global catalysis market – In the Hydrogen
Strategy
 The Integrated Energy Plan (IEP) and the Integrated Resource Plan (IRP) also
provides quantification of energy requirements
 This enables government to work-out progressive quantities of input
material required to achieve this objective in terms of the proposed section
26 provisions of MPRDA Bill
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INTERVENTIONS, CONT….
3. MECHANISMS TO PASS THE BENEFITS TO LOCAL ECONOMY
4. INFRASTRUCTURE (implication of the National Infrastructure Prog)
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Infrastructure Programme to adequately feature beneficiation
requirements. E.g. Linkages of mining areas with envisaged beneficiation
centers
 Infrastructure Programme to enhance logistics efficiencies to ensure cost
effective transport to support “export led growth” of beneficiated products
 Energy security for beneficiation is critical (provisioning of electricity and
mechanisms to support co-generation)
 Development of mechanisms to use infrastructure (public good) as an
incentive for beneficiation
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INTERVENTIONS, CONT….
5. MARKET GENERATION, GROWTH AND ACCESS
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Strengthen the enforcement of the obligatory National Industrial Participation
Programme (NIPP), the Competitive Supplier Development Programme, the
Preferential Procurement Policy Framework Act and the procurement provisions of the
BBBEEA
Strengthen and enforce implementation of sector procurement provisions
Integrated approach to monitoring and evaluation of mineral extraction,
transportation, local consumption into beneficiated goods and through customs
Leverage the African growth story, e.g. the African infrastructure development
programme (PIDA), including the High speed train linking Africa cities
Leverage multi-lateral agreements for access to beneficiated good
6. SKILLS DEVELOPMENT
 A dedicated effort towards development of skills needed to underpin the
beneficiation and industrialisation policies
 Mechanisms for limited expatriate skills transfer (with a maximum limit and a
proven progress on skills transfer and progress)
7. RESEARCH AND DEVELOPMENT
 Coordinated and targeted research and development programme for
beneficiation to:
 Further enhance competitiveness of existing beneficiation initiatives in SA
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 Create nascent industries
Metals and minerals in a Smart Phone
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Copper (16 grams) ¹
Silver (0.35 grams) ¹
Gold (0.034 grams) ¹
Palladium (0.015 grams) ¹
Platinum (0.00034 grams) ¹
Ceramic magnetic switches
containing rare earths ²
• Indium²
• Titanium dioxide ²
• Indium tin oxide ²
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¹ source – USGS http://pubs.usgs.gov/fs/2006/3097/
² source – NRC critical minerals report
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Metals and Minerals in a car
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960kg iron &steel
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109kg Aluminum
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22.7kg Carbon
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19 kg Copper, 34kg for
a hybrid
•+ Antimony, barium, beryllium, cobalt, gallium,
gold, magnesium, molybdenum, neodymium,
indium, palladium,
• Sulphur, rhodium, silver, strontium, tin, titanium,
tungsten, vanadium, zirconium.
•
19kg Silicon
•
11 kg Lead
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10kg Zinc
•
7.7kg manganese
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6.8kg Chromium
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4.1kg Nickel
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0.3 kg Platinum
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Wind Turbine uses a significant amount of
metals and minerals
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335 tons of steel
(chrome included)
•
4.7 tons of copper
•
13 tons of fiberglass
•
3 tons of aluminum
•
1,200 tons of
reinforced concrete
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Cosmetics and makeup………
Constituent
minerals:
• Talc
• Mica
• Kaolin
• Calcite
• Titanium
dioxide
• Zinc oxide
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Even a bright smile, comes from mining…….
Constituent
minerals:
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Silica
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Limestone
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Aluminum
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Phosphate
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Fluoride
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Titanium
•
Mica
•
Petroleum
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CONCLUDING REMARKS
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This beneficiation value proposition represents a potential win-win
scenario for all stakeholders in domestic mineral value chains.
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During the implementation of this provision, miners will not be expected
to beneficiate, however will be expected to contribute.
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Effective co-ordination across relevant departments and partnerships
with both mining industry and manufacturers constitute key for
successful implementation.
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The mining charter off-set against ownership presents a further lever for
the downward negotiation of mineral pricing for local beneficiation to
attain greater cost competitiveness in manufacturing.
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I Thank You
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