Stakeholders have been trying to alter the perception of South Africa’s mining sector from that of a “sunset industry” to a “sunrise industry”, but such a transition inherently depends on the country’s mineral potential, states the South African Institute of Mining and Metallurgy (SAIMM).
“This applies not only to our traditional base of precious metals, diamonds, coal and ferrous metals, and the new uses to which these can be applied, but also to the ‘new metals and minerals’ that our changing industrial demands are creating.”
AdvertisementSAIMM references rare earths, heavy minerals and industrial minerals which have found use in the manufacture of new technologies.
It also notes an increased focuson local beneficiation and value addition. “Estimates from the USGeological Survey and the Council for Geoscience, certainly verify that the country’s mineral wealth is by no means depleted, in that not only are there copious resources of new minerals, [but also] traditional metals and commodities, either at lower grades, at depth, or in undiscovered fields.”
AdvertisementSAIMM notes that finding and increasing the confidence in these resources requires exploration activity. However, the institution notes that South Africa’s share of the African exploration budget has “fallen off a cliff”, from about 36% in 2002 to a “meagre 6%” in 2017.
“The critical question of course, is ‘why’?”
SAIMM says that the reason for the slump in unlocking exploration targets lies in a combination of reasons, including policy issues, licensing issues, funding aspects and access for junior exploration companies.
“Retention licensing also remains an area of concern.”
Further, the institution notes that to ensure that these issues are addressed to break down barriersto entry, creative actions need tobe initiated, which would significantly increase exploration activity.
“Through active participation and a collaborative approach, we can make a difference [in terms of] value creation, employment and diversity, ” the institute concludes.