South Africa seeks two-fold hike in mining sector investments

South Africa seeks two-fold hike in mining sector investments
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Updated 11 January 2022

South Africa seeks two-fold hike in mining sector investments

South Africa seeks two-fold hike in mining sector investments
  • In addition to coal, gold, platinum and diamond as its most prominent reserves, the country is also home to other minerals, such as chrome, vanadium and titanium

CAIRO: The minerals council in South Africa aims to reposition the country’s mining industry as its chief industrial sector.

As a preliminary step towards achieving this, the council seeks a two-fold increase in real investment in the mining sector by 2030.

This target will be made possible through council partnerships with major stakeholders in the creation of a valuable policy, legislative and operating environment.

In line with the country’s National Development Plan, this target aims at enhancing South Africa’s economic growth and its developmental and transformational vision.




The mining and quarrying sector’s contribution to the country’s gross domestic product reached 4.6 percent in 2020, down from 10 percent in 1993. (Supplied)

The mining and quarrying sector’s contribution to the country’s gross domestic product (GDP) reached 4.6 percent in 2020, down from 10 percent in 1993, according to data from Statistics South Africa.

Despite the fall over the years, South Africa is still among top mining destinations in the world.

In addition, its mining sector has a significant positive impact on economic activity, job creation and foreign exchange earnings.

2018 was a year that proved just that. By the end of the year, the mining sector had accounted for $22.5 billion of South African GDP and the employment of an estimated 456,000 workers.

South Africa is well known for its abundance of mineral resources, accounting for a sizable proportion of global reserves and production.

Despite coal, gold, platinum and diamond being the most prominent reserves, the country is also home to other minerals, such as chrome, vanadium and titanium.

The key players in the industry include Anglo American Platinum, Kumba Iron ore, Impala Platinum, Sibanye-Stillwater, Gold Fields, Northam Platinum, Exxaro Resources, ARM, Harmony Gold and Royal Bafokeng Platinum.

Taking into consideration the nature of the mining sector, casualties and fatalities are a key concern that the country has pledged to reduce. Accordingly, the South African mining industry has renewed its commitment to “zero harm” in 2021 by revisiting health and safety issues with all market players.

Overview of South Africa’s most prominent minerals

Coal

Concentrated in the northeast of the country, coal is a crucial mineral in South Africa, having a significant impact on employment rates. Current production rates are sufficient enough to cater to the country’s requirements for the next century. 70 percent of sedimentary rock capacity is consumed locally, with more than 70 percent of the country’s electricity demand generated by coal power.

Platinum

The platinum group metals, also known as PGM, constitute six independent silver-white metals. The South Africa-based Bushveld complex covers 80 percent of PGM mining in the country. PGMs are recyclable in nature and are incorporated in various industrial applications, such as the manufacture of mobile phones and computer hard disks.

Gold

South Africa accounts for 4.2 percent of global gold production, with estimated reserves of 6,000 tons. With as much as 40 percent of the world’s total gold reserves, the Witwatersrand area in South Africa stands as the world’s largest gold resource location, with an assessed production of about 2 billion ounces of gold throughout history. In 2019, total gold sales reached $4.6 billion.

Diamond

South Africa is the fourth largest diamond producer worldwide, with an average annual production of 8.15 million carats. In 2019, total diamond sales reached $850 million.


Saudi recycling firm Tadweeer to start trading on Nomu this week

Saudi recycling firm Tadweeer to start trading on Nomu this week
Updated 24 sec ago

Saudi recycling firm Tadweeer to start trading on Nomu this week

Saudi recycling firm Tadweeer to start trading on Nomu this week

RIYADH: National Environmental Recycling Co. will start trading on Saudi Arabia’s parallel market Nomu on, May 26, according to a statement by the Saudi Exchange.

The company, known as Tadweeer, has set its price guidance for direct listing at SR65 ($17.3) per share.

Established in 2015, Tadweeer is specialized in recycling electronics and electrical waste in support of the Saudi Green Initiative.


Mining industry won’t cope with rising demand without circularity, Eurasian Resources CEO says

Mining industry won’t cope with rising demand without circularity, Eurasian Resources CEO says
Updated 21 min 33 sec ago

Mining industry won’t cope with rising demand without circularity, Eurasian Resources CEO says

Mining industry won’t cope with rising demand without circularity, Eurasian Resources CEO says

RIYADH: The mining industry will not be able to cope with rising demand without circularity, the CEO of Eurasian Resources group has said.

Speaking at the World Economic Forum session in Davos, Benedikt Sobotka added that this would mean higher prices and more inflation for consumers in the developing world. 

“The demand is incredibly wasteful. To give you just one number per year, there’s about 50,000,000 tons of electronic waste being thrown away,  17 percent of that is being recycled,” he said.

“The time of cheap commodities is over,” Sobotka said, pointing to minerals and metals, as they have energy cost increases that make them more expensive. 

The global mining industry needs more attention and investment from external investors which were not seen, he said, adding that it is valued at $1.5 trillion, which is a fraction of what it is actually worth in terms of value creation for the world. 


Qatar Investment Authority cannot exit Russian market, says official

Qatar Investment Authority cannot exit Russian market, says official
Updated 56 min 15 sec ago

Qatar Investment Authority cannot exit Russian market, says official

Qatar Investment Authority cannot exit Russian market, says official

DOHA: The Qatar Investment Authority cannot exit the Russian market and is waiting to assess its position there because of the Ukraine crisis, the sovereign wealth fund’s chief investment officer for Europe, Russia and Turkey said on Tuesday. 

“We can’t do much in Russia ... We have to really assess where to stand on those opportunities there. I think it is a very difficult position for us, being an investor with one name,” said Ahmed Ali Al-Hammadi. 

QIA owns a 19 percent stake in Russian state-backed oil giant Rosneft, which Al-Hammadi said is the fund’s only holding “of significance” in Russia. 


MENA to face high inflation at 14% in 2022 on account of Russia-Ukraine war: IMF

MENA to face high inflation at 14% in 2022 on account of Russia-Ukraine war: IMF
Updated 24 May 2022

MENA to face high inflation at 14% in 2022 on account of Russia-Ukraine war: IMF

MENA to face high inflation at 14% in 2022 on account of Russia-Ukraine war: IMF

RIYADH: Food prices are projected to increase by another 14 percent in 2022, after hitting historic highs in 2021, said the International Monetary Fund. 

In its latest World Economic Outlook, the international agency noted that the commodity markets in the Middle East and North Africa are being impacted by the Russia-Ukraine war inflation, with prices sharply rising.

In a blog published on the IMF website, its economists warned that “higher commodity prices, propelled upwards by war in Ukraine, will have a significant economic impact on the region.”

The IMF expects the regional inflation rate to remain high at 13.9 percent in 2022, a substantial increase from last year.

Following the Russian invasion, oil prices skyrocketed to $130 per barrel, and are expected to average $107 by 2022, up $38 from 2021, it added.

In its Regional Economic Outlook, the IMF had revised its forecast for growth in the MENA as a whole by 0.9 percentage points to 5 percent, but it said: “This reflects improved prospects for oil exporters helped by rising oil and gas prices.”

For oil-importing countries, the agency marked down its projections, “as higher commodity prices add to the challenges stemming from elevated inflation and debt, tightening global financial conditions, uneven vaccination progress, and underlying fragilities and conflict in some countries.”

 


Egypt In-focus: Trade volume with Brazil stands at $2.6bn; first sovereign sukuk to be issued this year

Egypt In-focus: Trade volume with Brazil stands at $2.6bn; first sovereign sukuk to be issued this year
Updated 24 May 2022

Egypt In-focus: Trade volume with Brazil stands at $2.6bn; first sovereign sukuk to be issued this year

Egypt In-focus: Trade volume with Brazil stands at $2.6bn; first sovereign sukuk to be issued this year

RIYADH: The bilateral trade between Egypt and Brazil has grown significantly to reach $2.6 billion, making the Latin American country its top trading partner. The North African country is seeking to bolster cooperation in the industrial sector with the UAE, and Jordan. Egypt is also preparing to issue the first sovereign sukuk before the fiscal year ends. Meanwhile, Egypt’s Tatweer Misr and France’s Schneider Electric signed an agreement to help build and manage smart cities in the country.

·      Trade volume between Egypt and Brazil currently stands at $2.6 billion, making Egypt the first trading partner of Brazil amid Arab countries, local newspaper Youm 7 reported, citing Khaled Hanafi, secretary-general of the Federation of Arab Chambers of Commerce. This is mainly attributed to the growth of bilateral relations between the two countries over the past few months.

·      Egyptian Prime Minister Mostafa Madbouly has followed up on the government’s efforts to boost cooperation with the UAE and Jordan in the industrial sector during a meeting held on Sunday, local newspaper Daily News Egypt reported. The three countries are eager to foster joint projects that will potentially create added value to their economies and bolster competitive indicators, as well as economic growth rates.

·      Egypt is preparing to issue the first sovereign sukuk before the end of the current fiscal year, local newspaper Youm 7 reported, citing Minister of Finance Mohamed Maait. This will provide the necessary financing for investment projects included in the economic and social development plan in the state’s general budget. Such a move is also expected to lure local and international investors, who prefer financial transactions in line with the Islamic Shariah.

·      Egyptian industrial real estate agency Tatweer Misr and French multinational company Schneider Electric have signed an agreement regarding the integration of technological innovation in projects to build and manage smart cities, local newspaper Daily News Egypt reported. Under the agreement, Tatweer Misr will be able to use Schneider Electric’s iTWO platform which poses as one of the most efficient solutions to manage real estate projects.