Developing a framework for the classification of strategic and critical minerals in South Africa

Abstract

Minerals should be sufficient to sustain security of the nation as well as growth of the economy and employment. Countries without minerals may source minerals from mineral-rich countries. South Africa is endowed with mineral resources and has a comparative advantage in minerals such as manganese, chromium, vanadium and platinum amongst others. Mineral wealth can contribute towards resolving the challenges of a high rate of unemployment, poverty and inequality. Most of the minerals in South Africa are exported as raw materials and once produced, final products are sold back to the country and imported as finished products. Trade-offs between exports as raw ore or beneficiated minerals which have a higher value should be considered for contribution in this country towards industrialisation and employment. Identified and selected critical and strategic minerals can promote economic growth and industrialisation. An assessment methodology utilising three categories namely, economic importance, risk and impact was used to develop a framework to classify minerals as strategic and critical in South Africa. Thirty-eight minerals were identified, eighteen potential strategic and critical minerals selected and most contributing seven strategic are selected according to economic importance, risk and impact factors. The framework contributes to policy-making, economic growth, and security of supply. It also promotes development of minerals and optimises value from the minerals and their economic use and enhances industrialisation and employment. In this research a survey was also conducted on the perceptions of local people at or close to mines on the positive and negative socio-economic impacts of mining in their communities. The first outcome indicated that mining communities and employees are aware of the mineral wealth of the country and have lamented on the level of poverty and inequality of employment experienced in their areas where mining activities are taking place. The study further revealed misunderstandings and unfulfilled expectations concerning the responsibilities of the mining companies and the accountability of the government towards the community. Limited resources and desperation for opportunities by employees and communities could lead to a disaster in the mining industry if these perceptions are not addressed.