CAPE TOWN: With 70% of platinum being produced in South Africa, the government is working towards opening a new industry-based special economic zone in North West, to look into beneficiation.
This is according to Trade and Industry Minister Rob Davies, who participated in an investment dialogue held under the theme “Driving competitiveness and ensuring growth and stability”, hosted by Brand South Africa, at the Mining Indaba in Cape Town, yesterday.
The restructuring of the Chinese economy had led to its growth slowing down, which had resulted in a slump in the prices of commodity such as gold, platinum, iron ore and coal. This had affected many markets, including South Africa, a producer and exporter of minerals.
After the slump, South Africa could no longer afford to see itself just as a producer and exporter of mineral resources, Davies said. The special economic zone board would soon make a recommendation on the exact location of the zone.
“We are supporting quite a number of our projects. There is quite a lot of work that has been done in the country already. The Department of Science and Technology has been rolling out fuel cell-driven small generators to outlying areas to supply schools, clinics and all that.
“The Chamber of Mines launched a fuel-cell driven generator in its own building in Johannesburg,” he said. “We will be, in the course of this year, supporting projects. We will be rolling out a special economic zone in North West that is dedicated to the platinum value chain with the expectation that fuel cell technology will come in.”
While he could not say when commodity prices were expected to recover, the minister said instead of waiting for another commodity boom, South Africa needed to look at beneficiation to find new uses for platinum products.
“I think it means that we shouldn’t put all our eggs in one basket… sitting around and waiting, hoping that there is a bounce back in mineral prices. If your existing customers are buying less of your product, and they are paying less for it, the smart thing to do, among other things, is to seek new uses for your product.”
He had been engaging with the platinum industry, Davies said, and all stakeholders were in agreement that there was a need to support the beneficiation of platinum and to find more uses for the product and to create industries around it.
The soon-to-be-established special economic zone would come with several benefits and investors would have the advantage of getting a tax rate of 15% as opposed to the 28% that was currently on offer. “So we are looking to establish an industry-based special economic zone there. There are actually some others in other provinces that are under consideration.
“What we need to do is establish a set of industries that make use of that platinum, generate long-term uses of it and fuel cell industries are taking off around the world and we as South Africa are looking to get our niche in particular products of particular manufacturing industries off that and will assist in creating a new demand for this mineral and create more opportunities for us to make use of the resource.”
