Mining in focus
P
atrick Lumumba’s speech raised
critical questions about the
beneficiation of minerals in
Africa. Using South Africa as an
example, the country is endowed
with a variety of minerals, some of which are
the best quality in the world. With all this
mineral endowment, only a small percentage
of most minerals is beneficiated locally.
The debate around beneficiation in
South Africa has been ongoing, with some
arguing that the country is not using the
mineral endowment to its full potential,
while others feel that the country does not
have the capacity in terms of skills and
infrastructure to beneficiate. “We all know
that beneficiation in the context of mining
in South Africa has been a very important
topic. It has been one of the key objectives
of mineral policy as well as industrial policy,”
said Claude Baissac, Eunomix CEO, during
a beneficiation panel discussion at the Joburg
Indaba last year. He also pointed out that
mineral endowment does not translate to the
capacity to beneficiate.
South Africa is home to many minerals such
as gold, platinum, iron ore, manganese, and
diamonds, to name a few. Some of these
minerals are beneficiated in the country while
others are exported as raw materials and
beneficiated elsewhere.
The concept of beneficiation is not new
in South Africa: South Africa is home to
various smelters and refineries — some of
which are the biggest in Africa and the world.
Rand Refinery is one of the world’s largest
gold refineries. In addition to refining locally
produced gold, the refinery also refines most
of the gold from the rest of Africa. PwC’s
SA Mine – 9th edition report outlines how
the refinery refines the gold to 99.9% and
then sells it to commercial banks, jewellery
manufacturers, and other customers.
Platinum beneficiation also takes place in
South Africa, with platinum refineries such
as Anglo-American Platinum’s Base Metal
Refineries and Impala Refining Services
(IRS). According to the report, platinum is
also refined to 99.9%; however, the difference
with platinum is that most of it is exported
to car manufacturers, the jewellery trade, and
other users. There are other refineries across
South Africa that refine minerals like chrome
and precious metals.
The report highlights the fact that 62%
of iron ore produced in South Africa
is exported; meaning, there are many
opportunities to increase beneficiation of iron
ore. Diamond beneficiation in South Africa
is another area with huge potential and it
involves cutting and polishing diamonds for
further use.
Coal is a different story compared to
the other minerals. PwC’s report explains
that because of a heavy reliance on coal for
producing energy locally, there is a high
demand for coal and it is beneficiated 100%.
According to the report, 61% of South
Africa’s coal is sold to power utility Eskom
and of that, 100% is beneficiated.
[30] MINING MIRROR MARCH 2019
Status of beneficiation in SA
Gold pour from Rand Refinery.
Another area of 100% beneficiation of coal
is in the production of liquid fuel. Sasol
Synfuels is an example of a liquid fuel
producer, and to do this, it relies on the coal
produced at Mpumalanga mines. Local
beneficiation of coal does not mean that it is
not exported; however, the difference here is
that coal exports are not as significant as seen
with other minerals.
Although mineral beneficiation does take
place in South Africa, some might argue that
the beneficiation industry has not reached
its full potential. Numerous challenges have
had a negative impact on beneficiation in
South Africa. “We have witnessed slow
progress in implementing beneficiation,
which was adopted as a policy of government
in 2011,” said Mineral Resources Minister
Gwede Mantashe in his address during a
Vote 9 budget debate in parliament. He
highlighted that the diamond and precious
metals beneficiation industry had declined
significantly over the past decade. “Of the
323 diamond beneficiation licences issued
by the South African Diamond and Precious
Metals Regulator (SADPMR), only 78
are active in the trade and beneficiation of
diamonds.”
Donald Moumakwa, chief mineral
economist of precious metals at the
Department of Mineral Resources (DMR),
compiled a report about the overview of
South Africa’s diamond mining industry. The
overview painted a grim picture, detailing
how most of the country’s diamonds were
exported to be beneficiated outside of the
country. “The country’s diamond industry
has traditionally been export orientated,
with a relatively small portion of local rough
output reserved for local buyers. The relatively
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