South Africa designates coal as a critical mineral, underscoring its economic significance and potential for investment. Minister Gwede Mantashe highlights the need for regional collaboration in enhancing mineral value. The country’s aluminium industry remains vital for employment and economic growth, emphasizing the reliance on coal-based energy and the shift towards sustainable options.
South Africa has reaffirmed coal as a critical mineral, underscoring its economic and strategic importance, as articulated by Minister Gwede Mantashe. During a presentation in Cape Town, he discussed a study highlighting coal’s vital contribution to the national economy, advocating for regional collaboration in maximizing mineral value besides merely exporting raw resources.
Mantashe emphasized that coal generates significant revenue, making the sector appealing for investment. He noted, “For us, coal is a critical mineral because it generates substantial revenue. The coal sector remains highly attractive for new and expanded investments.”
In discussing regional dynamics, Mantashe cautioned against individual exploitation of critical minerals, promoting instead the potential for cooperation among African nations to enhance mineral value. He highlighted South Africa’s role in global manganese production, requesting collaborative efforts with nearby countries like Lesotho for value-adding projects.
Mantashe also pointed out South Africa’s position as the foremost global producer of platinum group metals, holding 70% of the world’s reserves. He called on investors to explore potential opportunities in the resource-rich Limpopo and North West provinces, given that coal currently meets around 70-72% of South Africa’s primary energy needs, which is projected to persist in the next decade.
The South African aluminium industry is crucial for the economy, directly employing approximately 11,600 individuals in stable expert roles, with a broader employment effect reaching 28,900 and supporting an estimated 55,700 dependents. Hillside Aluminium in Richards Bay, the largest smelter in the Southern Hemisphere, contributes extensively to foreign exchange earnings while supplying liquid metal to local manufacturers.
Predominantly reliant on coal-based thermal power, Hillside Aluminium is seeking greener energy alternatives to reduce its carbon footprint. The parent company, South32, is pursuing sustainable energy solutions to enhance the smelter’s environmental responsibility. Stay informed on global aluminium production trends and market demands.
Lastly, key players in heavy equipment and material handling systems offer advanced solutions and manufacturing services that support the aluminium industry’s expansion, contributing to overall economic growth.
This article discusses South Africa’s designation of coal as a critical mineral, emphasizing its importance to the economy and future investments. The insights shared by Minister Gwede Mantashe reveal the necessity for regional cooperation among African nations to enhance mineral value rather than relying solely on export. The South African aluminium industry’s significance is underlined, showcasing its employment impact and economic contribution, especially in light of the coal dependency for energy production.
In summary, South Africa’s recognition of coal as a critical mineral reflects its fundamental role in the nation’s economy and energy sector. Regional cooperation among African countries is vital to maximizing mineral resources effectively. Additionally, the aluminium industry remains an essential part of the economy, yet its reliance on coal points to the urgent need for sustainable energy strategies moving forward.
Original Source: www.alcircle.com
