Impact of minerals downscaling
The twin challenge for the Free State will be to identify and promote those mineral development opportunities that could be realisable in
medium-term and develop the non-mining economy, particularly in areas most heavily impacted by mine downscaling.
Opportunities
Opportunities for minerals-based industrial development should be investigated as a matter of priority, despite there currently being no significant investor interest in the development of major new mining ventures in candidate strategic minerals identified as possible sources of minerals-based economic growth.
This may be due to the depressed state of mineral commodity prices,
it will also be necessary to understand the constraints to mine development and develop strategies
remove impediments to investment where that is possible.”
Makweya stressed that any strategy must integrate provincially-led minerals development initiatives, with priority number one being promoting the development of the non-mining economy and closing the loop from mining to non-mining industrial development.
“This is imperative if further gold mining downscaling is to be offset, even partially. There are priority sectors that will be the subject of special industrial development support measures, including agroprocessing and biofuels, ‘green’ industries, plastics, pharmaceuticals, chemicals and cosmetics and metal fabrication, capital goods and rail transport.
“For Matjhabeng, for example, these sectors have guided the development of a portfolio of short-term economic investment projects that will be catalytic in kick-starting the creation of non-mining substitution economic activities, maximising the use of existing mine infrastructure and those supporting infrastructure systems such as roads, rail, power and water, supporting the retention and expansion of existing local industrial capacity.
“The portfolio of priority nonmining investment projects includes a waste oil recycling plant, prefabricated panel manufacturing, waste tyre recycling, latex condom manufacturing, an indoor high-value fish farm with Asian seabass, medical products manufacture, a carbon fertiliser plant, a tissue culturing facility, a methane gas-to-power plant, sunflower seed, oil and byproduct processing and [manufacturing] injection-moulded plastic pharmaceutical and personal hygiene products.
“The regeneration of places impacted by mine downscaling must be geared towards fundamentally reshaping and restructuring the economic base of Matjhabeng and the province so as to provide the impetus for a sustainable non-mining economy beyond the life of gold mining, thereby closing the loop from gold mining to a diversified non-mining industrial economy,” said Makweya.