Programme director,
Distinguished guests,
Ladies and gentlemen,
It is with immense gratitude and humility that I thank BHP Billiton for having afforded me the opportunity to address this auspicious event, which is a significant milestone towards Government’s drive to enhance value addition of the country’s mineral resources for the benefit of all.
The transition to democracy in South Africa since 1994 epitomizes the possibilities inherent in the country through constructive dialogue and sheer will. Since the dawn of democracy, the country has replaced the abhorrent Apartheid system, which denied basic economic and political rights to the majority of the country’s population, with a move towards democracy. The State embarked on a massive programme to rewrite and modernise the country’s policies and laws to integrate the previously excluded majority into the mainstream economy through socio-economic transformation.
Last year, the government adopted a National Development Plan, which provides a long term socio-economic development vision for the country. The mining value chain has an important role to contribute to the attainment of the National Development Plan (NDP) vision, through various collaborative efforts with business and other social partners.
As you would appreciate, South Africa is by far the wealthiest mineral jurisdiction in the world. In the context of this launch, manganese is one of the minerals that the country has significant proven reserves, albeit exploitation of the mineral has not been reflective of its development potential. It is precisely for this reason that the Presidential Infrastructure Coordinating Commission features the mining infrastructure requirements quite eminently. It is our considered view that this infrastructure programme will go a long way in further unlocking the mineral development prospects in the country, which will in turn benefit the manganese sector.
However, the traditional focus on mining and exporting of un-beneficiated minerals can’t continue without being addressed. Accordingly, the country’s infrastructure requirements will primarily focus on the internal and efficient movement of mineral ores to support and respond decisively to the mineral beneficiation strategy, as adopted in June 2011.
The beneficiation strategy provides a framework that seeks to translate the country’s sheer comparative advantage inherited from mineral resources endowment to a national competitive advantage. The strategy is aligned to the national industrialisation programme, which seeks to enhance the quantity and quality of exports, promote creation of decent employment and diversification of the economy, including promotion of the green economy.
Although South Africa has steadily improved its ratio of beneficiated to primary products exported since the 1970s, these ratios are still well below the potential suggested by the quality and quantity of its mineral resources endowment. The Government’s industrialisation policy calls for a paradigm shift in mineral development, strategic investment in assets to maximise long term growth beneficiation projects, enhanced value of exports, increased sources for consumption of local content, and creation of opportunities for sustainable jobs. Minerals are a vital input to an industrialisation programme, which is intended to accelerate manufacturing in South Africa for local consumption and export. In this regards, competitive access to minerals for local beneficiation is one of the key success factors for the country’s industrialisation initiative. This success should ensure that the country becomes one of the leading countries in the production of beneficiated products, such as ferroalloys.
Ladies and Gentlemen, the ferroalloys sector is an apt illustration of the fact that beneficiation is not a new concept in South Africa and also that ample scope for growth in mineral beneficiation still remains. From its humble beginnings in 1918, the South African ferroalloys industry has grown in leaps and bounds to be a significant player globally. Metalloys has also been part of this illustrious history since 1951 and is still an important feature of the country’s mineral beneficiation landscape, processing a significant portion of BHP Billiton’s manganese ore production.
Investment in the M14 project is possibly the largest investment in a manganese smelter globally at almost R1 billion and demonstrates that BHP Billiton has recognised that opportunities for mineral beneficiation are abound in South Africa. Furthermore, it demonstrates that with some innovativeness, the constraints that have been a focal point for some are not insurmountable.
The fact that with local skills, 20 percent energy efficiency was realised in the new furnace shows that there is still ample scope for growing current beneficiation productive capacity without necessarily increasing energy demand and this is a very commendable achievement. Another commendable achievement is the fact that this all is done whilst at the same time reducing the environmental footprint of the entire facility and still maintain a competitive market position in a difficult global economy.
This achievement with local skills is yet another indicator that South Africa is a country with a treasure trove of not only mineral resources but also of human capacity, which if properly harnessed can contribute towards the provision of a better life for our people. In this case, BHP has once again heeded the call of the NDP for active citizenry, by contributing to the country’s human resources thus bolstering Government’s commitment, amongst others, to train a surplus of artisans in the endeavour to set the country’s economy on a more inclusive and accelerated growth trajectory. I hope that this facility will position itself as one of key centres for training of artisans in the country.
Ladies and Gentlemen, this project is a positive proof that Government’s vision of increased mineral beneficiation is beginning to take shape and that it will happen within the context of sustainable development as the technical specifications of this furnace show. The challenge for the country is to ensure that we maximise the value we derive from our mineral resources throughout the mining value chain. In this regard, we should in partnerships explore ways of increasing local beneficiation beyond the production of ferroalloys.
In conclusion, ladies and gentlemen, I would like to quote one this country’s great statesmen, Mr Nelson Mandela: “It always seems impossible until it is done”. These inspiring words of a wise man resonate with the launch of this facility, at the time when most experts have cautioned against such interventions as beneficiations, indicating that it would be impossible to do so in South Africa. These words must strengthen our resolve in striving to achieve the vision of increased mineral beneficiation.
On behalf of the government and the people of South Africa, this major investment is welcomed in South Africa, corroborative of the confidence that a major international company has in the investment climate across the mineral value chain.
I thank you
