JOHANNESBURG (miningweekly.com) – Overall, South Africa's mining sector is at considerable risk from the secondary impacts of climate change. However, a number of mining-related industries also stand to benefit from a heightened national and global climate change response, a new study has revealed.

The possible beneficiaries highlighted in the recently published report, entitled ‘Climate Change: Risks and Opportunities for the South African Economy', include: platinum, uranium and copper.

"For the platinum industry, an area of significant opportunity lies in the use of platinum as an input into the manufacture of fuel cells," the authors, Camco and Trade and Industrial Policy Strategies, note.

The national uranium industry could also capitalise on a sustained drive towards nuclear energy, while copper is an input into the development of energy-efficient equipment, ranging from electrical motors to power cables and transformers.

"For diversified mining companies active in areas such as uranium, copper and platinum, as well as more risk-prone areas such as coal, opportunities therefore also exist to balance commercial risk with opportunity, and to shift production emphasis with changes in global demand," the study says.

On balance, though, the sector, which produces some 59 commodities from 1 115 mines, employs about 2,7% of South Africa's economically active population and contributes nearly 7% of gross domestic product, is at "considerable risk".

The most pertinent of these risks relates to regulation, including the potential introduction of carbon taxation and the manner in which this will impact on energy-intensive mining companies.

"It is important that parity on climate change matters is maintained in relation to key competitor countries such as Canada, the US, Russia and Australia at a minimum," the authors assert.

They add that the widespread adoption of energy efficiency will be essential for the continued competitiveness of companies that face rising electricity prices from coal-based power generation, as well as expectations that oil prices will rise.

Mining companies dominate the Energy Intensive User Group, whose members consume more than 100 GWh of electricity yearly.

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