JOHANNESBURG (miningweekly.com) – South Africa’s mining industry would receive a large portion, some R22.2-billion, of the R102-billion of funding being made available by the Industrial Development Corporation (IDC) over the next five years.

Despite funding for mining being considerably lower for the financial year ended March 31, compared with previous years, CEO Geoffrey Qhena said on Thursday that extracting value from, and supporting downstream beneficiation would be a stronger focus for the State-owned development finance institution in future.

Through beneficiation, value can be added to raw materials locally in the form of downstream products that can build secondary and tertiary sectors.

Commenting on the raging nationalisation debate, Qhena said businesses should engage in the debate to identify advantages and disadvantages.

But, he called for businesses to find mechanisms that would benefit people, create job opportunities and grow the economy. Downstream beneficiation played a key role in this process.

“Mechanisms need to demonstrate that lives will change for the better. If these mechanisms are employed and are successful into the long term, the nationalisation debate will over time not be relevant. But, it is important that debate and discussion takes place, as the voice on the issue is being heard only from one quarter,” Qhena told Mining Weekly Online.

Meanwhile, improved profitability from operations, performance of equity accounted investments, containment of operating expenses and lower impairments contributed to the company’s strong financial position. The IDC approved R8.4-billion in funding for South Africa-based developments in the 2011 financial year.

It posted a profit of R2.7-billion, 22% higher than 2010, revenue of R8.9-billion, and other comprehensive income of R10.7-billion owing to the strong performance in the JSE.

A prospective project for the mining industry included a gypsum Rapidwall project, which proposes the development of a plant to manufacture readymade building panels from waste material generated by Foskor, a South African phosphate rock miner and fertiliser producer.

The IDC said the environmental impact assessment to erect the Rapidwall factory at a site in Alton, in Richards Bay, has been approved.

Approval is being sought by the National Nuclear Regulator of South Africa for the use of gypsum in the Rapidwall panels, and work is progressing on agreements for the supply of gypsum, the off-take panels and technology licensing to enable the construction to start.

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