Mining and related companies should start considering what government’s mineral beneficiation strategy and proposed framework could mean for them, says consulting firm Deloitte executive lead of mining Ebrahim Takolia.

The beneficiation strategy sets out to leverage long-term benefits from certain identified mineral resources in South Africa as part of government’s job creation and growth strategies.

Mining companies need to consider viability studies and assessments on the oppor- tunities and investments for beneficiation.

“There have been indications that the beneficiation framework may impose bene- ficiation as a condition of mining. As this is not a mining company’s core business, mining companies need to consider the potential implications for their businesses,” he says.

Deloitte, which is currently assessing the risks and opportunities that may present themselves to mining companies, says that, in developing a beneficiation plan, mining groups need to assess how they may become involved in beneficiation and, should the miner wish to invest in beneficiation, how the plant will be structured and managed.

One suggestion is to possibly involve strategic, financial, government and skilled technological partners to run the project, with the mining company establishing an arm’s-length relationship with the beneficiation entity.

The opportunities that beneficiation can present on the sidestream and downstream, such as job creation and skills development, are numerous in that smaller businesses, for example, can feed into the supply chain of beneficiation, as any project requires support across the spectrum. Other downstream opportunities will include facility construction, transportation and logistics, besides others.

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