Govt reviewing trade partnerships to prevent export of minerals without meaningful benefits to SA

The question of reindustrialisation and the role of beneficiation particularly of South Africa's critical minerals, has been under discussion for some time.

Speaking at the Mining Indaba in Cape Town, Parks Tau emphasized the importance now of investments that support industrialisation in the country.

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The Minister of Trade, Industry and Competition made these remarks during a high-level panel discussion on critical minerals. 

“The focus is now on ensuring that investments from other countries are linked to industrialisation in South Africa. The objective is to review and negotiate trade partnerships to prevent minerals from being exported without delivering meaningful benefits to the country."

Tau also highlighted the importance of critical minerals in advancing e-mobility and digitisation. He further outlined the policy strategy of his department (the dtic) linked to the transition of the automotive sector, which emphasizes SA’s broader objectives of decarbonisation, digitisation and diversification.

Stephen Grootes interviews Tebogo Makube, Acting Deputy Director General of Sectors at the dtic.

Makube notes that beneficiation is at the centre of government's critical minerals strategy, tabled through the Department of Mineral and Petroleum Resources.

The dtic has now been given the responsibility of making sure that there is localisation and beneficiation of those minerals in the country.

Economic instruments that can be used to limit the exportation of minerals in their raw form include export taxes, Makube explains.

"We are reviewing the best way to implement those instruments because... we have to make sure that we remain competitive in exporting those minerals. So, when you then consider the export tax, you'll have to look at the price in relation to your competitors."

They are working with other government departments as well as the industry to find ways to ensure this competitiveness, Makube says.

"We have received comments from the industry and other stakeholders on whether to do it or not. We are assessing those comments and, at the right time, the Department will make pronouncements on which of those instruments are appropriate or not."

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