The Chamber of mines supports the government’s drive to promote...

The Chamber of mines supports the government’s drive to promote greater beneficiation in South Africa. It also supports the Minister’s prerogative to designate a mineral as strategic in support of the beneficiation objective, which will be done in consultation with the related mining companies, the CoM said this week.

Last week the National Council of Provinces (NCOP) approved the Minerals and Petroleum Resources Development Act (MPRDA) Amendment Bill, clearing it to be signed into law by President Jacob Zuma in the very near future (likely before the elections take place in May).

One intersting clause of the approved bill reads: "Every producer of designated minerals must offer to local beneficiators a prescribed percentage of its production of minerals or mineral products in prescribed quantities, qualities and timelines at the mine gate price or agreed price."

Coal is obviously one of the most strategic materials. Not only because a coal shortage is looming for state owned power utility Eskom but also because load shedding is already a real threat to South Africas economy and society today.

Once the bill becomes law I have no doubt that coal mining companies will seek to generate the prescribed volumes. One opportunity to generate additional volume is the production of briquettes from coal fines that are currently being sent to discard dumps. A big chance for River Energy.