Who Owns Whom

Manufacture of Basic Precious and Non-Ferrous Metals in South Africa

Alex Conradie | South Africa | 16 November 2021

Price

R 8 400.00(ZAR) estimated $ 547.08 (USD)*

Enquire about this report

Manufacture of Basic Precious and Non-ferrous Metals in South Africa

Local manufacturers of basic precious and non-ferrous metals are benefiting from rising prices for most metals in response to the recovery of the world economy, and South African exports of basic precious and non-ferrous metals have increased significantly as a result. Factors such as the impact of the pandemic, high input costs and the inconsistent supply of electricity continue to have a significant impact on the performance of the sector.

High Electricity Costs and Inconsistent Supply

Energy-intensive production processes make producers vulnerable to high electricity costs and load-shedding. Smelters use large amounts of electricity in the production of metals, and a consistent supply of electricity is needed to prevent interruptions to production. Power cuts and load curtailments are putting pressure on profits and global cost competitiveness, due to lower production volumes and higher costs. Local mining companies are planning to construct electricity generation units to supply 2,000MW at a cost of up to R40bn.

Opportunities

The sector is enjoying high metals prices, largely due to the recovery of world economy. There is increasing demand for several non-ferrous metals linked to global decarbonisation and growing demand for platinum group metals. The imposition of Import tariffs on aluminium rolled products and an export duty on scrap metals may be positive for the industry.

Report Coverage

This report focuses on the manufacture of basic precious and non-ferrous metals in South Africa, and includes information on the state and size of the sector, production and trade of each major metal, corporate actions and developments and factors influencing them. There are profiles of 30 companies including vertically-integrated platinum group metals producers Anglo American Platinum, Impala Platinum Holdings and Sibanye-Stillwater, copper producer Palabora Copper, gold producers including DRD Gold and Gold Fields and aluminium players such as Hillside Aluminium and Hulamin.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 10
2.3. Size of the Industry 12
2.4. Key Success Factors and Pain Points 19
3. LOCAL 19
3.1. Key Trends 19
3.2. Notable Players 23
3.3. Trade 26
3.4. Corporate Actions 38
3.5. Regulations 38
3.6. Enterprise Development and Social Economic Development 40
4. AFRICA 41
5. INTERNATIONAL 58
6. INFLUENCING FACTORS 89
6.1. COVID-19 89
6.2. Economic Environment 90
6.3. Input Costs 91
6.4. Inconsistent Supply and Increasing Cost of Electricity 94
6.5. Technology, Research and Development (R&D) and Innovation 94
6.6. Government Support 95
6.7. Environmental Issues 95
6.8. Labour 96
7. COMPETITIVE ENVIRONMENT 98
7.1. Competition 98
7.2. Ownership Structure of the Industry 100
7.3. Barriers to Entry 101
8. SWOT ANALYSIS 101
9. OUTLOOK 102
10. INDUSTRY ASSOCIATIONS 104
11. REFERENCES 104
11.1. Publications 104
11.2. Websites 105
APPENDICES 107
Appendix 1 - Summary of Notable Players 107
COMPANY PROFILES 113
Afrisol (Pty) Ltd 113
Anglo American Platinum Ltd 115
Cape Precious Metals (Pty) Ltd 119
Copalcor (Pty) Ltd 121
DRDGold Ltd 124
EVRAZ Highveld Steel and Vanadium Ltd 129
Finegold Laboratory Services CC 131
Gauteng Refinery (Pty) Ltd 133
Gold Fields Ltd 135
Harmony Gold Mining Company Ltd 140
Heraeus South Africa (Pty) Ltd 147
Hillside Aluminium (Pty) Ltd 149
Hulamin Ltd 151
Impala Platinum Holdings Ltd 155
Insimbi Industrial Holdings Ltd 160
Manganese Metal Company (Pty) Ltd 165
Metal Concentrators SA (Pty) Ltd 167
NiMag (Pty) Ltd 169
Non-Ferrous Metal Works (S A) (Pty) Ltd 171
Northam Platinum Holdings Ltd 174
Palabora Copper (Pty) Ltd 177
Pan African Resources PLC 181
Rand Refinery (Pty) Ltd 185
SA Metal Group (Pty) Ltd 188
SA Precious Metals (Pty) Ltd 191
Sibanye Stillwater Ltd 193
SMT Afritech (Pty) Ltd 199
Village Main Reef (Pty) Ltd 201
Wispeco (Pty) Ltd 204
Zimco Group (Pty) Ltd 206