The Manufacture of Basic Precious and Non-Ferrous Metals Industry in South Africa 2021

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.