Transcription of BRIEFING ON UPSTREAM AND DOWNSTREAM MINING …
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BRIEFING ON UPSTREAM AND DOWNSTREAM MINING …
BRIEFING ON UPSTREAM AND DOWNSTREAM MINING LINKAGESP ortfolio Committee on Trade and Industry20 August PROBLEM ISSUES AND SUMMARY POLICY INPUTSRESOURCE DRIVEN INDUSTRIALISATION WHAT DOES IT MEAN?Problem statement: how to leverage the comparative advantage from a national resource endowment to build a dynamic industrial economy which secures sustainable development, radical economic transformation and job creation. There are, inter-alia, five key areas which can be considered in the policy space: Providing cost plus output from the mines to local mineral processing / beneficiation enterprises. Ensuring that processing enterprises ( steel, petro-chemicals) pass down the benefits of any cost plus inputs to DOWNSTREAM national industry. Requirements (usually through licensing) that the MINING industry directly invests (or a tax is imposed) to ensure adequate investment in capital goods and related component manufacturing enterprises.
BACKGROUND ISSUES • SA faces challenge of diversifying away from resource extraction and reliance on commodity exports towards a manufacturing, value adding and more labour intensive growth. Manufacturing sector has highest economic and employment
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