The aim of this study is essentially to explore the African Resource Curse (the “ARC”), the concept of beneficiation, and whether beneficiation could address the risks associated with the ARC for purposes of South Africa and Mozambique’s emergent shale gas sectors.
In order to explore this link between beneficiation and the ARC in the aforementioned emergent sectors, this study will seek to primarily answer whether South Africa and Mozambique can “immunise” themselves from the ARC through beneficiation and more specifically bilateral beneficiation with one another.
In order to answer this primary question, the following facets will be explored, namely: the characteristics of the ARC and the socio-economic effects thereof; the characteristics and benefits of beneficiation, value addition to the emergent shale gas value chain; the African Mining Vision; the methodology of implementation of beneficiation; and lastly a contextualisation of beneficiation in South Africa and Mozambique in consideration of their respective regulatory frameworks and current mineral clusters.
The emergence of shale gas sectors in Africa presents an opportunity to exploit resources in a manner that is fruitful in not only the hands of industry stakeholders, but also in the hands of the state that possesses the resources. Bearing in mind that these sectors are emergent but imminent, South Africa and Mozambique are presently afforded time to arrange their affairs and policies in order to extract as much benefit out of their resources as possible for their state, while still allowing for an investment friendly sector. This study therefore aims to explore a solution before a problem has the opportunity to materialise.
In order to address the risks of the ARC in the emergent shale gas sectors of South Africa and Mozambique, a value chain can be created and supported that is not halted by the borders between the states. Each state has something to offer the other in respect of the linkages in the shale gas sector and midstream and downstream activities. Working together with the support of good and investment incentive governance enforced collectively and domestically, can make value added beneficiation and bilateral beneficiation a reality.
Mini Dissertation (LLM)--University of Pretoria, 2019.