A competitive analysis of the South African mining industry

Abstract

The aim of this research was to analyse the competitiveness of the South African mining industry in order to assess the viability of mineral beneficiation. This study also aimed to establish what was required in the mining industry in order to provide an environment which enables competitiveness going forward. The Diamond Model of Industry Competitiveness developed by Michael Porter was utilised in analysing the mining industry's competitiveness. In the process of the analysis, the model was interrogated for validity in a developing and dynamic country via inference of the analysis of the South African mining industry. Based on the results of this research, a new model, built on the findings outlined by the Diamond Model, was developed. The research found that the mining industry is not competitive at present and will not be able to provide an environment conducive to beneficiation in South Africa. Investigation further revealed that, as a result of the importance placed on the elements of the model, the Diamond Model is viable in a developing and dynamic environment. The results further provided sufficient feedback regarding how to utilise the elements from the Diamond Model in redesigning the competitive analysis in a forward-looking manner.