The role of the domestic market in promoting the beneficiation of raw materials in South Africa

A mineral economic analysis of South Africa's mineral-beneficiation industry, comprising both economic theory and case studies, suggests that the domestic market has proved to be a more effective vehicle for promoting the establishment of advanced beneficiation projects than the availability of domestic raw materials. Although the domestic market plays an important role in the promotion of beneficiation by providing a secure outlet for sales, its most vital role is in the development of technological and marketing know-how that may give South African beneficiated products the competitive advantage required to penetrate export markets. The real wealth of a country lies primarily in the skills of its people rather than in its natural resources, and the domestic market plays a pivotal role in the development of these skills.