South+Africa+Strategic+Minerals

= Recent Chinese investment of USD 650 Million in Bakubung Platinum Mine in South Africa Likely to Continue to Influence Future Infrastructure Projects =

Executive Summary:
The China Development Bank (CDB) has approved a USD 650 million loan to Wesizwe Platinum to develop the Bakubung platinum mine in South Africa North West province. The project is expected to be commissioned in 2018 and be fully operational by 2023. The mine is located in the Bushveld Igneous Complex (BIC) and will comprise of an underground mine with a twin shaft system, and a process plant. South Africa holds 95 percent of Africa's coal reserves and with China being the worlds largest consumer of coal, it is also likely that there will be future investments in coal mining in the region[|.] South Africa is a mineral rich country ranging from coal, platinum, diamonds, Gold, etc. with great trading relations with China who will exploit these ties.

Discussion:
South Africa supplies about 70 percent of the worlds platinum, which comes from the mineral rich Bushveld Igneous Complex.It is home to many mining projects with the Bakubung Project being the most recent Chinese investment. Australia's Nkwe Platiunum also recently made an agreement for USD 20 million to partner up with China's Zijin Mining Group to conduct work in the Bushveld Complex.

Considering South Africa is one of the fastest growing, as well as the largest economy in Africa, Chinese investment comes in different forms compared to other African countries. Chinese companies have been establishing strategic partnerships with South African companies that are profitable and stable in order to establish a long tern supply of raw materials to China.

ASA Metals, which is a joint venture between China's Eastern Asia Metals Investment Co Ltd and Limpopo Economic Developement Enterprise of South Africa, is a mining company with its on-site smelter located 125 (77.6) kilometers south of Polokwane on the eastern rim of the BIC. This Chrome ore is then sent on to be made into stainless steal by international factories.

South Africa is the fifth largest coal exporter in the world and holds the 9th largest recoverable coal reserves in the world. About a third of South Africa's coal exports are to China from the Richards Bay Coal Terminal, which is the worlds largest export coal terminal with a capacity of 91 million tonnes or 100 million tons. The Chinese company Chery, recently agreed to a multi-billion dollar deal to build a shipping repair dock at Richards Bay port(See South Africa Infrastructure).

Analytic Confidence:
Analytic confidence for this assessment is high. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone, and did not use structured analytic methods. The subject is moderately complex and the deadline was easy to meet.

Analyst:
Sean Dailey sdaile35@lakers.mercyhurst.edu