Resumen de South Africa targets fluorspar's downstream market to combat slump
Domestically, South Africa's uncertain regulatory framework, limited infrastructure, high labour, energy and freight costs, have all put pressure on the margins of the country's fluorspar miners, at a time when prices for the mineral are at their lowest point since 2010. Many are struggling to compete in international markets, particularly given the emergence of low cost suppliers, principally from China, which are offering acidspar (97% CaF[subscript]2 ) material at close to $200/tonne, compared to more than $250/tonne on an FOB Durban basis.
Out of the country's three fluorspar mines - Vergenoeg, owned by Spain's Grupo Minersa; Rooiberg Stone, formerly the Buffalo fluorspar mine, but which now produces aggregates for roads; and Witkop, owned by Vanoil Energy Ltd, another Canadian group - only Vergenoeg has been able to sustain production since 2012.
While sluggish growth in the fluorspar industry forced the closure of Solvay SA's Okorusu mine in Namibia and the suspension of processing operations at Kenya Fluorspar Co.'s Keroio Valley plant in Kenya last year, South Africa is likely to be the only acidspar producer in Africa for the foreseeable future.
