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Promoting mineral value addition

Victor Kitange (Economic Adviser)

Economic and Legal Section

Special Advisory Services DivisionCommonwealth Secretariat

1

KAMPALA, JUNE 2012

REGIONAL CAPACITY BUILDING WORKSHOP

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Outline

Issue and objective

Mineral Value Chain

Understanding mineral resource potential

Understanding mineral utilisation potential

Identifying and promoting value addition

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Issue and Objective

Lack of comprehensive information on the regions

mineral resources potential and its utilisation

Assess the regions mineral resource potential to

promote value addition and economic linkages

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4

Mineral Value Chain

Explorationand

Evaluation

Productionof mineral

ore

Processingof semi and

finishedproducts

Marketing

andDistribution,

includingservices

Value additionValue creation

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Establish mineral resource potential

IDENTIFIED RESOURCESUNDISCOVERED

RESOURCES

Measured Indicated Inferred

Economic and

Legal

Proved

Mineral

Reserves

Probable

Mineral

Reserves

Inferred

Mineral

ResourceMarginally

economic Measured and Indicated

Mineral ResourceSub-economic

Geological information increases

*Adopted from BGS, Economic

Importance of Minerals to the UK

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Mineral utilisation

Grouping minerals according to mineral types and

application

Identify relevant mineral utilisation markets

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Classifying minerals by types and applications

Coal, Oil,

Gas,

Uranium

Iron, Steel

Aluminum,

copper, Zinc,

Gold, Silver,

Platinum.

etc.

Salt, gravel,

aggregate,

Clay,

Gypsum,

Stone,

Slates, etc.

Salt,

Potash,

Kaolin,

Silica

Sand,

Carbonate

s,

Fluorspar,

Barites,

etc.

Tanzanite,

Ruby,

Sapphire,

Rhodolite,

Tourmaline

s Amethyst,

Emerald,

etc.

Construction

Minerals

Industrial

Minerals

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Coal, Oil,

Gas,

Uranium

Iron, Steel

Aluminum,

copper, Zinc,

Gold, Silver,

Platinum.

etc.

Salt,

gravel,

aggregate,

Clay,

Gypsum,

Stone,

Slates, etc.

Salt,Potash,

Kaolin,

Silica

Sand,

Carbonate

s,

Fluorspar,Barites,

etc.

Tanzanite,

Ruby,

Sapphire,

Rhodolite,

Tourmaline

s

Amethyst,

Emerald,etc.

Power

generation,

Process fuel,

Plastics, etc.

Manufacturing,

construction,

Steel making,

electrical,

electronics, etc.

Bricks, Tiles,

plaster

boards,

pipes,concrete

products,

etc.

Chemicals,

ceramics,

fertilisers,

foundry,castings,

Fillers,

Water

treatment,

oil-well

drilling, etc.

Jewellery,

Lapidary

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Mineral utilisation and processing potential

Drawing from assessment of mineral resource potential and mineral

application properties, etc.

Assessment of mineral utilisation and processing potential along the value

chain from production to processing of semi-finished, and finished products

within EAC

Selecting 2-3 minerals for targeted investment promotion:

o

Backward and forward linkageso Comparative and competitive advantage

o Economies of scale and scope

o Capital, energy, and infrastructure requirement

o Growth potential and market barriers

o technologies

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Thank you