Browsing by Author "Van Zyl, Hermanus Jacobus"

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    Identifying barriers to growth in mineral value chains: an analytical framework approach
    (Stellenbosch : Stellenbosch University, 2017-03) Van Zyl, Hermanus Jacobus; Bam, Wouter; Steenkamp, Joalet Dalene; Schutte, Cornelius Stephanus Lodewyk ; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
    ENGLISH ABSTRACT: South Africa’s comparative advantage in mineral processing brought by its immense wealth in mineral resources, has in recent years failed to fully translate to a national competitive advantage due to particular constraints. This hinders the local industry from capturing a more prominent share of the further-processed mineral market and transitioning the country to a stronger economic position through enabling South Africa to derive greater value from its mineral resources. The mineral processing industry often finds itself going through various changes, with new barriers to growth constantly presenting themselves. Adapting to the ever-changing mineral production environment is a common struggle for many stakeholders involved in this complex field. Furthermore, each production phase has a very specific set of barriers and opportunities which are inherent to their environment and context within the chain. The key barriers to economic growth and business development which restrain participants within the value chain, has not yet been sufficiently identified nor has their extent and impact on the industry properly been established. It is discovered through literature, that no consistent system or guidelines exist which enables researchers or policymakers to systematically identify the barriers that are hindering the various stages of the value chain’s expansion and growth. It is thus unclear how prominent certain problems are in specific mineral industries. A comprehensive framework is thus required that can be applied to any mineral value chain (MVC) to identify the custom set of barriers faced in the different sectors comprising the chain and provide a better understanding of these barriers. The aim of this thesis was thus to develop such a framework which would allow its user to identify and analyse current barriers to growth in each of the stages of MVCs. The identified barriers are sector specific and thus cater directly to the role players actively involved in the chain. This allows for specialized barrier analysis for each firm in an MVC that is distinct and relates specifically to them. Three primary framework design requirements were identified to achieve this aim, namely: identify and describe the MVC environment, identify barriers in the MVC, and prioritize the barriers. Six different approaches for describing and investigating value chains were reviewed in order to identify the current research gap and limitations of similar frameworks. These issues were addressed through the inclusion of 20 tools to fulfil each of the framework requirements. The tools were partitioned into six framework phases, with each phase focusing on a specific element of analysis. In order to convey the utility of the framework, it was applied to a case study, namely the South African manganese industry. Four different production sectors were identified in the chain within the scope of the study, namely the mining, alloy manufacturing, EMD and EMM production sectors. Through an iterative process of interviews and surveys, 31 barriers to growth were identified across these four sectors, with Oversaturated market being the most significant impediment, followed closely by the rising costs of electricity, labour and transport. Through expert analysis based on the results generated from the case study, it was concluded that the framework successfully facilitates the identification of barriers within a MVC. The validators concurred that the proposed framework addresses a specific need within the industry and is a useful tool for its stakeholders. The holistic and systematic approach to a multi-faceted and complex subject was identified as the framework’s primary strength. All the shortcomings that were identified, were reviewed and addressed by reworking the framework where applicable.