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ResponsibleSteel covers the entire steel supply chain, from raw material supply through steel processing to use, reuse and recycling.

It provides a forum to build trust and achieve consensus on the responsible sourcing and production of steel; contributes to the development of standards and related tools; and drives positive change through the recognition and use of responsible steel.

“Anglo American has a longstanding commitment as a leader in responsible mining. Society is increasingly and rightly demanding products made from metals and minerals that are responsibly and sustainably sourced – and that includes steel, a material that forms the very backbone of our world’s modern infrastructure.

“As part of our commitment to assure all our sites against a recognised responsible mining standard by 2025, we look forward to working closely with our steel industry customers to support their responsible sourcing and production needs. We share the vision of ResponsibleSteel that steel’s contribution to a sustainable society is maximised, and that the responsible sourcing, production, use and recycling of steel is enhanced,” comments Anglo Bulk Commodities CEO Seamus French.

“Anglo American’s membership comes at a particularly important time for ResponsibleSteel. With the recent approval of the ResponsibleSteel Standard for steelmaking and processing sites, our focus is now squarely on the responsible sourcing of mined materials.

“ResponsibleSteel’s approach is based on the recognition of pre-existing mine certification programmes. We look forward to working with Anglo American to create effective mechanisms to link ResponsibleSteel with these programmes to drive value for miners, steelmakers and their many stakeholders, to the benefit of society,” adds ResponsibleSteel executive director Matthew Wenban-Smith. 

The Mining and Metals Blockchain Initiative was founded by diversified miners Antofagasta Minerals, Eurasian Resources Group (ERG) and Glencore; Tracr, on behalf of Anglo American and its subsidiary De Beers; base metals miner Minsure; and steel companies Klöckner & Co and Tata Steel.

The initiative will explore the building of a blockchain platform to address transparency, the tracking and tracing of materials and the reporting of carbon emissions.

The Mining and Metals Blockchain Initiative will pool resources and costs, increase speed-to-market and improve industry-wide trust that cannot be achieved by acting individually.

“It aims to be a neutral enabler for the industry, addressing the lack of standardisation and improving efficiency. The intention is to send out a signal of inclusivity and collaboration across the industry.

“The group will look to develop joint proof-of-concepts for an inclusive blockchain platform. Over time, this could help the industry collectively increase transparency, efficiency or improve reporting of carbon emissions,” the WEF said in a release on Friday.

The forum further stated that blockchain projects that support responsible sourcing had mainly been bilateral.

The result has been a fractured system that leaves behind parts of the ecosystem and lacks interoperability. This new initiative is owned and driven by the industry, for the industry.

Members will examine issues related to governance, develop case studies and establish a working group.

Key areas of collaboration and development could include carbon emissions tracking and supply chain transparency. The companies will work together to use blockchain technology to increase trust between upstream and downstream partners, to address the lack of industry standardisation and to track provenance, chain of custody and production methods.

“The industry needs to respond to the increasing demands of minerals and materials while responding to increasing demands by consumers, shareholders and regulators for a higher degree of sustainability and traceability of the products,” said WEF mining and metals industry head Jörgen Sandström.

Antofagasta CEO Ivan Arriagada commented that the collaboration and pilot would provide practical examples of how blockchain could increase efficiency in supply chain management and improve interoperability, while addressing certain supply chain risks such as transparency and consumer trust.

ERG CEO Benedikt Sobotka noted that the initiative responded to a cross-industry desire to collaborate on blockchain technology to enhance responsible sourcing, and that the goal was to develop solutions that could be adopted across the industry and value chain.

Tata Steel CEO TV Narendran said as a responsible player in the mining and metals industry, “we are committed to build a sustainable future. We believe enhanced collaboration across the industry to facilitate collective action, leverage technology to reduce emissions & conserve the environment is imperative and critical in our journey towards attaining a carbon-neutral future”.

Representing Anglo and De Beers, Tracr CEO Jim Duffy stated that the company looked forward to collaborating with the consortium as Tracr rolled out its connected supply chain platform for the diamond industry.

“Lessons learned creating Tracr are highly relevant to the sustainable sourcing of all mining and metals,” he noted.

WEF blockchain project lead Nadia Hewett pointed out that the distributed nature of blockchain technology made it the ultimate networked technology.

“Forward-thinking organisations are starting to understand the disruptive potential of blockchain to solve pain points, but are now also recognising that industry-wide collaboration around blockchain is necessary,” she said. 

Free at last

The objective of the Africa Free Trade Agreement is “a single African market for goods and service” with an objective of 52% intra-Africa trade by 2023. South Africa signed the agreement in July 2018 and it is currently being processed by our government. The AU Assembly of Heads of States and Governments will meet in January 2019 and want to enforce the agreement at this meeting which bodes well for South African stainless steel companies engaged in cross-border trade which often cite supply chain constraints as one of the biggest obstacles to the growth of their cross-continental trade.

Project hotspots

The projected GDP growth for Sub-Saharan Africa is 7.4% up until 2023, with Kenya, Ethiopia and Tanzania amongst the top six countries expecting to achieve solid growth levels. Against this backdrop, the key drivers in Africa are agriculture and mining and will continue to be so. However, the new key drivers are urbanisation, industrialisation and ICT/telecoms and power generation. These are all key hotspots for South Africa’s stainless sector because urbanisation and power generation are both sectors which involve the use of stainless steel.

Kenya’s Big 4

Total exports from South Africa to Kenya stood at $17.3bn in 2017, with imports from Kenya to South Africa standing at $5.9bn. The Kenyan government has ‘the Big 4’ focus areas which are affordable housing, food security, increase manufacturing and universal quality healthcare. In all of these there is a need for stainless steel, but local producers will have to tread carefully as there is a perception amongst Kenyans that the balance of trade between the two countries is in favour of South Africa.

Tackling Tanzania

South Africa is one of the top ten investors in Tanzania. Areas of importance to Tanzania are ‘fast industrialisation’, the development of downstream value add industries for the agriculture and food and beverage industries and the elimination of dumping into the clothing sector (mostly by the Chinese). The good news is that agro-processing and value add industries always require stainless steel processing equipment and fabrication and there are currently no stainless steel fabricators in the country which leaves a substantial gap for local entrants to partner with their Tanzanian counterparts.

Gearing up for gas

With the announcement by the Mozambican government of a $2bn guarantee that Mozambique will issue to enter the gas business, all investment requirements for the north of Mozambique to begin producing liquefied natural gas (LNG) have been satisfied.

The industrial processing zone will be an onshore facility and is already being prepared on the Afungi peninsula in Carbo Delgado Province by a consortium led by Anadarko.

The other large project in the Ruvuma Basin is being spearheaded by Sasol and there is the potential for huge growth and investment in this region ranging from LNG storage tanks to large-scale commercial property and hotels.

Go west

A joint memorandum of understanding on trade and investment was signed in 2011 between the governments of South Africa and Ghana, and a joint Trade and Investment Committee was formed to resolve barriers to trade between the two countries.

South Africa has invested $556m in agro-processing, mining and financial services. This includes the IDC/ECIC investments in infrastructure, airports and electricity. Transnet has also also just assessed the Ghana Railway Company (2018) with a view to upgrading it, which holds excellent potential for stainless steel supply.

Looking ahead, with economic growth in Sub-Saharan Africa predicted to be 3.5% in 2019 according to the World Bank, the outlook for the region continues to firm in the aftermath of the commodity price slump. However, to achieve profitable growth and ensure ultimate success, South African stainless steel players will need to ensure their products and services provide value for money, ensure their route-to-market operates in an optimal way, and, most importantly, remain agile to respond to market changes.