Backward linkage development in the South African PGM industry: A case study |
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Authors: | Marian Lydall |
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Affiliation: | aMineral Economics & Strategy Unit (MESU), Mintek, Private Bag X3015, Randburg 2125, South Africa |
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Abstract: | Backward linkages refer to the various inter-firm relationships connecting an industry with its supply chain. Demand–supply interactions between producer firms and suppliers of original equipment, strategic inputs, components and specialised services have played an important role in the evolution of the South African mining sector, contributing indirectly to employment creation, new business growth and expansion, improved efficiency of mining operations, and new knowledge generation. This paper presents a case study of backward linkage development in the South African platinum group metals (PGM) industry and draws on the findings from a quantitative and qualitative analysis of the sector undertaken in 2007. A profile of the supply chain is provided and an assessment made of the strength and sustainability of existing linkages. |
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Keywords: | Backward linkages Supply chain South African mining industry PGMs |
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