We discuss government plans to encourage beneficiation of minerals. We argue that unwillingness to beneficiate is a market outcome rather than a market failure. We explain that is may well become a government failure as the price of the essential input for industry- electricity- is priced well above its true full cost. We argue against setting the price of electricity in South Africa to protect the balance sheet of Eskom rather than the promote the competitiveness of the economy. Click for full report
Electricity prices