South Africa's Mineral Might

Among the most important aspects of the world trade in Minerals are the small group of corporations, most of them headquartered in the U.S., which carry forward their operations, in the nations that once comprised the old British dominion, i.e., Canada, Australia and South Africa. These nations are rich in a variety of minerals, and despite efforts to industrialize their economies they remain heavily dependent on mining. And in this regard they are viewed as safe, sheltered by the West, treasure troves into which the western companies can dip from time to time.

South Africa is an important case. Both South Africa and the Soviet Union are rich in many of the same precious minerals, and since the Cold War, nations of the western world have deliberately cultivated South Africa both as a mining colony and a processing center to be used against the Russians in times of trouble. Even in instances where South Africa does .not not possess large quantities of important minerals, western companies haul commodities from other parts of the world to that nation for processing. The reasons are simple enough: South Africa has plentiful supplies of cheap labor, ample provisions of the electricity often required in metals processing, and until recently, a seemingly secure political environment. Indeed, the whole of southern Africa has been viewed from this perspective, although in recent years the wars of liberation have narrowed the perspective to South Africa and its colonial appendage Namibia.

The Soviet Union and South Africa are the world's largest producers of manganese, which is essential for the manufacture of steel. The great bulk of South African manganese is exported to the West, and were these supplies shut off, there would be serious repercussions in the U.S. steel industry.

The manufacture of stainless steel, vital to the armaments and aircraft industries, requires chrome. Once again, South Africa and the Soviet Union are the major producers. If South Africa were to shut off the chrome supply, western steel firms-including the American companies-would be at the mercy of the Soviets (who probably couldn't meet the world demand even if they wanted to), and such a step would be a great inconvenience to corporations such as Union Carbide which manufacture ferrochrome in South Africa.

South Africa is the third largest producer of uranium in the world. Anglo-American Corporation of South Africa, an important uranium producer in that country, is particularly influential given its additional investments in the uranium business in Canada, another major uranium-producing nation.

Along with the Soviet Union, South Africa is the major producer and a major processor of the platinum group of metals. Platinum is in keen demand in the U.S. because the metal is employed in the manufacture of catalytic converters in auto exhaust systems. The platinum group metals also are used as catalysts in oil refining and are widely employed by., the Japanese in the jewelry business. At any rate, without stretching the point, it's fair to say that American efforts at curbing air pollution caused by auto exhaust are intimately connected to South Africa's mining industry. .

South Africa is by far the world's largest producer of gold and diamonds. The diamond business is controlled by a straightforward monopoly. DeBeers, an affiliate of the Anglo-American empire, controls supply and price. With gold the paradoxical link with the Soviet Union once again becomes evident. A bad harvest in the Ukraine may cause the Soviet Union to sell its gold and platinum to earn foreign exchange with which to buy grain abroad. As a result, the South African metal merchants may see the prices of their own minerals decline. A good harvest in the Soviet Union can only help to buoy the prices of their precious metals. Thus it is that the Soviet Union has potential influence over the much smaller South African economy since it shares control, and hence price behavior, in the crucial commodities mentioned above.

Instead of seeking to diversify its supply of mineral commodities in world markets, the continuing influence of the Cold War has resulted in deepening reliance by American industry on the South African mining economy. All under the theory that if we don't embrace South Africa then we are at the mercy of the Russians.

Setting aside the whole question of the despicable racist regime in South Africa, and viewing corporate policies from the point of view of narrow self-interest, the intertwining of American corporations with the South African mining economy may well be short-sighted and even counterproductive. Black majority governments made hostile to the U.S. by its long' history of collaboration with white dominated societies may one day deny the U.S. access to Southern African mineral supplies.