Abstract
M.Com. (Mineral Economics)
South Africa support is one of the world's fastest growing populations. By the year 2000 AD, South Africa's population is predicted to be 225% larger than it was in 1970. By 2000 AD the total population will have grown to over 54 million people, representing a compound growth rate of some 2,7% Per annum over the preceding 30 years.
How will this hlrgeoning population be housed? Where will the growth be? It has been predicted, from numerous sources, that the non-European urban population will soar and thereby account for the bulk of the forecast growth. 'Ibis group will grow from 6 million in 1970 to 25 million by the year 2000, a rate of 4,9% Per annum, Whereas, the urban European population growth shall be :relatively static. Clearly, this phase of mass-urbanization will have to be accompanied by general socio-economic upliftment of the community as a whole. In this regard, the demand for housing, particularly low cost housing, will rise sharply. In South Africa today, many a prospectiive entrepreneur has identified this situation as an opportunity to establish a building-materials
manufacturing plant. Because a brickworks is commonly believed to be a relatively simple operation to ,establish and run profitably, many entrepreneurs have applied their resources to this field. In reality, a small scale operation is found to be barely profitable and financial failure in this regard is relatively common. 'Ibis dissertation investigates why such a paradox should exist. A host of variables, which can become major pitfalls to a fledgling brick making business, are discussed. Possible hurdles
facing such an operation range from raw material properties, the plant's . financial structure, to characteristics of the brick market be understanding of the interactions between these relatively complex facets of brick making, requires a multi-disciplinary approach. The discipline of Mineral Economics is ideally suited to address the range of problems facing the entrepreneurs, who attempt to establish a small brick plant.