DEPARTMENT: MINERALS AND ENERGY
DEPARTMENT: MINERALS AND ENERGYREPUBLIC OF SOUTH AFRICADirectorate: Mineral EconomicsSOUTH AFRICA’S MINERAL INDUSTRY2006/2007The cover picture represents South Africa’s Iron andSteel Industry – the mining, transport, and export of ore,as well as local beneficiation.Issued free by and obtainable from theDirector: Mineral Economics, Mineralia Centre,234 Visagie Street, Pretoria 0001, Private Bag X59, Pretoria 0001Telephone 27 (0) 12 317-8538, Telefax 27 (0) 12 320-4327www.dme.gov.zaii
Editing: I Robinson (External)Editing: (Internal)M Mabuza, S Sikhosana, TR Masetlana,J A G Duval, P Mwape,LA Themba, N DlambuloStatistics: M KöhlerCo-ordinator: TR MasetlanaFirst Published August 1984This, the 24th revised edition, published December 2007Whereas the greatest care has been taken in the compilationof the contents of this publication, the Mineral Economics Directoratedoes not hold itself responsible for any errors or omissionsCopyright ReservedISBN: 978-1-919927-72-5iii
FOREWORDIn this edition of the South Africa’s Mineral Industry publication, we review the unprecedentedperformance of the industry in 2006, which is predicated on a long history of mining in the country.Iron and gold were mined a few thousand years prior to the well-documented rush of diamonds andgold in the latter part of the nineteenth century as well as the discovery of platinum in 1924. This iscorroborated by the discovery of artefacts such as the golden Rhino and other fine gold objects fromthe royal graves of Mapungubwe in the Limpopo Province.To date, the rush for the country’s commodities continues unabated. Over eleven thousandapplications for permits and rights for prospecting and mining have been received and processed bythe department since the historic implementation of the Minerals and Petroleum ResourcesDevelopment Act in May of 2004. Despite a long history of mining, South Africa still remains underexplored with a large residual potential for the discovery of world-class deposits, as the bulk of thecurrently known deposits, resources and reserves were uncovered using conventional explorationmethods.In 2006, the mining and quarrying sector contributed R120,2 billion or 7.9% to Gross DomesticProduct, an increase of 6,83% compared to the preceding year. South Africa’s total primary mineralsales revenue increased by 36 percent, from R143,4 billion in 2005 to R195,5 billion in 2006.The mining sector employed 2,7% of the country’s economically active population. The averagenumber of workers in the industry increased by 14 468.However, the mining industry continues to play a pivotal role in the economic development of thecountry. The country’s beneficiation policy is a deliberate government intervention, in partnership withindustry stakeholders, which seeks to transform the role of the industry from being largely resourcebased to being knowledge-based. The fruits of the beneficiation program are becoming increasinglyevident. In 2006, the processed minerals sub-sector generated in excess of R43 billion in salesrevenue, surpassing the revenue generated from gold at approximately R37 billion. Notwithstandingthat the processed minerals revenue is not recorded as mining, it is nonetheless contributory to theattainment of the AsgiSA (Accelerated and shared growth in South Africa) target of achieving nationaleconomic growth of 6% by 2009 and halving both unemployment and poverty by 2014. A number ofinitiatives are currently being finalised to ensure that South Africa derives optimal benefits from “her”wealth.The role of small scale mining (SSM) in South Africa continues to be crucial, particularly as one of themeans of narrowing the gap between the first and second economies. The creation of the Small ScaleMining Board (SSMB) in the department sought to attract and assist new entrants in the mining sector.In the past 2 years 140 projects have been supported though the SSMB.Finally, it is apt to convey my sincerest appreciation to the staff of the Mineral Economics Directorateas well as colleagues from respective Directorates, Policy, Beneficiation and Small Scale Mining,whose concerted efforts contributed to compilation of this publication. The South African miningindustry cooperated and supported the department in submitting the required statistics, while Mr. IanRobinson undertook the onerous task of external editor for this publication. All in Mineral Economicsand the department wish both Messer. Anthony (Tony) Harding and Xavier Prevost well in theirretirement, while two other colleagues have since been re-deployed in other parts of the department,viz. Messer. Abiel Mngomezulu and Ashok Damarupurshad. All of these colleagues contributedenormously with their wealth of experience in developing the unit to current levels, for which weremain grateful.Mosa MabuzaDirector: Mineral Economicsiv
CONTENTSFOREWORDABBREVIATIONS AND SYMBOLSEXPLANATORY NOTESPART ONE: GENERAL REVIEW (P Mwape, MJ Roberts, E Mokwena, L Musi,T Tjatjie, M Phale, R Baloyi, DT Mailula, PG Kwata)INTRODUCTIONSTRUCTURE OF THE INDUSTRYPOLICY DEVELOPMENTS IN 2006/2007SOUTH AFRICA'S MINERAL INDUSTRY STRENGTHSMINERAL EXPLORATIONCOMMUNICATIONS, INFRASTRUCTURE AND LABOURROLE OF MINING IN THE NATIONAL ECONOMYSMALL SCALE MINING SECTOR IN SOUTH AFRICAMINERAL PRODUCTION AND SALESMINERAL BENEFICIATIONSELECTED PROCESSED MINERAL SALES, 2006SOUTH AFRICA’S IMPORTS OF SELECTED PRIMARY AND PROCESSED MINERALPageiiivivii1113678915151819PRODUCTS, 2006FORECAST OF MINERAL EXPORTS FOR 2007 TO 2010MINERAL RELATED INVESTMENT IN SOUTH AFRICAREGIONAL COOPERATION (SADC)21222425PART TWO: REVIEW OF SELECTED COMMODITIES28PRECIOUS METALS AND MINERALS28DiamondsGoldPlatinum-group MetalsSilver28354146A K DamarupurshadA S ConradieA S ConradieA K DamarupurshadENERGY MINERALSCoalHydrocarbon FuelsUranium51X M PrevostL MsibiL Themba and T ChilliNONFERROUS METALS AND ickelTitaniumZincZirconium51616570L ThembaL MaphangoD O MoumakwaA J HardingL MaphangoL E PitsoA J HardingD O MoumakwaL E PitsoD O Moumakwav70758183889297102106112
PageFERROUS MINERALSOverviewChromiumIron OreManganeseSiliconVanadium115M BongaMC MosianeM BongaM BongaM BongaMC Mosiane143INDUSTRIAL MINERALSOverviewAggregate & sandAlumino-silicatesDimension StoneFluorsparLimestone and DolomitePhosphate RockSpecial ClaysSulphurVermiculiteStatistics for other Industrial Minerals115119124129135139D NaidooP MasekoJ A G DuvalP MasekoJ A G DuvalR BaloyiD NaidooD NaidooD NaidooP MasekoN S Makhubu143148151154157160165169173176179PART THREE: GENERAL INFORMATION187ORGANOGRAM OF THE DIRECTORATE: MINERAL ECONOMICS187RECENT DIRECTORATE: MINERAL ECONOMICS PUBLICATIONS188USEFUL ADDRESSES:191Department of Minerals and EnergyDepartment of Environmental Affairs and TourismDepartment of Land AffairsDepartment of Science and TechnologyDepartment of Trade and IndustryDepartment of Water Affairs and ForestryStatistics South AfricaState Owned EnterprisesOther Mineral-related Organisations193193193193193193193193195vi
ABBREVIATIONS AND SYMBOLSA tkmktkt/albAustralian dollarbarrelbarrels per dayBritish Geological Surveythousand millioncaratconcentratecost, insurance, freightCommonwealth of Independent States. Partof the former Union of Soviet SocialistRepublics (USSR)Consumer price indexPeople’s Republic of ChinaDeutsche MarkDepartment of Minerals and EnergyDemocratic Republic of CongoDirect reduced ironestimateElectric-arc furnaceEuropean Economic Unionfree on boardfree on railFormer Union of Soviet Socialist Republics(USSR)United Arab EmiratesUnited States of Americagramgiga yeargram per tongross as receivednet gigawatts electricInternational Lead and Zinc Study GroupInternational Nickel Study Groupkilocaloriekilogramkilogram per metric tonkilometrekilotonkiloton per annumpound y-o-y C %London Metal Exchangemetrecubic metremetal-in-concentratemillion yearsmillion caratsmillion ounces troymillion ounces troy per annummegaton (million tons)million tons per annummegavolt amperemegawatt hournot availablenot as receivednot specifiedNorth West Europetroy ounceper annumplatinum-group metalsparts per millionrand (South African currency)South AfricaShort tonmetric tontons per annumUnited States Bureau of MinesUnited States Geological Surveytrillion cubic feetwithheldWorld Bureau of Metal Statisticsyearyear-on-yearUS dollar, unless stated otherwiseCanadian dollarBritish pound sterlingper cent
EXPLANATORY NOTESReferenceDue to space limitations only the sources of statistical information are given.The absence of a source reference to statistical data indicates that such datawas sourced from the Directorate: Mineral Economics database of mineralproduction, sales and labour in South Africa. A bibliography is presented inPart Three.Identified ResourceResources of which location, grade and quality are known or estimated fromspecific geological evidence, and include economic, marginally economic andsub-economic components, also demonstrated and inferred subdivisions.Reserve BaseIn this publication RESERVE BASE is defined as that of an identified resourcethat meets specified minimum physical and chemical criteria related to currentmining and production practices, including those for grade, quality, thickness,and depth. The RESERVE BASE is the in situ demonstrated resource fromwhich reserves are estimated. It may encompass those parts of the resourcethat have a reasonable potential for becoming economically viable withinplanning horizons beyond those that assure proven technology and currenteconomics. The RESERVE BASE includes those resources that are currentlyeconomic (DEMONSTRATED RESERVES) and marginally economic(DEMONSTRATED MARGINAL RESERVES).ReservesThat part of the RESERVE BASE, which could be economically extracted atthe time of determination.In many cases the number of mines reported by the statistical division differs from those reported incommodity chapters by mineral economists. There are technical reasons for these differences –mainly, that a single mining unit, as interpreted by a mineral economist, may for legal reasons, reflectas more than one production entity in the statistical returns.viii
PART ONE: SOUTH AFRICA’S MINERAL INDUSTRYGENERAL REVIEWP Mwape, MJ Roberts, E Mokwena, L Musi, T Tjatjie, M Phale, R Baloyi, DT Mailula, PGKwataINTRODUCTIONFor more than a century, South Africa’s mineral industry, largely supported by gold, diamond, coal andplatinum group metals production, has made an important contribution to the national economy. It hasprovided the impetus for the development of an extensive and efficient physical infrastructure and hascontributed greatly to the establishment of the country’s secondary industries.The mineral industry is a well-established and resourceful sector of the economy, has a high degree oftechnical expertise and the ability to mobilize capital for new development. Mining is South Africa’slargest industry in the primary economic sector, followed by agriculture. Other sectors that contributesignificantly to the country’s economy are: manufacturing, electricity, building and construction. Thewholesale, retail, tourism, financial services, information and communications sectors also continue toshow significant growth.South Africa is a leading world supplier of a range of minerals and mineral products of consistentlyhigh quality. In 2006, some 53 different minerals were produced from 1 212 mines and quarries, ofwhich 47 produced gold, 33 produced platinum-group minerals, 89 produced coal and 240 produceddiamonds, all as primary commodities. There was a significant increase of 99 mines from 2005 in thenumber of operating mines and quarries recorded by the Department of Minerals and Energy (DME),which can be attributed to the improvement in the quality of data from the mining industry andexpansions in the mining industry encouraged by the provisions of the Minerals and PetroleumResources Development Act of 2002.STRUCTURE OF THE INDUSTRYSouth Africa is now in its second decade of a democratic State that has endorsed the principles ofprivate enterprise within a free-market system offering equal opportunities for all the people. TheState’s influence within the mineral industry is confined to orderly regulation and the promotion ofequal opportunity for all its citizens and investors.Private SectorCorporate restructuring of the South African mining industry is an ongoing exercise. Mining housescontinue to transform into focused mining companies by typically shedding their non-core industrialholdings. The transformation includes the consolidation of ownership through minority buy-outs,separation of a large diversified company into two or more specialised companies, the transfer ofprimary listings (and corporate head offices) offshore, as well as the purchase of South African miningassets by foreign companies.The mining industry is placing more emphasis on stimulating black economic empowerment (BEE)and this has yielded significant results so far. Several black-owned firms are now beginning to play animportant role in the mining industry. The last few years has seen the emergence of severalempowerment companies of substantial size in South Africa’s mining and resources sector. Mininghas thus become a focus of the Reconstruction and Development Programme in terms ofentrepreneurial development, black economic empowerment and stimulation of employment andeconomic growth.New black economic empowerment (BEE) mining giants such as Exxaro Resources are shaping thenew South African mining landscape. Prominent developments in 2006 included the listing of PamodziGold on the Johannesburg Stock Exchange, becoming the only black-owned and controlled goldcompany quoted on the Johannesburg bourse and, the re-listing of Kumba Resources’ Exxaro1
Resources, as South Africa’s flagship BEE mining company. The Nedcor Securities Junior Mining andExploration Index (NSJME, an investment opportunity aimed at providing greater visibility for SouthAfrica’s junior mining and exploration sector) for the first time reached a market capitalizationexceeding R100 billion in 2006. New deals in 2006 included Shanduka’s purchase of Wakefield CoalOperation from Metorex at R425 million and Impala Platinum’s sale of 15 percent stake in the MarulaPlatinum Mine to Tubatse Platinum for R316 million.There are also numerous smaller groups and companies which carry out mining and beneficiationactivities. These companies contribute towards the creation of employment opportunities by exploitingrelatively small mineral deposits, which may not be considered economically attractive to the largergroups. The Small Scale Mining Board (SSMB) was launched in 2005 by the DME with a mandate toassist with the resolution of limitations observed and identified within the small-scale mining sector.Since the beginning of 2006, the SSMB has received more that 100 applications from the regions, ofwhich 87 were approved for assistance, while others were pending the outcomes of the market survey.Independent auditors are appointed for projects which are already in operation, while service providersare appointed to monitor the environmental, mine health and safety aspects.The Chamber of Mines of South Africa is a voluntary, private sector employers’ organisation foundedin 1889 – three years after gold was discovered on the Witwatersrand. The Chamber is an associationof mining companies and mines operating in the gold, coal, diamond, platinum and mineral commoditysectors. Today, the organisation acts as the principal advocate of the major policy positions endorsedby mining employers. The Chamber represents the formalised views of its membership to variousorgans and spheres of governments, and to other relevant policy-making and opinion-forming entities,both within and outside of the country.The South African Mining Development Association was started in 2000 as a junior mining initiative bya group of people associated with various South African junior and BEE mining companies.Many co-operative organisations serve the interests of the smaller groups and independent operators,or specific sectors of the industry. These include the Aluminium Federation of South Africa, the SouthAfrican Copper Development Association, the Ferro-Alloy Producers Association, the EngineeringIndustries Federation of South Africa, the Southern Africa Stainless Steel Development Association,the Diggers Association and the Aggregate and Sand Producers Association of South Africa.GovernmentThe State’s involvement in the mineral industry is of a complementary and supportive nature, andseeks to provide and maintain: A legal and fiscal environment which will allow unimpeded exploration, mining, as well asbeneficiation and marketing of the country’s minerals; An efficient physical infrastructure including road, rail, air as well as harbour facilities,communications and health services, and also the supply of electricity and water.The Minerals and Petroleum Resources Development Act (MPRDA) regulates the prospecting for, andoptimal exploitation, processing and utilisation of minerals, provides for safety and health in the miningindustry, and controls the rehabilitation of land disturbed by exploration and mining. This Act definesthe entire regulatory environment of the minerals industry, from rights and ownership to mineral sales,beneficiation and marketing. It also pertains to all other industries and entities that have an influenceon the minerals business.The Act’s main objectives are to recognize State custodianship of all mineral resources within the Republic of South Africa; promote equitable access to the nation's mineral resources, especially among historicallydisadvantaged South Africans; promote investment, growth and employment in the mineral industry thus contributing to thecountry’s economic welfare; provide for security of tenure in respect of existing prospecting and mining operations; give effect to section 24 of the Constitution by ensuring that the nation's mineral resources aredeveloped in an orderly and ecologically sustainable manner; and2
ensure that holders of mining rights contribute towards the socio-economic development of theareas in which they are operating.Recognizing State custodianship of natural resources has brought South Africa into line with mostother major mineral producing countries of the world. This more universally recognized mineral rightssystem is expected to lead to the freeing-up of unused and hitherto effectively sterilized privatelyowned mineral rights in prospective mineral terrains which should attract international exploration andmining companies and also increase the level of competition among local players.The new Act will also regulate the approval and renewal of mining rights on a regular basis. However,it also aims to assist historically disadvantaged South Africans wishing to conduct prospecting ormining activities, with the proviso that such assistance is fair and equitable and does not harm theinterests of other parties. The Act provides safe haven for owners of existing rights, or those whoseapplications were being processed at the time of enactment ensures that security of tenure isprotected in respect of the prospecting and mining operations that are currently being undertaken.Furthermore, this gives the holder of an “old order” mineral right an opportunity to comply with theprovisions of the Act and also to promote equitable access to the country’s mineral and petroleumresources. “Old order” mining rights will continue to operate for a period not exceeding five years fromthe date on which the Act took effect. Holders of these “Old order” rights must apply for conversion oftheir rights (subject to all the terms and cond
which 47 produced gold, 33 produced platinum-group minerals, 89 produced coal and 240 produced diamonds, all as primary commodities. There was a significant increase of 99 mines from 2005 in the number of operating mines and quarries recorded by the
sian minerals. All minerals, however, can be classified into two main groups—silicate minerals and nonsilicate minerals—based on the chemical compositions of the minerals. Silicate Minerals A mineral that contains a combination of silicon, Si, and oxy-gen, O, is a silicate mineral. The mineral quartz has only silicon and oxygen atoms.
2. some are composed of nonmineral matter a. obsidian, pumice and coal iii. composition and structure of minerals a. nearly 4,000 minerals b. elements 1. basic building blocks of minerals 2. 112 are known, 92 are naturally occurring 3. some minerals are made entirely of one atom 4. most elements are not stable, and thus most minerals are a
Silicate Minerals Silicate minerals make up 96% of the earth’s crust. Contains atoms of Silicon (Si) and Oxygen (O). Silicate minerals are generally shinny therefore most are found in jewelry. Non-Silicate Minerals Non-silicate minerals only make up 4% of the earth’s crust. However, these minerals are used most widely in
The Department of Minerals and Energy is the pri-mary government institution responsible for formu-lating and implementing minerals and energy policy to ensure optimal use of these resources. It reports to and advises the Minister of Minerals and Energy who, in consultation
The New Mexico Energy, Minerals and Natural Resources Department (EMNRD) was created in 1987 through a merger between the Natural Resources Department and the Energy and Minerals Department. The individual administrative pieces of the department have been around much longer. The State
DEPARTMENT OF MINERALS AND ENERGY . No. 446 29 April 2009 . PUBLICATION OF THE CODES OF GOOD PRACTICE FOR THE MINERALS INDUSTRY The Minister of Minerals and Energy has in terms of section 1 OO( 1) (b) of the Mineral and Petroleum Resources Development Act, 2002, (Act 28 of 2002), developed the
Conflict Minerals and Resource Extraction: Dodd-Frank, SEC Regulations, and Legal Challenges Congressional Research Service 1 Introduction Congressional hearings, news reports over the past several years, and even the 2006 film Blood Diamond have brought increased attention to the mining and selling of conflict minerals. Generally defined, conflict minerals are “minerals mined in conditions .
minerals (fluorspar, mica, certain limestones and gypsum, heavy minerals in placer form, uranium, bentonite, silica sand, and gemstones) and certain uncommon varieties of minerals (e.g. dimension stone, pumice, pumicite, and cinder deposits). Other minerals include those often used as indus
