Mining and Minerals South Africa Mpumalanga Province

Mining and Minerals South Africa Mpumalanga Province

Introduction • In 2005 the mining sector contributed R 94, 3 billion (US$14, 8 billion) or 7% of SA’s GDP. • In 2005 55 different minerals were produced from 1113 mines and quarries. • Investments of R 54, 9 billion (US$ 8. 6 billion) were committed to mineral-related projects in South Africa in 2006.

Structure of the Industry Government The State’s involvement in the mineral industry is of a complementary and supportive nature, and seeks to provide and maintain: • a legal and fiscal environment which will allow rational exploration, mining, beneficiation and marketing of the country’s minerals; • an efficient physical infrastructure including road, rail, and air links, as well as harbour facilities, communications and health services, and power and water supplies.

Structure of the Industry • The Minerals and Petroleum Resources Development Act (MPRDA), no. 28 of 2002 was promulgated in May 2004. • This Act regulates the prospecting for, and optimal exploitation, processing and utilisation of minerals, provides for safety and health in the mining industry, and controls the rehabilitation of land disturbed by exploration and mining. • All mineral rights in SA are vested in the State with due regard to constitutional ownership rights and security of tenure.

Structure of the Industry BEE • South African mining industry is still controlled predominantly by whites. • Emphasis is being placed on stimulating black economic empowerment (BEE) in the industry. • Black-owned firms are now beginning to play an important role in the mining industry. • New black economic empowerment (BEE) mining giants: – African Rainbow Minerals – Mvelaphanda Resources – Kumba Resources - Kumba Iron Ore / Exxaro

SA Role in World Mineral Reserves South Africa has the worlds largest reserves of: • Platinum-group minerals – 87% • Manganese – 80% • Chromium – 72% • Gold – 40% In addition SA also has significant reserves of titanium, vanadium, zirconium, vermiculite and fluorspar.

SA Role in World Mineral Reserves

SA Role in the World Mineral Production SA accounts for over 40% of the world production of the following mineral commodities: • Ferro-chromium • Platinum group metals • Vanadium SA is also the leading world producer of Chrome Ore, Gold, Vermiculite and alumino-silicates.

SA Role in the World Mineral Production

SA Role in World Mineral Exports SA is in the top five world exporters of the following minerals: • Ferro- Chromium • Manganese ore • Ferro-manganese • Chrome ore • Coal

SA Role in World Mineral Exports

Mining in Mpumalanga Province • Accounts for 6% of GGP • Employs 64 500 people • Mpumalanga mines a variety of: - metallic ores - platinum group metals - coal - industrial minerals

Primary Mineral Sales from Mpumalanga – 2005 • Local Sales: local sales. • Export Sales export sales. • Total Sales total sales. R 12. 9 bn 31% of SA R 22. 2 bn 21% of SA R 35. 1 bn 25% of SA

Coal • Mpumalanga is the most important coal producing area in SA. • Witbank coalfield includes some 65 collieries working several seams. • Accounts for 81% of total coal production in SA. • Major markets – export and local: - power generation; metallurgical; synthetic fuel; chemical.

South African Coalfields Production

Local Coal Sales by User

South Africa’s Coal Reserves by Coalfield

Ferrous Metals and Minerals • South Africa is the world’s largest producer of chromium and vanadium ores and a leading supplier of their alloys. • It is also a major producer of iron and manganese ores and an important supplier of manganese alloys, ferrosilicon and silicon metal. • Ferrous mineral ores were produced at some 24 mines and their added-value ferro-alloys at 23 metallurgical works during 2005.

OPPORTUNITIES • 2 500 Hectares community land 20 km from Witbank – possible coal mining • Granite beneficiation – African Lilac, Belfast Black granite: to produce building material (rough cut building blocks, cobblestones and paving blocks)

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