The Mineral Industry of South Africa in 2010
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2010 Minerals Yearbook SOUTH AFRICA U.S. Department of the Interior August 2012 U.S. Geological Survey THE MINERAL INDUSTRY OF SOUTH AFRICA By Thomas R. Yager The Republic of South Africa remained one of the world’s Environment leading mining and mineral-processing countries. In 2010, South Africa’s estimated share of world platinum production Acid mine drainage from gold mines in the Witswatersrand amounted to 75%; kyanite and other materials, 61%; Mining Basin reportedly contaminated the Crocodile and the vermiculite, 40%; chromium, 39%; ferrochromium, 38%; Vaal River systems with increased levels of heavy metals and palladium, 37%; zirconium, 33%; vanadium, 32%; rutile, radioactive particles. The Government planned to spend about 22%; ilmenite, 19%; manganese, 17%; gold, 8%; nickel, 3%; $190 million over 10 years on alleviating acid mine drainage aluminum, antimony, fluorspar, and iron ore, 2% each; and and the other problems that resulted from the 6,000 abandoned phosphate rock, 1%. The country’s estimated share of world mines in South Africa (Prinsloo, 2010a; Zeelie, 2010). reserves of platinum-group metals (PGM) amounted to 95%; chromite, 37%; vanadium, 26%; zirconium, 25%; manganese, Production 22%; rutile, 20%; fluorspar, 18%; iron ore, 14%; gold, 12%; and ilmenite, 10% (Bray, 2011; Carlin, 2011; Corathers, 2011; In 2010, fire clay production increased by 359%; cobalt metal, Gambogi, 2011a, b; George, 2011; Jasinski, 2011; Jorgenson, 253%; ferromanganese and silicomanganese, an estimated 96% 2011; Kuck, 2011; Loferski, 2011; Miller, 2011; Papp, 2011; each; pig iron, 88%; slate, 86%; mica and vanadium, 58% each; Polyak, 2011; Tanner, 2011a, b; Tex Report, The, 2011). attapulgite and manganese ore, 57% each; ferrochromium, 54%; diamond, 45%; chromite, 44%; direct-reduced iron, 38%; Minerals in the National Economy ferrovanadium, an estimated 36%; bentonite, 35%; mineral pigments, 33%; zinc, 28%; crude petroleum, 27%; silica sand The mineral industry accounted for 8.6% of the gross and silicon metal, 26% each; anthracite coal, 25%; andalusite, domestic product in 2010; crude and processed mineral products an estimated 20%; nickel, 15%; ferrosilicon, 14%; crude steel, accounted for 48% of the value of total exports. About 74% of 13%; and phosphate rock, 11%. The output of shale and talc crude mineral products and 82% of processed mineral products, decreased by 33% each; brick clay, 21%; granite and norite, by value, were exported in 2010. Employment in the mineral 19%; stainless steel, by an estimated 18%; sodium sulfate and industry amounted to 498,141 in 2010 compared with a revised sulfur, 15% each; and gypsum, 14% (table 1; Martin Kohler, 491,744 in 2009 and 418,294 in 2000. In 2010, PGM mining Deputy Director of Statistics, Department of Minerals and accounted for 36.5% of the mineral industry’s employment; Energy of the Republic of South Africa, written commun., gold, 31.5%; coal, 14.8%; iron ore, 3.7%; chromite, 2.8%; June 29, 2011). diamond, 2.2%; and other minerals, 8.4%. In 2000, gold mining accounted for about 52% of the mineral industry’s employment, Structure of the Mineral Industry PGM, 23%; and coal, 12% (Chamber of Mines of South Africa, 2010, p. 6, 24, 31; 2011, p. 4, 6–7, 12; Martin Kohler, Deputy Most of the South African mineral industry was privately Director of Statistics, Department of Minerals and Energy of the owned. The production of diamond and gold, which were Republic of South Africa, written commun., June 29, 2011). produced mostly by artisanal miners in many African countries, was dominated by large-scale producers in South Africa. The Government Policies and Programs leading producer’s share of total output varied sharply by commodity; the leading producer of diamond accounted for 85% The Government’s Black Economic Empowerment program of national production; iron ore, 74%; manganese, 47%; nickel, required that black ownership of mining companies reach 26% 39%; gold, 31%; and coal, 23%. by 2014. In September 2010, the Government introduced its new Mining Charter, which allowed companies to use the value Mineral Trade of their domestic beneficiation activities as credit for up to 11% of their black ownership requirements. The new Mining Charter In 2010, exports of PGM amounted to $8.62 billion; gold, required mining companies to purchase 70% of their services, $6.68 billion; iron ore, $5.26 billion; coal, $4.81 billion; 50% of their consumable goods, and 40% of their capital manganese ore, $1.22 billion; nickel, $643 million; chromite, goods from Black Economic Empowerment entities by 2014. $322 million; copper, $158 million; and other crude mineral Companies were also required to report progress annually on products, which included diamond, ilmenite, rutile, and development of near-mine communities, sustainable growth and zircon, $1.79 billion. Exports of ferrochromium amounted development, and beneficiation (Creamer, 2010a). to $3.17 billion; manganese metal and alloys, $919 million; vanadium alloys and other vanadium products, $286 million; silicon metal and alloys, $196 million; and other processed mineral products, which included aluminum, $2.04 billion SOUTH AFRICA—2010 37.1 (Martin Kohler, Deputy Director of Statistics, Department of tailings from Lonmin’s PGM mining operations. The companies Minerals and Energy of the Republic of South Africa, written also started construction of a new pelletizing and sintering commun., June 29, 2011). plant that would have a capacity of 600,000 t/yr. The new plant The percentage of domestic consumption of mineral commodities was expected to recover chromite from some of the tailings produced in South Africa varied sharply by commodity. In purchased from Lonmin and to be completed in 2013 (Xstrata 2010, gold exports, by volume, amounted to 94% of domestic plc, 2011, p. 61). production; ferrochromium, 86%; PGM, 85%; vermiculite, 84%; Samancor Chrome Ltd. (International Mineral Resources manganese ore and nickel, 83% each; iron ore, 81%, vanadium, BV of the Netherlands, 70%) produced chromite at the Eastern 75%; silicon alloys, 71%; coal, 26%; chromite, 18%; zinc, 10%; Chrome Mines in Mpumalanga Province and the Western and lime and silica, less than 1% each (Martin Kohler, Deputy Chrome Mines in North West Province. The mines had a total Director of Statistics, Department of Minerals and Energy of the (combined) capacity of about 3.5 Mt/yr. The majority of the Republic of South Africa, written commun., June 29, 2011). company’s output was consumed in its ferrochromium plants. Samancor Chrome operated the Ferrometals plant in Commodity Review Witbank, the Middelburg plant in Middelburg, and the Tubatse plant in Steelpoort; the plants had a combined capacity of Metals about 1.3 Mt/yr (table 2). The company produced 637,000 t of ferrochromium in 2009 compared with 819,000 t in 2008 Aluminum.—South Africa produced primary aluminum from (Kaitue, 2010, p. 6). alumina imported from Guinea. BHP Billiton Ltd. of Australia Assmang Ltd. [African Rainbow Minerals Ltd. (ARM), operated the Bayside and the Hillside primary aluminum 50%, and Assore Ltd., 50%] operated the Dwarsrivier Mine smelters at Richards Bay. In 2010, BHP Billiton’s production in Mpumalanga. In fiscal year1 2010, production decreased to remained nearly unchanged at 807,000 metric tons (t) (BHP 587,000 t from 684,000 t in fiscal year 2009 because of weak Billiton Ltd., 2010b, p. 6; 2011, p. 6). global demand for ferrochromium (African Rainbow Minerals Chromium.—In 2010, chromite production was about Ltd., 2010, p. 54). 10.87 million metric tons (Mt) compared with 7.56 Mt in Assmang produced ferrochromium at the Machadodorp 2009 and 6.66 Mt in 2000. From 2000 to 2010, employment in plant in Mpumalanga Province. In fiscal year 2010, output chromite mining increased to 13,971 workers from between 5,000 increased to 200,000 t from 169,000 t in fiscal year 2009. and 6,000 (Chamber of Mines, 2010, p. 15; 2011, p. 12, 15). Assmang converted one of the furnaces at Machadodorp from Xstrata plc of Switzerland and its joint-venture partner Merafe ferrochromium to ferromanganese because ferrochromium is Resources Ltd. operated the the Helena, the Kroondal, and more power intensive to produce than ferromanganese (African the Thorncliffe Mines, which had a total (combined) capacity Rainbow Minerals Ltd., 2010, p. 50, 54). of 2.67 million metric tons per year (Mt/yr) of chromite. The ARM and its joint-venture partner MMC Norilsk Nickel of company’s production increased to 2.13 Mt in 2010 from Russia operated the Nkomati chromite mine. In fiscal year 2010, 1.92 Mt in 2009. Output increased at the Helena and the sales increased to 816,000 t from 712,000 t in fiscal year 2009 Kroondal Mines and decreased at the Thorncliffe Mine in 2010. (African Rainbow Minerals Ltd., 2010, p. 42). By the end of the first quarter of 2011, Xstrata planned to restart International Ferro Metals Ltd. (IFM) operated the Lesedi production at the Waterval Mine at the rate of 360,000 metric chromite mine and Buffelsfontein ferrochromium plant in North tons per year (t/yr). The company also planned to increase West Province. In fiscal year 2010, IFM produced 200,440 t capacity at the Horizon Mine, which shut down in 2009, to of ferrochromium, which was an increase of 82% compared 480,000 t/yr from 260,000 t/yr by the end of 2013 (Xstrata plc, with production in fiscal year 2009. The Lesedi open pit mine 2011, p. 61, 96). was expected to shut down as near-surface resources become Xstrata and Merafe operated the Boshoek, the Lion, the depleted by the end of fiscal year 2011. IFM planned to produce Lydenburg, the Rustenburg, and the Wonderkop ferrochromium about 560,000 t of chromite ore from the new underground plants. These plants had a total combined capacity of 1.98 Mt/yr.