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Minerals, Prospecting and Mining in Limpopo

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Minerals, Prospecting and Mining in Limpopo PROSPECTORS AND DEVELOPERS ASSOCIATION OF CANADA 2015 MEETING Minerals, Prospecting and Mining in Limpopo Presented By: Mr. Sam Maloka LIMPOPO DEPARTMENT OF ECONOMIC DEVELOPMENT ENVIRONMENT & TOURISM (LEDET) CONTENTS 1 About LEDA 2 Limpopo Province in South Africa 3 Mineral resources in Limpopo Province 4 Key mineral production 5 Infrastructure plans in South Africa 6 Mineral beneficiation in Special Economic Zones in the Province INTRODUCING LEDA 3 100% wholly owned 4 1. Locality Map and Regional Infrastructure Magisterial Districts of Limpopo Relave to Surrounding Provinces & Countries Zimbabwe Mozambique Kruger National Park Botswana Vhembe Capricorn Mopani Waterberg Sekhukhune North-West Province Mpumalanga Province Gauteng Modified After: Wikipedia 2015 Province Magisterial Districts of Limpopo Province Municipalities of Limpopo Population of 5,404,868 District Local (2011) (census) with a Mopani Greater Giyani, Greater Letaba, currently estimated total of Greater Tzaneen, Ba-Phalaborwa 5,630,500 (2014) 4% growth Maruleng which ranks it 5th in South Africa. Vhembe Musina, Mutale, Thulamela, Makhado It has a population density Capricorn Blouberg, Aganang, Molemole, of 3/km2 (110/sq mi) which Polokwane, Lepelle-Nkumpi ranks it 5th in South Africa. Waterberg Thabazimbi, Lephalale, The density is very skewed Mookgophong, Modimolle, Bela- with intensely populated Bela, Mogalakwena areas around the major Sekhukhune Ephraim Mogale, Elias towns and cities and low Motsoaledi, Makhuduthamaga, densities in deeply rural Fetakgomo, Greater Tubatse areas and mountain ranges Focus of this talk – The Mineral Resources of Limpopo We use here some National Statistics which closely reflect the local conditions. Specifically extracts from the Chamber of Mines Annual Report for 2013 Mining is the Flywheel of the Economy Coal Mines & Projects Platinum/Chrome Mines & Projects Planum, Chrome and Coal Limpopo’s Mineral Heritage in Limpopo Coal and Planum Mines of Limpopo Limpopo’s Mineral Heritage Tin (Rooiberg 11 1 Precious Metals: Platinum group elements Area, Waterberg) (pge): (Merensky and Chromite Reefs) Platinum, palladium rhodium, etc and gold 12 Industrial Minerals and Dimension Nickel and Copper with pge (Esp 2 Mogalakwena Mine PlatReef) Stone Copper and Phosphate (Palabora) 3 Brick Clay Iron ore, (magnetite) (Bushveld, Banded Scheelite, 4 Iron Formation and Palabora) Vermiculite, Silicon, Chromite (Bushveld Complex) 5 Feldspar Blend coking and, Granite, (Black and steam coal, (With associated uranium in 6 other colours) the Springbok Flats Emeralds Corundum, 7 Diamonds (Venetia) Limestone 8 Antimony (Tzaneen Region) Platinum Resources & Reserves 1. Limpopo Province is host to 41% of the national reserve base 2. North West Province accounts for a further 24% 3. Mpumalanga makes up 35% by difference 4. Resources of Platinum are estimated at 29,206 tonnes and Palladium at 22,115 tonnes 5. Making 72% of the world’s PGM Total SA Coal reserves: 67Bt Total SA PGM (Pt/Pd) reserves: > 9 934 t Eastern Limb Planum and Chrome Mines Currently only 1. There are +40 three mines are projects/ mines on operational the Eastern Limb (A11, A12 & P2) 2. The area is historically important as it was here that the Merensky Reef was discovered (3) 3. Outcrop of Platinum and Chrome reefs in Limpopo is over 180km in length 4. The fields has substantial Coal Bed Methane (CBM) and Uranium potential 15 Western Limb Planum & Chrome Mines in Limpopo 1. Two Smelters are located in Limpopo in the W Bushveld. These are at the Northam Mine and at Union 2. Northam is the deepest Platinum Mine in South Africa operating at 1670m from surface 3. Anglo Platinum has the Union Mine up for sale 16 Northern Limb Magnetite iron ore projects are also being Planum Belt investigated 1. Mining on the Northern Limb west of the platinum has been opencast boundaries in (Mogalakwena Mine A15 the Main Zone 2. PTM Waterberg project continues to be explored; 3. New mine (Platreef Resources) is under development 4. There are 17 recorded projects along the Northern Bushveld at present; 17 Coalfield Statistics (2012) Coalfield or Run OF Mine 1. Limpopo Province is host Portion of a (Mt) to 50,634Mt of coalfield Coal or 76% of South African ROM Resources 2. Waterberg OC on its own is 54% of the SA total 3. Note: the “Total” is for the whole country) 4. For modifying factor see report issued by the CGS in 2012 (Unpublished) Waterberg Coalfield 1Tcf Gas 48 coal prospecting rights Northern Limpopo Coalfields Vele Mine and Makhado Project (Coal of Africa) Springbok Flats Coalfield Springbok Flats Coalfield 1. The Basin lies about 90km north of Johannesburg, 40km from Pretoria 2. The basin covers and area of about 930 000ha 3. It is about 209km in length and 50-60 km in width 4. The field has substantial coal bed methane (CBM) and uranium potential 22 In-Situ Coal Resource EsGmate – Springbok Flats Coalfield Regions and Areas Areas From Maps 1 NE Region 3,245,614,384 2 NE Shallow Area 1,131,701,793 3 NE Deep Area 2,113,912,591 4 Central Region 1,673,598,490 5 Central Shallow Area 911,118,699 6 Central Deep Area 762,479,792 7 SW Region 2,917,139,888 8 SW Shallow Area 1,906,749,599 9 SW Deep Area 1,010,390,289 Total Resource Area 10 (1+4+7) 7,836,352,763 Other Mineral Deposits in Limpopo Diamonds Copper Potential BIF Iron Magnetite/ Ore Vanadium Tin Fields Andalusite Uranium Magnetite and Vanadium Beneficiaon Platinum, Coal, Iron Ore and Chrome are extensively beneficiated in Limpopo and in South Africa before being sold Planum in Southern Africa 1. Beneficiation including smelting and refining is well developed with 5 smelters and 3 refineries. 2. Northam exports its smelted products to Germany for refining 3. The Selous Metallurgical Complex (SMC) in Zimbabwe services all the Zimbabwe mines 4. Kalplats project is still under evaluation in the Stella Layered Complex, Northern Cape PGM: Potential and Status PGM Working under the guidelines of the SAMREC Code Professor Cawthorn estimated proven and probable reserves of platinum and palladium at 203.3 million troy ounces, (6,323 tonnes) and 116.1 million troy ounces (3,611 tonnes), respectively. In addition to these reserves, inferred resources were estimated at 939 million troy ounces (29,206 tonnes) of platinum and 711 million troy ounces (22,115 tonnes) of palladium. South Africa is the largest producer of platinum minerals in the world. Russia is a large palladium producer, the only viable substitute for platinum. South Africa’s dominance in international production of platinum is expected to continue for many decades. There are 3 smelters in Limpopo and three refineries in South Africa. Chromite Mining &Beneficiation In Limpopo MINERAL Production and Beneficiation Chromitite South Africa is the largest chrome ore producer in the world. More than 90% of chrome ore is converted to ferrochrome. Ferrochrome, is destined for the stainless steel producers in China and Japan. Beneficiation of Limpopo chrome takes place at Steelpoort , Lydenburg and in Middelburg where high chrome steel is manufactured in combination with Magnetite iron ore mined at Stoffberg Limpopo South Africa produces stainless steel goods locally and export these into other markets internationally In Limpopo, Chromite has been mined along the entire outcrop between Steelpoort (Winterveld)and the Olifants River (Jagtlust) for more than 60 years . At Grasvally, south of Mokopane, high grade chrome has been mined for many years. Iron Ore: Potential and Status MINERAL Level of Beneficiation in South Africa Iron Magnetite iron ore has been mined near Roosenekal in Limpopo for more that 40 years. The product is railed to Middelburg where it is combined at Middelburg Steel and Alloys to produce ferrochrome and high grade steel. New magnetite projects are being investigated in the northern limb of the Bushveld Complex and close to the Botswana border. In the Sekhukhune area vanadium is located in association with magnetite but intense human settlements have resulted in the deposits being sterilized due to the costs of moving and relocation of residents Coal Production & Beneficiation Outlook In Limpopo COAL Coal All SA Coal is beneficiated and consequently over 40% of production is lost to ash stockpiles (over 70% in the case of the Waterberg caolfield). Between 2000 and 2014 coal production rose from 226Mmt to 263Mmt, an annual increase of 2,6Mtpa over this 14 year period. The export of coal has averaged 39% of local sales over a 27 year period to December 2014 and currently stands at 68Mtpa. The planned increase to 91Mtpa has not materialised due to the world wide slow down in demand and low prices. Coal gasification (UCG) remains an The dominant receiver of coal remains Sasol for their opportunity for ultra deep coal deposits production of synfuel, and to Eskom for the as are present in the Waterberg, production of electricity. Both outputs from Sasol Springbok Flats and Northern Limpopo and Eskom are largely sold to local consumers. Coalfields. A pilot project is currently being developed in the Free State New coal to liquid processing plants may be established but only in SA due to the low cost of oil at present $62/B (02/15). Coal Production & Beneficiation Outlook In Limpopo • Independent power generating plants- The Waterberg coal basin has enough coal reserves that will enable the Province to become the hub of the country’s power generating activities. Coal reserves are estimated to last for approximately 200 years which ensures security of supply of coal feedstock to the power plants. • Supply of power plant equipment and consumables- Eskom’s 2 power plants and the planned construction of 2 independent power plants will provide investment opportunities for suppliers of power plant equipment and consumables such as boilers, turbines, coolers and transformers. • Emergence of chemical industries cluster- The planned construction of the synthetic fuels manufacturing plant will result in the establishment of a new chemical industries cluster such as plastics, solvents and polymers in the Province.
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