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Economic Geography: Gold Mining in South Africa Contents MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA CONTENTS SECTION G1 2 SECTION G5 28 What is gold? 3 Why gold mining matters 29 The discovery of gold What makes gold special? 4 Factors that favour and hinder gold 31 was a turning point in mining in South Africa Uses of gold 5 South African history, Safety and health 33 The Krugerrand 8 and South Africa’s total Environment 35 SECTION G2 9 gold reserves remain Environment and legacy issues 37 Where gold is currently mined 10 some of the world’s Gold mining technology 39 Major South African gold mining 14 Modernisation 41 most valuable. companies Quotes about gold 43 SECTION G3 15 Fun facts about gold 44 The gold mining life cycle 16 SECTION G6 45 Gold mining in South Africa SECTION G4 20 continues to be a major Terms and definitions 46 People of gold 21 contributor to the economy and the establishment of the Jobs in gold mining 25 nation’s infrastructure. Brief history of gold mining in South Africa 26 PAGE 1 MINING FOR SCHOOLS SECTION G1 Rand Refinery Limited PAGE 2 SECTION G1 WHAT IS GOLD? Gold is a metallic element with the atomic number 79 and the chemical symbol Au. Au comes The name gold comes from the Latin aurum, which from an Old English word means ‘shining dawn’. meaning yellow. In Xhosa On the periodic table of elements, gold is referred to as a ‘transition metal’ and is also and Zulu, the precious one of the so-called precious metals. Transition metal is known as igolide. metals are special in that they are usually shiny, are conductive and malleable, and have a tendency to form compounds. Even though we use the metric system, the weight of gold is often reported in troy ounces (1 troy ounce = 31.1034768 grams). When consumers buy gold they do so according to its ‘purity’, which is measured in karats. It is believed that this measure comes from the word carob, because the seeds of the carob tree were apparently used to balance scales in ancient gold markets. Today, karats refers to the percentage of gold in an object – 24 karats = 100% gold, and Rand Refinery Limited 18 karats = 75% gold. PAGE 3 SECTION G1 WHAT MAKES GOLD SPECIAL? Gold, a naturally occurring metal, Not only is gold often used in implants (in has been used throughout history stents or pacemakers, for example) because of its anti-bacterial properties, but gold to symbolise wealth, power, compounds may also be used in drugs. These accomplishment and beauty, have been used as anti-inflammatories for the and as an enduring form of treatment of rheumatoid arthritis, and more currency. Gold was used as early recently researchers have found that gold has the potential for treating HIV and even cancer. as 6000 BC, mainly for its beauty And, the beauty fraternity has found its (rather and symbolism. expensive) value for the rejuvenation of aging or sun-damaged skin. Gold has many unique qualities. Gold has superior electrical and thermal conductivity, You can even eat gold! Pure gold – in leaf, flakes which means it easily allows the transport of an or dust – has been used by renowned chefs to electric charge and quickly conducts thermal add a touch of glamour to food and drink. Gold energy. It also has infrared reflectivity, which is inert so it passes safely through the body. means it reflects infrared radiation. It does not react with air, water and most other substances, so won’t corrode or tarnish. Gold combines well with other metals to form an alloy. Gold is also ductile (can be stretched AngloGold Ashanti Limited into a wire) and is malleable (can be flattened by hammering or rolling). PAGE 4 SECTION G1 USES OF GOLD Throughout history gold has been highly sought-after, revered and cherished. More than that, it is used for a myriad of applications and remains one of the most sought-after precious metals found on the planet. Gold is highly prized not only for its natural beauty but for its rarity, usefulness and versatility, and can be found in almost every JEWELLERY sphere of modern life. Gold’s many, and diverse, The use of gold in making jewellery dates back properties – some of which are unique to gold to around 6,000 years ago. Egyptian pharaoh – make it an indispensable and vital component Tutankhamun’s famous burial mask was made in various fields. Traditionally gold has been from gold. Approximately 78% of the total gold used to make coins, bullion and jewellery, but in mined each year is made into jewellery as it recent times it has been used in a variety of less is very easy to work, can be drawn into wires, typical ways. hammered into thin sheets, melted and cast into shapes, is tarnish resistant, has a very high lustre and a desirable yellow colour. Jewellery is still the most common way gold reaches consumers. PAGE 5 SECTION G1 USES OF GOLD (CONTINUED) FINANCES AND INVESTING DENTISTRY AND MEDICINE Throughout history, gold has been seen as Gold has been used in dentistry since a symbol of wealth and used for financial 700 BC. It is chemically inert, easy to insert transactions. The first purely gold coins are and non-allergenic in nature and therefore believed to have been manufactured in the Asia highly suitable for fillings, crowns, bridges Minor kingdom of Lydia in 560 BC. This tradition and orthodontic appliances. The gold used in continues today and gold is still the most dentistry is predominantly white gold, usually popular precious metal for investments. 15 karat or higher, or a gold alloy. One of the most common ways to hold or Gold is also used in medicine in salt or invest in gold is in gold coins, gold bars, or radioisotope forms which are taken orally or via gold bullion. South Africa’s Krugerrand is the injection to alleviate certain conditions including world’s most widely-held and actively-traded severe rheumatoid arthritis and tuberculosis. gold bullion coin, developed by the country’s Small amounts of gold isotopes are used in the AEROSPACE then Chamber of Mines. The first 22 karat gold diagnosis and treatment of certain illnesses. In Gold plays a vital role in the aerospace industry Krugerrand was minted on 3 July 1967. lagophthalmos, a condition characterised by where consistent and effective technologies a person’s inability to close their eyes, a small are key to survival. Gold is used to lubricate amount of gold is planted in the upper eyelid various mechanical parts, in circuitry to conduct to help the person close their eyes. The gold electricity and to coat the insides of spacecraft isotope, gold-198, is used in the treatment to protect people inside from infrared radiation of cancer. and heat. PAGE 6 SECTION G1 USES OF GOLD (CONTINUED) ELECTRONICS RECOGNITION Gold is a dependable, highly-efficient conductor The unparalleled beautify and qualities of gold and connector, and it does not corrode making make it one of the highest status symbols. We it perfect for use in circuitry. A small amount is use gold for our most noteworthy objects: Gold is found in almost all electronic devices, including wedding rings, Olympic medals, religious icons cell phones, televisions, calculators and global and Oscars. even used positioning system (GPS) units. Rapid accurate transmission of digital in making information is vital in today’s world and gold, energy- as an efficient and reliable conductor, is often found in desktop and laptop computers to efficient facilitate accurate transmission of digital data at remarkable speeds. glass for multi-storey buildings. PAGE 7 SECTION G1 THE KRUGERRAND The Krugerrand is the The Krugerrand was the world’s first ounce- denominated gold coin. Although Krugerrands world’s most widely- are actually legal tender, their value has never held and actively-traded been displayed on the coin. This is because the value of each coin is linked to the prevailing gold bullion coin. It was gold price. developed in the 1960s by The first 22 karat gold Krugerrand was the then Chamber of Mines minted on 3 July 1967. Since that time more than 60 million Krugerrands in all sizes have of South Africa, working been minted. closely with the South In 1980, the fractional Krugerrands (½ oz, ¼ oz African Reserve Bank and and 1/10 oz) were added to the 1oz Krugerrand so the smaller buyer could buy gold at an the South African Mint. affordable price. Unusual for gold coins at the time, the Krugerrand could be converted into any currency. The Krugerrand was the first legal tender gold bullion coin to gain worldwide use in the modern era. PAGE 8 MINING FOR SCHOOLS SECTION G2 Harmony Gold Ming Company Limited PAGE 9 SECTION G2 WHERE GOLD IS CURRENTLY MINED North West Province 4 4 Kalgold Gauteng North West 2 3 1 West Rand Doornkop Free State 2 Evander Moab Khotsong (Cooke) Rand Uranium Kopanang (including Great Tau Lekoa Noligwa) TauTona 3 (including Savuka) Driefontein South Africa South Kloof Deep Mponeng Kusasalethu Target 1 Tshepong Phakisa Masimong Free State 1 Bambanani Legend Unisel AngloGold Ashanti Pan African Resources Harmony Village Beatrix Sibanye Defunct operations Gold Fields Joel Note: Most mining companies have surface and retreatment plants in the vicinity of their mining operations PAGE 10 SECTION G2 WHERE GOLD IS CURRENTLY MINED (CONTINUED) GEOLOGY northern and western margins of this basin, but not in a continuous band. South Africa’s gold ore reserves in the Witwatersrand Basin, a gold The Witwatersrand Basin is covered by younger sedimentary and volcanic rocks such as placer deposit, with gold hosted by those making up the Ventersdorp and Karoo conglomerates and grits, has been Supergroups.
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