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Sparkling opportunity for niche investors: Diamond mining in N Cape
Wed, 19 Mar 2008 10:26

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Region
Northern Cape
South Africa

Sector
Mining & Metals

Summary:
Mining in the Northern Cape is a well-established industry, but there is still ample opportunity to set up niche mining operations. Furthermore, there is a chance to focus business operations on the beneficiation of the raw products extracted throughout the province.
Contact
Mr Darius Babuseng

Email
dbabuseng@perm.ncape.gov.za

Tel
+27 53 830 4807
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Mining in the Northern Cape

The exceptional mineral wealth of the Northern Cape has ensured the importance - nationally and internationally - of the province's mining industry. Mining accounts for a major proportion of South Africa's export production of certain minerals and metals and has been a mainstay of the Northern Cape economy for over a century. Today, it remains the single most important economic sector of the province, driving the economy, creating wealth and providing employment for the people of the province. Major mining giants Samancor, Iscor, Goldfields, PPC Lime, Alpha Assmang and Anglo American operate within the Northern Cape.

Diamond mining
The Northern Cape is best known for its rich diamond mines, since the days when Cecil John Rhodes founded De Beers Consolidated Mines in 1888. De Beers has consistently been the world's largest producer of uncut diamonds. Its mines produce 95.2 per cent of South Africa's total diamond output. De Beers maintains its base in Kimberley, in the Northern Cape.

Diamonds are found in any one of the various Kimberlite pipes and fissures, in river deposits, in coastal deposits and offshore marine deposits. Open cast and alluvial diamond mining is established in the province, but increased interest in marine mining has presented new opportunities for investment in the industry. Beneficiation also, across the mineral extracts, has high growth potential as this aspect of mineral production has been neglected in South Africa up until now.

Copper mining
The province currently accounts for 18% of South Africa's copper production. Okiep Copper Company is the main stakeholder and has its principal mining operations in Springbok, Nababeep and Okiep.

Lead and zinc
South African exports of lead are dominated by production from the Aggeneys and Black Mountain mines, which provide an estimated 93 per cent of national production, and approximately 12 per cent of world lead exports. Zinc is of smaller national importance but around 43 per cent of South Africa's output is extracted from the NamaQualand region.

Iron
The Northern Cape contributes more than 84 per cent of South African production. The most important iron ore mine is located in Sishen. Beneficiation takes place at four plants at Sishen, each treating a different size fraction. The area is ideally located for beneficiation due to the abundance of natural resources, labour and infrastructure.

Manganese
The Northern Cape has the largest land-based manganese reserves in the country. These are concentrated in the Postmasburg and Kalahari fields in the Kalahari region and account for approximately 85 percent of South Africa's total production. There is an international demand for high-grade manganese ore which is found in the Northern Cape, and opportunities in its extraction exist readily across the supply chain.

For more information on these minerals and other specific opportunities in the mining industry in the Northern Cape:

Contact: Mr Frank Tlhomelang
Tel: +27 53 830 4807
Fax: +27 53 830 4838
Email: ktlhomelang@perm.ncape.gov.za

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