SA’s mining sector (2004-05)
• Accounted for 6.3% of GDP in 2004, slightly lower than the 6.7% contribution in 2003.
• Accounted for 9.9% of total fixed investment in the economy. Investment of up to R90-billion was approved for the years 2004 to 2008.
• Export figures amounted to R89.4-billion during 2004, representing 29.8% of South Africa’s total merchandise exports for the same period.
• This sector employed close to 457 371 workers during 2004.
• About 60 minerals were mined, of which the vast majority were exported to over 100 countries around the world.
• SA is the largest producer of platinum group metals, gold, chromium, ferrochrome, vanadium, manganese and vermiculite.

Limpopo’s mineral resources
Mining is the premier economic sector within the Limpopo Province. During 2003, total sales of primary minerals amounted to R13.3-billion, making it the country’s third largest contributor.

Interest is developing in Limpopo’s mineral riches and has reached unprecedented levels, with 396 prospecting and mining licences issued in 2002. Limpopo has no less than 136 operating mines, producing 9% of South Africa’s income from minerals.

Resources include three types of precious metals and stones, 12 types of ferrous and base metals, and 23 types of industrial minerals, according to the Council for Geoscience.

Diamonds, gold and platinum group metals make up Limpopo’s wealth of precious metals and stones. Ferrous and base metals include antimony, chromium, copper, iron, lead, manganese, nickel, silicon, tin, vanadium and zinc. Industrial minerals include amosite, andalusite, coal, gemstones, granite, graphite, gypsum, limestone, mica, magnesite, phosphate and vermiculite.

In the period 2004-05, the industry:
• Contributed 7% to South Africa’s GDP.
• Employed 56 425 people, which is 13% of the total of the country’s industrial complement.
• Accounted for 11.8% of the country’s mining renumeration share, amounting to R3.6-billion.
• Accounted for 10.1% of South Africa’s primary mineral sales, amounting to R11.899-billion.
• Contributed about 22% of Limpopo’s GDPR.

Opportunities in the sector
The mineral wealth bodes well, not only for mining, but for related opportunities too. There are unlimited opportunities for the manufacturing and supply of, among other, tools, uniforms, machinery and plant equipment. Some examples include:
• Opening of new platinum mines in the eastern and northern limbs of the Bushveld Igneous Complex.
• Opening of new coal mines within the six coal fields of the province, namely the Waterberg, Tuli, Soutpansberg, Springbokflats, Mopani and Vhembe.
• Coal methane gas operations.
• Petrochemical and gas-to-liquid industries.
• Dimension stone mining and beneficiation operations.
• Small-scale mining operations in the industrial minerals.
• Alternative energies, including fuel cells and batteries.
• Mining input supply industries.

Mining investment

Concrete steps
In a major vote of confidence in South Africa’s continued growth, PPC is investing heavily to increase cement production by expanding its Limpopo plant. Limpopo is receiving one of its biggest single investments as cement producer PPC starts a R1.23-billion expansion of its Dwaalboom plant to meet demand from South Africa’s growing economy.

The investment in a new state-of-the-art facility alongside the existing plant in southwest Limpopo will boost PPC’s annual production capacity by one-million tons. The new facility will include construction of the first new kiln line in SA in 15 years. It will meet international production benchmarks and best practice environmental standards.

De Beers set to dig deeper
De Beers is set to take its operations underground. The open-pit mine is nearing the end of its projected lifespan, and the company is currently exploring the feasibility of sinking underground shafts and the characteristics of the mineral itself at depth.

Venetia hopes to sink its first underground shaft in 2009 and, if all goes to plan, to be operational by 2018, which would extend the life of the mine by another projected 32 years. De Beers Venetia Mine accounts for 50% of South Africa’s total diamond production.

A dam good idea
Massive expansion of mining in waterscarce parts of Limpopo seems assured as government builds a R7-billion dam and bulk water distribution network. Domestic water users will also benefit. Construction of the De Hoop Dam has started, raising prospects that as many as 38 platinum and chrome mining projects involving investment of at least R20-billion will be implemented. With a storage capacity of 330-million cubic metres of water – marginally smaller than Loskop Dam – the proposed De Hoop Dam will serve much of Sekhukune District where mining houses urgently require new water supplies. It will also deliver water to communities which rank among the poorest in South Africa as well as free up capacity in Flag Boshielo Dam, enabling delivery of new water supplies to Mokopane and neighbouring mines.

R26-billion Eskom investment
Facilitating development of the vast Waterberg coal field is a TIL flagship project. Recent developments indicate that the coal field’s great wealth is finally being unlocked.

Limpopo is rapidly emerging as South Africa’s new coal hub, with growing potential to take over as the driving force of the country’s petrochemical industry. Eskom’s decision to build a R26-billion coal-fired electricity generation plant near its Matimba power station at Lephalale is driving expansion of coal mining and drawing strong interest in establishing Sasol-type coal-to-liquids fuel, gas-to-liquids fuel and related chemical plants in the province.