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Natural Resources
Gold and Platinum
Gold accounted for 11% of total
exports in the first half of 2001,
compared with 50% in 1980. It is
nevertheless a significant foreign-exchange
earner. South African mining houses
are world leaders in deep-level
mining technology, but the gold
price remains weak as gold's position
as an international reserve diminishes.
Deep-level mines are therefore
becoming increasingly uneconomic
(ore content fell from 4.6 grams
of gold per tonne in 1999 to 4.5
grams/tonne in 2000). One result
has been the closure of mainstream
mining groups or the sale of less
profitable operations, as well as
consolidation within the industry.
South Africa's AngloGold is the
world's largest producer of gold.
The platinum group of metals overtook
gold as the largest single export
commodity in 2000. South African
platinum companies are expanding
domestically and regionally. Anglo
Platinum, South Africa's largest
producer, is focusing on raising
its output in South Africa to 2.5m
oz in 2001 and to 3.5m oz by 2006,
whereas Impala Platinum has been
buying interests in Zimbabwe.
The Platinum production in '000
oz from 1995 through to 2000 was
as follows:
| |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
| South Africa |
3,370 |
3,390 |
3,700 |
3,680 |
3,900 |
3,800 |
| World |
4,990 |
4,980 |
4,960 |
5,400 |
4,870 |
5,290 |
Source: Johnson
Matthey
Diamonds
A South African company, De Beers,
is the world's largest producer
of diamonds, controlling world supply
and distribution through its London-
based Central Selling Organisation.
In May 2001 the mining giants of
South Africa underwent major restructuring,
where De Beers and Anglo American
terminated their cross-share holdings
and De Beers de-listed from the
JSE Securities Exchange and is now
privately owned by Anglo American
and the Oppenheimer family. Tokyo
Sexwale, former ANC premier of the
Gauteng province, now heads the
fastest-growing and most successful
black empowerment minerals group.
Mineral
processing
A significant portion of manufacturing
activity involves processing minerals,
including iron ore and manganese
ore. Beneficiation of minerals before
export has only recently attracted
large investment, but it is becoming
a major growth area as export earnings
from gold and other minerals in
unprocessed form wane.
The largest such beneficiation
projects under way include the Alusaf
aluminium refinery in the Eastern
Cape, which is one of the world's
lowest-cost producers. It is controlled
by Billiton, the state-owned Industrial
Development Corporation (IDC), and
the Columbus stainless steel project,
run by Billiton, Anglo American
and the IDC.
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