The Republic of South Africa is located at the southernmost tip of the African continent, bordered on the east, west, and south by the Indian Ocean and the Atlantic Ocean, and sharing land borders to the north with Namibia, Zimbabwe, Mozambique, and Eswatini. Situated at a crucial maritime crossroads between two major oceans, the Cape of Good Hope route at its southwestern tip has long been one of the world’s busiest sea lanes. The country covers an area of 1.22 million square kilometers and has a population of 46.9 million, with a per capita GDP of approximately US$4,500. It boasts Africa’s most developed transportation system. South Africa has 105,000 kilometers of paved roads and 430,000 kilometers of unpaved roads; its railway network spans 34,000 kilometers, with the Transnet rail line being the longest, stretching 30,600 kilometers one way and connecting various mineral-rich regions primarily for freight transport. The country has five major ports, the largest of which is Richards Bay (with a throughput of 71 million tons, mainly used for coal exports), followed by Saldanha Bay (with a throughput of 30.9 million tons, primarily serving iron ore exports). Other significant ports include Durban (with a throughput of 29.7 million tons, mainly handling liquid cargoes and containers) and the newly constructed Coega Port, located near the eastern Cape and close to Port Elizabeth, which is currently under construction. South African Airways is among the world’s 50 largest airlines and is also Africa’s largest commercial airline. South Africa has a total of nine state-owned airports, including international airports in Johannesburg, Durban, and Cape Town. South Africa is the only country in the world that simultaneously has three capitals: Pretoria as the administrative capital, Cape Town as the legislative capital, and Bloemfontein as the judicial capital. The Republic of South Africa holds a prominent economic and resource position on the African continent, accounting for roughly 20% of Africa’s GDP.

South Africa’s mineral resources account for 50% of Africa’s total and rank fifth globally. It holds the world’s largest reserves of platinum-group metals, manganese, chromium, gold, and andalusite, as well as the second-largest reserves of fluorite, titanium, vermiculite, and zircon. Its reserves of diamonds, antimony, and phosphates rank fourth worldwide, while its reserves of nickel and uranium rank fifth. The country’s reserves of lead, coal, and iron ore rank seventh, eighth, and ninth, respectively, globally. In 2005, South Africa ranked first in the world in the production of gold, platinum-group metals, andalusite, chromite, ferrochrome, vanadium, and vermiculite; its output of manganese and titanium ranked second globally. The mining sector is the largest component of South Africa’s basic economy, followed by agriculture, manufacturing, the power industry, and the construction industry. In recent years, South Africa’s wholesale and retail sectors, tourism, financial services, and information and communication industries have also been growing rapidly. South Africa is the world’s largest supplier of high-quality minerals and their products. In 2005, the value of South Africa’s mining and quarrying output reached 94.3 billion rand (US$14.8 billion), accounting for 7% of the country’s total GDP. Investment in mining fixed assets totaled 15.9 billion rand (US$2.5 billion), representing 6.1% of the nation’s total fixed-asset investment.

In 2005, South Africa had 1,113 mines and quarries operating in 55 different mineral categories, an increase of 120 mines compared to 2004. Among these were 45 gold mines, 29 platinum-group-metal mines, 64 coal mines, and 202 diamond mines. Total sales of mineral products reached US$22.4 billion, with exports amounting to US$16 billion. Exports of primary mineral products totaled 37.5 billion rand, while processed products accounted for 74.8 billion rand. In 2005, South Africa exported mineral products to 101 countries, with Europe accounting for 89.9% of these exports. Mineral export revenues represented 29.3% of the country’s total export earnings. The share of gold exports in primary mineral exports declined from 23.7% in the previous year to 18.6%. In 2003, gold had been South Africa’s top export mineral; by 2004, it had fallen to second place after platinum-group metals. In 2005, platinum-group metals accounted for 26.9% of primary mineral sales revenue, followed by coal at 24.9%, with gold dropping to third place. Exports of processed mineral products—including ferroalloys, aluminum, carbon steel, and stainless steel—grew by 37.4%. In 2005, employees in South Africa’s mining sector made up 2.6% of the country’s economically active population and 5.1% of the non-agricultural population. The average number of people employed in mining decreased by 1.3% compared to the previous year, standing at 448,909 in 2004.

In 2005, South Africa’s gold production declined, primarily due to the closure, suspension, and downsizing of mines caused by higher costs, as well as a strike in August. As a result, total sales revenue fell by 16% to 24.6 billion rand. The number of employees decreased from 179,964 in 2004 to 160,634 in 2005.

Among South Africa’s mineral product exports, platinum group metals rank first, coal ranks second, and gold ranks third; followed by ferroalloys and non-ferrous metals. South Africa holds the world’s top position in exports of chromite and andalusite, ranks second in manganese ore exports, and fourth in chromium ore exports. South Africa is a major global producer of coal and the world’s fourth-largest coal exporter, as well as the largest producer of liquid fuels from coal.

    I. Mineral Resources

South Africa is rich in mineral resources and boasts enormous reserves—yet the only resource it lacks is petroleum. The country holds reserves of more than 60 different types of minerals, many of which rank among the world’s largest. In particular, South Africa leads the world in reserves of platinum-group metals, manganese, chromium, gold, sillimanite, and alumina—accounting for 87.7%, 80%, 72.4%, 40.1%, 37%, and 31% of global reserves, respectively. It also ranks first globally in diamond reserves. Furthermore, its reserves of fluorite, titanium, vermiculite, and zirconium rank second in the world, accounting for 16.7%, 18.3%, 40%, and 19.4% of global reserves, respectively. In addition, South Africa possesses substantial reserves of phosphate, coal, iron ore, lead ore, uranium, antimony, and nickel. The Witwatersrand Basin contains the world’s largest gold deposit. The bushveld regions located in North West Province and Mpumalanga Province are home to the world’s largest chromium and manganese deposits, each accounting for more than half of the world’s total reserves. Over 80% of the world’s manganese reserves are concentrated in the Transvaal region (north of the Vaal River). The Northern Province is also a major mining hub, rich in copper, asbestos, coal, iron ore, platinum, chromium, and diamonds. The southwestern part of Mpumalanga Province is Africa’s largest coal-producing region, and the three coal-fired power stations in this area constitute some of the largest power plants in the Southern Hemisphere. In addition to platinum-group metals, North West Province is an important production base for South African marble and fluorite. Below is a comparison of South Africa’s major mineral resource reserves and reserve bases between 2006 and 2001.

South Africa is home to many world-class, large-scale mineral deposits, including the gold-uranium deposits in the Witwatersrand Basin, the iron-manganese-asbestos deposits in the Transvaal Basin, the platinum-nickel-chrome-magnetite-vanadium-tin-fluorite deposits in the Bushveld Complex, the copper-apatite-vermiculite-magnetite deposits in the Palabora Complex, and diamond deposits—each of which ranks among the world’s most renowned super-large mineral deposits. (Ag—silver; As—arsenic; B—asbestos; C—coal; Cr—chromite; Cu—copper; Dm—diamond; Fe—iron; Gyp—gypsum; Ls—sulfur; Salt—salt; Ky—kyanite; Cem—lime; P—phosphorus; Mn—manganese; PGM—platinum group metals; Sb—antimony; V—vanadium; Zn—zinc.)

    Gold In 2006, South Africa’s gold reserves stood at 36,000 tons, with proven reserves totaling 6,000 tons (a 25% decrease from 2001), placing it first in the world and accounting for 40.1% of global total reserves. Ninety-eight percent of South Africa’s gold is concentrated in the Witwatersrand district, located in the provinces of Transvaal and the Orange Free State. The vast majority of these deposits occur within the Witwatersrand Group’s conglomerates—gold-bearing or gold-uranium-bearing conglomerate gold deposits that originated in the Precambrian cratonic sag and primordial geosynclinal sag regions. This type of deposit represents the largest reserve and production volume among all gold deposit types worldwide.

    Diamond South Africa boasts extremely abundant diamond resources. In 2006, its reserves and reserve base stood at 70 million carats and 150 million carats, respectively—representing a 33.93% increase from 2001—and placing it fourth in the world in terms of reserves. South Africa’s diamond deposits are categorized into primary deposits (kimberlite pipes) and alluvial deposits. The inland plateau of South Africa is home to the world’s most concentrated occurrence of kimberlite bodies; industrially valuable kimberlite bodies are primarily found north of the Cape Mountains. South Africa’s diamond alluvial deposits can be divided into two major categories based on their geological age: one comprises diamond-bearing sands within the Witwatersrand Group conglomerates dating from the Early Proterozoic era, and the other consists of modern diamond-bearing sands. The latter type holds greater economic significance, and for a long time, it has been the primary target of diamond mining operations.

In recent years, South Africa has been exploring several kimberlite deposits. The diamonds found in the Klipspringer intrusion are valued at $112 per carat. The newly discovered kudu pipe on the Lesland Estate initially shows a grade of 9 carats per 100 tons, but it also contains large diamonds weighing 10.43 carats, 5.2 carats, and 4.2 carats. Some older mines are also undergoing exploration activities.

    Platinum group metals In 2006, South Africa’s reserves of platinum-group metals (PGMs) stood at 70,000 tons, with proven reserves totaling 63,000 tons, accounting for 87.7% of the world’s total reserves and placing it first globally. South Africa’s PGMs are primarily mined from three distinct stratigraphic levels within the Bushveld Complex in the province of Transvaal. The most significant platinum-bearing layer is the Merensky Reef, which is associated with copper-nickel sulfide deposits. The grade of PGMs in the sulfide ores from this layer ranges from 5 to 7 grams per ton. Another important platinum-bearing layer is the UG-2 chromitite layer, which occurs in association with mafic and ultramafic rocks. The average grade of precious metals (PGMs and gold) in this layer is 7 grams per ton; the primary product is PGMs, while chromite is recovered as a byproduct. The third layer is the Platreef, which has been less extensively studied. Currently, there are 10 operating mines within the Bushveld Complex, nine of which extract ore from the Merensky Reef and the UG-2 chromitite layer, while the remaining one mines the Platreef layer located on the northern flank of the complex.

    Coal Coal accounts for more than 70% of South Africa’s total primary energy consumption. In 2006, South Africa’s proven coal reserves were estimated at 31 billion tons, almost entirely consisting of bituminous coal, representing 3.5% of the world’s total reserves and ranking eighth globally. Currently, Witbank is South Africa’s largest coal-producing region, with estimated reserves of 12.46 billion tons; however, these reserves are currently being depleted at a rate of 91 million tons per year. Another major coal-producing area is Warburg, whose recoverable reserves are estimated at 15.49 billion tons. South Africa’s coal resources are predominantly from Permian coal seams, primarily found in the Ecca Formation of the Karoo Supergroup.

South Africa has very few oil and gas reserves, which are concentrated mainly in offshore areas.

    Uranium South Africa boasts low-cost uranium resources (at or below $80 per kilogram) totaling 341,000 tons—representing a 56.42% increase from 2001—and accounting for 7.2% of the world’s total reserves, placing it fifth globally. South Africa’s uranium deposits are primarily concentrated in gold-uranium conglomerates within the Witwatersrand Basin, forming conglomerate-type gold-uranium deposits characterized by large reserves but low grades; uranium is recovered as a byproduct. These conglomerates contain more than 20 industrial uranium-bearing layers, with individual layers extending anywhere from several kilometers to tens of kilometers. Additionally, uranium extracted as a byproduct is also recovered from the Bola copper deposit in the Permian-Triassic Karoo Basin, which is of the disseminated-magmatic type.

    Chromium In 2006, South Africa’s reserves of chromite ore stood at 5.5 billion tons (an increase of 26.5 times compared to 2001), with reserves of 160 million tons (an increase of 60% compared to 2001). These reserves accounted for 72.4% of the world’s total reserves, placing South Africa first in the world. South Africa’s chromite is primarily mined from the Bushveld Complex in the Transvaal Province, with major deposits located on the eastern and western flanks of the complex. This region is renowned worldwide as a key distribution area for layered chromite deposits, occurring within basic and ultrabasic rocks as well as their derivative rocks.

    Manganese In 2006, South Africa’s manganese ore reserves were estimated at 4 billion tons, with reserves amounting to 32 million tons, accounting for 80% of the world’s total reserves and placing it first in the world. South Africa’s manganese ores are classified into two major categories: chemical-grade and metallurgical-grade. There are two primary mining regions: one located in northern Cape Province, which comprises the Postmasburg Ore Field and the Kalahari Ore Field. The ore deposits occur within the Transvaal System metamorphic rocks and belong to the jasperoid ironstone-type deposits. This region is currently South Africa’s main manganese-producing area, primarily focused on the production of metallurgical-grade manganese ore. The other mining region is situated in western Transvaal Province, where chemical-grade manganese ore is the primary product.

    Vanadium In 2006, South Africa’s vanadium reserves stood at 12 million tons, accounting for 31% of the world’s total reserves and ranking first globally. The country’s vanadium reserves amount to 3 million tons. Vanadium is produced within the titanomagnetite zone of the Bushveld Complex.

    Iron South Africa boasts abundant iron ore reserves. In 2006, its proven and probable reserves stood at 650 million tons and 1.5 billion tons, respectively—representing declines of 35% compared to 2001—and placing it ninth globally in terms of reserve size. A significant iron ore deposit is located in Sishen, in the Cape Province, where a massive, irregular hematite body is found. Numerous smaller deposits are also concentrated around the Postmasburg manganese mine.

    Lead In 2006, South Africa’s lead reserves and reserve base were 400,000 tons and 3 million tons, respectively. South Africa’s lead is primarily mined in Agincourt and Ferreira.

    Zinc In 2006, South Africa’s zinc reserves stood at 15 million tons, with the majority being produced in the Cape Province.

    Nickel In 2006, South Africa’s nickel reserves and reserve base stood at 3.7 million tons and 12 million tons, respectively (an increase of 1.69% compared to 2001), accounting for 8.4% of the world’s total reserve base and ranking fifth globally. Nickel deposits are primarily found in various sulfide deposits associated with basic and ultrabasic rocks, the most significant of which are the three main ore-bearing strata within the Bushveld Complex.

    Copper In 2006, South Africa’s copper reserves stood at 13 million tons. The copper ore reserves are primarily concentrated in the Palabora Complex, the Messina Complex, the Okiep Complex, the Prescott Complex, the Agnes Complex, and the Bushveld Complex.

    Ilmenite South Africa’s reserves of ilmenite amount to 63 million tons, with a reserve base of 220 million tons. This reserve base accounts for 18.3% of the world’s total, placing South Africa second globally.

    Antimony In 2006, South Africa’s antimony reserves stood at 200,000 tons, accounting for 6.4% of the world’s total reserves and ranking fourth globally.

    Fluorite In 2006, South Africa’s fluorite reserves and reserve base were 41 million tons and 80 million tons, respectively. The reserve base accounted for 16.7% of the global total, placing South Africa second in the world. Most of the economically significant large fluorite deposits are found in dolomites of the Transvaal System or in felsic rocks of the Bushveld Complex in western Transvaal Province.

    Phosphate rock In 2008, South Africa’s phosphate reserves and reserve base were 1.5 billion tons and 2.5 billion tons, respectively, accounting for 5% of the world’s total reserve base and ranking fourth globally.

    Zircon In 2006, South Africa’s zircon reserves and reserve base both stood at 14 million tons, with the reserve base accounting for 19.4% of the global total, placing it second in the world.

    Vermiculite In 2006, South Africa’s reserves and reserve base for vermiculite were 14 million tons and 80 million tons, respectively. The reserve base accounted for 40% of the world’s total, ranking it second globally.

In 2005, South Africa’s exploration investment accounted for 4% of the world’s total exploration spending, ranking it seventh globally. According to the Metals Economics Group (MEG), primary exploration companies saw their mineral exploration expenditures rise by nearly 57%, reaching 14.6 billion rand (US$2.3 billion). South Africa’s exploration spending has been on the rise since 2002; from 2002 to 2004, a total of 332.5 billion rand was invested in exploration over the three-year period, with 74 billion rand spent in 2002, 121.1 billion rand in 2003, and 138.4 billion rand in 2004. The country’s major exploration targets include platinum-group metals, diamonds, gold, uranium, and coal.
    II. Mining Production
South Africa is the world’s largest supplier of high-quality minerals and their products, and it ranks fifth globally in terms of mining output. The mining sector constitutes the largest component of South Africa’s foundational economy. In 2005, South Africa produced 55 types of mineral products from more than 1,113 mines and mining sites, including 202 diamond mines, 45 gold mines, 64 coal mines, and 29 mines producing platinum-group metals. This represented an increase of 364 mines compared to 2001 and a rise of 120 mines over 2004. All these mines are registered with the South African Department of Mineral Resources and Energy (DME). In 2005, South Africa exported mineral products to 101 countries.

In 2005, the world’s top-ranking mineral producers were gold, platinum-group metals, andalusite, chromite, ferrochrome, vanadium, and vermiculite. South Africa ranked second globally in the production of manganese ore and titanium ore. Other important metallic minerals with relatively high global production levels include antimony, ferromanganese, uranium, and zircon—as well as their respective concentrates (Table 2). Among South Africa’s mineral products, platinum-group metals accounted for the largest sales revenue, followed by coal in second place, gold in third, and then ferroalloys and nonferrous metals. South Africa ranks first worldwide in exports of chromite and andalusite, second in exports of manganese ore, and fourth in exports of chromium ore. South Africa is a major global producer of coal and the world’s fourth-largest coal exporter. It is also the world’s largest producer of coal-to-liquids.

    Gold mine For more than 30 years, South Africa’s gold production has been on a year-on-year downward trend. The peak of production was in 1970, when output reached 989 tons, accounting for roughly 70% of the world’s total mine-produced gold that year. For some time now, South Africa’s gold production has been shrinking at an annual rate of 5%. In recent years, the strengthening of the South African currency, the rand, has accelerated this decline. In 2001, South Africa’s gold production stood at 395 tons, a decrease of 8.4% compared to 2000. Since 2003, South Africa’s gold production has declined annually, reaching its lowest level since 1931—340 tons—in 2004. In 2005, South Africa’s gold production fell by 12.6% from the previous year, and in 2006 it dropped further by 8.58%, falling to just 270 tons. In 2004, South Africa’s total mining sales amounted to 125.3 billion rand, with gold sales accounting for 29.3 billion rand—placing it second behind platinum-group metals, which generated 33.3 billion rand. In 2005, coal sales in South Africa reached 36 billion rand, surpassing gold sales by 24.6 billion rand, thereby pushing gold sales down to third place. Ninety-eight percent of South Africa’s gold is produced in the mining fields and processing plants located in the Witwatersrand Triangle region, spanning the provinces of Transvaal and the Orange Free State.

    Platinum group metals Since 2004, platinum-group metals have become South Africa’s largest mining product in terms of value. Since 2001, South Africa’s production of platinum-group metals has been increasing year by year. In 2005, total output reached 303 tons, accounting for 56.7% of global platinum-group metal production and placing South Africa first in the world. Among these, platinum production reached 169 tons (in 2005), representing 56% of the global total; palladium and rhodium production reached 78 tons (38% of global output) and 16.7 tons (in 2004), respectively. Over the past decade, South Africa’s production of platinum and palladium has grown at an annual rate of 5%; in 2004, growth rates reached 6% and 7%, respectively. The growth rate in 2005 was the lowest since 1998, mainly due to a decline in fourth-quarter production caused by an explosion at Anglo Platinum’s Polokwane refinery. In 2006, however, platinum production increased as a result of the commissioning of platinum mines in South Africa’s Two Rivers region.

    Coal South Africa is a major global coal producer. In 2005, the country operated 64 coal mines, with an output of 245 million tons and a value of 36 billion rand (US$5.3 billion). Its coal production accounted for 4.9% of the world’s total, placing it fifth globally. In 2006, its output reached nearly 257 million tons. In 2005, South Africa’s coal production was concentrated in five major coalfields: Witbank (with raw coal production of 17.01 million tons), Highfeld (6.65 million tons), Waterberg (3.43 million tons), Free State (1.98 million tons), and Ermelo (1.22 million tons). These five coalfields accounted for nearly 99% of South Africa’s total raw coal production. Production from these major coalfields continues to grow, and there is significant potential for developing new projects. In 2005, South Africa’s total raw coal production amounted to 306 million tons, of which 245 million tons were marketable. Ninety percent of the marketable coal was produced by six major mining companies, listed in descending order as follows: BHP Billiton, Anglo Coal, Sasol, Eyesizwe Resources, Kumba Resources, and Xstrata. The marketable coal output of these six companies accounted for 26%, 22%, 17.3%, 17.4%, 8%, and 7% of the nation’s total, respectively.

In 2005, South Africa’s 56 coal mines produced 81% of the country’s raw coal. Among these, open-pit mining accounted for 53%, room-and-pillar mining for 37%, longwall mining for 7%, and shaft mining for 3%. Of the eight large coal mines (each with an annual output exceeding 12 million tons), the total output was 152 million tons; the 21 medium-sized coal mines (each with an annual output exceeding 2 million tons) produced 67 million tons; and the 38 small coal mines (each with an annual output below 2 million tons) produced 27 million tons. The number of coal mine employees increased from 55,000 in 2004 to 57,000 in 2005.

In 2005, South Africa exported 71.4 million tons of coal, accounting for 29.2% of the country’s total production and 9.2% of global trade volume. This made South Africa the world’s fifth-largest coal exporter, with exports reaching 32 countries. Of these, 87% were destined for European Community countries, while smaller volumes were shipped to countries in the Middle East, the Far East, and Asia. Among the exports, 69.2 million tons were shipped via RBCT. The average export price was 296 rand per ton, 3.44 times higher than the domestic average price.

In 2005, South Africa’s domestic consumption of coal reached nearly 173.5 million tons, representing a 14.15% increase over 2001 levels and accounting for 70.8% of the country’s total sales volume. Of this total, power generation consumed 106 million tons (61%), while synthetic fuels accounted for only 41 million tons (24%). Industrial consumption—including mining—amounted to 1,100 tons (6.3%), metallurgical consumption reached 7 million tons (4.1%), and commercial consumption stood at 7.5 million tons (4.3%). Previously used for household gas production, this segment has now been largely replaced by natural gas.

South Africa is also the world’s largest producer of coal-to-chemicals products and liquid fuels, and it has gradually developed world-leading coal liquefaction technology. South Africa’s Sasol company has established several coal liquefaction plants that can process 120,000 tons of coal per day, converting it into 160,000 barrels of liquid fuel—enough to meet 30% of South Africa’s transportation fuel consumption. Ninety percent of South Africa’s electricity comes from coal-fired power, while nuclear power accounts for 6%.

    Chromium In 2005, South Africa’s chromite production reached 74.94 million tons, accounting for approximately 38.8% of the world’s total output and ranking first globally. This represented a 36.21% increase compared to 2001. The country’s export volume was 657,000 tons, or 15.4% of global trade volume—lower than that of India, Kazakhstan, and Turkey.

    Diamond Among all of South Africa’s mineral resources, diamonds had the greatest impact on the country’s early economic development and growth, spurring the expansion of railways, telecommunications, and numerous secondary industries. In 2005, South Africa’s diamond production reached 15.8 million carats, representing a 41.49% increase from the 11.167 million carats produced in 2001. This made South Africa the world’s fifth-largest diamond producer, after Russia, Botswana, the Democratic Republic of the Congo, and Australia, with an output value of approximately 1.7 billion U.S. dollars. The 1.35 million-carat increase was largely driven by the Venetia mine operated by De Beers in Limpopo Province, South Africa’s largest diamond-producing region. Of the total 126 diamond mining and exploration licenses, 18 were for kimberlite deposits and 90 for alluvial deposits; however, 91% of South Africa’s diamond production came from kimberlite sources. In 2005, De Beers, South Africa’s leading diamond company, produced 15.2 million carats from its mines, accounting for 96% of the country’s total output. Trans Hex was South Africa’s second-largest diamond producer, with a production volume of 179,200 carats during the 2005-2006 fiscal year. South Africa’s exports of rough diamonds have exceeded domestic consumption, reaching approximately 1.4 billion U.S. dollars in 2005. Moreover, South Africa remains a major global source of gem-quality diamonds.

    Uranium In 2005, South Africa’s production of uranium oxide totaled 674 tons, a 36% decrease from 2001 and just 11% of the 1980 level (6,147 tons of uranium). Currently, only AngloGold’s gold mine produces uranium; this company’s Vaal River mine is the world’s 11th-largest gold mine and accounts for 1.6% of global uranium production. Due to higher uranium prices, AngloGold Ashanti announced that it would begin uranium production in 2007. All uranium produced in South Africa is exported by the Nuclear Fuels Corporation (NUFCOR); domestic mines do not sell uranium domestically. In 2005, South Africa exported 873.1 tons of uranium compounds, worth 325 million rand.

    Manganese In recent years, South Africa’s manganese ore production has fallen below China’s, relegating it to the second spot globally. In 2005, South Africa’s manganese ore output reached 4.612 million tons, an increase of 41.21% compared to 2001. Its exports totaled 2.119 million tons, placing it second in the world after Australia, with export revenues reaching 1.518 billion rand. The South African government has encouraged the production of high-value-added manganese products, resulting in a decline from the previous year’s 22% share of global manganese ore exports to 20%. Meanwhile, the share of high-carbon ferromanganese exports rose to 32%, and the share of silicomanganese exports increased to 20%. In 2005, South Africa’s ferromanganese production amounted to 570,600 tons, up 8.92% from 2001; of this, 65.69% was exported, generating export revenues of 1.711 billion rand. Other manganese alloy production totaled 275,300 tons, with 66.89% being exported. South Africa’s reserves of manganese ore still account for nearly 80% of the world’s total manganese ore reserves. The manganese ore produced in South Africa is primarily metallurgical-grade ore, with grades ranging from 30% to over 48%.

    Vanadium South Africa is the world’s largest producer and exporter of vanadium. The majority of vanadium production comes from vanadium-titanium magnetite deposits within the Bushveld Complex. In 2005, South Africa’s vanadium output reached 22,600 tons, representing a 24.29% increase over 2001 and accounting for 48% of global production. However, due to the closure of the Vantec mine, output declined by 3% compared to the previous year. Exports fell by 6% to 15,298 tons, yet export revenues surged by 124%, reaching 3.7 million rand. South Africa’s exports of ferrovanadium accounted for 16% of the global total, placing it second only to the Czech Republic.

    Silver mine In South Africa, silver is not mined as a primary mineral but rather as a byproduct of gold, lead-zinc, copper, and platinum mining. In 2005, silver production reached 87.9 tons, a 20% decrease compared to 2001.

    Nickel In 2004, South Africa produced approximately 39,900 tons of nickel, accounting for 3.1% of global production and ranking ninth worldwide. This represented a 10.83% increase compared to 2001. In 2005, production rose to 42,400 tons. Nickel is primarily a byproduct of platinum-group metals and copper mining. In 2004, domestic sales totaled 25,000 tons, with most of the nickel used in the production of stainless steel. Domestic sales reached 2.14 billion rand, an increase of 29.8%. Exports amounted to 17,500 tons, with nickel export revenues rising by 40% to 1.5 billion rand. Currently, South Africa’s nickel industry is undertaking a series of projects aimed at expanding production capacity. It is expected that by 2007, nickel production will see a substantial increase. The Nkomati Nickel mine is South Africa’s specialized nickel mine, accounting for 13% of the country’s total nickel output. In 2004, Lion Ore acquired a 50% stake in Nkomati Nickel. By 2008, the mine’s extraction capacity is set to triple—from 5,500 tons per year to 16,500 tons per year. Previously, this mine was owned by African Rainbow Minerals (ARM). At the same time, Lion Ore also acquired an 85% stake in the Tati Nickel mine.

    Copper In 2005, South Africa’s copper mine production totaled 97,000 tons of copper, while refined copper production reached 99,400 tons. These figures represented decreases of 31.63% and 24.7%, respectively, compared to 2001 levels. Copper production in South Africa is primarily led by Rio Tinto Palabora Mining Company Ltd. In addition, several lead-zinc and platinum mines in South Africa also produce small quantities of copper as a byproduct.

    Lead and zinc In 2005, South Africa’s refined lead concentrate production was 42,200 tons, recycled lead production was 65,300 tons, lead exports totaled 47,000 tons, and domestic consumption (including 15,200 tons of imported refined lead) reached 80,500 tons.

Zinc concentrate production fell to 32,100 tons, refined zinc production declined to 103,600 tons, zinc concentrate imports decreased to 68,000 tons, and domestic consumption of zinc metal rose to 103,400 tons.

    Iron In 2005, South Africa’s iron ore production reached 39.5 million tons, an increase of 13.65% compared to 2001. Of this output, 69% was destined for export. The major iron ore producers are Assmang and Kumba.

    Titanium In 2005, South Africa’s ilmenite production totaled 867,000 tons, and its rutile production reached 105,000 tons—representing decreases of 50.5% and 12.5%, respectively, compared to 2001 levels. In 2005, South Africa ranked second worldwide in titanium production.

    Antimony South Africa’s largest developer of antimony and precious metals is Metorex Ltd., currently the only company in South Africa producing antimony. The antimony produced by the company primarily originates from the Muichison mine. The antimony is mainly a byproduct of gold mining—specifically, stibnite. In 2005, South Africa’s antimony mine output totaled 6,874 tons, representing a 42.38% increase over 2001 levels. Antimony concentrate production, however, amounted to 5,979 tons, a decrease of 28.14% compared to 2001.

    Industrial minerals South Africa produces more than 30 types of industrial minerals from over 500 mines and mining sites, playing a significant role in the country’s consumption of mineral products. In 2005, the total output value of industrial minerals reached 6.9 billion rand (US$1.016 billion), nearly five times the figure for 2001. Of this total, domestic sales amounted to 5.9 billion rand, while exports totaled 1 billion rand. From 2001 to 2005, domestic sales of industrial minerals grew steadily; however, export volumes declined in 2005. Industrial minerals accounted for 4.82% of total mineral sales, 14.4% of domestic sales, and 0.98% of exports. Among these, domestic sales of fluorite, sulfur, salt, and vermiculite all increased, whereas exports of stone, andalusite, and phosphate declined significantly.

Most of the industrial minerals produced are consumed domestically. The largest domestic markets for industrial mineral consumption are the construction industry, the metallurgical industry, and agriculture. Granite and gabbro account for 47% of the country’s industrial mineral exports; other significant export mineral products include granite, vermiculite, phosphate rock, and andalusite. South Africa supplies nearly 40% of the world’s vermiculite and 36% of the world’s andalusite.

In 2005, South Africa’s total sales of mineral products amounted to 22.4 billion U.S. dollars, with exports totaling 16 billion U.S. dollars. Exports of primary mineral products reached 37.5 billion rand, while processed products accounted for 74.8 billion rand. In 2005, South Africa exported mineral products to 101 countries, with Europe accounting for 89.9%.

Mineral export revenues accounted for 29.3% of the country’s total exports. The share of gold exports in primary mineral exports declined from 23.7% in the previous year to 18.6%. In 2003, gold had been South Africa’s top-exported mineral; by 2004, it had fallen to second place, behind platinum-group metals. In 2005, platinum-group metals accounted for 26.9% of primary mineral export revenues, followed by coal at 24.9%, while gold dropped to third place. Exports of processed mineral products—including ferroalloys, aluminum, carbon steel, and stainless steel—grew by 37.4%. In 2005, mining sector employees in South Africa represented 2.6% of the country’s economically active population and 5.1% of the non-agricultural population. The average number of people employed in mining decreased by 1.3% compared to the previous year, standing at 448,909 in 2004.

In 2005, South Africa’s gold production declined, primarily due to the closure, suspension, and downsizing of mines caused by higher costs, as well as a strike in August. As a result, total sales revenue fell by 16% to 24.6 billion rand. The number of employees decreased from 179,964 in 2004 to 160,634 in 2005.

Although South Africa can largely meet its own demand for minerals, it still needs to import certain minerals and their products. Currently, the mineral products with the highest import volumes include alumina, coking coal, unworked and cut diamonds, certain ferroalloys, magnesite, nickel, precious metals, and sulfur. In 2005, the total value of imports of both natural and processed mineral products amounted to 19.6 billion rand (US$3.087 billion), a decrease of 42% compared to 2001.
Major References

1. Xi Xin. Annual Review of Global Mineral Resources—South Africa, 2002–2003
2. Chen Liping. Guide to Mining Investment in Africa—South Africa, China Metal Bulletin, Issue No. 9, 2005
3. Brazil’s Path to Developing Alternative Energy Sources in South Africa, China Economic and Trade Herald, Issue No. 19, 2006
4. South Africa’s Sasol Coal-to-Oil Project Settles in China, Shanghai Chemical Industry, Issue No. 10, 2005
5. South Africa Drives Global Platinum Supply Growth, China’s Precious Metals, Issue No. 5, 2006
6. China Steps Up Efforts to Secure Chromium Mineral Resources and Ferroalloys in South Africa, Issue No. 11, 2006
7. China Steel Granted Approval to Acquire South African Chrome Ore Project, Metal Mines, Issue No. 1, 2007
8. Liu Xisheng. Leveraging South Africa’s Experience in Mining Development and Management to Promote Hunan’s Mining Industry, Land & Resources Herald, Issue No. 3, 2006
9. Wu Danhong. An Analysis of the Prospects for China-South Africa Mining Cooperation, West Asia and Africa, No. 2, 2003
10. Mineral Commodity Summaries, 2006–2007
11. U.S. Geological Survey Minerals Yearbook, 2004
12. Mineral Economics. South Africa’s Mineral Industry, 2005/2006