South African Natural Resources Economics Essay

sulphur African Natural Resources Economics EssayThe southeastward African natural resources archeological site industry is foresighted recognized as the most important sector and in spite of the fact that it is the sixth largest provider to total Gross Domestic Product (GDP) at currently and is still regarded as a foundation stone of the saving and the chief employer.The mining industry is a thoroughly-established and resourceful sector of South Africas economy and has a high degree of technical expertise as well as the ability to assemble capital for new development.The immensity of the known mineral resources and reserves were revealed by means of conservative exploration methods, still significant potential is expected for the unearthing of other top-notch deposits in atomic number 18as still to be thoroughly explored with coetaneous exploration technology.South Africa is a leading manufacturing business and supplier of a range of minerals and produces round 53 different minerals from 1548 mines and quarries as well as exports to approximately 80 countries.As a chief mining country, South Africas strengths comprise a soaring level of technical expertise and research and development activities.South Africas Mineral Resources can be classified intoPrecious Metals and MineralsEnergy MineralsNon- Ferrous Metals and MineralsFerrous Metals and MineralsIndustrial MineralsPRECIOUS METALS MINERALSINTRODUCTIONSouth Africa is the worlds largest producer of platinum-group metals (PGMs) and the fifth largest producer of gold. The country is too a major producer of diamonds, while silver is produced as a by-product from gold, lead-zinc, copper and PGM mines.1.1 DIAMONDSouth Africas 2009 diamond achievement was less than half of 2008 production, falling by 52.3 percent to 6.1 Mat. Diamonds sourced from kimberlitic contributed 91.8 percent to the countrys total production, while alluvial and marine diamonds contributed 4.8 and 3.4 percent, respectively.Product ion from De Beers Consolidated Mines dominated the countrys total fruit with a contribution of approximately 85 percent, despite a 49 percent reduction in carats recovered in 2009.1.2 GOLDSouth Africas gold industry has been the principal focus of black stinting empowerment, resulting in a changing ownership structure.With the increase in the price of gold and the worldwide scotch slowdown, investment in gold has increased, with investors seeking safe haven investments. Demand for gold also increased in 2009, particularly from India and China.1.3 PLATINUM GROUP METALSThe PGMs allow platinum, palladium, gold, rhodium, osmium, rhenium, iridium and ruthenium. Platinum, palladium and rhodium ar produced in substantial quantities. South Africa is the largest producer of platinum in the world and holds a large percentage of orbiculate reserves.1.4 SILVERSilver is produced in South Africa as a by-product of gold, lead-zinc, copper and PGM mines. South Africa does not have a primary si lver mine and the metal is precisely produced as a by-product of other minerals, most notably gold.2. ENERGY MINERALSINTRODUCTIONSouth Africa is well endowed with both ember and uranium reserves and is ranked amongst the top ten in the world, but has relatively small known reserves of oil colour and gas.South Africa is the 7th and eleventh largest world producer of coal and uranium, respectively.2.1 COALAccording to the 2010 BP Statistical Energy Survey, South Africa had end 2009 coal reserves of 30408 million tones, 3.68% of the world total. South Africa has Africas only significant coal reserves.2.2 OIL NATURAL GASAccording to the 2012 BP Statistical Energy Survey, South Africa consumed an average of 547.25 thousand barrels a day of oil in 2011, 0.64% of the world total.South Africa is the leading economic power in Africa as well as a key player in the African oil industry.2.3 URANIUMThe AngloGold Ashanti mine is the major producer of uranium as a by-product of gold in South Af rica from three mines, namely, ample Noligwa, Moab Khotsong and Kopanang. thermonuclear Fuel Corporation (Nucor) exports all uranium oxide (U3O8), which is affected through calcinations of uranium slurry.3. NON-FERROUS METALS AND MINERALSINTRODUCTIONSouth Africas non-ferrous minerals resources are rated amongst the top 10 countries in the world. The country is well endowed with titanium and zirconium resources, which is economically mineralized in heavy mineral sands in Kwan-Zulu Natal as well as the Eastern and westbound Cape.3.1 BAUXITESouth Africa does not mine any bauxite. It does, however, have an active aluminum smelting industry.The Hillside aluminum smelter sited in Richards Bay is one of the worlds most superior and good AP30 smelters and produces T-bars and primary aluminum ingots.3.2 ANTIMONYSouth Africa is a major global antimony producer, producing 3 000 t in 2009. The largest antimony producer in South Africa is Consolidated Murchison, a subsidiary of Metorex Limi ted.3.3 NICKEL COBALTMost of South Africas nickel and cobalt are produced as by product of platinum mining activities on the Bushed Igneous Complex.Nickel mining is done by means of an underground shaft and also by open-pit mining. Oxidized chromatist is also mine as division of the pre-strip of the future open pits.3.4 COPPERParabola, South Africas leading copper producer, is located 360km north east of Pretoria, close to the Kruger National Park. Parabola is also a major source of vermiculite and baddeleyite (zirconium oxide).The majority shareholders in Parabola Mining Co. are Rio Tinto plc (57.7%) and Anglo-American.3.5 ZINC LEADExira owns Zinced, an electrolytic zinc refinery with the force to produce 110ktpa of zinc and 170 kappa of sulphuric acid.The refinery, located 50 km east of Johannesburg in Springs, processes some 240ktpa of zinc concentrate.3.6 TITANIUM ZIRCONIUMSouth Africa is Africas main producer, with 30% of world production, second subsequently Australia. Li monite, retiled and leucoxene are the primary ore minerals of titanium and are usually found in localized beach placer deposits, hence the term Heavy Mineral Sands.Anglo American and BHP Billiton are the main producers from their operation on both coasts of South Africa.4. FERROUS METALS AND MINERALSINTRODUCTIONSouth Africa is the worlds largest producer of chromium and vanadium ores and a leading supplier of their alloys. It is also a major producer of iron and manganese ores, an important supplier of manganese alloys and a small producer of ferrosilicon and silicon metal.4.1 CHROMIUMAfrican plate is produced from the Bushed Complex in South Africa, which has 80% of global reserves and produces approximately 50% of global chromate. Nearly all of Zimbabwes chrome production is sourced from the Great Dyke and consumed for local ferrochrome plants.4.2 IRON OREAccording to the USGS, South Africa produced 53 million metric tons of iron ore in 2009, making it the worlds 7th largest prod ucer. It also estimated, in 2009, that South Africa has 1000 million tons of crude ore reserves and 650 million metric tons of iron content reserves.4.3 MANGANESESouth Africa currently accounts for rough 75% of the worlds identified manganese resources. These mostly occur near Hoatzin in the Northern Cape Province. According to the USGS, reserves were estimated at 15 billion tons in 2011. South Africa was the worlds largest producer of manganese in 2011, producing 3.4 million tons.4.4 VANADIUMPure vanadium (V) is a bright white metal, and is soft and ductile. It is has a good corrosion resistance to a variety of alkalis and acids, but oxidizes readily above 660 C. About 85% of vanadium is used as ferrovanadium or as a steel additive.5. INDUSTRIAL MINERALSINTRODUCTIONIndustrial minerals are generally high volume, low value commodities that will usually bear minimum cost of underground exploitation since most occur near surface. As a result, most industrial minerals require less com plicated mining techniques and, therefore, present opportunities for lowly mining development.SOUTH AFRICANCEMENT INDUSTRYThe cement production process cement is a synthetic grind that, when assorted with water and aggregates, produces concrete.The cement-making process can be divided into a few basic stepsMining limestoneProportioning and grinding limestone with other corrective raw materialsManufacturing clinker in a kiln at temperatures of 1,450CGrinding clinker and extra minerals to produce the powder known as cementDistributing cement to clientsSouthern Africa Cement Industry OverviewA resource-rich country, characterized by vigorous GDP growth and a flourishing construction market, South Africa has all the markings of a sensation story for cement producers.With numerous capacity extension projects being planned or recently concluded, South African cement companies are gearing up for a constant expansion of the cement market.ConsumptionSouth Africa has enjoyed a stable increa se in its cement utilization in recent years and the 2004-2006 periods proved no exception. In 2004, connubial cement demand stood at 10.69Mt, rising by 11.6 per cent to 11.934Mt the year after.The strongest regional growth in 2006 was recorded in the Western Cape which sawing machine its cement market inflate by almost 20 per cent.Other markets to trace double-digit growth figures were Mpumalanga (16.8 per cent), Kwazulu-Natal (14.7 per cent), Gauteng (13.4 per cent) and Free State (10.5 per cent).Market movementThe market shares of the quartette players on the basis of production capacity are as follows PPC cement leads the pack at 43%, followed by Afrisam at 24% and Lafarge at 23%. Cimpor accounts for 10% of overall production capacity.When, or if, all the new pipeline capacity is in production, PPCs production market share is expected to decline to 41%, Afrisam to 19%, Lafarge to 18%, while Sephaku will account for 10% of overall production capacity, and Conticem an anticipate d 3%.Challenges faced by the Cement Industry come up fuel prices and deceitful road and railway facilities facade a serious difficulty when it comes to the transport of cement.Mounting electricity and raw material costs are also totaling to production costs.Skills deficiency Worldwide antagonism for skills.Accessible infrastructure besieged to get by with growth.Equipment and civil contract lead times increasing. opposition in SA to make use of of kilns to set out wasteLooking to the future of the cement sector in SASouth Africa is in the process of restructuring its future. morphologic improvements are taking place in its economy, infrastructure improvements have enlarged the nations economic capacity and will prop up, not obstruct future economic growth.A key move towards opening the construction industry to increasing opportunities is the Department of Housings invitation in March 2010, to invite suppliers of substitute building methods to team up later this year.The Major Cemen t Producing Players in South Africa1. PRETORIA PORTLAND CEMENT PPC is the principal supplier of cement in southern Africa through eightsome cement manufacturing facilities and three milling depots in South Africa, Botswana and Zimbabwe that can produce around eight million tons of cement products each year.2. LAFARGE CEMENT ZIMBABWE Lafarge Cement Zimbabwe Limited, previously Circle Cement Limited, is a Zimbabwe-based cement manufacturer and also a distributor of cement and related products. Lafarge has a production capacity of 450,000 MT per year, 120,000 MT of which is exported.3. LAFARGE ZAMBIA Lafarge Cement Zambia manufactures and provides cement for its local market and also exports to bordering DRC and Burundi.