Who Owns Whom

Stone Quarrying 2015

Glynis Harrison | South Africa | 12 May 2015

Price

R 1 900.00(ZAR) estimated $ 120.93 (USD)*

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Report Coverage

The report on the Quarrying sector describes the current market, outlines developments within the sector and focuses on factors influencing the success of the local industry. The report also profiles 14 South African-based companies, ranging from Denron Quarries (Pty) Ltd in the Western Cape, which employs 34 people at its three aggregates quarries, to major player Afrisam (South Africa) (Pty) Ltd, which operates six cement production facilities, nine cement depots, 16 quarries and aggregate operations, 40 readymix concrete plants and one slagment plant.

The South African Market

This report focuses on the quarrying sector which includes stone, clay and sandpit quarrying and the quarrying of dimension stone and limestone. The Department of Mineral Resources (DMR) lists 701 quarrying operations, 580 of which are operations involved in the quarrying of aggregates and natural sand. The aggregate and sand sector employs approximately 7,500 people and the most recent figures available from the DMR and the Chamber of Mines set the 2012 value of aggregate and sand production of 53 million tons at R4.5bn.

Challenging Conditions

The Aggregates and Sand Producers Association of Southern Africa (ASPASA) classes quarrying as surface mining or open-pit activity, which falls under the industrial minerals sub-section of the mining sector. Thus the Department of Mineral Resources (DMR) has oversight over this sector and prescribes the licensing and permit regime under which a quarry can be legally operated. However, a recent investigation by the South African Revenue Service (SARS) concludes in a draft interpretation note presented to parliament that quarrying is not a mining activity, but a manufacturing process. This will have important implications for the sector which is currently struggling in a low growth environment where the roll-out of government’s R847bn strategic infrastructure spend has been slow, thus impacting negatively on demand for quarry outputs.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 11
4.1.2. Regulations 12
4.2. Enterprise Development and Social Economic Development 14
4.3. Continental 15
4.4. International 16
5. INFLUENCING FACTORS 17
5.1. Government Intervention 17
5.2. Economic Environment 18
5.3. Rising Input Costs 19
5.4. Labour 20
5.5. Technology and Environmental Concerns 21
6. COMPETITION 22
6.1. Barriers to Entry 22
6.2. Research and Development (R&D) and Innovation 23
7. SWOT ANALYSIS 23
8. OUTLOOK 24
9. INDUSTRY ASSOCIATIONS 25
10. REFERENCES 25
10.1. Publications 25
10.2. Websites 26
ORGANOGRAM 27
COMPANY PROFILES 29
AFRICAN SLATE QUARRIES (PTY) LTD 29
AFRIMAT LTD 31
AFRISAM (SOUTH AFRICA) (PTY) LTD 37
DENRON QUARRIES (PTY) LTD 42
KEELEY GRANITE (PTY) LTD 44
LAFARGE MINING SOUTH AFRICA (PTY) LTD 46
MARLIN HOLDINGS (PTY) LTD 49
PPC LIME LTD 51
PPC LTD 53
RAUBEX GROUP LTD 60
RED GRANITI SA (PTY) LTD 65
SOUTH COAST STONE CRUSHERS (PTY) LTD 67
WEST END CLAYBRICK (PTY) LTD 69
WG WEARNE LTD 71