Report Coverage
This report focuses on the Mining of Precious Metals and Minerals: Gold and Uranium, Platinum and Diamonds, and includes comprehensive information on production, exports, costs, commodity prices and other influencing factors, as well as corporate actions and regulatory and other developments in the sector. There are profiles of 35 companies including major gold producers such as AngloGold Ashanti, Sibanye-Stillwater, Harmony and Gold Fields, platinum-group metal players such as Anglo American Platinum, Impala, Northam, Mmakau and Royal Bafokeng and diamond miners Petra Diamonds and De Beers.
Introduction
According to data released by the Department of Mineral Resources and Energy (DMRE), local and export sales of gold, platinum and diamonds amounted to R139.4bn in 2019, while the Minerals Council South Africa said 275,371 people were employed by these sectors in that year. The most important challenges facing producers of gold, uranium, platinum and diamonds are disruptions to the supply of, and markets for, these commodities due to coronavirus; the increasing cost of electricity, water and labour in particular; and electricity supply problems.
Strengths
• Some of the largest gold producing companies are well-established in South Africa.
• South Africa holds more than 90% of the world’s PGM reserves.
• South Africa is the world’s largest producer of platinum.
• South Africa was the world’s fourth-largest producer of diamonds in terms of value in 2018.
• The country has a long history of gold mining.
• The Witwatersrand Basin is the gold deposit with the largest reserves in the world.
• The world’s largest platinum producing companies are well established in South Africa.
Weaknesses
• Ageing infrastructure of gold and platinum mines.
• Continued declines in productivity due to increased travelling times for workers to reach work areas, and high temperatures and humidity levels in gold and platinum mines.
• Declining gold grades.
• Shortage of skills in certain disciplines.
• The increasing depth of gold and platinum mines, making extraction more dangerous and expensive.
Opportunities
• Gold producers are investing in R&D and innovation to extend the life of the sector.
• Increasing rand gold and platinum prices.
• Some closed gold mines can still be profitably operated on a smaller scale.
Threats
• Disruptions to supply and demand, and higher operating costs caused by Covid-19.
• Electricity supply problems.
• Illegal mining and gold raids.
• Increasing costs, of electricity, water and labour in particular, pose a threat to the profitability and sustainability of the gold, platinum and diamond mining sectors.
• The increasing contribution of recycling to platinum supply, thus decreasing demand for the extracted metal.
Outlook
Gold\r\nThe World Bank expects the average gold price for 2020 will be US$1,600/oz, while Tom Palmer, CEO of Newmont Mining, believes gold prices will remain between US$1,500/oz and US$1,750/oz over the next five years, due to higher demand. He said: “The level of stimulus globally that’s going into the economy certainly underpins higher gold prices for the longer term, and I don’t think that stimulus has stopped yet.” The World Gold Council expects gold supply for 2020 to be lower year-on-year due to disruptions caused by coronavirus.\r\n\r\nPlatinum\r\nArnold van Graan, precious metals analyst at Nedbank Securities, expects South Africa’s platinum and gold production to decrease by between 10% and 15% in 2020, due to the national lockdown and problems at Amplats’ converter plant. Demand for platinum is forecast to decrease due to the impact of coronavirus on vehicle production and platinum jewellery sales. The World Bank forecasts the average platinum price for 2020 will be US$940/oz. \r\n\r\nDiamonds\r\nProduction cuts announced by producers will reduce global rough diamond supply by around 12% in 2020. Demand for rough diamonds is forecast to decrease due to the impact of coronavirus on diamond jewellery sales. According to diamond industry analyst Paul Zimnisky, rough diamond price levels will be determined by the size of supply cuts as a result of lockdowns and strategic supply reductions by large producers, and by the impact of the economic downturn on demand.
Full Report
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Industry Landscape
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View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 2 |
2.2. | Geographic Position | 6 |
3. | SIZE OF THE INDUSTRY | 8 |
4. | STATE OF THE INDUSTRY | 10 |
4.1. | Local | 10 |
4.1.1. | Gold | 10 |
4.1.2. | Uranium | 13 |
4.1.3. | Platinum | 13 |
4.1.4. | Diamonds | 15 |
4.1.5. | Trade | 16 |
4.1.6. | Corporate Actions | 17 |
4.1.7. | Regulations | 19 |
4.1.8. | Enterprise Development and Social Economic Development | 24 |
4.2. | Continental | 25 |
4.2.1. | Gold | 25 |
4.2.2. | Uranium | 26 |
4.2.3. | Platinum | 26 |
4.2.4. | Diamonds | 26 |
4.3. | International | 27 |
4.3.1. | Gold | 27 |
4.3.2. | Uranium | 30 |
4.3.3. | Platinum | 33 |
4.3.4. | Diamonds | 36 |
5. | INFLUENCING FACTORS | 39 |
5.1. | Coronavirus | 39 |
5.2. | Economic Environment | 41 |
5.3. | Electricity Supply and Prices | 42 |
5.4. | Labour | 42 |
5.5. | Mine Safety | 47 |
5.6. | Illegal Mining and Raids | 47 |
5.7. | Technology, Research and Development (R&D) and Innovation | 48 |
5.8. | Environmental Concerns | 50 |
5.9. | Platinum Recycling | 51 |
5.10. | Community Protests | 51 |
6. | COMPETITION | 52 |
6.1. | Barriers to Entry | 53 |
7. | SWOT ANALYSIS | 54 |
8. | OUTLOOK | 55 |
9. | INDUSTRY ASSOCIATIONS | 55 |
10. | REFERENCES | 56 |
10.1. | Publications | 56 |
10.2. | Websites | 57 |
APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS | 58 | |
Mining of Gold & Uranium | 58 | |
Mining of Platinum | 61 | |
Mining of Diamonds | 66 | |
COMPANY PROFILES – MINING OF GOLD AND URANIUM | 68 | |
ANGLOGOLD ASHANTI LTD | 68 | |
BLYVOOR GOLD (PTY) LTD | 74 | |
DRDGOLD LTD | 75 | |
GOLD FIELDS LTD | 79 | |
HARMONY GOLD MINING COMPANY LTD | 84 | |
ORION MINERALS LTD | 90 | |
PAN AFRICAN RESOURCES PLC | 94 | |
PENINSULA ENERGY LTD | 98 | |
SIBANYE STILLWATER LTD | 101 | |
STIBIUM MINING SOUTH AFRICA (PTY) LTD | 106 | |
THETA GOLD MINES LTD | 108 | |
VILLAGE MAIN REEF (PTY) LTD | 111 | |
WHITE RIVERS EXPLORATION (PTY) LTD | 114 | |
COMPANY PROFILES – MINING OF PLATINUM | 117 | |
AFRICAN RAINBOW MINERALS LTD | 117 | |
ANGLO AMERICAN PLATINUM LTD | 123 | |
ATLATSA RESOURCES CORPORATION | 127 | |
IMPALA PLATINUM HOLDINGS LTD | 129 | |
IVANHOE MINES LTD | 134 | |
MMAKAU MINING (PTY) LTD | 137 | |
NORTHAM PLATINUM LTD | 139 | |
ORION MINERALS LTD | 144 | |
PLATINUM GROUP METALS (RSA) (PTY) LTD | 148 | |
PLATMIN SOUTH AFRICA (PTY) LTD | 150 | |
ROYAL BAFOKENG PLATINUM LTD | 152 | |
SIBANYE STILLWATER LTD | 155 | |
SIYANDA RESOURCES (PTY) LTD | 160 | |
SYLVANIA PLATINUM LTD | 163 | |
VILLAGE MAIN REEF (PTY) LTD | 166 | |
WESIZWE PLATINUM LTD | 169 | |
WINDSOR SA (PTY) LTD | 172 | |
COMPANY PROFILES – MINING OF DIAMONDS | 174 | |
ALEXKOR SOC LTD | 174 | |
DE BEERS CONSOLIDATED MINES (PTY) LTD | 177 | |
DMI MINERALS SOUTH AFRICA (PTY) LTD | 180 | |
FRONTIER DIAMONDS LTD | 182 | |
KAREEVLEI MINING (PTY) LTD | 184 | |
PETRA DIAMONDS LTD | 185 | |
SOUTHSTONE MINERALS LTD | 188 | |
TRANS HEX GROEP LTD | 191 |