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Stone Quarrying Clay Sandpits Mining Phosphates South Africa

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019

Alex Conradie | South Africa | 13 December 2019

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017

Alex Conradie | South Africa | 19 September 2017

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015

Glynis Harrison | South Africa | 12 May 2015

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Introduction

During 2018, 87.7 million tons (Mt) of locally produced quarry products, with a value of R9.5bn, were sold in South Africa, according to the Department of Mineral Resources and Energy (DMRE). In addition, the country exported 425.1 kilotons (kt) of quarry products worth US$60.3m, as per figures obtained from the International Trade Centre’s Trade Map. South Africa produced 2.1Mt of phosphate rock in 2018, making the country the 14th largest producer, according to the United States Geological Survey (USGS), while Trade Map data shows that 606.1kt of phosphate rock worth US$88.9m were exported in 2018. The most important challenges facing the quarrying sector are low activity levels in the construction sector, as well as rapidly rising input costs, which is also an issue negatively affecting the phosphate rock mining sector.

Strengths

• Adequate reserves of aggregate and sand are generally available in most areas of the country.
• Large, well-established companies are operating in the quarrying and phosphate rock mining sectors.
• South Africa was the world’s 14th largest producer of phosphate rock in 2018.
• South Africa’s phosphate rock reserves are the sixth largest in the world.

Weaknesses

• Demand for quarry products is heavily reliant on the construction industry, whose health is determined by the state of the economy, and investment in major infrastructure developments.
• Shortage of skills in certain disciplines.

Opportunities

• Government’s plan to speed up on-budget infrastructure projects should lead to higher demand for quarry products.
• Increasing demand for fertilisers to boost crop production in order to feed a growing world population should boost demand for phosphate rock.
• South Africa’s output and exports of phosphate rock will increase once the Elandsfontein mine comes into production.

Threats

• Continuing uncertainty regarding South Africa’s mining regulatory framework.
• Possible delays in government’s infrastructure spending.
• Rapidly increasing production costs, in particular electricity, water and labour costs.
• Weak economic growth.

Outlook

Quarrying Infrastructure developer and construction materials supplier Raubex Group stated in its latest annual report that it expected the challenging conditions in the construction sector to persist, while cement, aggregate and limestone producer PPC observed an increase in residential developments. Andries van Heerden, CEO of construction materials producer Afrimat, is of the opinion there are still “pockets of opportunity”, and that aggregate producers need to find and make use of these opportunities. Phosphate rock The World Bank expects phosphate rock prices to increase to US$92/t in 2020, and US$98/t in 2022, from the level of US$77.5/t in October 2019. According to Kropz, global demand for phosphate rock is forecast to rise to 297Mt in 2035 from 213Mt in 2017.

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa
Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 24.40 (USD)*

Historical Reports

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017-09-19

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015-05-12

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 4
2. DESCRIPTION OF THE INDUSTRY 4
2.1. Industry Value Chain 4
2.2. Geographic Position 6
3. SIZE OF THE INDUSTRY 8
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Trade 12
4.1.2. Corporate Actions 15
4.1.3. Regulations 16
4.1.4. Enterprise Development and Social Economic Development 19
4.2. Continental 20
4.3. International 21
5. INFLUENCING FACTORS 25
5.1. Economic Environment 25
5.2. Environmental Concerns 26
5.3. Labour 27
5.4. Technology, Research and Development (R&D) and Innovation 29
6. COMPETITION 30
6.1. Barriers to Entry 31
7. SWOT ANALYSIS 31
8. OUTLOOK 32
9. INDUSTRY ASSOCIATIONS 32
10. REFERENCES 33
10.1. Publications 33
10.2. Websites 33
APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 35
Stone Quarrying, Clay & Sandpits 35
Mining of Phosphates 38
COMPANY PROFILES – STONE QUARRYING, CLAY & SANDPITS 39
AFRIMAT LTD 39
AFRISAM (SOUTH AFRICA) (PTY) LTD 45
ATTACLAY (PTY) LTD 50
BRIKOR LTD 52
COROBRIK (PTY) LTD 56
DANGOTE CEMENT SOUTH AFRICA (PTY) LTD 60
DENRON QUARRIES (PTY) LTD 62
DRIFT SUPERSAND (PTY) LTD 64
EAGLE GRANITE (PTY) LTD 66
G AND W BASE AND INDUSTRIAL MINERALS (PTY) LTD 67
LAFARGE MINING SOUTH AFRICA (PTY) LTD 69
MARLIN HOLDINGS (PTY) LTD 72
MAXIMA SILICA (PTY) LTD 75
PPC LTD 77
R E D GRANITI SA (PTY) LTD 82
RAUBEX GROUP LTD 84
SILICA QUARTZ (PTY) LTD 89
SOUTH COAST STONE CRUSHERS (PTY) LTD 91
THABA CHUEU MINING (PTY) LTD 93
W G WEARNE LTD 95
COMPANY PROFILES - MINING OF PHOSPHATES 98
FOSKOR (PTY) LTD 98
GECKO FERT (PTY) LTD 102
KROPZ PLC 103

Report coverage

The report on Stone Quarrying, Clay and Sandpits examines current conditions, developments and investments as well as factors that influence the success of the sector. The report profiles 20 companies ranging from major players to smaller role players such as Attaclay (Pty) Ltd, which has one clay mine in Gauteng, and Silica Quartz (Pty) Ltd which mines one silica sand quarry in Mpumalanga. Also profiled is Brikor Ltd which went into provisional liquidation in 2103 and is currently selling off a number of assets.

Report coverage

The report on Stone Quarrying, Clay and Sandpits examines current conditions, developments and investments as well as factors that influence the success of the sector. The report profiles 20 companies ranging from major players to smaller role players such as Attaclay (Pty) Ltd, which has one clay mine in Gauteng, and Silica Quartz (Pty) Ltd which mines one silica sand quarry in Mpumalanga. Also profiled is Brikor Ltd which went into provisional liquidation in 2103 and is currently selling off a number of assets.

Introduction

This report focuses on the quarrying sector in South Africa, which covers the mining of aggregate, clay, natural sand, dimension stone and limestone. 92.2 million tonnes (Mt) of products, to the value of R9.4bn, was sold locally during 2016 according to the Department of Mineral Resources (DMR), while information on the International Trade Centre’s Trade Map website shows that exports of quarry products in 2016 amounted to 386,332t, earning US$61.5m. The DMR lists 881 quarrying operations and the Mining Qualifications Authority (MQA) reported that 13,162 people were employed by the sector in 2016. The most important challenges facing the quarrying sector are policy and regulatory uncertainty, low activity levels in the construction sector, and rapidly rising input costs.

Strengths

• South Africa contains large reserves of the minerals produced by the local quarrying sector.
• While there are many small quarry operations, the few large companies operating in the sector are well-established.

Weaknesses

• Dependent on the construction and building sectors, whose health is determined by the state of the economy, and investment in major infrastructure developments.

Opportunities

• Government’s plan to spend R987.4bn on infrastructure between 2016 and 2019.
• The adoption of more cost- and environmentally efficient technologies.

Threats

• A weak economy.
• Possible delays in government’s infrastructure spending.
• Rapidly increasing production costs.
• South Africa’s mining regulatory framework is complex and contains many uncertainties.

Outlook

According to the South African Forum of Civil Engineering Contractors the outlook for the construction sector in 2017 remains negative since higher investment levels are currently inhibited by weak economic growth, low investor confidence, political and policy uncertainty, and a decrease in infrastructure spending by the government and State-owned enterprises. The outlook for 2018 and 2019 is largely dependent on increased government expenditure and an improvement in private sector spending. However, Andries van Heerden, Afrimat’s CEO, said in June 2017, “If companies position themselves correctly on product quality, price and service delivery, they should be able to make a decent return for shareholders.”

Read More..
Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa
Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Historical Reports

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019-12-13

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015-05-12

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 12
4.1.2. Regulations 13
4.1.3. Enterprise Development and Social Economic Development 17
4.2. Continental 18
4.3. International 18
5. INFLUENCING FACTORS 20
5.1. State of the Construction Industry 20
5.2. Economic Environment 21
5.3. Environmental Concerns 21
5.4. Labour 22
5.5. Technology, Research and Development (R&D) and Innovation 24
6. COMPETITION 25
6.1. Barriers to Entry 26
7. SWOT ANALYSIS 26
8. OUTLOOK 27
9. INDUSTRY ASSOCIATIONS 27
10. REFERENCES 28
10.1. Publications 28
10.2. Websites 28
APPENDIX 1 - THE SILICA ROCK SECTOR 30
I. SILICA ROCK, SILICA SAND AND SILICA CHIP 30
II. SILICON METAL 33
III. FERROSILICON 36
IV. SILICA FUME (MICROSILICA) 39
V. SILICON CARBIDE 41
VI. GLASS 44
VII. ELECTRODE PASTE 44
COMPANY PROFILES 47
AFRIMAT LTD 47
AFRISAM (SOUTH AFRICA) (PTY) LTD 54
ATTACLAY (PTY) LTD 59
BRIKOR LTD 61
COROBRIK (PTY) LTD 64
DANGOTE CEMENT SOUTH AFRICA (PTY) LTD 68
DENRON QUARRIES (PTY) LTD 70
DRIFT SUPERSAND (PTY) LTD 72
EAGLE GRANITE (PTY) LTD 74
G AND W BASE AND INDUSTRIAL MINERALS (PTY) LTD 75
LAFARGE MINING SOUTH AFRICA (PTY) LTD 77
MARLIN HOLDINGS (PTY) LTD 80
MAXIMA SILICA (PTY) LTD 82
PPC LTD 84
R E D GRANITI SA (PTY) LTD 89
RAUBEX GROUP LTD 91
SILICA QUARTZ (PTY) LTD 95
SOUTH COAST STONE CRUSHERS (PTY) LTD 97
THABA CHUEU MINING (PTY) LTD 99
W G WEARNE LTD 101

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.

Introduction

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 (mt) at R4.5bn.

Strengths

• There are large and varied supplies of mineral resources available.
• While there are many small-scale quarry operations, the few large companies invested in the sector are mature and well-capitalised.

Weaknesses

• Dependent on the construction and building sectors, which in turn are dependent on the economy, and investment in major infrastructure developments.
• In the residential market, the industry does not have sufficient influence over the efficiency with which approvals are managed by local authorities.

Opportunities

• Expansion into sub-Saharan Africa where growth of 4.5% is expected for 2015.
• The adoption of more cost- and environmentally efficient technologies.
• The excess capacity in the cement and aggregate sector places the industry in a good position as spending on infrastructure increases and the economy improves.
• The inclusion of building and construction materials in the Dti’s set of product designations for local procurement by the public sector.

Threats

• Electricity supply constraints.
• Further delays in Government’s infrastructure spend and a slowing economy.
• Possibility of strikes.
• Unfavourable conditions introduced by new and amended legislation with concerns focusing on new B-BBEE targets, the relationship of non-compliance to the cancellation of mining rights and the re-classification of quarries as manufacturing operations.

Outlook

Despite locally manufactured building and construction materials being designated as items to be procured by the public sector in the 2015 Ipap, there is still concern that Government’s R847bn infrastructure spend will not happen as quickly as is needed to stimulate economic growth. Stakeholders emphasised that because demand for aggregates and sand is linked to demand from the civil construction industry, expected slow domestic economic growth will have a negative effect on the sector. This will be compounded by the inconsistent, unreliable electricity supply, which according to a presentation to Parliament, costs the economy between R20bn and R80bn per month. Uncertainty with regards to legislation and particularly the SARS draft interpretation note where quarries are classified as manufacturing rather than mining operations have serious implications for the sector. Despite the IMF’s forecast for economic growth in sub-Saharan Africa having been trimmed to 4.5% in 2015 and 5.1% in 2016 due to lower oil and commodity prices, local companies are turning their attention to this region. Here there is “massive construction activity in cities and emerging urban areas. A growing population, increased income levels and economic growth have created more demand for residential and commercial property” and is creating opportunities for South African quarry operators.

Read More..
Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa
Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 24.40 (USD)*

Historical Reports

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019-12-13

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017-09-19

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
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