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1105 Roos Street, Johannesburg, South Africa
Tel: +27 67 284 1974
Email: info@mresources.co.za
Land Minning
Now, more than ever, South Africa needs a competitive mining industry. This will only be possible if science and technology plays the quintessential role of changing the cost and exploitation horizons of the sector.
Our commercial trajectory is to acquire and consistently develop world class deposits (Andalusite, Chromium, Coal, Gold, Iron Ore, Platinum Group Metals, Oil & Gas, Manganese, Rare Earths and Zinc) as well as the acquisition of mining assets with existing infrastructure and port allocation(s).
Mining production in South Africa slipped by 10.4% year-on-year in October of 2022, after an upwardly revised 5.1% drop in the previous month and much worse than market forecasts of a 4.9% slump. This was the ninth consecutive month of falling mining activity and to the greatest extent since April, partly due to persistent and extensive load-shedding. The largest negative contributors were PGMs (-32.5%), gold (-6.3%), diamonds (-22.5%) and manganese ore (-10.5%). On a seasonally adjusted monthly basis, mining production shrank by 2.5%, following a revised 0.1% downtick in the preceding month.
SA's Mining Industry
South Africa is currently ranked 5th internationally in terms of mining contribution to GDP and the country is ranked in the top three globally in terms of production of PGMs (59%), Vanadium (25%), Ferrochrome (39%), Alumino-silicates (60%), Vermiculite (35%), Zirconium (32%), Titanium minerals (19%), Manganese ore (17%) and Antimony (2%), with its Gold (8%), Coal (4%), Iron ore (4%), Ferro-silicon, Silicon metal and Fluorspar ranked in the Top Ten globally. PGMs, Gold, Iron ore and Coal alone account for 82% of sales and 38% (R282 billion) of exports.
Despite this abundance in natural mineral resources, South African mining faces a systemic crisis. Local gold production has collapsed from 605 tonnes in 1994 to 133 tonnes (22% of it) in 2014, despite a 218% boom in the gold price during this time and South African gold reserves still ranked No 1 internationally (by value US$151bn). In 1994 gold mines accounted for 392 227 jobs. By 2014 this had fallen to 119 075, a loss of 273 152 jobs in just 20 years. This is shocking, but still emphasises the potential of gold mining as an employer where, despite a collapse in output, still employs 30% of the 1994 numbers. The main explanation for the collapse of gold mining in South Africa is margin squeeze as a result of cost increases at depth. Costs have increased because the country’s research, development, technology and innovative systems and institutions, which historically continuously pushed and expanded the limits of knowledge in domestic mining techniques, have been allowed to decay and wither. As a result, the South African mining sector no longer has access to world class R&D and intellectual property which would allow it to continue to be internationally competitive and a driver of existing and new industrialisation opportunities.
