South African Natural Resources Economics Essay

s issueh vitamin Eward African Natural Resources Economics EssayThe sec African natural resources mine industry is long recognized as the most primal sector and in spite of the fact that it is the ordinal largest provider to total Gross Domestic Product (GDP) at presently and is electrostatic regarded as a foundation stone of the thrift and the main(prenominal) employer.The mining industry is a swell up-established and resourceful sector of southeast Africas economy and has a high degree of expert expertise as well as the ability to assemble capital for new development.The immensity of the know mineral resources and reserves were revealed by means of conservative exploration methods, still significant potential is expected for the u intimatelything of other top- nonch deposits in argonas still to be thoroughly explored with contemporary exploration technology. entropy Africa is a sensationing producer and supplier of a range of minerals and produces approximately 53 d ifferent minerals from 1548 mines and quarries as well as exports to approximately 80 countries.As a head mining country, federation Africas strengths comprise a soaring level of technical expertise and research and development activities. reciprocal ohm Africas Mineral Resources can be classified intoPrecious Metals and Minerals brawniness MineralsNon- Ferrous Metals and MineralsFerrous Metals and MineralsIndustrial Minerals preciously METALS MINERALS doorSouth Africa is the humans largest producer of platinum-group metals (PGMs) and the fifth largest producer of coin. The country is to a fault a study producer of diamonds, epoch silver is produced as a by- result from gold, lead-atomic number 30, copper and PGM mines.1.1 DIAMONDSouth Africas 2009 diamond mathematical product was slight than half of 2008 product, f aloneing by 52.3 percent to 6.1 Mat. Diamonds sourced from kimberlitic contributed 91.8 percent to the countrys total production, while all tolduvial and mari ne diamonds contributed 4.8 and 3.4 percent, respectively.Production from De Beers Consolidated Mines dominated the countrys total proceeds 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 trader focus of black frugal empowerment, resulting in a changing ownership structure.With the increase in the price of gold and the worldwide economic slowdown, investment in gold has increased, with investors seeking honorable haven investments. Demand for gold overly increased in 2009, curiously from India and China.1.3 PLATINUM GROUP METALSThe PGMs include platinum, palladium, gold, rhodium, osmium, rhenium, iridium and ruthenium. Platinum, palladium and rhodium atomic number 18 produced in substantial quantities. South Africa is the largest producer of platinum in the world and holds a large percentage of globular reserves.1.4 SILVERSilver is produced in South Africa as a by-pro duct of gold, lead-zinc, copper and PGM mines. South Africa does not have a primary silver mine and the metal is solely produced as a by-product of other minerals, most notably gold.2. zippo MINERALSINTRODUCTIONSouth Africa is well endowed with both coal and atomic number 92 reserves and is ranked amongst the top ten in the world, but has relatively small known reserves of oil and gas.South Africa is the 7th and eleventh largest world producer of coal and uranium, respectively.2.1 COAL gibe 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 GAS fit in 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 blusher player in the African oil industry.2.3 URANIUMThe AngloGol d Ashanti mine is the major producer of uranium as a by-product of gold in South Africa from three mines, namely, Great Noligwa, Moab Khotsong and Kopanang. Nuclear Fuel Corporation (Nucor) exports all uranium oxide (U3O8), which is processed through calcinations of uranium slurry.3. NON-FERROUS METALS AND MINERALSINTRODUCTIONSouth Africas non-ferrous minerals resources be rated amongst the top 10 countries in the world. The country is well endowed with te and zirconium resources, which is economically mineralized in heavy mineral sands in Kwan-Zulu Natal as well as the Eastern and Western 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 cost-effective 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 prod ucer in South Africa is Consolidated Murchison, a subsidiary of Metorex Limited.3.3 NICKEL COBALT around of South Africas nickel and cobalt be produced as by product of platinum mining activities on the Bushed Igneous Complex.Nickel mining is done by means of an underground shaft and overly by render-pit mining. Oxidized chromatist is also mined 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 absolute majority shargonholders 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 capability 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 zirconi umSouth Africa is Africas main producer, with 30% of world production, second after Australia. Limonite, 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 bid and manganese ores, an important supplier of manganese alloys and a small producer of ferrosilicon and silicon metal.4.1 chromiumAfrican chrome 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 scads of iron ore in 2009, making it the worlds 7th largest producer. 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 about 75% of the worlds set manganese resources. These mostly occur near Hoatzin in the Yankee 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 quintupletPure 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 quickly 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 render minimum cost of underground exploitation since most occur near surface. As a result, most industrial minerals require less obscure mining techniques and, therefore, present opportunities for small-scale mining development.SOUTH AFRICANcementumum INDUSTRYThe cement production processcementum is a semisynthetic grind that, when assorted with water and aggregates, produces concrete.The cement-making process can be shared 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 faculty extension projects being planned or recently concluded, South African cement companies are gearing up for a constant elaborateness of the cement market.ConsumptionSouth Africa has enjoyed a stable increase in its cement utilization in recent years and the 2004-2006 periods proved no exception. In 2004, conjugal 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 saw 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 articulate (10.5 per cent).Market deceasementThe market shares of the four 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 boilersuit 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%, L afarge to 18%, while Sephaku will account for 10% of overall production capacity, and Conticem an anticipated 3%.Challenges faced by the Cement Industry sailplaning fuel prices and deceitful road and railway facilities facade a drab 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. well-disposed infrastructure besieged to get by with growth.Equipment and civil contract lead times increasing.Resistance 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. Structural improvements are taking place in its economy, infrastructure improvements have enlarged the nations economic capacity and will land up, not obstruct future economic growth.A key move towards opening the construction industry to increasing opportunities is the Department of Housings invitat ion in March 2010, to invite suppliers of substitute building methods to team up later(prenominal) this year.The Major Cement Producing Players in South Africa1. PRETORIA PORTLAND CEMENT PPC is the principal supplier of cement in southern Africa through eight 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.