South Africa
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Source: CIA Factbook
"South African gold, platinum and coal mine shutdowns - impacts and assessments" (Source: Mineweb)
"Eskom forces SA mines to stop mining" (Source: Miningmx)
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- South Africa Minerals
Aluminium
- BHP's Hillside and Bayside aluminium smelters in SA and the Mozal smelter in Mozambique together produced 1.163 million metric tons of aluminium in the financial year ended June 2007.
- Rio Tinto is planning a US$2.7bn aluminium smelter at Coega.
Antimony
GeologyAntimony is hosted in the Early Archean Murchison greenstone belt, making Consolidated Murchison deposit, the oldest known antimony deposit in the world as all the other known deposits are hosted in younger rocks. Stibnite is the main ore mineral, and there is also significant gold mineralization. Zones of gold bearing stibnite are usually contained in quartz-carbonate schists, chert and fuchsite-rich quartz-muscovite schists. The ore can be massive, disseminated or within coarsely-crystalline quartz-carbonate veins. Some of the associated minerals are berthierite, pyrite, arsenopyrite, gersdorffite, ullmanite and visible gold. Approximately two-thirds of the known and exploited gold deposits at Consolidated Murchison were from quartz veins, while the remainder is associated with banded iron-formations.
- Metorex Ltd operates the Consolidated Murchison mine which produces about 4% of world production. Reserves in 2006, proved and probable, were 1,285,446 tonnes grading 1,85% Sb and 2,25 g/t Au.
Chrome
The Bushveld Complex in South Africa has 80% of global reserves and produces approximately 50% of world chromite.Click HERE for an overview
- Xstrata (LSE:XTA), together with its pooling and sharing venture partner, Merafe Resources Limited, have a combined capacity in excess of 1,4 million tonnes of ferrochrome per annum derived from 18 furnaces at four metallurgical complexes. All of the group's chrome mines are shallow, underground mines. The gently dipping reefs of chromite are accessed by decline shafts. Mining is of a board and pillar nature and is currently conducted at depths ranging from 50 to 350 metres below surface. All development is on reef, thereby minimizing waste dilution. In addition to ore from its own mines, ore is purchased from nearby platinum producers, where chrome rich fines are discarded as a waste product.
- Samancoris the second largest charge chrome producer in the world, producing, subject to market conditions, in excess of 1 Mt of charge chrome, approximately 70 Kt of MCFeCr, and some 40 Kt of LCFeCr per annum. In addition, Samancor Chrome sells more than 700 Kt of chrome ore per annum, approximately 500 Kt of which is sold on the export market. The mines are located on the eastern (Eastern Chrome Mines) and (Western Chrome Mines) limbs of the Bushveld Igneous Complex. Typical production levels amount to some 3 million t per annum of saleable chromium ores for both internal consumption (approximately 2,3 million metric tonnes per annum) and local and export sales (approximately 0,7 million t per annum). Eastern Chrome Mines is situated approximately 350km north-east of Johannesburg, close to the town of Steelpoort in the Mpumalanga Province, and consists of three underground mines, one opencast mine and one tailings re-treatment plant typically producing around 1,7 million t of saleable product per annum.Western Chrome Mines is situated approximately 130km north-west of Johannesburg, close to the town of Mooinooi in the North West Province, and consists of two underground mines, one opencast mine and two tailings re-treatment plants typically producing around 1.3 Mt of saleable product per annum. Samancor is one of the largest ferrochrome producers in the world, providing three grades of ferrochrome namely charge chrome, intermediate carbon ferrochrome and low-carbon ferrochrome. Samancor started importing chrome ore from India in 2007 because it could not produce the volumes of ferrochrome it wanted to produce locally.
- International Ferro Metals Ltd is an integrated ferrochrome producer that listed on AIM (AIM code: IFL) in September 2005 and started production in January 2007, three months ahead of schedule. Head office is based in Sydney, Australia and the production facilities are located in the North West Province of South Africa. Reserves at Buffelsfontein and Skychrome are sufficient to produce 530,000 tons of ferrochrome per year for 40 years.
- Chrometco Ltd explored the Rooderand chromite deposits north of Rustenburg and a deposit on the farm Naboom near Lebowakgomo. The company announced on 27 September , 2007, that it had sold its Rooderand chrome project to a private company, DCM Chrome, for R60m in cash. The farm Rooderand covers an area of 534.6ha and is underlain by three commercially viable chrome-bearing horizons, the LG6, the LG5 and the MG4 chromitite layers. South Africa's Bushveld chromite reserves constitute 75% of global reserves. Chrometco acquired the Rooderand mining rights in early 2004 and when it listed in August 2005 the intention was to undertake further exploration work on this farm, with the ultimate aim of proving-up chromite mineral tonnage. Chrometco drilled 2 core drill holes and 24 percussion drill holes, and in doing this identified the outcrop of the MG 4 seam over a strike length of 1,2 kilometres. Chrometco opened a bulk sample pit and undertook limited laboratory evaluation of the MG 4 chrome seam material. Previous mining took place on the adjacent property which is up-dip of Chrometco's Rooderand portion 2. Chrometco did not undertake a feasibility study on developing a chrome mine and no further geological work has taken place during the current financial year due to the offer to purchase. Chrometco was in the unique situation of holding a valid mining license on an undeveloped property with significant geological information available on its chromite resource at Rooderand.
Coal
Click HERE for an overviewSouth Africa produces a total of around 250 million tonnes a year of export and domestic coal.
- Anglo Coal South Africa is South Africa's largest coal producer. Anglo Coal is committed to increasing its total coal production for domestic and export supply to 100 million tonnes a year from the current 60 million within 10 years, the company said in January, 2008.
- Bank Colliery
Bank Colliery formed by the merger of Coronation and Blesbok mines in 1981, now consists of Bank No. 2 Seam and Bank No. 5 Seam mines which produce pulverised coal injection and thermal coal for export and domestic customers. Located 25km north-east of Witbank and 30km south of Middelburg in the Province of Mpumalanga, Bank Colliery is one of Anglo Coal's South African export mines.
Shareholding: 100%
Goedehoop Colliery
Goedehoop Colliery is located 35km south-west of Witbank in the Province of Mpumalanga. Goedehoop produces pulverised coal injection and thermal coal for export customers. A small quantity of low-grade coal is produced for the domestic market. Goedehoop Colliery is one of Anglo Coal's South African export mines.
Shareholding: 100%
Greenside Colliery
Located 20km west of Witbank in the Province of Mpumalanga, Greenside now forms part of the South African Coal Estates (SACE) complex which includes Landau and Kleinkopje mines. Greenside produces pulverised coal injection and thermal coal for domestic and export markets. Greenside Colliery is one of Anglo Coal's South African export mines.
Shareholding: 100%
Isibonelo
An opencast operation, the Isibonelo Colliery will produce 5 million tonnes of thermal coal per annum when it reaches full production during 2006.
Shareholding: 100%
Kleinkopje Colliery
Located 10km south-west of Witbank in the Province of Mpumalanga, Kleinkopje Colliery produces pulverised coal injection and thermal coal for export. Washed, sized coal is also produced for the domestic market and metallurgical coal for consumption by the local steel industry. Kleinkopje Colliery is one of Anglo Coal's South African export mines.
Shareholding: 100%
Kriel Colliery
Located near Bethal in the eastern part of the Province of Mpumalanga, Kriel Colliery was established to supply coal to Eskom's (South Africa's electric power utility) Kriel power station. It was originally intended to be solely underground, but an opencast section was opened to optimise reserves. Total production is supplied via conveyor belt to Kriel power station. Kriel Colliery is one of Anglo Coal's South African power generation mines.
Shareholding: 100%
Landau Colliery
Located 15km north-west to 12km south-west of Witbank in the Province of Mpumalanga, Landau Colliery, an open-cast operation, produces pulverised coal injection and thermal coal for export and washed sized coal for the domestic market. Landau Colliery is one of Anglo Coal's South African export mines.
Shareholding: 100%
New Denmark Colliery
Located between the towns of Bethal and Standerton in the Province of Mpumalanga, New Denmark Colliery was established in the early 1980s to supply coal to Eskom's (South Africa's electric power utility) Tutuka power station. New Denmark Colliery is one of Anglo Coal's South African power generation mines.
Shareholding: 100%
New Vaal Colliery
Located in the Maccauvlei area immediately south of Vereeniging on the bank of the Vaal River in the Free State Province, New Vaal Colliery was established during the 1980s to mine the remaining coal in the Maccauvlei area to supply coal to Eskom's (South Africa's electric power utility) Lethabo power station.
Shareholding: 100%
Eyesizwe Coal
Eyesizwe Coal is a black empowerment company in which Anglo American has an 11% shareholding.
Shareholding: 11%
Mafube
In August 2004, Anglo Coal and Eyesizwe announced that they were entering into a 50:50 joint venture to mine the Arnot North coal reserves, known as Mafube Colliery.
Shareholding: 50%
Richards Bay Coal Terminal
Situated in the port of Richards Bay, 160 km north of Durban, KwaZulu/Natal, RBCT, which is owned and operated by the major South African coal exporters, was officially opened in 1976. A dedicated rail link allows for the efficient transport to RBCT, which is a privately-owned and operated coal export terminal.
Shareholding: 27%
Copper
Click HERE for an overviewThe Palabora mine's open cast pit measures almost 2000 metres across, making it the largest man-made hole in Africa
Source: European Space Agency
Source: European Space Agency
- Rio Tinto operates the Palabora mine (Rio Tinto 57%, Anglo American 17%) which produced 59,700 tonnes of copper in concentrate from its own operations during 2006. Its refinery produced 81,200 tonnes of copper cathode after buying in additional copper concentrates from third party suppliers. Palabora operated as an open-pit mine for some 30 years. It converted to an underground, block-caving operation from the end of the 1990’s and established full underground operations from October 2004.
Diamond
Click HERE for an overviewDiamond Mines of the World/South Africa (Kevin Hulsey-Jewelry)
"Independent South African diamond firms seek to block new law"
- Alexkor Ltd has been mining diamonds on land, along rivers, on beaches and in the sea along the north-west coast of South Africa.
Alexkor was established in 1989, when the State alluvial Diggings was taken over from the Government and transformed into the Alexander Bay Development Corporation. Since November 1992 Alexkor Limited has been run as a public Company with the state as sole share-holder. Over the life of the mine approximately 10,000,000 cts of gemstone quality diamonds have been recovered.
Alexkor has a lease to prospect for and mine diamonds in sea concession areas 1a, 1b, 1c, 2a, 3a, 4a, 4b and 9d as well as the adjacent surf zones. Approximately 100 different shallow water contractors are currently undertaking diver-based mining in the sub tidal concession areas. - "SA's Alexkor grinds to halt" (Source: Miningmx)
- De Beers operates the Finsch, Kimberley (retreating dumps), Cullinan, Kleinzee, The Oaks and Venetia mines.
- Finsch mine, established in 1961, produced 2,215,643 carats in 2005 at an average grade of 37,3 carats per 100 metric tonnes.
- The Kimberley retreatment plant produced 1,896,893 carats in 2005 at an average grade of 19,6 carats per 100 tonnes.
- Cullinan mine, established in 1902, produced 1,304,653 carats in 2005 at an average grade of 28,3 carats per 100 tonnes.
He also said the company's Voorspoed mine, situated in the Free State province, would start production in 2008, and would produce 1 million carats when in full production.
De Beers sold off its loss-making Kimberley Underground mine in the Northern Cape province, which it closed in late 2005, to Petra Diamonds and has said it also intends to dispose of its Cullinan mine.
De Beers said on 22 November, 2007, it had sold its historic Cullinan mine to a consortium led by Petra Diamonds for 1 billion rand ($147.5 million) in cash.
De Beers, 45 percent owned by mining group Anglo American Plc, said in February it planned to dispose of the loss-making mine.
The consortium comprises of Petra and Saudi-based investment firm Al Rajhi Holdings, each buying 37 percent stakes, with black-owned Thembinkosi Mining Investments owning the remaining 26 percent.
Petra estimates the total resource at some 212-million carats and said that the C-Cut reserve made up 133-million carats of that, the existing mining operations on the upper levels adding another 60-million carats and the tailings dams a further 16-million carats to 18-milion carats.
Cullinan is estimated by Petra to have a remaining economic life of at least 20 years at a production rate of one million carats annually.
"Rio Tinto bidding for Cullinan"
"Culling Cullinan" (Source: The Ecomomist)
- Kleinzee mine, established in 1928, produced 1,014,132 carats at an average grade of 15,7 carats per 100 tonnes.
- The Oaks mine, established in 1998, produced 85,766 carats at an average grade of 34,4 carats per 100 tonnes.
- Venetia mine, established in 1992, produced 8,515,045 carats at an average grade of 143,5 carats per 100 tonnes.
- The Koffiefontein mine, established in 1870, and which produced 123 505 carats in 2005 at an average grade of 6,8 carats per 100 tonnes, was sold to Petra Diamonds.
- In February, 2007, De Beers announced that it wanted to dispose of the Cullinan mine.
- De Beers is developing the Voorspoed mine in the northern Free State, which will produce about one million carats annually.
- Petra Diamonds operates four mines, Helam, Koffiefontein, Sedibeng and Star. Koffiefontein is an underground kimberlite pipe operation, with the rest being fissure operations.
The fissure mines were acquired when Petra merged with Crown Diamonds NL in May 2005. Since then, significant attention has been given to the integration of Crown and its mining operations into the Petra group, thereby enabling the group to focus on further increasing production. The acquisition of Koffiefontein from De Beers was completed in July 2007.
The mines produced 175,000 carats in the year to June 2006 and, with Koffiefontein, increasing production is expected for the year to June 2007 and beyond. Petra Diamonds announced a substantial increase in reserves and resources in South Africa on 8 Oct 2007: -An updated carat base of 9.33 million carats attributable (11.38 million carats gross), an increase of 101% on previous statement (May 2005: 4.64 million carats attributable) -In-situ value of US$1.5 billion attributable (US$1.9 billion gross) -JORC compliant attributable reserves increase 66% to 2.95 million carats (May 2005: 1.77m carats) -JORC compliant attributable resources increase 123% to 6.38 million carats (May 2005: 2.86m carats) -Increase due to the acquisition of Koffiefontein and additional kimberlite fissure units included in the total mineral resource. By February, 2008, Petra owned six diamond mines in South Africa from which it aimed to more than double its production to one million carats by 2009/10.
- Firestone Diamonds plc's Bonte Koe project in South Africa (a joint project with De Beers) reached full production in 2007. The mine is expected to generate revenue of £3.5 million and £2 million in operating profit already in the 2007 financial year.
- SouthernEra Diamonds Inc operated the Klipspringer Diamond Mine which is located 250 km north of Johannesburg and 35 km south of Polokwane, the provincial capital of the Limpopo Province. The mine was built and operated by SouthernEra in a Joint Venture with Naka Diamonds, a Black Empowerment Group. SouthernEra holds approximately 57% of the project.
The mine was placed on care and maintenance in December, 2003 as a result of the strong South African Rand. The mining license in place with the promulgation of the Minerals and Petroleum Resources Development Act remains valid, thereby enabling easy resumption of mining activities.
In July 2006, a trial mining and bulk sampling program was approved. The purpose of the six month program, which required no significant capital investment, was the following:
* Review and improve the mining method
* Assess the impact of increased diamond prices since the mine was placed under care and maintenance
* Assess the ability to operate in a strong Rand environment
* To be in a position to re-open the mine in an improving foreign exchange environment
A total of 4007 carats were sold for an average price of US$ 100 per carat giving Klipspringer a revenue per ton of about $62. These results are very encouraging when compared to historical results achieved at the mine.
In the Limpopo Province, exploration advanced both the Hope and Clifton projects which are located along the same structural lineament that controlled the emplacement of SouthernEra’s well known Klipspringer and Marsfontein diamond mine kimberlite cluster.
The Clifton project consists of two Prospecting Permits measuring 1295 Ha and 3586 Ha which were awarded in May 2006. Reconnaissance stream sampling has thus far resulted in the discovery of probe confirmed high-interest kimberlitic indicator mineral anomalies which are being followed up.
The 935 hectare Hope Project hosts a substantial 4 hectare kimberlitic indicator mineral anomaly. Two additional prospecting permits for 10,887 and 736 hectares within the Greater Hope Project Area were awarded in April 2006. Reconnaissance stream sampling commenced over these areas.
SouthernEra has between 49% and 65% interest in properties within the Hope and Clifton projects. The properties are in joint venture with two Black Empowerment Consortia. 5% is held in trust for the relevant local community.
- Diamond Core Resources Ltd is active in the Northern Cape Province and involved in two kimberlite exploration projects, the Paardeberg East Project, situated 40 km west of Kimberley, and the Skeyfontein JV, located some 20 km south east of the town of Postmasburg. Through its acquisition of Samadi (SA) Pty Ltd, Diamond Core has three alluvial projects, Uitdraai and Silverstreams, some 10 km north of Prieska, and the de Kalk Project some 30 km east of the town of Douglas. It has also acquired the Sanddrift project from SouthernEra and Minex located near its Silverstreams project on the Orange River in the Northern Cape. Diamond Core will pay between 1 million and 5 million rand for the prospecting right depending on when it is transferred into its name, as well as pay a fee to explore the asset until the right has been transferred. Canadian-listed BRC Diamond Corporation had agreed to acquire South Africa's Diamond Core Resources to create a group exploring for gems in South Africa and Congo, the firms said on 5 July, 2007. After the proposed deal, in which BRC will acquire Diamond Core in exchange for shares, BRC shareholders will own 53 percent of the company and Diamond Core shareholders the rest.
- BRC DiamondCore eyes two targets
- Nare Diamonds Ltd (NHY.BE, Australian-80%, and the Schmidtsdrift Communal Property Association-20%) owns the alluvial Schmidtsdrift mine, comprising six contiguous farms along the western bank of the Vaal River, with a combined area of 320 km2. The indicated total resource is 48 million tonnes with an estimated 247,310 carats. Prospecting and trial mining activities started in 2001 and Nare re-commenced trial mining in April 2006, yielding 1584,02 carats by end June 2006, including a 235,03 carat diamond. Nare is also involved in the Kamfersdam tailings treatment plant, the Klipspringer Joint Venture with SouthernEra Diamonds Inc and the Groen River exploration project. Nare announced in August, 2007, that it was to change its name to Lonrho Mining ahead of a dual listing on London's Alternative Investment Market. Lonrho then had a 21.94% stake in Nare Diamonds.
- Afgem Ltd (JSE:AFG) currently has three dormant underground kimberlite fissure mines, two in the Northern Cape and one in the Free State that were acquired in June 2005. It paid Rex Mining R2,5m cash, R25m in shares and set up an agreement to pay four percent of revenue on rough diamond sales up to 2021. Simolotse Mine, previously Loxton Exploration, has indicated reserves of 155 000 tonnes @ 85cpht and inferred reserves of 238 000 tonnes @ 85cpht. The other two are Bokang Mine, previously known as Bellsbank Consolidated Diamond Mine, and Agisanang Mine, previously known as Rex Diamond Mine. Operations at Simolotse, which was the flagship operation, were suspended in March 2006. Flooding delayed the development of the critical number two shaft, hobbling cash flows and causing management to mothball the mine. Pumping and maintenance costs Afgem about R400,000 a month during the rainy season. Bokang, also an underground mine, is also not producing because of flooding. The third mine is the Agisanang mine between Welkom and Theunissen in the Free State province. It was shut in 1998. The mining licence has passed to another group, but Afgem is pursuing it retrieval.
In March, 2007, Afgem requested trading in its JSE-listed shares be suspended because of financial difficulties, but was in talks with a potential buyer of two of its mines, failing which it could possibly restart mining after a re-capitalisation process.
- Pangea Diamond Fields plc is exploring and bulk sampling in the two target areas of the Malmani project which were identified from drilling and the overburden is in the process of being stripped. Once underlying gravel horizons have been subsequently exposed, the gravels will be processed to test for diamonds and a resource will be estimated. The Patsema drilling program, which is testing gravity targets, is in progress with 101 holes having been drilled to date. The existence of significant gravel-filled pothole structures has been indicated and this program will be followed by bulk sampling. The company announced in May, 2007, that it had delineated at least 34 million tonnes of potential diamondiferous gravel from more that 800 boreholes that had been drilled to date at its Bakerville Project area and was testing a 21 million ton gravel deposit at its Malmani Project area. At its Patsema Project area it had investigated less than 10 percent of the licence area and five potholes with an aggregate of at least 1,5 million tons of pothole gravel had been delineated from exploratory drilling. [more]
- Rockwell Ventures Inc (Canadian, RVINF.OB, RVI.V) acquired a 51% interest in H C van Wyk Diamonds through the purchase of Durnpike Investments (Pty) Ltd. completed early in 2007, and began receiving revenues from the operations in January 2007. The Company plans to increase its equity ownership in the Van Wyk operations from 51% to 74% in the first half of 2007, concomitant with an inward listing on the Johannesburg Stock Exchange. Van Wyk Diamonds is working the alluvial deposits at Holfontein-Klipdam, 45 km from Kimberley and at Wouterspan, near Prieska, respectively. The inferred resource at Holfontein-Klipdam is 12 million cubic metres at a grade of 1,16 carats per 100 cubic metres and the total inferred resource at Wouterspan is 46 million cubic metres of gravel. On March 6, 2007, Rockwell and Trans Hex Group Limited announced that the companies had entered into an agreement whereby a wholly owned South African subsidiary of Rockwell could acquire two open pit alluvial diamond mines and three alluvial diamond exploration projects from Trans Hex. The two open pit alluvial diamond mines, namely Saxendrift and Niewejaarskraal, and the three alluvial diamond exploration projects, namely Kwartelspan, Zwemkuil-Mooidraai and Remhoogte-Holsloot, are located along the southern bank of the Middle Orange River between Douglas and Prieska in South Africa and are collectively referred to as the "Middle Orange River Operations". Rockwell's Wouterspan alluvial diamond operation is located on the north bank of the Middle Orange River, immediately adjacent to the Saxendrift and Niewejaarskraal diamond mines. Rockwell also has rights to the diamondiferous gravel on the farm Galputs 104 in the Northern Cape Province. The company announced in May, 2007, that it had concluded the purchase of the Makoenskloof alluvial diamond project, located on the north bank of the middle Orange river, 40 km upstream of its Wouterspan diamond operation. Rockwell entered into an option with Kanonloop Delwerye early in 2007 to evaluate the alluvial diamond potential of the Makoenskloof project.
- Tawana Resources NL (Australian, TWNAF.PK, also active in Botswana) is exploring alluvial gravels in palaeochannels in the vicinity of the Finsch diamond mine, drilling kimberlite targets in the same area and exploring the known kimberlites at Perdevlei and Kareevlei West. The indicated grade at Perdevlei is 15-20 cpht. Transhex holds an option to acquire 35% of the project, exercisable 6 months after a decision to mine has been made, for the payment of 3,5 times the costs incurred by Tawana in establishing the viability of, and bringing into production, a diamond deposit. Kareevlei Wes project comprises a cluster of 5 kimberlite pipes, which vary in surface area from a large 5,8 ha to 0,3 ha. Drilling to a depth of 100m showed that the tonnage of KV3 is 13 million t and that of KV2 is 2 million t. Previous work showed that three of the kimberlites, KV1, KV2 and KV3 are diamondiferous. Bauer drill bulk sampling of KV1 and KV2 showed that these two kimberlites have a similar estimated grade of 8,5carats per 100 tonne. Tawana announced in April 2007 that it had entered into a joint venture with Guma Resources, its strategic alliance partner, to explore and mine the Lexshell alluvial diamond project in the Northern Cape. The project, located on a palaeo-channel of the Vaal river, is held under a mining right by Lexshell 366 Mining. Tawana announced on 15 May 2007 that it had entered into a joint venture with Taormina Mining to prospect and evaluate a kimberlite situated 25 km north of Kimberley. The kimberlite was a four hectare pipe known locally as the Riverton mine and was reported to have produced good quality diamonds when it was mined by small scale diggers during the 1990s. Tawana was able to earn 51% equity in the project by conducting a 2 000 t bulk sampling programme, followed by an 8 000 t evaluation program if warranted. Thereafter, it had the option to increase its equity to 70% by paying Taormina R1,5-million. Tawana also acquired a 30% interest in the St Augustines kimberlite which is located some 600 m west of the famous Kimberley mine - the Big Hole. The Big Hole produced 14,5-million carats of diamonds from 22,5-million tons, at a grade of 64 carats per hundred tons. Mining at the Big Hole stopped in 1914. Tawana said in a statement that the St Augustines kimberlite was mined in the late 1890s and records showed that the diamond quality was considered identical, and the grade similar, to that of the nearby Kimberley mine. Records show that St Augustines was only partially mined to a depth of about 240 m, and mining stopped at the site in 1902. Tawana and Kimberley Consolidated Mining (KCM) announced in July, 2007, the establishment of a joint venture that will conduct explorations in the Carter area, which is located near De Beers' Finsch project in South Africa. Tawana will acquire 40% of the venture after conducting drilling at several targets. Subsequently, the partners will contribute proportionately to the exploration costs. KCM was established earlier this year following the merger between Channal Mining and Kimberley Consolidated Mining and Exploration. The company has been conducting diamond explorations in the Taung area of South Africa for the past 12 months. To date it has produced 2000 carats, which were sold at an average price of $1200 per carat. Kimberley Consolidated Mining announced on January 9, 2008 ,the identification of three kimberlite pipes at its Carters Block exploration project. The kimbertlites identified include the Shone kimberlite, as well as several kimberlite dykes that apparently link directly with the Finsch pipe.
- Caledonia Mining Corporation holds a prospecting and option agreement over the Goedgevonden diamond bearing kimberlite pipe located approximately 20 kilometres north of the Stilfontein Gold Mine in the Klerksdorp district of the North West Province. To date there has been insufficient work on the Goedgevonden property to define a resource for the property.
- Etruscan Resources Inc and Mountain Lake Resources Inc formed a new company Etruscan Diamonds Limited to hold their respective interests in their diamond assets in South Africa. Etruscan and Mountain Lake own 62% and 21% respectively of Etruscan Diamonds with the balance being held by various third parties. Over the last five years, Etruscan South Africa has been acquiring strategic properties in the Ventersdorp Alluvial Diamond District, located approximately 150 kilometers west of Johannesburg and holds the dominant land position in the Ventersdorp District with two mining permits and 16 prospecting permits with applications for 5 additional prospecting permits pending. The Hartbeestlaagte property covers approximately 4,000 hectares and is located approximately 35 kilometers due north of the town of Ventersdorp. Etruscan South Africa has completed three bulk samples on the Hartbeestlaagte property, processing over 78,000 cubic meters of Lower Gravel Package ('LPG') gravels and recovering approximately 2,500 carats at a global grade of 3,18 carats per hundred cubic meters with a bottom cut-off size of 1.6 millimeters. A limited amount of Upper Gravel Package was also processed (approximately 12,000 cubic meters) to recover 187,7 carats at an average grade of 1,53 carats per hundred cubic meters. The treatment of the bulk samples was by a process of scrubbing and screening followed by pan concentration and x-ray sorting. The in situ inferred diamond resources are estimated in the 43-101 report to be 16,2 million cubic meters of LGP gravels at an average grade of 3,18 carats per hundred cubic meters (approximately 500,000 carats) at an average sales value of USD$400 per carat. The 43-101 report confirms that, in addition to the inferred resource, a large area of exploration potential exists in both the lower gravel package and the upper gravel package including an indefinable volume of material that is located below the present drilling level in the sink holes. Drilling to date has been limited to a vertical depth of 117 meters in these areas. Etruscan Diamonds completed the acquisition of the 50% of Tirisano Diamond Mine it did not already own from Mvelaphanda Exploration in October, 2007.
The Tirisano Diamond Mine is located adjacent to the Hartbeestlaagte property where Etruscan Diamonds is presently undertaking a pre-feasibility study. Etruscan announced in February, 2008, that Etruscan Diamonds (Pty) Ltd. had received a National Instrument 43-101 compliant independent resource update on its Blue Gum Diamond Project in South Africa which substantially increases the resource on the project. The independent resource update prepared by Dr. Tania Marshall of Explorations Unlimited estimates that the Blue Gum Diamond Project contains 20.5 million cubic meters of indicated diamond resource and 17 million cubic meters of inferred diamond resource. The Blue Gum Diamond Project consists of three adjacent diamond properties (Nooitgedacht, Hartbeestlaagte and Zwartrand) covering over 10,000 hectares located in the Ventersdorp Alluvial Diamond District with the Tirisano Diamond Mine being located on the Nooitgedacht property.

- DiamondCorp plc is developing the Lace project, located 20 km from Kroonstad in the Free State Province. The project contains an estimated 14 million carats of diamonds in tailings and kimberlite. Additional kimberlites have been identified on the group's adjoining properties. The company has an option to acquire Sonop Diamond Mining (Pty) Limited for US$45 million cash and 7.5 million ordinary shares of 3 pence each in the capital of DiamondCorp plc. Sonop has large-scale alluvial diamond mining operations along the Vaal River and Middle Orange River in South Africa and produced over 93,000 carats of high-quality gem diamonds during the year ended 28 February 2007.
- KimCor Diamonds plc is a mining company owning and operating a suite of diamond mining and exploration properties that include underground, alluvial and dump processing operations complemented by a diamond cutting and polishing business. KimCor was admitted to AIM in March 2006, and raised approximately £3.35 million for expenses for the construction and development of a diamond recovery plant to process tailings at its Bellsbank site. n September 2007, KimCor completed the reverse takeover of Dwyka Diamonds Holdings Limited, a subsidiary of Dwyka Resources Limited ("Dwyka") and acquired Dwyka's four producing mines and a number of advanced exploration projects.
At the time of it's original listing, KimCor's projected diamond production from its Bellsbank operation was approximately 50,000 carats per annum. With the acquisition of Dwyka's producing assets and following a number of capital projects designed to increase production rates on all operations, total diamond production is scheduled to progressively increase to 200,000 carats per annum.
The two underground mines, Blaauwbosch and Newlands generate a high percentage of stones in the 1 to 5 carat size range that provide an ideal product for the value added process of cutting and polishing provided by Anmic, a subsidiary in which KimCor, through its subsidiary Free State, holds a 50 per cent interest and an option to acquire the balance of equity. Bellsbank and SMI4 Superkolong, the two dump reprocessing operations are low cost bulk mining projects producing large quantities of lower value diamonds predominantly for export. Nooitgedacht, the one alluvial operation which also supplies sand and aggregate as a by-product from diamond mining, has a long history of producing large high-value diamonds including the Venter diamond, the largest recorded alluvial diamond recovered in South Africa at 511 carats.
- Bonaparte Diamond Mines NL has Joint Venture agreements with a South African Company, Universal Exploration Technologies (Pty) Ltd, for the acquisition of two prospective kimberlite exploration projects located in the Free State Province of South Africa. Prospecting Permit (PP) applications for these project areas are pending approval. The agreements include an option for Bonaparte to acquire a 60 % interest in each of the Projects. Mofschaap:
The Mofschaap Project covers an area of approximately 465 hectares and is located adjacent to the Lace Diamond Mine which reportedly had a historic production of some 700,000 carats. The Voorspoed Mine lies approximately 6km to the northeast of the project. The area is considered prospective for structurally controlled kimberlitic intrusions, given its location in respect to known kimberlite occurrences.
Bronkhorstfontein: The Bronkhorstfontein Project covers an area of approximately 780 hectares and lies some 20 km south of Heilbron in the Free State. Although there are no known kimberlites in the immediate area, previous exploration over a small portion of the area is reported to have identified a magnetic anomaly from which follow-up sampling gave positive kimberlitic indicator minerals. Bonaparte Diamond Mines signed an agreement to acquire 100% of a South African company Savanna Diamonds (Pty) Ltd (“Savanna”) in December, 2007. Savanna holds a current Mining Permit over a 3,073 hectare property located 142km northeast from Kimberley and is well advanced in the construction and commissioning of a mining plant onsite. The diamond bearing gravel deposits on the Savanna property are located within an ancient (>180 million year old or Cretaceous age) river channel that lies in a dolomite country rock which is prone to formation of potholes. Mining in the areas was initially undertaken in the early 1900’s and then abandoned due to limestone overburden leaving the deposits undeveloped. A gravel deposit of 2.53 million tonnes in size and potential for expansion to 9.5 million tonnes size with an average grade of 6.9 cpht has been reported. A prospecting permit application for the 18,000 hectare Vaal River alluvial project ("Vaalbos Project") has been submitted following a strengthening of the working agreements with the local community partners, the Sydney on Vaal Land Restitution Trust. The Vaalbos Project is located in the alluvial diamond production areas adjacent to the Vaal River to the west of Kimberley in South Africa. Published reports note historical mining (early 1930's) on the property produced some 490,000 carats including several stones over 100 carats.
- Diamcor Mining Inc's main operating asset is it’s So Ver Tailings Re-treatment facility located in the Kimberley region of South Africa which recovers an average of approximately 1500 carats of diamonds each month. Diamcor, through its wholly-owned South African subsidiary Blue Dust 25 (Pty) Ltd., has also received the necessary approvals to enable the company to acquire a 24 percent interest in the privately-held South African company, Nerikets Properties (Pty) Ltd. Diamcor has also secured an exclusive option to acquire the remaining 76 percent interest in Nerikets. Nerikets holds the Prospecting Rights Permit for diamond exploration at Hardcastle; which comprises over 3,606.44 hectares and is situated on the north bank of the Middle Orange River near the Kimberley region in South Africa.
- Paramount Mining Corporation Ltd (Australian) had applied for a uranium-diamond project in South Africa's Free State province, the company said in January, 2008.
It would do so through its 100% subsidiary, Paramount Mining South Africa Pty.
Paramount said that the project area was positioned to capture the dispersion of alluvial diamonds shed from the Jagersfontein kimberlite mine, which produced more than 9,5 million carats for De Beers, as well as eight of the world's 24 biggest diamonds, including the 972 carat Excelsior diamond.
There was also potential in the project area, which was situated 4 km from the mine area, for more kimberlite pipes belonging to the Jagerfontein cluster.
The project was also of interest for uranium. In addition to the farm Vlakfontein, the project area had been extended to include adjacent farm Rietkuil, which lay to the northeast.
Gold in South Africa
Gold Home
Click HERE for an overview (MBendi)Click HERE for OPERATING GOLD MINES AND RECOVERY PLANTS (Minerals Bureau)
South African gold output in 2006 fell to its lowest level in 84 years because of decline in grades mined, but there are strong signs that production will stabilise in 2007. Gold output of 275,119 kg in 2006 was 7,5% lower than the previous year. The last time South Africa recorded an increase in gold production was in 2002 when the rand gold price averaged R104,000/kg on the back of currency weakness. It rose 0,3%. The rate of annual decline in South African gold output has slowed. In 2005, gold output fell 13% year on year to 296,3 tonnes. South African gold output peaked in 1970 at 1,000 tonnes, but has been falling steadily as mines grow older, deeper and more expensive to operate. Australian gold output in 2005 was 263 tonnes and the US 262 tonnes. China produced 224 tonnes and Peru 208 tonnes. All the major producers have experienced declining gold production in the past five years. Australian gold output dropped 33 tonnes from 296 in 2000, while the US recorded output of 355 tonnes in that year, 93 tonnes more than last year’s production. China, however, added 52 tonnes over that period. South African gold production fell 98 tonnes.
- AngloGold Ashanti (South Africa, NYSE:AU; JSE:ANG) mines in Argentina, Australia, Brazil, Ghana, Guinea, Mali, Namibia, South Africa, Tanzania and the USA. AngloGold Ashanti's gold production fell to 5,6 million oz in 2006 from 6,2 million oz in 2005. The seven underground mines in South Africa produced 2,554 million oz in 2006, five percent less than the previous year, at a total cash cost of $285/oz. AngloGold Ashanti had 181,6-million oz of gold resources globally at the end of December, 2006. About 83-million of AngloGold's gold resource oz are in South Africa. Anglo American said on I October, 2007, it would sell about half of its stake in gold miner AngloGold Ashanti as part of its strategy to focus on core commodities.
Anglo holds a 41.8% stake in South Africa's AngloGold, the world's third-biggest gold producer. Anglo said it plans to sell 61 million ordinary shares, worth about R18.8bn, and that its remaining representatives on AngloGold's board would resign once its stake falls below 20%.
- Gold Fields (South Africa, NYSE:GFI; JSE:GFIELDS) mines in South Africa, Ghana (Tarkwa and Damang), Australia and Venezuela with projects in Peru, the Dominican Republic, Kyrgyzstan, Burkina Faso and Congo (Kinshasa). The company produces about 4,1 million oz annually from its operations. Gold Fields issued 145 million shares to buy out Barrick in the South Deep mine project in South Africa and to raise $1.2 bn to fund the project and others. South Deep has 28 million oz of gold. Gold Fields estimated total resources of 252-million oz of gold in 2007.
- Harmony Gold Mining (South Africa, NYSE:HMY; JSE:HAR) is the fifth largest gold producer in the world, with operations and projects in South Africa, Senegal, Australia and Papua New Guinea. The Hidden Valley Project in PGN comprises the Hidden Valley/Kaveroi and Hamata open pits, a 43 million tonne tailings facility and associated infrastructure, the mine will produce approximately 300,000 oz of gold and 4 million oz of silver over a 10-year life.The Golpu copper gold project in the Morobe Province of Papua New Guinea, resource stands at 163 million tonnes at 1,1% Cu, 0,6 g/t Au and 132 parts per million molybdenum containing 3,9 billion pounds of copper, 2,96 million oz of gold and 47 million pounds of molybdenum. Harmony has announced plans to dispose of less profitable mines and assets for sale include its South African Kalgold open pit mine and its Australian mines. Harmony aggregates its Free State operations into total resources of 94,5-million oz and the mines in its Freegold operation have total resources of 111,5-million oz, including surface stockpiles. Harmony's Target mine has total gold resources of 92-million oz.
- DRD Gold (South Africa, Nasdaq:DROOY; JSE:DRD) mines in South Africa, Papua New Guinea and Fiji. The Australasian assets represent roughly two million oz of reserves out of the DRDGOLD’s attributable 8,9 million oz of reserves, and seven million oz of its 47,6 million oz resources. DRD Gold subsidiary Emperor Mines entered into an agreement in 2007 to sell its 20% stake in the Porgera gold mine in Papua New Guinea to its partner in the project, Barrick Gold, for $250m, erasing all its debt and leaving it cash positive. Following completion of the transaction, Emperor will have no debt and will have cash resources of approximately A$130 million.
- Simmer & Jack Mines Ltd [JSE:SIM] acquired Buffelsfontein Gold Mines Limited (comprising Hartebeesfontein and Buffelsfontein mines) for R70-million in October 2005 after it had been placed into provisional liquidation by DRDGold in March that year. Underground operations began in earnest in December 2005 and the first positive cashflow from mining operations was generated in March 2006.
Buffelsfontein has measured and indicated resources of 11.12 million ounces.
Transvaal Gold Mining Estate Limited (TGME), a wholly-owned subsidiary of Simmer & Jack, situated in the Pilgrim's Rest/ Sabie goldfields approximately 450 kilometres North East of Johannesburg is the operational focus of the company's Mpumalanga operations. Another Simmers subsidiary, Sabie Mines Limited, houses various mining and prospecting rights in the area and is managed by the TGME team.
The company has two operations in the Mpumalanga region through its wholly owned subsidiary, Transvaal Gold Mining Estate (TGME) - one is an underground mine and one is a surface operation.
The drilling project, which started in August 2007, aims to locate a million resource oz by March 2009.
- Great Basin Gold (JSE:GBG, TSX:GBG) could see a larger gold mine of 4.5 million oz at its Burnstone project in South Africa's South Rand Basin as it moves towards a narrow stoping mechanised mine that would deliver an additional 1 million oz. Grades mined from measured and indicated resources would improve from 4.5 g/t to 5.8 g/t. Burnstone will deliver 6,000 oz in 2008 from bulk sampling at the operation. In terms of current projections, the mine will reach its average annual production of 250,000 oz around 2012. The current mine plan for Burnstone is based on 3.5 million proven and probable oz out of 7.7m measured and indicated oz. Depth starts at 300 m and extends to 800 m at this stage, while Great Basin Gold does not anticipate mining any deeper than 1400m. The company has earmarked $6m annually for exploration the South Rand basin where Burnstone is located. Great Basin Gold had an 8 million resource at Burnstone at the moment and the company was confident it would reach 10 million over the next year as it continued exploration on area four of its Burnstone project.
- Central Rand Gold (CRG), a new company that plans to extract gold from old workings around Johannesburg, plans to raise about R210m in SA ahead of listings in London and Johannesburg. Central Rand has assembled a portfolio of mining properties stretching south of Johannesburg from Western Areas in the west through to Simmer & Jack's operations in the east. CRG is looking at restarting operations immediately south of Johannesburg incorporating parts of the old mines, including Consolidated Main Reef, Langlaagte, Crown Mines, Village Main, Robinson Deep, City Deep and Simmer & Jack. Central Rand's current indicated resources are about 21,4-million oz of gold at an average grade of 8,9 g/ton and its inferred resources, which are less certain of being mined economically, are 12,4-million oz at 7,4 g/t.
- "Central Rand Gold (CRG) barred journalists from its first annual general meeting" and more
- Witwatersrand Consolidated Gold Resources (Wits Gold, JSE:WGR) have been granted rights in the Potchestroom, Klerksdorp and Southern Free State goldfields covering 91 039 ha. They contain an inferred resource of 159,7-million ounces of gold and 136,3-million pounds of uranium oxide. It has been granted an additional prospecting right by the Departmentof Minerals and Energy for gold, silver and uranium over subdivision 3 of the farm Doornrivier 330. The area covers 214 ha and is adjacent to the Beatrix Mine in the Free State province. Snowden Mining Industry Consultants has estimated that the Doornrivier prospecting right contains an inferred resource of 0,9-million ounces of gold and 1,6-million pounds of uranium oxide. The three prospecting rights granted to Wits Gold in the southern Free State cover 13 067 ha and contain 44,4-million ounces of gold and 136,3-million pounds of U3O8. The company is engaged in exploration drilling in five relatively shallow priority areas with an inferred resource of 42,9 million oz of gold. Wits Gold is busy defining the ore body at its Bloemhoek-de Bron property in Free State, which appears to host a world-class gold deposit, the company announced in October, 2007. The property, which is close to Gold Fields’ Beatrix and to Harmony Gold Mining’s Joel, St Helena and Bambanani mines, potentially contains 10 million to 15 million ounces of gold, grading about six grams per tonne, at a depth of 500 metres to 1.5 kilometres. This made it the 10th-largest undeveloped gold resource in the world. Wits Gold’s total gold resource of 160 million oz made it the sixth-largest gold company in the world, ranked by resources. As it has a market capitalisation of about $500 million, investors were paying about $3.30 for an oz of gold. Wits Gold reported a substantial increase in its indicated gold resource to almost 20-million oz , the company said in November, 2007. Following a review of its gold and uranium resources by Snowden Mining Industry Consultants, its total indicated gold resource increased to 19,4-million oz, compared with the previous estimate of 3,9-million oz. Wits Gold recorded an inferred gold resource of 130,4-million oz, compared with 155,8-million oz previously. The total inferred uranium resource was 54,3-million pounds, compared with Snowden's previous estimate of 136,3-million pounds.
- "Wits Gold, a strange stock for strange times" (Source: Mineweb)
- Mintails Limited (ASX:MLI) is involved in the development, processing and production of gold and uranium and potentially sulphuric acid from "mining tailings" located on the West and East Rand areas of the Witwatersrand Basin, near Johannesburg. Mintails recently announced a new 50:50 Joint Venture with DRDGOLD in respect to substantial tailings resources located on the East Rand. The JV will own the rights to process over 1.7 billion tonnes of tailings materials on the East Rand. Mintails is involved in a further JV with DRDGOLD in respect of a new underground exploration company called West Wits Mining Limited formed to investigate and potentially exploit any economic underground mineralisation located at historic leases on the West Rand.
Gold mining first commenced in the Witwatersrand Basin in 1886 and has since produced over 50,000 tonnes (1.7 billion ounces) of gold. This represents over 40% of the world's gold production. The massive multi-million tonne tailings deposits, which line the outskirts of Johannesburg, are the remnants of over a century of deep underground and open cast mining.
Mintails currently has the rights to exploit in excess of 305 million tonnes of sands, slime and rock tailings material situated on the West Rand approximately 70kms west of Johannesburg, and now also owns 50% of a JV formed with DRDGOLD which has access to a further 1.7 billion tonnes located on the East Rand, 60 kms east of Johannesburg.
Nickel
Click HERE for an overview (MBendi)Anglo Platinum produces around 30,000 tonnes of nickel per year as a by-product from its platinum mining operations and Impala Platinum 14,000 tonnes.
Geology
The Uitkomst complex (Nkomati nickel mine) comprises three disseminated sulphide mineralized zones, namely the Basal Mineralized Zone (BMZ), Main Mineralized Zone (MMZ) and the Chromititic Pyroxenite Mineralized Zone (PCMZ). At the base of the Uitkomst complex, another sulphide orebody, Massive Sulphide Body (MSB), occurs.
- LionOre Mining International Ltd (Canadian, LIM.TO, LMGGF.PK) operates the Nkomati nickel mine situated in the Mpumalanga province in the northeast of South Africa, some 300 km east of Johannesburg. African Rainbow Minerals Limited (ARM) has a 50% interest. Nkomati Nickel comprises the producing Nkomati massive sulphide body (MSB) nickel mine, a lower-grade disseminated orebody and a chrome operation. The operating MSB mine is one of the lowest cash cost nickel mines in the world. The MSB currently produces 4,500 to 5,000 tonnes of nickel annually, with significant by-products including copper (2,800 tonnes), palladium (22,000 ounces) and platinum (7,000 ounces). ( In 2005, Nkomati produced 5,291 tonnes of nickel as well as 3,260 tonnes of copper and 97 tonnes of cobalt.) The operation is expected to continue at current production levels until early 2008. The interim expansion project will maintain production and bridge the gap between the depletion of the MSB (due in early 2008) and the proposed major expansion projects, planned to start construction in 2009 with full production forecast in 2012.The interim expansion project anticipates mining the disseminated Main Mineralized Zone (MMZ) orebody with commissioning planned for September 2007 and full production, at an annualized rate of 5,000 tonnes of payable nickel, expected by the end of 2007. The current project life is approximately 10 years unless incorporated into the Phase 2 Expansion. Nkomati's low grade disseminated orebody offers significant expansion potential. The expansion projects are targeting approximately 20,00 t per annum of nickel with a life of mine to beyond 2020. Expansion capital would be split equally between LionOre and ARM. A feasibility study is currently underway and is due for completion mid-2007. LionOre and ARM are also building a 20,000 to 25,000 tonnes/year smelting and refining facility for their Nkomati nickel development using Activox, a type of hydrometallurgy that is much cheaper than conventional smelting technology and able to treat low grade concentrate. MMC Norilsk Nickel , on 3 May 2007, offered to buy LionOre Mining International Ltd for about $5.3-billion, topping a competing bid from Xstrata plc. Norilsk offered $21.50 in cash per LionOre share, more than the $18.50-a-share bid Xstrata offered in March 2007. On May 23, 2007, increased an offer for LionOre Mining International Ltd. by 28 percent to C$6.8 billion ($6.3 billion), trumping an improved bid from Xstrata Plc. Norilsk bid C$27.50 a share, up from the C$21.50 it proposed. Norilsk Nickel announced plans in September, 2007, to invest $830 million in its African production assets over the next three years in order to double its nickel output on the continent. The Russian-based company also said that it will invest $445 million together with joint venture partner African Rainbow Minerals Limited (ARM) in the Nkomati nickel mine that the two companies operate together.
This investment will increase average annual nickel production to 20,500 tonnes from 5,500 tonnes and extend the life of mine by 18 years to 2027, the company said.
Oil and Natural Gas
Click HERE for an overviewAccording to Oil and Gas Journal (OGJ), South Africa had proven oil reserves of 15 million barrels as of January 2007. All of the proven reserves are located offshore southern South Africa in the Bredasdorp basin. In 2006, South Africa produced 200,000 barrels per day (bbl/d) of oil, of which 30,000 bbl/d was crude oil, and 170,000 bbl/d consisted of mostly synthetic liquids from coal and natural gas. Over 50 percent of South Africa’s oil consumption is imported. In 2006, South Africa consumed 519,000 bbl/d of oil, and imported 319,000 bbl/d of oil. According to the South African Petroleum Industries Association (SAPIA), the majority of crude oil imports destined for South African refineries come from the Middle East, with Iran and Saudi Arabia as the country’s chief suppliers. Nigeria and Angola (among others) also supply crude oil to South Africa.
In 2005, South Africa launched the National Energy Regulator of South Africa (NERSA). NERSA regulates policy over the entire South African energy industry and is responsible for implementing South Africa’s energy plan. South Africa also has a national oil and natural gas company, the Petroleum Oil and Gas Corporation of South Africa (PetroSA). PetroSA is responsible for managing and promoting the licensing of oil and natural gas exploration in the country. This includes both onshore and offshore exploration. International oil companies (IOCs) involved in South Africa’s upstream oil sector include Anschutz International, BHP Billiton, Forest Oil International, and Pioneer Natural Resources.
- Oil production: 229,900 bbl/day (2004 est.)
- Oil proved reserves: 7.84 million bbl (1 January 2002)
- Natural gas production: 2.23 million cu m (2004 est.)
- Natural gas proved reserves: 28.32 billion cu m (1 January 2005 est.)
- PetroSA (State-owned) is involved in exploration and production in South Africa, as well as Gabon, Equatorial Guinea, Nigeria and Sudan. PetroSA has made several discoveries on block 9, Bredasdorp Basin, including the Oribi, Oryx and Sable fields. PetroSA and Energy Africa began producing oil in 1997 at the Oribi field, which was followed by the Oryx and Sable fields in 2000 and 2003, respectively. PetroSA and Pioneer developed Sable under a joint partnership. The field has six subsea wells connected to a floating, production, storage and offloading vessel (FPSO) with the capacity to process 60,000 bbl/d of oil, re-inject 80 million cubic feet per day (MMcf/d) of natural gas and recover natural gas liquids (NGLs). In 2003, the fields produced 58,000 bbl/d of crude oil total; however, due to steady declines, the fields currently produce around 30,000 bbl/d of crude.
- In 2007, South Africa will auction four offshore blocks for exploration. In addition, BHP-Billiton plans to drill for oil in offshore acreage in western South Africa. BHP Billiton, however, which holds rights to two oil and gas exploration blocks off South Africa's West Coast, has reached an impasse with the government over the conversion of its exploration leases to new order mining rights, Business Report said.
A key obstacle was understood to relate to the Department of Minerals and Energy's insistence that local courts arbitrate in disputes. Many oil-producing countries allow the International Court of Arbitration, a division of the International Chamber of Commerce, to resolve commercial disputes.
The government has also blocked stabilisation provisions that would protect BHP Billiton, the world's largest mining group, from any future changes in the law.
- Forest Oil operates Orange River Basin Blocks 2A and 2C on behalf of partners Anschutz Exploration and Petroleum Corporation of South Africa.
Platinum
Click here for mining and exploration information on Platinum in South AfricaUranium
Click HERE for an overview (Mbendi)- AngloGold Ashanti (NYSE:AU; JSE:ANG) will spend R250m expanding capacity at its Vaal River South Uranium plant by up to 40% from its current production of 1,5 million pounds a year, the company said in February 2007. The South Vaal uranium plant, South Africa’s only uranium processing operation, was built in 1979 with a 20-25 year life, but the extended life of AngloGold’s uranium resources and positive market conditions encouraged the group to start a complete refurbishment two years ago. AngloGold Ashanti is currently producing uranium at a cost of about $15/lb, and is still selling it into contracts in which it is realizing only about $20/lb. The company's reserves amount to 25,9-million pounds and its resources are 128,6 million pounds. AngloGold also has a 50% stake in uranium trader Nufcor, which has its own uranium inventory.
- SXR Uranium One Inc (TSX:SXR) is developing the Dominion Uranium Project located near the town of Klerksdorp. Dominion is one of the world’s largest undeveloped uranium deposits, with a significant secondary gold by-product. Production at Dominion is planned to commence in the first quarter of 2007, with a ramp-up in production to an average of 3,8 million pounds per year by 2011. It has an estmated probable reserve of 18,5 million tonnes at an average grade of 0,77 kg/t containing 31,3 million pounds of U3O8
- First Uranium Corporation (FIU.TO, FURAF.PK) has 280 million pounds in uranium resources and 37 million oz in gold at its Ezulwini underground and Buffelsfontein tailings properties in South Africa. Ezulwini has measured and indicated resources of two million oz of gold and 6,8 million pounds of uranium oxide. Average annual production at Ezulwini for the life of the project, from 2007 to 2024, is expected to be 290,000 oz of gold and 888,000 pounds of uranium.
- DRD Gold (South African, Nasdaq:DROOY; JSE:DRD) announced in April 2007 that it planned to create a joint venture with Mintails, a listed Australian company and Mineral & Mining Reclamation Services (MMRS). The partners have agreed to consolidate their uranium and gold-bearing properties on the West Rand with production possible after about two years of development, DRDGOLD said. These properties included Rand Leases, Durban Roodepoort Deep, East Champ D'Or, Luipaardsvlei and West Rand Consolidated. The assets have produced gold totalling 30 million ounces and uranium oxide of some 17,000 tonnes. In terms of the proposals, DRDGOLD and Mintails SA will hold 45% each in the joint venture with MMRS holding the balance. The company would also take a secondary listing in Johannesburg. The joint venture's lease consolidation provides a package of tenements with a continuous strike of over 20 kilometres, covering significant gold and uranium-producing, historical mines over the western margin of the Witwatersrand.
- Harmony Gold Mining (South Africa, NYSE:HMY; JSE:HAR) is investigating the uranium reserves in its slimes dams. It had a relationship with Russia’s Renova, which could exploit Harmony’s uranium in exchange for helping Harmony find gold prospects in Russia. A presentation on Harmony's website said in October, 2007, that an exclusivity deal expired at the end of September and "interested parties" were approaching Harmony's advisors regarding the firm's uranium potential in dumps and also underground.
The exclusivity deal apparently refered to a memorandum of understanding Harmony previously signed with Russian investment firm Renova, which had expressed interest in the uranium assets.
Eleven out of Harmony's 56 tailing dams of mining waste contain high amounts of uranium. Its uranium assets might be valued at R5bn to R15bn depending on uranium prices. Harmony has put its uranium assets into a new company in which it holds a 40% stake. Pamodzi Resources Fund owns the remaining 60%. The intention is to list the company, which requires investment of R2.4bn to bring it into production of 2.2 million pounds of uranium a year.
- Gold Fields (South Africa, NYSE:GFI; JSE:GFIELDS) has at least 63 million pounds of uranium and two million ounces of gold resources at its Beatrix four shaft. The company also has up to 30 million tonnes of slimes dams that could be processed for uranium and gold.
- UraMin Inc (Canadian) is exploring properties in the Karoo Uranium Province (Ryst Kuil Channel and Sutherland) and the Springbok Flats basin. The total historical mineral resource in the Ryst Kuil Channel, outlined by a prior holder on the licenses for which the company has applied, is 64 million pounds of U3O8 (29 million t at a grade of 0,1%). Drilling is scheduled to commence in January 2007 with completion date of the feasibility study by March 2008. The Company believes that the property is capable of being placed into commercial production by late 2009 at the rate of 2,6 to 3,0 million pounds uranium per year with significant molybdenum as a by-product. The Sutherland area has been explored in the 1970s and 1980s by various companies including Union Carbide, Anglo American, Esso Minerals Africa Inc., Newmont Mining, Phelps Dodge, JCI, Rand Mines, Essex Mineral Company (a subsidiary of US Steel), Industrial Development Corporation of South Africa Ltd and Southern Sphere. According to RSG Global, historical summary reports indicate a total mineralization at various cut off grades of approximately 27 million lbs of U3O8 on the properties in Sutherland and proximate areas. The company has summitted 34 applications for prospecting rights by and on the behalf of Mago Resources, the Company's 70% owned subsidiary.The Springbok Flats basin is a fault-bounded graben which trends northeast-southwest for 190 km and is 60 km wide. The uranium is concentrated in coal and carbonaceous shales in the upper part of what is known as the ‘coal zone’ over a vertical metre. A 0,1 m thick enriched zone has also been identified. Uranium has been detected at depths between 20 m and 650 m with the majority of the occurrences at 100 m and 200 m below surface. Previous exploration work focused on the central and north-eastern sectors of the coal field and several deposits containing between 0,016% and 0,1% U over a 1 m width were delineated. The uranium potential of the area was investigated by Anglo American Corporation and Gencor and included feasibility studies on a bulk sample that was mined. Exploration ceased in 1982 and the deposits have not been exploited. According to a publication released by the Council of Geoscience in 1998, resources for the entire Springbok Flats coal field were estimated at 55,000 tonnes of U in 1994. The company has submitted twenty-two applications for prospecting rights by and on the behalf of Mago Resources, the Company's 70% owned subsidiary.
- Brinkley Mining plc ( also active in the DRC) has applied for five areas in the Karoo uranium province, Waterval Damsfontein, Bloemfontein, Rietkuil, and Flagfontein, of which two have been granted. Blue Nightingale 709 (Pty) Ltd is the company's joint economic empowerment partner and also a 25% shareholder in Western Uranium (Pty) Ltd, a subsidiary of Brinkley Mining. Signet Mining Services Ltd has acquired a 4.07% stake in Brinkley Uranium Mining plc and is exploring the Damsfontein-Bloemfontein prospect 'The prospect is underlain by approximately 59.4 km2 of the target sandstone known as the Poortjie Member. The Prospect itself is known to be mineralised to potentially economic grades. This sandstone body is essentially flat-lying and has a maximum thickness of 33 m. The sandstone sheet trends north-northeast for at least 15 km and has an average width of 5 km.'
'The mineralised zones are lenticular in shape and occur at various horizons in the sandstone unit, from directly above the base to 5 m above the base. They vary in thickness from 16 cm to 1.5 m and generally occur in the lower third of the sandstone body. Mineralisation is hosted by grey, non-calcareous, fine-grained and subordinate mudstone-pebble conglomerate.'
'The higher uranium grades tend to coincide with the thicker mineralised zone and do not exceed 2,000 ppm U over the thickness of mineralised zones. Individual samples can be as high as 4,000 ppm U. Molybdenum grade is generally higher than uranium, with individual samples as high as 7,000 ppm Mo. Historic estimates of mineralisation showed an in-situ grade of U3O8 from 1,170 to 1,600 ppm U and a Mo grade of 1,000 to 1,060 ppm Mo.' (Source: Signet)
Zinc
Click HERE for an overview- Anglo American mines the Black Mountain deposit. Black Mountain is a lead, zinc, copper and silver operation, situated in the Northern Cape Province of South Africa. Black Mountain's proven and probable reserves (2001) stood at 12,7 million t grading at an average of 1,8% zinc and 4,38 % lead in 2001. It also owns the Gamsberg deposit. Gamsberg is a large zinc deposit located approximately 20 km west of the Black Mountain mine. It is forecast that Gamsberg will produce 300,000 tonnes per annum of zinc metal at capacity.




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