Annual Report-2019

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Organisational overview and strategy

OUR MEMBERS

The Minerals Council represents 77 member companies including four associations that together generate 90% of South Africa’s mineral production by value, employ

APPROXIMATELY

450,000 PEOPLE and contribute some R24 billion in taxes per annum.

These companies include:

These member contractors include:

Afrimat, Bushveld Vanadium, Corobrik, Imerys, NV Commodities Trading International, Opal Mining, Pretoria Portland Cement, Richards Bay Minerals, Tando Resources and Tronox Mineral Sands

Fraser Alexander, Moolmans, Murray and Roberts Cementation and Redpath Mining

Gold/Uranium Gold is one of the world’s most-coveted metals, revered for its beauty and symbolism and held as a store of value. This versatile metal is malleable, conductive and does not tarnish, making it ideal for use in jewellery and many industrial applications. While not as dominant as it once was, gold mining is still a significant player in South Africa’s mining industry. A unique feature of South Africa’s gold mining sector is that uranium is produced as a by-product of many of the mines. Seven gold mining companies are members of the Minerals Council. These include: DRDGOLD, Gold Fields, Harmony, Pan African Resources, Rand Uranium, Stonewall Mining and Village Main Reef

Coal Coal is the largest component of mining by sales value and is a critically important source of primary energy (electricity and liquid fuels) that drives the South African economy. Coal mining member companies of the Minerals Council include: Anglo American Coal, Atha-Africa Ventures, Exxaro Resources, Glencore Coal, Jindal Africa, Kuyasa Mining, Ledjadja Coal, MC Mining; Mbuyelo Group, Msobo Coal, Sasol Mining, Seriti Resources, South32 - South Africa Energy Coal, STA Coal, Tweewaters Fuel and Vaalbult Mining

Platinum Platinum group metals (PGMs) constitute six noble metals, all silvery-white in appearance – platinum, palladium, rhodium, ruthenium, osmium and iridium. Platinum, palladium and rhodium are the primary metals of significant economic value. They are used largely by the automotive and chemicals industries for their excellent catalytic properties. Other uses include jewellery, investment (coins and bars), fuel cells, and many other industrial and medical purposes. South Africa is the largest PGM producer in the world and ten of these mining companies are members of the Minerals Council. These include: Anglo American Platinum, Barplats, Bauba Platinum, Impala Platinum, Ivanplats, Northam Platinum, Platinum Group Metals, Royal Bafokeng Platinum, Sedibelo Platinum Mines and Wesizwe Platinum

Other minerals South Africa produces more than 50 different commodities. These range from building sands and materials, to industrial minerals and metals, and other niche chemical elements. Given the sheer range of products that are mined, quarried and in some cases manufactured, a special category of ‘other minerals’ has been created for ten of the Minerals Council member companies.

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Manganese Manganese has numerous industrial and metallurgical applications, particularly in the manufacture of steel. In various forms, manganese is used in batteries and chemicals. Given its importance as an alloying element, manganese is the fourth most traded metal commodity in the world. South Africa hosts 80% of the world’s known resources of manganese. Six of the country’s manganese miners are members of the Minerals Council. These include: Assore, Kalagadi Manganese, Kudumane Manganese Resources, South32 - South Africa Manganese, Tshipi é Ntle Manganese Mining and United Manganese of Kalahari

Diversified minerals There are a number of South African mining companies that are wholly diversified in their activities and mine a number of products across the commodity spectrum. Five of these diversified miners are members of the Minerals Council. These include: African Rainbow Minerals, Eurasian Resources Group (ERG) Africa, Mvelo Minerals, New Venture Mining Investment Holdings and Sibanye-Stillwater

Associations Four of the Minerals Council members are associations that represent many South African companies that quarry, mine and produce a wide range of products. These include: Aggregate and Sand Producers Association, Clay Brick Association of South Africa, South African Mining Contractors Association and the South African Diamond Producers’ Organisation

Contractors The Minerals Council also counts contractor companies as members. These companies provide much-needed services to the mines.

Diamonds Diamonds, arguably the ultimate luxury mineral, are made of an intricate lattice of carbon atoms, a crystalline structure that makes them harder than any other form in nature. This characteristic makes diamonds not only popular in jewellery, but also desirable in high-tech cutting, grinding and polishing tools. South Africa is still a significant producer of diamonds and three companies are members of the Minerals Council. These include: De Beers, Petra Diamonds and Trans Hex Group

Chrome Chrome is known for its high corrosion resistance and hardness. It is an essential metal in the production of stainless steel, which accounts for 85% of its commercial use. Three of South Africa’s chrome producers are members of the Minerals Council. These include: African Rainbow Minerals, Anglo American Platinum, Assore, Bauba Platinum, Glencore Alloys, Northam Platinum, Merafe Resources, Samancor Chrome, Sibanye-Stillwater and Tharisa Minerals

Zinc/Copper Zinc, a crucial new-tech mineral that is driving the world’s fourth industrial revolution, is the rising star in South Africa’s mining portfolio. In the Northern Cape, where the mineral is mined, zinc occurs alongside copper and, thus, copper is a significant by-product of zinc mining. Three zinc producers are members of the Minerals Council. These include: Black Mountain Mining, Orion Minerals and the Palabora Mining Company

Corporates Three of the Minerals Council’s members are entirely corporate entities, being either umbrella holding companies or companies with no current operations within South Africa. The exception is AngloGold Ashanti, which is in the process of selling its last remaining operation in South Africa. For this reason, they have been listed under the corporates category. These include: Anglo American South Africa, AngloGold Ashanti and Rio Tinto

Iron ore Iron is among the most common elements on earth, comprising much of the planet’s inner and outer core. Iron ore is mined in the earth’s crust, where it comprises 5% of the total minerals. Most iron ore is used to manufacture steel, which, in turn, is used to manufacture machines, buildings and tools. Two of South Africa’s iron ore producers are members of the Minerals Council. These include: Kumba Iron Ore and Sedibeng Iron Ore


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