LIMPOPO MINERALS CONFERENCE AND TRADE SHOW 2015 THE MINERAL ABUNDANCE OF THE LIMPOPO PROVINCE REPUBLIC OF SOUTH AFRICA

Transcription

1 LIMPOPO MINERALS CONFERENCE AND TRADE SHOW 2015 THE MINERAL ABUNDANCE OF THE LIMPOPO PROVINCE REPUBLIC OF SOUTH AFRICA Presented By: Oliver Barker For: LIMPOPO ECONOMIC DEVELOPMENT AGENCY (LEDA)

2 Outline of talk 1. Introduction Overview 2. Focus The Mineral Resources of Limpopo 3. The Platinum Industry 4. The Coal Industry 5. Chrome and Chromium 6. Base Metals Copper - Iron Ore Vanadium 7. Industrial Minerals Andalusite Phosphate - Mica and Feldspar 8. Dimension Stone and Limestone 9. Exploration and Mining Activity 10.Key Mineral Production in Limpopo 11.Industry Challenges

3 Introduction Where What How 1. Where is Limpopo Situated? 2. What is its geographical setting? 3. How does the minerals industry impact on the Province

4 Locality Map and Regional Infrastructure 1.

5 Magisterial Districts of Limpopo Relative to Surrounding Provinces & Countries Zimbabwe Botswana Vhembe Capricorn Mopani Waterberg North-West Province Sekhukhune Mpumalanga Province Modified After: Wikipedia 2015 Gauteng Province

6 Magisterial Districts of Limpopo Province Municipalities of Limpopo District Local Mopani Greater Giyani, Greater Letaba, Greater Tzaneen, Ba-Phalaborwa, Maruleng Vhembe Musina, Mutale, Thulamela, Makhado Capricorn Blouberg, Aganang, Molemole, Polokwane, Lepelle-Nkumpi Waterberg Thabazimbi, Lephalale, Mookgophong, Modimolle, Bela- Bela, Mogalakwena Sekhukhune Ephraim Mogale, Elias Motsoaledi, Makhuduthamaga, Fetakgomo, Greater Tubatse Population of 5,404,868 (2011) (census) with a currently estimated total of 5,630,500 (2014) 4% growth which ranks it 5th in South Africa. The Province comprises 5 districts and 26 Municipalities It has a population density of 3/km2 (110/sq mi) which ranks it 5th in South Africa. The density is very skewed with intensely populated areas around the major towns and cities and low densities in deeply rural areas and mountain ranges

7 Economic Growth Rate of USA, China & EU Compared with South Africa Note SA Above that of the US, EU & Sub- Saharan Africa

8 Growth in Africa starts overtaking advanced economies

9 Growth Rate Comparison Limpopo VS South Africa

10 Growth Rate Comparison Limpopo VS South Africa % change Real annual economic growth rate per region ( ) Western Cape Source: SSA Gauteng KwaZulu- Natal Eastern Cape Mpumalanga Free State Limpopo Northern Cape North West GDPR at market prices

11 Growth Rate Comparison Limpopo VS South Africa Real annual economic growth rate per region (2013) % change Gauteng Source: SSA North West Limpopo Western Cape Northern Cape KwaZulu- Natal Free State Mpumalan ga Eastern Cape GDPR at market prices

12 Mining Statistics Resources of Limpopo in Context The Chamber of Mines Annual Report for In the past decade, the mining sector has contributed just over R2.4 trillion to the country s GDP and R2.4 trillion to the country s export earnings, in real money terms (COM 2014 AR)

13 The Mineral Resources of Limpopo in Context The mining industry contributes 14% to FDI in 2013, down from 25% in The potential for this to improve is hampered by the escalation of a labour, electricity and regulatory challenges. The downgrade of the SA debt rating during 2014, places it, on average just within the investment grade rating. (Just above junk status!)

14 Mining is the Flywheel of the Economy

15 Mining is the Flywheel of the Economy

16 Coal Mines & Projects + CBM & UCG? Platinum/Chrome Mines & Projects in Limpopo Limpopo s Key Mineral Heritage Platinum, Chrome. Coal &UG

17 Limpopo s Mineral Heritage 1 Precious Metals: Platinum group elements (pge): (Merensky and Chromite Reefs) Platinum, palladium rhodium, etc and gold Nickel and Copper with pge (Esp Mogalakwena Mine PlatReef) Copper and Phosphate (Palabora) Iron ore, (magnetite) (Bushveld, Banded Iron Formation and Palabora) Chromite (Bushveld Complex) Blend coking and, steam coal, (With associated uranium in the Springbok Flats 7 Diamonds (Venetia) Tin (Rooiberg 9 Area, Waterberg) 10 Industrial Minerals and Dimension Stone Brick Clay Scheelite, Vermiculite, Silicon, Feldspar Granite, (Black and other colours) Emeralds Corundum, Limestone 8 Antimony (Tzaneen Region)

18 Platinum Resources & Reserves 1.Limpopo Province is host to 41% of the national reserve base 2.North West Province accounts for a further 24% 3.Mpumalanga makes up 35% by difference 4.Resources of Platinum are estimated at 29,206 tonnes and Palladium at 22,115 tonnes Total SA Coal reserves: 67Bt Total SA PGM (Pt/Pd) reserves: > t

19 Coalfield Statistics (2012) Coalfield or Portion of a coalfield Run OF Mine (Mt) 1.Limpopo Province is host to 50,634Mt of Coal or 76% of South African ROM Resources 2.Waterberg OC on its own is 54% of the SA total 3.Note: the Total is for the whole country) 4.For modifying factor see report issued by the CGS in 2012 (Unpublished)

20 Coal and Platinum Mines of Limpopo

21 Waterberg Coalfield 1Tcf Gas 48 coal prospecting rights

22 Northern Limpopo Coalfields Vele Mine and Makhado Project (Coal of Africa)

23 Springbok Flats Coalfield

24 Springbok Flats Coalfield 1. The Basin lies about 90km north of Johannesburg, 40km from Pretoria 2. The basin covers and area of about ha 3. It is about 209km in length and km in width 4. The field has substantial coal bed methane (CBM) and uranium potential 24

25 In-Situ Coal Resource Estimate Springbok Flats Coalfield Regions and Areas 1 NE Region 3,245,614,384 2 NE Shallow Area 1,131,701,793 3 NE Deep Area 2,113,912,591 Areas From Maps 4 Central Region 1,673,598,490 5 Central Shallow Area 911,118,699 6 Central Deep Area 762,479,792 7 SW Region 2,917,139,888 8 SW Shallow Area 1,906,749,599 9 SW Deep Area 1,010,390, Total Resource Area (1+4+7) 7,836,352,763

26 Eastern Limb Platinum and Chrome Mines Steelpoort 1. There are +40 projects or mines on the Eastern Limb 2. The area is important historically as it was here that the Merensky Reef was discovered (3) 3. Outcrop in Limpopo of the Platinum and Chrome reefs is over 180km in length 4. There are at least three significant chrome operations north of Steelpoort in Limpopo

27 27 Western Limb Platinum & Chrome Mines in Limpopo 1.Two Smelters are located in Limpopo in the W Bushveld. These are at the Northam Mine and at Union 2.Northam is the deepest Platinum Mine in South Africa operating at 1670m from surface 3.Anglo Platinum has the Union Mine up for sale

28 Magnetite iron ore projects are also being investigated west of the Platreef line in the Main Zone of the Northern Limb of Bushveld Complex Northern Limb Platinum Belt 1.Mining on the Northern Limb has been opencast (Mogalakwena Mine A15 2.PTM Waterberg project continues to be explored; 3.New mine (Platreef Resources) is under development at Mokopane 4.There are 17 recorded projects along the Northern Bushveld at present;

29 Minerals and Metals Identified in Limpopo Province Strategic minerals and others deemed to be of high economic importance are: Coal Chromium Copper Gold Iron Nickel Phosphate Vanadium Platinum Group Metals (pgm) Uranium Tin Other minerals of economic potential are: Andalusite Antimony Manganese Lead Zinc Silver Molybdenum Dolomite Building Stone Clays -Kaolinite Bauxite Mica Feldspar Quartz Fluorspar Limestone

30 Diamonds Tin Fields Phosphate Glenover Magnetite/ Vanadium Uranium BIF Iron Ore Copper Potential Andalusite Phosphate/ Mica / Mt Palaborwa Magnetite and Vanadium

31 Proposed Transport Corridors and Special Economic Zones in Limpopo Lephalale Energy Coal Development Zone Musina Development Zone Tubatse Development Zone

32 Beneficiation Platinum, Coal, Iron Ore and Chrome are extensively beneficiated in Limpopo and in South Africa before being sold

33 Platinum in Southern Africa 1.Beneficiation including smelting and refining is well developed with 5 smelters and 3 refineries. 2.Northam exports its smelted products to Germany for refining 3.The Selous Metallurgical Complex (SMC) in Zimbabwe services all the Zimbabwe mines 4.Kalplats project is still under evaluation in the Stella Layered Complex, Northern Cape

34 PGM: Potential and Status South Africa is the largest producer of platinum minerals in the world. Russia is a large palladium producer, the only viable substitute for platinum. South Africa s dominance in international production of platinum is expected to continue for many decades (SAMREC Cawthorn Reserves: Proven and Probable) Estimated Reserves Pt: 203.3M troy ounces, (6,323 tonnes) Pd million troy ounces (3,611tonnes). Inferred resources Pt: 939 million troy ounces (29,206 tonnes) Pd: 711 million troy ounces (22,115 tonnes)..

35 Coal Production & Beneficiation Outlook In Limpopo COAL Coal The dominant receiver of coal remains Sasol for their production of synfuel, and to Eskom for the production of electricity. Both outputs from Sasol and Eskom are largely sold to local consumers. New coal to liquid processing plants may be established but only in SA due to the low cost of oil at present $40-50/B (11/15). All SA Coal is beneficiated and consequently over 40% of production is lost to ash stockpiles (over 70% in the case of the Waterberg coalfield). Between 2000 and 2014 coal production rose from 226Mmt to 263Mmt, an annual increase of 2,6Mtpa over this 14 year period. The export of coal has averaged 39% of local sales over a 27 year period to December 2014 and currently stands at 68Mtpa. The planned increase to 91Mtpa has not materialised due to the world wide slow down in demand and low prices. Coal gasification (UCG) remains an opportunity for ultra deep coal deposits as are present in the Waterberg, Springbok Flats and Northern Limpopo Coalfields. A pilot project is currently being developed in the Free State

36 Chromite Mining &Beneficiation In Limpopo MINERAL Chromitite Production and Beneficiation South Africa is the largest chrome ore producer in the world. More than 90% of chrome ore is converted to ferrochrome. Ferrochrome, is destined for the stainless steel producers in China and Japan. Beneficiation of Limpopo chrome takes place at Steelpoort,Lydenburg and in Middelburg where high chrome steel is manufactured in combinationwith Magnetite iron ore mined at Stoffberg Limpopo South Africa produces stainless steel goods locally and export these into other markets internationally. Tubatse is planned to be a major development zone for Ferrochrome in future In Limpopo, Chromite has been mined along the entire outcrop between Steelpoort (Winterveld)and the Olifants River (Jagtlust) for more than 60 years.at Grasvally, south of Mokopane, high grade chrome was mined for many years.

37 Iron Ore: Potential and Status MINERAL Iron Level of Beneficiation in South Africa Magnetite iron ore has been mined near Roosenekal in Limpopo for more that 40 years. The product is railed to Middelburg where it is combined at Middelburg Steel and Alloys to produce ferrochrome and high grade steel. New magnetite projects are being investigated in the northern limb of the Bushveld Complex and close to the Botswana border. In the Sekhukhune area vanadium is located in association with magnetite but intense human settlements have resulted in the deposits being sterilized due to the costs of moving and relocation of residents

38 Industry Challenges Environmental Concerns Mining activities pose a number of environmental concerns that include noise, dust, air, land and water pollution and competition with farming. Increasing Operating Costs Deep level underground and large opencast mines (e.g. Northam & Palabora) use significantly more diesel and electricity in order to access deeper ore bodies. This increases operating costs and impacts negatively on profit Skills Shortages Increasing operating costs pressures Skills shortages Environmental concerns Safety concerns Key Industry Challenge s Safety concerns Safety concerns Railway capacity constraints at Transnet Railway capacity constraints at Transnet Deep level mining Deep level mining Electricity supply shortages Electricity supply shortages The South African mining industry is competing with the infrastructure industry and other resource rich countries such as Canada, Australia and Chile and north of our borders inafrica for mining engineers, geologists and artisans.

39 IN SUMMARY The Limpopo Province is endowed with a vast array of mineral deposits ranging from gold, diamonds, chrome and coal to platinum and copper. The South African Chamber of Mines indicates that the Limpopo province has approximately 90 operating mines, 50 of which are small to medium sized mines. The Eastern and Northern limbs of the Bushveld Complex are the hosts to a massive concentration of pge (platinum group elements), chromite, magnetite, vanadium, copper, cobalt and nickel. In the Limpopo Mobile Belt north of the Soutpansberg hosts diamond, copper, corundum and graphite mines have been explored for and developed for almost acentury. The Limpopo Province is also home to the Waterberg coal basin which hosts approximately 54% of South Africa s remaining coal resources A host of other minerals have been discovered and are being prospected for in the Limpopo Province

40 Kealeboga Thank you Any question?