South African Mining industry

Industry snapshot 2

Overview of the SA mining industry 3General exploration expenditures by region, US dollar millions 5Key mineral industry statistics for SA 6SA’s role in world mineral reserves, production & exports 8Provincial overview 9

General mining industry dataSafety: fatalities and fatality frequency rates 10Employment and remuneration on Chamber gold and coal mines 12Employment and remuneration on SA mines 12Income and expenditure of all SA mines 2009 13

Aggregate and sandTotal sales, employment and total earnings 14

Base mineralsChromite production and sales 15Iron ore and copper production and sales 16

Coal industry dataAnnual South African coal production, sales and exports 17Analysis of coal sold by member coal producers 18Distribution of annual coal trade 19Employment on coal mines 20

Diamond dataSouth African diamond production and sales 21Estimated production by country & ranking 22

Gold industry dataSA’s proportion of global gold production 23South African gold output and sales 24Annual gold production and average grade, 2000 – 2009 25Average employees on Chamber gold mines, 2000 – 2009 26

2009 Quarterly summary of principal operating results of Chamber goldproducersGold production, average grades, revenue and profit data 27Cash operating cost data, taxation, capex and dividends 28Average unit cash operating costs and profits 29

Manganese and chrome dataSA manganese and chrome production and sales 30

PGM dataSA platinum and PGM production 31Platinum supply and demand 33Palladium supply and demand 34Rhodium supply and demand 35

Silver industry dataAnnual SA silver production and sales 36

Uranium industrial dataUranium output, 1955 – 2009 37Cumulative uranium output 38

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South African mining industry snapshot 2009

The South African mining sector in 2009:

° Contributed about 19% of GDP (8.8% directly); over 50% of merchandise exports (ifsecondary beneficiated mineral exports are added); about 1 million jobs (about 500 000jobs indirectly); about 18% of gross investment (10% directly); approximately 30% ofcapital inflows into the economy via the financial account of the balance of payments;about a third of the market capitalisation of the JSE; 93% of the country’s electricitygenerating capacity; about 30% of the country’s liquid fuel supply; the largest contributorby value to black economic empowerment in the economy (in terms of the value of BEEtransactions completed) and about 10% to 20% of direct corporate tax receipts (R33 billionin 2008, R10.5 billion in 2009)

° Research into the multiplier and induced effects of the mining sector indicate that whilemining accounts for 8.8% of GDP directly the backward linkage to side stream beneficiationadds another 2.3 percentage points to GDP. Add the downstream linkages another 2.2percentage points are added plus the induced effects adding another 5-6 percentagepoints, resulting in the overall contribution of the minerals cluster being closer to 19% ofGDP. Add in the contribution of over 50% of merchandise exports and one million jobs (500000 in mining alone) and the overall impact of mining on the economy is substantial

° The rate of growth in real mining fixed investment dropped considerably from 27.7% growthin 2007, 13.2% growth in 2008 to only 2.7% growth in 2009. Falling mining productioncombined with lower prices and revenues meant that mining GDP contracted by the largestamount since 1974. In 2009, mining GDP fell by 7.2% as the industry was hit by the globalfinancial crisis and further domestic constraints. In the past two years mining GDP in realterms has fallen by a significant 12.2% and effectively the sector in 2009 is smaller in realGDP terms then it was in 1994

° The value of South African mineral sales fell by 19.6% to R241.3 billion due to the impactof the global financial crisis. The top three minerals (coal, pgms and gold) accounted for71.2% of South Africa’s total mineral sales in 2009

° Total primary mineral exports sales fell by 19.7% to R176,4 billion. Primary mineral exportsaccounted for 31.7% of South Africa’s total merchandise exports. The addition ofsecondary beneficiated minerals to primary exports, such as pgm catalytic converters,ferro-alloys, steel, chemicals, plastics and so on, takes the exports of the mineral complexto about R280 billion or about 50% of South Africa’s total merchandise exports in that year

° Mining production fell by 6.6% in 2009 following the 5.7% decline in 2008. Key reasons forthe decline in 2009 include the 52.6% decline in diamond production, the 32.8% fall inmanganese production, the 29.1% decline in chrome production, the 7.1% decline in goldproduction and the 1.6% decline in platinum group metals production. The only substantivearea where production increased was iron ore, which had a 12.9% increase in productionto 55.3 million tons

° The total income* of the South African mining sector was R332 billion, down by 8.8% on2008. The industry’s total expenditure, excluding dividends, taxes and capital expenditure,was R312 billion, implying a small gross surplus of R20 billion.However, if taxes, dividendsand capital expenditure is included, the total expenditure of the mining industry was R399billion in 2009 implying that a deficit of R67 billion was incurred

° The total expenditure was made up of R193 billion spent on the procurement of goods andservices and local operating costs, R71 billion went on salaries and wages, R51.5 billionwent into capital investment in the sector, R12.2 billion was paid to the providers of loancapital (in the form of interest), R35 billion was provided to cover depreciation andimpairments, R10 billion was paid in the form of direct taxes to government, R25.5 billionwas paid as reward to the providers of capital (shareholders)

° The South African mining sector employed 491 922 employees compared to 518 519employees in 2008, a decline of 5.1%. Mining accounted for 6% of total non-agriculturalformal employment in the economy and 7.8% of total private sector non-agriculturalemployment. If the indirect and induced effects of mining are included than another 500 000jobs are estimated to exist in addition to the direct mining jobs. Some R71-billion was paidto workers in the form of salaries and wages.

*Total income, as measured by StatsSA,includes mineral sales, income from dividends,interest and profit made on the disposal ofassets

Text 2010 CMYK 3 10/18/10 10:01 AM

South African mining industry overview 2009

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The contribution of mining to SA over the past decade expressed in 2009 real rand terms

Contribution to the economyThe mining sector in South Africa over the past 130-years has provided the critical mass for the

development of a number of industries that either supply the mining sector or use its products. Thiscluster of industries includes: energy, financial services, water services, engineering services, specialistseismic, geological and metallurgical services, etc., that are world class in their own right and that owetheir very existence to the mining sector. For example, the Johannesburg Securities Exchange (JSE) wasoriginally established on the basis of funding the mining sector in the late 19th century. The miningsector still accounts for a significant one third of the market capitalisation of the JSE and continues toact as a magnet for foreign investment to the country. Once established the JSE was able to provide thebasis for “capital-raising” for other sectors of the economy. This cluster of industries has gone on toservice other parts of the economy and provided a significant export base to service the global miningindustry. This in itself should be recognised as a significant type of beneficiation contribution to SouthAfrica by the mining sector.

Not only does the mining sector use considerable services and inputs from the domestic economy, italso supplies many associated industries that use mining products to keep the wheels of the SouthAfrican economy moving. For example, 98% of the country’s cement and more than 90% of thecountry’s steel is fabricated locally from locally produced minerals. It is estimated that another R200billion in value is added to the local economy through the intermediate and final product industries thatuse minerals produced by the South African mining sector. This indicates that where the commercialopportunities exist that further downstream beneficiation is taking place.

SA mineral sales and exportsIn 2009, the modest 2.2% depreciation in the rand exchange rate to a level of R8.44 per US$ was not

enough to offset the decline in most commodity prices due to the impact of the global financial crisis or theproduction declines for most minerals, which resulted in the value of South African mineral sales falling by asubstantial 19.6% to R241.3 billion. Given the response of mining companies to the global financial crisis,which included cutting back on supply and closing uneconomic production, total South African miningproduction fell by 6.6% in 2009.

The decline in mineral sales was driven by the decline in sales of manganese (down 67.8%), platinum groupmetals (down 36.7%) and coal (down 9.8%). Coal has become the largest component of the South African

Source: Chamber of Mines/StatsSA

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Industry overview 2009

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NOTES:Totals might not add due to rounding.* Includes strategic and minor commodities not otherwise enumerated. As at June 12/07/2010 Source: Minerals Bureau, DMR

mining industry by sales value with total sales of R65.4 billion, followed by platinum group metals at R58 billionand gold at R49 billion. The top three minerals accounted for 71.2% of South Africa’s total mineral sales in2009.

Total primary mineral exports sales fell by 19.7% to R176,4 billion. Primary mineral exports accounted for31.7% of South Africa’s total merchandise exports. The addition of secondary beneficiated minerals toprimary exports, such as pgm catalytic converters, ferro-alloys, steel, chemicals, plastics and so on, takes theexports of the mineral complex to about R280 billion or about 50% of South Africa’s total merchandise exportsin that year.

Income and expenditure of the South African mining industryIn 2009 the total income of the South African mining sector was R332 billion, down by 8.8% on 2008. The

industry’s total expenditure, excluding dividends, taxes and capital expenditure, was R312 billion. This wasmade up of R193 billion spent on the procurement of goods and services and local operating costs, R71 billionwent on salaries and wages, R51.5 billion went into capital investment in the sector, R12.2 billion was paid tothe providers of loan capital (in the form of interest), R35 billion was provided to cover depreciation andimpairments, R10 billion was paid in the form of direct taxes to government, R25.5 billion was paid as rewardto the providers of capital (shareholders). Only a small portion of the expenditure in the form of capitalequipment and dividends were acquired or paid for from offshore – so most of the benefit accrues locally.

Employment and wagesIn 2009, the South African mining sector employed 491 922 employees compared to 518 519 employees in

2008, a decline of 5.1%. It is likely that the important work of the tripartite MIGDETT, which focused on trying torespond to the global crisis and to try and reduce retrenchments, helped reduce the number of actualretrenchments. The stakeholders had expected some 100 000 jobs to be threatened in the mining sector. As itturned out employment fell by on average by 26 597 people. Nevertheless, mining accounted for 6% of totalnon-agricultural formal employment in the economy and 7.8% of total private sector non-agriculturalemployment. If the indirect and induced effects of mining are included than another 500 000 jobs are estimatedto exist in addition to the direct mining jobs. In 2009, some R71 billion was paid to workers in the form of salariesand wages. This contributed substantially to the economy and to the purchasing power of workers.

Commodity summary January – December 2009

Commodity Local sales Total sales Total exports % exports to total

R1 000 R1 000 R1 000 salesPrecious metalsGold 1 701 334 48 695 503 46 994 169 96.5PGMs 4 322 869 57 782 176 53 459 307 92.5 Silver 30 906 287 103 256 198 89.2 Sub total 6 055 109 106 764 782 100 709 673Base mineralsChrome 2 066 278 3 262 329 1 196 051 36.7 Copper (content) 2 835 737 3 858 519 1 022 782 26.5 Iron ore 1 888 801 27 131 735 25 242 934 93.0 Lead concentrate 0 482 903 482 903 100.0Manganese 583 602 5 586 613 5 003 011 89.6 Nickel 949 855 4 201 208 3 251 353 77.4 Other metallic 191 360 277 927 86 566 31.1

Coal 34 463 054 65 397 974 30 934 920 47.3 Feldspar 55 248 55 248 0 0.0Limestone & lime 2 105 297 2 116 561 11 263 0.5 Other non-metallic 7 105 622 7 485 345 379 723 5.1 Miscellaneous* 6 655 620 14 724 001 8 068 381 54.8 Sub total 58 900 475 134 580 362 75 679 887 56.2 Grand total 64 955 584 241 345 144 176 389 560

Text 2010 CMYK 3 10/18/10 10:01 AM

Exploration: global expenditures by region

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Gold 48%

Base meals 36%

Diamonds 5%

PGMs 2%

Other 9%

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Global exploration expenditures, not surprisingly given their discretionary status, were also trimmed in2009. According to the Metals Economics Group (MEG) global non-ferrous metals exploration budgets fell by45% in 2009 to US$7.3 billion, when compared to US$13.2 billion spent in 2008. Grassroots exploration wassorely affected as established mining companies concentrated on core projects. Similarly, exploration byjunior resource companies fell sharply. Cutbacks in exploration expenditure at the grassroots greenfields levelmay have implications for the number of new projects available to be developed 5 to 10 years down the line.

According to MEG, gold accounted for 48% of exploration expenditures followed by base metals at 36%and platinum group metals at 2%.

Worldwide non-ferrous exploration budgets by target

Large-scale non-ferrous global exploration

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Key mineral industry statistics for SA

Description Units of measure 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 10 yr total/averageGross domestic productDirect contribution of mining to GDP R’m nominal terms 63 391 77 214 92 730 85 770 91 198 105 992 132 301 156 969 210 079 212 469 1 228 113Direct contribution of mining to GDP R’m constant 2005 prices 99 122 99 019 99 960 103 355 104 915 105 992 105 364 105 335 99 648 92 478 1 015 188Direct contribution of mining to GDP R’m 2009 money terms 109 425 126 397 137 884 120 458 126 547 142 405 169 897 188 074 225 625 212 469 1 559 181Mining GDP growth rate % YoY -1.1 -0.1 1.0 3.4 1.5 1.0 -0.6 0.0 -6.0 -12.2 -1.3Direct contribution of mining to GDP US$ equivalent 9 140 8 975 8 818 11 338 14 139 16 661 19 550 22 251 25 459 25 182 159 616South African GDP R’m nominal terms 922 148 1 020 007 1 171 086 1 272 537 1 415 273 1 571 082 1 767 422 2 017 102 2 283 823 2 407 689 15 848 169South African GDP R’m constant 2005 prices 1 301 773 1 337 382 1 386 435 1 427 322 1 492 330 1 571 082 1 659 121 1 750 139 1 814 521 1 782 262 15 522 367Mining’s contribution as % of total GDP nominal terms % 6.9 7.6 7.9 6.7 6.4 6.7 7.5 7.8 9.2 8.8 7.7Mining’s contribution as % of total GDP real terms % 7.6 7.4 7.2 7.2 7.0 6.7 6.4 6.0 5.5 5.2 6.5Fixed investmentDirect contribution of mining to fixed investment (GFCF) R’m nominal terms 13 847 15 871 19 802 21 706 17 917 16 743 27 715 39 742 51 266 54 545 279 154Direct contribution of mining to fixed investment (GFCF) R’m constant 2005 prices 18 233 19 684 22 354 23 461 18 950 16 743 24 904 32 318 36 593 37 589 250 829Direct contribution of mining to fixed investment (GFCF) R’m 2009 money terms 23 903 25 980 29 444 30 485 24 862 22 495 35 591 47 617 55 060 54 545 349 981Total private sector fixed investment (private GFCF) R’m nominal terms 100 095 113 039 126 122 142 386 165 866 196 267 236 118 284 364 333 899 322 600 2 020 756Total SA fixed investment (GFCF) R’m nominal terms 137 656 151 008 172 151 196 999 226 180 263 754 324 083 406 918 513 749 543 392 2 935 890Mining fixed investment growth rate % YoY 11.7 8.0 13.6 5.0 -19.2 -11.6 48.7 29.8 46.9 16.3 14.9Direct contribution to fixed investment (GFCF) US$ equivalent 1 997 1 845 1 883 2 869 2 778 2 632 4 095 5 634 6 213 6 465 36 410Mining’s contribution to private sector fixed investment (GFCF) % 13.8 14.0 15.7 15.2 10.8 8.5 11.7 14.0 15.4 16.9 13.8Mining's contribution as % of total investment % 10.1 10.5 11.5 11.0 7.9 6.3 8.6 9.8 10.0 10.0 9.5Sales and exportsTotal primary mineral sales R’m nominal terms 98 547 115 853 139 452 117 759 125 239 143 448 195 455 224 325 300 315 241 345 1 701 738Total primary mineral sales US$ equivalent 14 210 13 466 13 260 15 567 19 417 22 548 28 883 31 799 36 394 28 605 224 150Total primary mineral sales R’m 2009 money terms 170 111 189 649 207 357 165 385 173 782 192 729 250 998 268 777 322 538 241 345 2 182 670Mining industry primary exports R’m nominal terms 76 497 90 833 109 363 86 910 89 714 102 487 139 855 162 203 219 594 176 390 1 253 846Mining industry primary exports US$ equivalent 11 030 10 558 10 399 11 489 13 909 16 110 20 667 22 993 26 612 20 906 164 673Mining industry primary exports R’m 2009 money terms 132 047 148 691 162 616 122 060 124 488 137 696 179 599 194 345 235 844 176 390 1 613 775Total SA merchandise exports R’m nominal terms 222 061 265 832 333 251 291 434 310 525 358 361 447 690 533 791 704 293 556 432 4 023 670Total SA exports (goods and services) R’m nominal terms 274 443 328 428 408 271 376 158 394 923 459 719 571 540 679 350 857 899 691 188 5 041 919Primary mineral exports as % of total SA merchandise exports % 34.4 34.2 32.8 29.8 28.9 28.6 31.2 30.4 31.2 31.7 31.2Primary mineral exports as % of total SA exports % 27.9 27.7 26.8 23.1 22.7 22.3 24.5 23.9 25.6 25.5 24.9EmploymentMining industry direct employment numbers 418 294 407 154 416 925 434 859 448 909 444 132 456 337 495 150 518 519 491 922 4 532 201Total private non-agricultural employment numbers 3 116 351 3 075 527 4 026 949 4 851 847 5 095 546 5 505 657 6 235 507 6 575 501 6 644 060 6 326 193 51 453 136Total SA formal non-agricultural employment numbers 4 734 158 4 657 938 5 575 891 6 396 794 6 659 540 7 109 285 7 910 778 8 322 650 8 469 409 8 218 498 68 054 941Mining as % of total private non-agricultural employment % 13.4 13.2 10.4 9.0 8.8 8.1 7.3 7.5 7.8 7.8 8.8Mining as % of total non-agricultural formal employment % 8.8 8.7 7.5 6.8 6.7 6.2 5.8 5.9 6.1 6.0 6.7Remuneration paid to employees in mining R’m current 22 127 24 409 26 406 30 801 33 656 36 682 38 989 50 072 60 876 66 043 390 061Remuneration paid to employees in mining R’m 2009 money terms 38 195 39 957 39 264 43 258 46 701 49 284 50 069 59 994 65 381 66 043 498 146Average annual remuneration per mineworker Rand 52 898 59 950 63 335 70 830 74 973 82 593 85 439 101 125 117 404 134 255 842 802Exchange ratesRand per US$ exchange rate R/US$ 6.94 8.60 10.52 7.56 6.45 6.36 6.77 7.05 8.25 8.44 7.69Rand per Euro R/Euro 6.39 7.71 9.90 8.53 8.01 7.91 8.52 9.66 12.05 11.70 9.04Rand real effective exchange rate Rand index 100.00 91.39 82.55 103.23 110.13 112.50 108.87 105.05 94.09 101.43 100.92Commodity pricesGold price Rand /kg 62 132 75 174 104 242 88 092 84 785 90 825 131 323 157 241 229 417 260 644 128 387Gold price Rand/kg 2009 money terms 107 251 123 058 155 002 123 719 117 648 122 027 168 641 188 400 246 394 260 644 161 278Gold price US$/oz 279 271 310 364 409 445 604 697 872 971 522Platinum price Rand/kg 121 424 146 325 182 476 168 268 175 382 183 488 248 431 295 684 418 164 326 977 226 662Platinum price US$/oz 545 529 540 692 846 897 1 142 1 304 1 576 1 205 928Palladium price Rand/kg 152 011 166 857 114 022 48 791 47 701 41 211 69 703 80 484 93 359 71 531 88 567Palladium price US$/oz 682 603 337 201 230 201 320 355 352 264 355Rhodium price Rand/kg 445 504 443 630 283 356 128 967 203 580 420 597 990 292 1 404 040 1 741 395 431 741 649 310Rhodium price US$/oz 1 998 1 604 838 530 982 2 056 4 552 6 191 6 564 1 592 2 691PGM price production weighted average basket price Rand/3E kg produced 154 936 173 093 168 613 128 427 138 228 156 896 248 214 316 306 414 208 256 113 215 509PGM price production weighted average basket price US$ per 3E oz produced 695 626 499 528 667 767 1 141 1 395 1 561 944 882Coal spot price to the ARA market 5900 NAR coal US$/ton (FOB) 37 41 33 46 75 63 67 95 156 77 69Coal price – average for local sales (received price) R/ton (FOR) 56 63 74 79 76 86 92 107 151 171 95Coal price – average for export sales (received price) R/ton (FOB) 159 246 275 188 212 297 314 364 734 517 331

Source: Chamber of Mines, SARB, StatsSA, DMR,SACR, Johnson Matthey Platinum Reports

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2002 2003 2004 2005 2006 2007 2008 2009 10 yr total/average

92 730 85 770 91 198 105 992 132 301 156 969 210 079 212 469 1 228 11399 960 103 355 104 915 105 992 105 364 105 335 99 648 92 478 1 015 188

137 884 120 458 126 547 142 405 169 897 188 074 225 625 212 469 1 559 1811.0 3.4 1.5 1.0 -0.6 0.0 -6.0 -12.2 -1.3

8 818 11 338 14 139 16 661 19 550 22 251 25 459 25 182 159 616171 086 1 272 537 1 415 273 1 571 082 1 767 422 2 017 102 2 283 823 2 407 689 15 848 169386 435 1 427 322 1 492 330 1 571 082 1 659 121 1 750 139 1 814 521 1 782 262 15 522 367

7.9 6.7 6.4 6.7 7.5 7.8 9.2 8.8 7.77.2 7.2 7.0 6.7 6.4 6.0 5.5 5.2 6.5

19 802 21 706 17 917 16 743 27 715 39 742 51 266 54 545 279 15422 354 23 461 18 950 16 743 24 904 32 318 36 593 37 589 250 82929 444 30 485 24 862 22 495 35 591 47 617 55 060 54 545 349 981

126 122 142 386 165 866 196 267 236 118 284 364 333 899 322 600 2 020 756172 151 196 999 226 180 263 754 324 083 406 918 513 749 543 392 2 935 890

13.6 5.0 -19.2 -11.6 48.7 29.8 46.9 16.3 14.91 883 2 869 2 778 2 632 4 095 5 634 6 213 6 465 36 41015.7 15.2 10.8 8.5 11.7 14.0 15.4 16.9 13.811.5 11.0 7.9 6.3 8.6 9.8 10.0 10.0 9.5

139 452 117 759 125 239 143 448 195 455 224 325 300 315 241 345 1 701 73813 260 15 567 19 417 22 548 28 883 31 799 36 394 28 605 224 150

207 357 165 385 173 782 192 729 250 998 268 777 322 538 241 345 2 182 670109 363 86 910 89 714 102 487 139 855 162 203 219 594 176 390 1 253 84610 399 11 489 13 909 16 110 20 667 22 993 26 612 20 906 164 673

162 616 122 060 124 488 137 696 179 599 194 345 235 844 176 390 1 613 775333 251 291 434 310 525 358 361 447 690 533 791 704 293 556 432 4 023 670408 271 376 158 394 923 459 719 571 540 679 350 857 899 691 188 5 041 919

32.8 29.8 28.9 28.6 31.2 30.4 31.2 31.7 31.226.8 23.1 22.7 22.3 24.5 23.9 25.6 25.5 24.9

416 925 434 859 448 909 444 132 456 337 495 150 518 519 491 922 4 532 201026 949 4 851 847 5 095 546 5 505 657 6 235 507 6 575 501 6 644 060 6 326 193 51 453 136575 891 6 396 794 6 659 540 7 109 285 7 910 778 8 322 650 8 469 409 8 218 498 68 054 941

10.4 9.0 8.8 8.1 7.3 7.5 7.8 7.8 8.87.5 6.8 6.7 6.2 5.8 5.9 6.1 6.0 6.7

26 406 30 801 33 656 36 682 38 989 50 072 60 876 66 043 390 06139 264 43 258 46 701 49 284 50 069 59 994 65 381 66 043 498 14663 335 70 830 74 973 82 593 85 439 101 125 117 404 134 255 842 802

10.52 7.56 6.45 6.36 6.77 7.05 8.25 8.44 7.699.90 8.53 8.01 7.91 8.52 9.66 12.05 11.70 9.04

82.55 103.23 110.13 112.50 108.87 105.05 94.09 101.43 100.92

104 242 88 092 84 785 90 825 131 323 157 241 229 417 260 644 128 387155 002 123 719 117 648 122 027 168 641 188 400 246 394 260 644 161 278

310 364 409 445 604 697 872 971 522182 476 168 268 175 382 183 488 248 431 295 684 418 164 326 977 226 662

540 692 846 897 1 142 1 304 1 576 1 205 928114 022 48 791 47 701 41 211 69 703 80 484 93 359 71 531 88 567

337 201 230 201 320 355 352 264 355283 356 128 967 203 580 420 597 990 292 1 404 040 1 741 395 431 741 649 310

838 530 982 2 056 4 552 6 191 6 564 1 592 2 691168 613 128 427 138 228 156 896 248 214 316 306 414 208 256 113 215 509

499 528 667 767 1 141 1 395 1 561 944 88233 46 75 63 67 95 156 77 6974 79 76 86 92 107 151 171 95

275 188 212 297 314 364 734 517 331

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SA’s role in world mineral resources, productionand exports, 2008 (latest available data)

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NOTES::= Figures under resource base refer to metal production capacity, an equivalent of SAMREC’s reserves.* Confidential or unavailable information. n/a = not available

Commodity Resource base Production Exports Location of

Mass % Rank Mass % Rank Mass % Rank major reserves

Aluminium= * * * 858kt 827kt 3.5 7 n/a

Alumino-silicates 51Mt * * 220kt 55.0 1 148kt * n/a

Antimony 200kt 5 6 3 370t 2.1 3 * * China Bolivia Russia

Chrome ore 5 500Mt 72 1 9 683kt 762kt SA Zimbabwe Kazakhstan

Coal 30 408Mt 4 8 250.4Mt 4.2 6 57.9Mt * * China USA India

Copper 13Mt 1 14 93kt * * 27kt * * Chile USA Peru

Ferrochromium * * * 3 269kt * 1 2 525kt * 1 n/a

Ferro-alloys

of manganese * * * 704kt * * 626kt * * n/a

Ferro-silicon * * * 134kt * * 44.2kt * * n/a

Fluorospar 80Mt 17 2 299kt 6.0 4 276kt * * n/a

Gold 31 000t 30 1 213t 8.8 3 190t * * Indonesia Russia SA

Iron ore 1 500Mt 1 9 41.3Mt 2.5 7 30.3Mt 3.7 5 Australia CIS Canada

Lead 3 000kt 2 6 42kt 1.2 11 46kt * * Canada Australia USA

Manganese 4 000Mt 80 1 5 589kt 14.2 2 3 572kt 23.6 2 SA CIS Gabon

Nickel 12Mt 8 5 32kt 2.0 13 22.2kt * * Cuba Australia Canada

PGMs 70 000t 88 1 276t 57.9 1 223t * * SA Russias USA

Phosphate rock 2 500Mt 5 4 2 287kt 1.4 11 0 * * n/a

Silicon metal * * * 51.7kt 3.2 8 53.5kt 3.7 7 n/a

Silver * * * 75.2t 0.4 20 87t * * Poland China USA

Titanium minerals 244Mt 16 2 1 211kt 19.4 2 * * * China SA India

Uranium 300kt 10 4 655t 5.7 12 * * * Australia Canada

Kazakhstan

Vanadium 12 000kt 32 2 20.3kt 35.4 1 12.1kt * Russia China SA

Vermiculite 80Mt 40 2 200kt 39.0 1 205kt * * n/a

Zinc 15Mt 3 8 31.4kt 0.3 25 0 * * China USA Australia

Zirconium 14Mt 18 2 405kt 29.8 2* * * * Australia SA Ukraine

Source: DMR/USGS

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Provincial overview (latest available data)

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NOTE:Data refers to 2008 unless otherwise specified

EC FS GP KZN LP MP NW NC WC

Capital Bisho Bloem Jhb Ulundi Polokwane Nelspruit Mafikeng Kimberley Cape Tn

& Pmb

Total area

(‘000km2) 168 965 129 825 18 178 94 361 125 753 76 494 104 881 372 889 129 462

Total

population 6 648 600 2 902 400 10 531 300 10 449 300 5 227 200 3 606 800 3 450 400 1 147 600 5 356 900

% Urban 1 9 33 17 2 5 5 3 16

% Rural 21 3 2 27 24 11 9 2 2

% of total SA

population (2009) 13.5 5.9 21.4 21.2 10.6 7.3 7.0 2.3 10.9

% of SA area 13.8 10.6 1.4 7.7 10.3 6.3 8.6 30.5 10.6

% contribution

to GDP (2008) 7.5 5.2 33.1 16.4 7.2 7.6 6.5 2.3 14.8

Total mining %

GDP

value added at

basic prices (2008) 0.3 7.1 9.8 7.1 23 22.9 21.4 6.9 1.0

Mineral sales

per region (2008)* 0.2 4.0 8.6 1.9 15.4 26.2 26.6 14.6 2.5

Access to

electricity (2009) 0.04 0.04 0.28 0.20 0.05 0.15 0.11 0.02 0.11

Official

unemployment

(2010 - Q2) 27.7 28 21.1 20.8 22.6 28.1 28.1 30.1 21.8

poverty index

(mean household

expenditure in

R/y 2008) 39 141 50 181 77 700 44 612 29 042 43 026 43 784 38 389 10 2977

% Prevalence of

HIV (2008) 11 14 15 16 7 13 13 7 6

Source: Stats SA/Dept. Trade and Industry

Text 2010 CMYK 3 10/18/10 10:01 AM

10

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

0.05

0.1

0.15

0.2

0.25

0.3

0.35

FFR – all sectors

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

FFR – gold mines

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

0.05

0.1

0.15

0.2

0.25

FFR – platinum mines

Safety: fatalities and fatality frequency rates (FFR) on SA mines

Text 2010 CMYK 3 10/18/10 10:01 AM

11

es

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

0.05

0.1

0.15

0.2

0.25

FFR – coal mines

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

0.05

0.1

0.15

0.2

0.25

0.3

0.35

FFR – other mines

Fatalities 2000 to 2009 for different commodities2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Gold 173 182 172 146 108 105 114 115 85 80Platinum 46 49 53 60 65 47 40 53 36 41Coal 31 19 20 22 20 16 20 15 20 18Chrome 2 2 4 4 16 6 2 4 4 3Diamonds 12 11 26 17 15 7 3 12 6 3Copper 2 2 1 2 2 0 2 1 1 1Iron ore 1 2 2 1 1 2 2 4 2 3Other 18 21 12 20 19 18 17 17 17 18Total 285 288 290 270 246 201 200 220 171 167

Text 2010 CMYK 3 10/18/10 10:01 AM

12

Employment and remuneration on Chambermember gold & coal mines 2009

Employment and remuneration on all mines in SA, 2009

Gold (32.5%)

PGMs (37.4%)

Iron ore (2.8%)

Chrome (2.2%)

Manganese (1%)

Diamonds (2.4%)

Coal (14.4%)

Aggregate & sand (1.4%)Other mines & quarries (5.9%)

Percentage earnings on all South African mines incl. contractors

*provisional

Total. no. of Earnings (Rmillion) Av. earnings per employees employee per year

2000 418 294 22 127 52 8982001 407 154 24 409 59 9502002 416 925 26 406 63 3352003 434 859 30 801 70 8302004 448 909 33 656 74 9732005 444 132 36 682 82 5932006 456 337 38 989 85 4392007 495 150 50,072 101 1252008 518 519 60 876 117 4042009 491 922 66 043 134 255

Source: DMR

Number of employees

Gold 160 102PGMs 183 914Iron ore 13 722Chrome 10 893Manganese 4 988Diamonds 12 046Coal 70 703Aggregate & sand 6 689Other mines & quarries 28 865Total: 491 922

Source: DMR

Gold mines Coal mines* Total

u Average number of employees in service during 2008Company employees 125 826 32 771 158 597Contractors* 17 442 24 572 42 014Total 143 268 57 343 200 611

u Salaries wages and allowances (company employees only)Total (R-million) 14 294.1 7 786.0 22 080.1

Source: Chamber of Mines

Text 2010 CMYK 3 10/18/10 10:01 AM

13

Income and expenditure of all SA mines, 2009

The total income of the South African mining sector was R332 billion, down by 8.8% on 2008.The industry’s total expenditure, excluding dividends, taxes and capital expenditure, was R312billion, implying a small gross surplus of R20 billion.However, if taxes, dividends and capitalexpenditure is included, the total expenditure of the mining industry was R399 billion in 2009implying that a deficit of R67 billion was incurred

The total expenditure was made up of R193 billion spent on the procurement of goods andservices and local operating costs, R71 billion went on salaries and wages, R51.5 billion went intocapital investment in the sector, R12.2 billion was paid to the providers of loan capital (in the formof interest), R35 billion was provided to cover depreciation and impairments, R10 billion was paidin the form of direct taxes to government, R25.5 billion was paid as reward to the providers ofcapital (shareholders)

Income items

Turnover (from mining)

Interest received

Dividends received

Other income

Total income

Expenditure items

Other purchases and operating costs

Labour costs

Railage and transport

Interest paid

Repairs and maintenance

Electricity, water and rentals

Depreciation and impairments

Taxation

Dividends

Capital expenditure

Total capital expenditure

2008

R’millions

341 657

5 249

3 519

13 804

364 229

144 581

58 609

8 760

9 169

9 829

8 798

21 179

32 157

25 028

64 934

383 044

2009

R’millions

314 519

7 246

3 165

7 205

332 135

192 878

71 184

-*

12 243

-*

-*

35 333

10 051

25 521

51 498

398 708

%difference

-7.94

38.05

-10.06

-47.80

-8.81

25.38

11.89

23.29

25.23

7.70

8.63

3.63

50.24

-35.57

23.46

15.16Source: StatsSA *2009 data included in “other purchases”

Text 2010 CMYK 3 10/18/10 10:01 AM

Aggregate and sand sales, employment and total earnings, 2000 – 2009

l l l

ll

l

l

l

ll

2000 2001 2002 2003 2004 2005 2006 2007 2008 20092000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

100

200

300

400

500

600

700

800

900

Ave

rage

num

ber

of e

mp

loye

es in

ser

vice

Tota

l ear

ning

s R

'mill

ion

Average number of employees in service

l Total employee earnings

Employment and total employee earnings on SA aggregate and sand quarries

Source: DMR

Mass 1 000 t Value R1 0002000 28 597.0 804 817.02001 27 632.0 832 238.02002 28 916.0 958 718.02003 32 587.0 1 356 071.02004 47 381.0 2 085 364.02005 50 186.6 2 233 340.92006 58 563.0 2 789 555.02007 63 872.8 3 374 162.22008 61 396.0 3 753 429.02009 52 157.1 3 799 708.0

Source: DMR

14

Text 2010 CMYK 3 10/18/10 10:01 AM

15

Base minerals production and sales,2000 – 2009: chromite

ll l

ll

l l

l

l

l

2000 2001 2002 2003 2004 2005 2006 2007 2008 20091000

3000

5000

7000

9000

11000

13000

100

250

400

550

700

850

1000

1150

1300

1450

1600

1750

Ave

rage

num

ber

of e

mp

loye

es in

ser

vice

Tota

l em

plo

yee

earn

ings

R'm

illio

n



Employment and total employee earnings on SA chromite mines

Source: DMR

SA chromite minesTotal sales

Production Mass Value1 000 tons 1 000 tons R1 000

2000 6662.2 6 779.4 1 080 398.52001 5502.0 5 529.0 1 002 309.12002 6435.7 5 951.5 1 101 358.82003 7405.4 6 835.6 1 154 497.42004 7676.8 7 256.2 1 687 739.52005 7552.2 6 785.3 1 910 565.82006 7425.9 7 127.5 2 309 763.92007 9664.7 8 281.6 3 006 448.42008 9682.6 7 878.5 5 398 384.52009 6864.9 5 890.6 3 262 329.2

Source: DMR

Text 2010 CMYK 3 10/18/10 10:01 AM

Iron ore

The global iron ore mining and steel fabrication industries suffered from the economic crisis of 2009,especially as these two industries are essential to infrastructure investment, consumer markets, the transportindustry and GDP growth at the global level. In that year, global steel production fell by a significant 15.2% to1.2 million tons, despite the 13.7% increase in production from the world’s largest steel producing country,China.

In 2009, in response to the decreases in pig iron and steel production, global iron ore production decreasedby 7.6% to 1.6 billion tons. Despite this, the global trade in iron ore increased by 6.3% to 951 million tons, onthe basis of a surge in import demand from China. As a result Australia, India and South Africa were still ableto raise their exports of iron ore.

In 2009, South African iron ore production increased by 12.5% to 55 million tons, with total sales amountingto R27.1 billion. Export sales increased by 36.4% to 44.6 million tons in 2009, which was due to the improvedexport facilities between Sishen and Saldanha. Iron ore is the fourth largest component of the South Africanmining sector and continues to grow its contribution to the economy. The large capital projects in terms of themine developments at Kolomela and Khumani, combined with further upgrades to the Sishen-Saldanha heavyhaul railway line, will continue to support growth in this sector.

The iron ore sector in South Africa employed 13 722 people in 2009, which is an increase of 3.5% whencompared to 13 256 people employed in 2008. R2.2 billion in salaries and wages were paid to these employeesin that year.

Base minerals production & sales,2000 – 2009: Iron ore & copper

16

l ll

l l ll

l

l

l

2000 2001 2002 2003 2004 2005 2006 2007 2008 20091000

3000

5000

7000

9000

11000

13000

15000

100

400

700

1000

1300

1600

1900

2200

Ave

rage

num

ber

of e

mp

loye

es in

ser

vice

Tota

l em

plo

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earn

ings

R'm

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n



Employment and total employee earnings on SA iron ore mines

Source:DMR

SA copper minesTotal sales

Production Mass Value 1 000 tons 1 000 tons R1 000

2000 137.1 124.6 1 573 603.22001 141.9 143.1 1 927 164.92002 129.5 131.4 2 143 348.42003 120.9 122.5 1 641 236.22004 102.6 113.2 2 026 122.32005 103.9 112.0 2 583 099.82006 109.6 108.2 4 956 077.72007 117.1 113.9 5 853 850.92008 97.2 101.4 5 627 920.02009 92.9 94.9 3 858 519.0

Source:DMR

SA iron ore minesTotal sales

Production Mass Value 1 000 tons 1 000 tons R1 000

2000 33 707.4 32 142.2 3 064 749.52001 34 757.2 34 892.4 4 128 902.82002 36 484.0 35 361.1 5 313 718.32003 38 085.9 36 155.3 4 191 071.22004 39 322.1 37 176.0 4 585 485.12005 39 542.1 38 637.3 7 519 572.22006 41 371.9 39 406.6 9 931 281.22007 42 083.1 43 174.3 13 755 560.32008 48 982.5 44 023.8 22 241 835.72009 55 313.1 52 919.3 27 131 734.5

Source:DMR

Text 2010 CMYK 3 10/18/10 10:01 AM

17

Annual SA coal production, sales & exports, 2000 – 2009

Saleable production

Year Metrictons

Local sales

SalesTotal salesExports

Local sales

Exports

Value of local and exportcomponents of SA coal sales, 2009

Local sales

Exports

Volume of local and exportcomponents SA coal sales, 2009

CoalDespite the impact of the global economic crisis, which reduced electricity and

steel production in many advanced countries, overall global hardcoal productionrose by 2.5% to 6 billion metric tons in 2009. There were large variations in coalproduction per region, with Asia, led by China, leading the way and mostadvanced economies experiencing demand and production recessions. China’shardcoal production rose by 7.6% to 3 billion tons, which is now half of totalglobal production, whereas North American production fell by 8.7% to 919 milliontons. The rapid increase in electricity production in China and India has alsoresulted in these countries becoming large net importers, and this contributed to

Source: DMRSource: DMR

Source: DMR

Source: DMR

Mass Value Mass Value Mass ValueYear 1 000 t R1 000 1 000 t R1 000 1 000 t R1 0002000 155 531.9 8 835 357.3 69 955.0 11 203 340.7 225 486.8 20 038 698.12001 152 162.4 9 564 520.7 69 303.9 17 031 522.0 221 466.4 26 596 042.72002 157 613.6 11 771 017.4 69 437.9 18 696 806.9 227 051.6 30 467 824.32003 168 942.5 13 243 714.2 71 556.5 13 490 623.1 240 498.9 26 734 337.22004 178 674.9 13 644 186.2 67 946.5 14 494 479.4 246 621.4 28 138 665.62005 173 437.3 14 878 140.0 71 442.1 21 155 176.0 244 879.4 36 033 316.02006 177 049.0 16 245 873.7 68 747.3 21 620 934.2 245 796.3 37 866 807.92007 182 769.6 19 718 642.1 67 675.4 24 447 656.2 250 445.1 44 166 298.42008 197 082.8 30 119 929.2 57 890.4 42 388 395.7 254 973.1 72 508 324.92008 184 709 0 34 463 054 1 60 463 8 30 934 920 1 245 172 7 65 397 974 2

2000 224 906 677 2001 223 494 6792002 220 269 5592003 237 872 1032004 243 371 5302005 244 988 2462006 244 832 4332007 247 666 3582008 252 213 3582008 250 581 674

Text 2010 CMYK 3 10/18/10 10:01 AM

18

Analysis of coal sold by Chamber member coal producers in 2009

Anglo Operations Limited 23.4%Anglo Operations Limited 23.4%

Exxaro 15.6%Exxaro 15.6%

BHP Billiton 17.5%BHP Billiton 17.5%

Kangra 2.4%Kangra 2.4%Kuyasa 0.6%Kuyasa 0.6%

Optimum Coal 5.4%Optimum Coal 5.4%

Sasol Coal 13.7%Sasol Coal 13.7%

Siyanda Coal 2.1%Siyanda Coal 2.1%Total Coal SA 2.2%Total Coal SA 2.2%

Tweewaters Fuel 0.4%Tweewaters Fuel 0.4%

Xstrata 13.6%Xstrata 13.6%

Umcebo Mining 3.2%Umcebo Mining 3.2%

Percentage of coal sales value by Chamber members


Monthly analysis of coal sold by Chamber members

Name of company sales tonsAnglo Operations LtdGoedehoop 6 706 980Isibonelo 5 061 810Kriel 11 161 696New Denmark 3 728 928New Vaal 17 553 712SA Coal Estates 12 036 849BHP BillitonBHP Billiton 30 985 000 Exxaro (Eyesiswe)Arnot 5 212 731North Block Complex 3 116 928Matla 11 264 453New Clydesdale 703 952Exxaro (Kumba Resources)Grootegeluk 18 377 751Leeuwpan 2 590 744Tshikondeni 268 416KangraSavmore 2 736 532

Name of company sales tonsKuyasaDelmas 1 592 828Optimum CoalOptimum 9 485 774Sasol CoalSasol Mining 44 470 000Siyanda CoalKoornfontein (Gloria) 3 643 692Total Coal SADorstfontein 532 545Forzando North 962 743Forzando South 798 432Tweewaters FuelSpringlake 401 205Umcebo MiningUmcebo - Xantium 6 658 258Xstrata CoalXstrata Coal 20 066 489

TOTAL 220 118 448


Coal sold Sales valuemetric tons R

Jan. 16 913 061 4 806 792 110Feb. 17 766 229 5 277 564 923March 18 856 960 4 909 718 329April 17 345 509 4 432 718 318May 17 583 959 3 647 049 620June 18 739 798 4 276 765 864

Coal sold Sales valuemetric tons R

July 19 692 268 4 256 621 186Aug. 19 838 962 4 310 213 598Sept. 17 611 525 3 612 680 141Oct. 19 347 955 4 588 482 809Nov. 17 745 162 4 294 784 025Dec. 18 677 060 4 249 674 598Total 220 118 448 52 663 065 521

Text 2010 CMYK 3 10/18/10 10:01 AM

19

Distribution of annual coal trade in SA, 2000 – 2009

Exp

ort

Tran

spor

t

Ele

ctric

ity

Min

ing

Ind

ustr

y

Met

allu

rgic

al

Mer

chan

ts &

dom

estic

Oth

er

0

20

40

60

80

100

120

60.46

0

118.16

0.38

49.83

5.3311.01

0

Sectors of South African coal market in 2009Metric tons, millions

Source: DMR

Market (metric tons, millions)Metal- Merchants

Year Export Transport Electricity Mining Industry lurgical & domestic Other Total2000 68.13 0.00 95.19 0.15 51.78 5.74 4.50 225.492001 66.58 0.00 91.73 0.05 53.93 5.45 3.73 221.472002 69.23 0.00 92.62 0.07 54.32 5.81 5.00 227.052003 71.46 0.00 104.08 0.05 53.15 6.01 5.75 240.502004 67.07 0.00 110.98 0.04 54.89 6.85 6.78 246.622005 71.42 0.00 106.30 0.26 52.39 7.03 7.48 244.882006 68.75 0.11 108.75 0.31 53.73 8.44 5.70 245.802007 67.68 0.13 112.17 0.44 52.71 6.23 10.72 0.37 250.452008 57.89 0.00 126.07 0.40 53.17 5.69 11.75 0.00 254.972009* 60.46 0.00 118.16 0.38 49.83 5.33 11.01 0.00 245.17

Source: DMR*Estimates

*Estimate

Text 2010 CMYK 3 10/18/10 10:01 AM

20

Employment on SA coal mines, 2009

l l l

l ll

l

l

l

l

2000 2001 2002 2003 2004 2005 2006 2007 2008 200940000

45000

50000

55000

60000

65000

70000

75000

1000

3000

5000

7000

9000

11000

13000

15000

Ave

rge

num

ber

of e

mp

loye

es in

ser

vice

Tota

l ear

ning

s R

'mill

ion


l Total employee earnings Source: DMR

Employment and total employee earnings on South African coal mines

a rise of 4.7% to 830 million tons in terms of the global hardcoal trade.From a South Africa perspective 2009 will be seen as a year of stabilisation,

although the country again failed to match the average production growth ratesof the global hardcoal industry. Nevertheless, the key issue that is arising in theSouth African industry is the need for significant growth in production to meetdomestic power generation needs and export growth requirements, which willnecessitate an extra 100 million tons of production by 2020.

In 2009, South Africa’s coal mining industry became the largest component ofthe South African mining industry by sales vale, with total sales of R65.3 billion,ahead of platinum at R58 billion and gold mining at R49 billion. In that year,South African coal production fell by 0.6% to 250.5 million tons, export volumesincreased by 4.4% to 60.5 million tons and domestic sales volumes fell by 6.3%to 184.7 million tons. The coal mining sector employed 70703 people and paidR12.8 billion in wages. It accounted for 5.6% of total merchandise exports andthe industry continued to play a significant role in the domestic economy as thekey source of primary energy for electricity and the production of otherproducts, among them liquid fuels, fertilisers, plastics, polymers and lubricants.

Text 2010 CMYK 3 10/18/10 10:01 AM

21

DiamondsIn line with most other products in the luxury market

sector, the diamond industry was severely affected by theglobal economic crisis in 2009. Significant retraction indemand in the key consumer centres of the UnitedStates, Europe and Japan, which traditionally account for75% of total demand for polished diamonds, affected theentire diamond pipeline negatively.

In 2009, global mine production fell by 23.4% to 124million carats and the value of rough diamond productionfell by 32% to US$8.6 billion. The sales of rough to thediamond cutting centres fell by 51.1% to US$7 billion,the value of polished diamonds fell 35.9% to US$12.6billion and the retail sales of diamond jewellery fell by9.4% to US$58.7 billion as consumers reduced demand.

Diamond production and sales, 2000 – 2009

l

ll

l

l

l

l l l

l

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

5000

10000

15000

20000

25000

0

500

1000

1500

2000

2500

3000

Ave

rage

num

ber

of e

mp

loye

es in

ser

vice

Tota

l em

plo

yee

earn

ings

R'm

illio

n



Employment and total employee earnings on SA diamond mines

Source: DMR

Note: 1999 - 2002 excludes alluvialdiamonds from ‘diggers’

ProductionCarats

2000 10 780 2352001 11 238 4102002 10 905 8892003 12 666 5362004 14 294 6622005 15 776 4272006 15 153 5422007 15 250 0792008 12 901 0182009 6 118 974

Source: DMR

Text 2010 CMYK 3 10/18/10 10:01 AM

22

Diamond production (estimate), 2009

Angola 14%

Australia 4%

Botswana 17%

Canada 17%

Congo 3%

Namibia 5%

Russia 27%

South Africa 10%

Other 4%

Value of world diamond production (US$-bn), 2009($8.6bn total)

The destocking effect and the contraction in consumer demand prejudiced diamond minersseverely.

The South African diamond mining industry was not spared the impact of the globaleconomic crisis. Domestic production shrank by 52% to 6.1 million carats as the industryresponded to the collapse in demand and prices. Further domestic challenges in terms of theactivities of the State Diamond Trader and the Precious Metals and Diamonds regulatorserved to exacerbate the crisis facing the South African diamond mining sector. The pressurefaced by the local diamond mining industry resulted in the number of employees in the sectorfalling to an average of 12 046. These workers earned R1.8 billion in wages and salaries.

Source: Kimberly Process Certification Scheme

Text 2010 CMYK 3 10/18/10 10:01 AM

23

Gold production: estimated total world &proportion produced by SA

Gold2009 will be defined as a year where the safe haven status of gold was reconfirmed as

investment demand for gold rose to record levels and even exceeded jewellery demand.Global investors at both the institutional and private levels have bought unprecedentedlevels of gold because of its stable investment potential and in the face of global financialand economic risks and concerns about the fragility of global economic recovery. In2009, the quantum of net central bank selling of gold fell to negligible levels. Continuedreasonable levels of bar hoarding, together with producer de-hedging and significantinvestment demand outweighed the slight uptick in new mine supply and increased sales

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

2

4

6

8

10

12

14

16

18

South African gold production as a percentage of total world production%

Source: GFMS/Chamber of Mines

TotalSA gold world SA as %

production gold prod. of totalmetric tons metric tons world

2000 428.0 2 620.4 16.332001 393.5 2 645.7 14.872002 395.2 2 618.4 15.092003 375.8 2 622.8 14.332004 342.0 2 494.3 13.712005 297.3 2 549.1 11.662006 275.1 2 483.1 11.082007 254.7 2 473.2 10.302008 217.6 2 408.8 9.032009 204.9 2,571.8 7.97

Source: GFMS

Text 2010 CMYK 3 10/18/10 10:01 AM

24

l

l ll l l

l

l

l

l

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

50000

100000

150000

200000

250000

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Ave

rage

num

ber

of e

mp

loye

es in

ser

vice

Tota

l em

plo

yee

earn

ings

R'm

illio

n



Employment and total employee earnings on SA gold mines

Source: DMR

NOTES::*Data not available at time of going to pressMetric tons treated exclude slimes and sandtreatment

SA gold output & sales 2000 – 2009

Source: Chamber of Mines / DMR

South African gold outputMetric Fine Realised

tons treated gold value1 000 kg R1 000

2000 80 894 427 981 26 506 6732001 74 458 393 523 28 678 6712002 73 160 395 173 41 100 3822003 77 170 375 787 32 908 8462004 66 517 341 998 28 877 4472005 53 817 297 312 27 214 6852006 52 743 275 119 36 414 0382007 56 362 254 685 38 394 2672008 54 312 217 649 47 660 2552009* n/a 204 923 51 246 219

Text 2010 CMYK 3 10/18/10 10:01 AM

25

Annual gold production & average grade ofChamber member gold producers, 2000 – 2009

of old gold scrap. The multiplicity of positive fundamental issues supported thecontinued upward trajectory in gold and the price reached a new average annual recordin 2009 of US$972 per ounce. This price was 11.5% higher than the previous year.

For the first time since 2005 global primary mine production increased, and this wasby a significant 6.8% to 2571 tons in 2009, even though production continued to fall inthe more mature producer countries such as South Africa and the USA. Rising prices andthe benefits of strong exploration expenditures in gold in the preceding five years haveled to higher production in most other countries. China reaffirmed its status as theworld’s largest producer with an increase in production of 11% to 324 tons, followed byAustralia at 222.8 and South Africa with 219.8 tons (a decrease of 6%). The GFMSnumber for South Africa of 219.8 tons is slightly more than the 204.9 tons recorded bythe Chamber as the GFMS number includes an estimate for the production of illicit goldin the country. Scrap supply surged in 2009 by 27.2% to 1674 tons as various goldconsumers decided to take advantage of the high gold price within the context of adifficult global economic environment.

Despite the fall in production, the gold mining sector remained a key contributor to theSouth African economy in 2009. It accounted for R49 billion in foreign currency earnings(SARB) or 8.8% of total merchandise exports, about 2.4% of GDP (if the multipliers andinduced effect are included) and 159 925 employees who earned R17.4 billion in wages.On the export earnings side gold is the second largest export earner after platinum groupmetals. The industry invested R10.3 billion in capital expenditure in the country, paid anestimated R1.4 billion in direct taxation to the state and R506 million in dividends to theproviders of capital. Gold accounted for 19.3% of total fixed investment in the miningsector and for 32.5% of all the people employed in the sector.

Average number of employees in service, incl. ontractors,on Chamber member gold mines 2000 – 2009

Ore milled

metric tons Production Grade

Year 1 000 kilograms g/ton

2000 83 956 378 071.2 4.50

2001 82 962 342 551.9 4.13

2002 81 422 347 542.6 4.27

2003 68 215 311 257.8 4.56

2004 59 702 282 030.6 4.72

2005 49 609 255 290.4 5.15

2006 50 349 235 042.5 4.67

2007 53 257 219 223.1 4.12

2008 50 999 182 489.8 3.58

2009 65,545 170 298.2 3.29


Text 2010 CMYK 3 10/18/10 10:01 AM

26

Average number of employees in service, incl. contractors,on Chamber member gold mines 2000 – 2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

50000

100000

150000

200000

Ave

rage

num

ber

of e

mp

loye

es in

ser

vice

Average number of employees in service, including contractors, on Chamber member gold mines

* From 2000-2001 excludes ARMgold# As from 2003 Q2, DRD mines are nolonger members of the Chamber and theirdata is omitted.Source: Chamber of Mines

Year Av. No. in service

2000* 197 218

2001* 176 611

2002 176 090

2003# 168 108

2004 148 829

2005 137 569

2006 135 208

2007 140 783

2008 146 487

2009 143 268

(Chamber members)

Text 2010 CMYK 3 10/18/10 10:01 AM

27

2009 Quarterly summary of operating results of Chamber gold producers

Q1 Q2 Q3 Q430000

35000

40000

45000

50000

Kilo

gram

s fin

e

Gold production on Chambermember gold mines: 2009

Q1 Q2 Q3 Q410000

12000

14000

16000

18000

20000

Met

ric t

ons

Ore milled on Chambermember gold mines: 2009

NOTES:Operating revenue includesrevenue from gold and silverand, in certain cases, fromother sources, but excludesrevenue from uranium andsulphuric acid.Certain mines have enteredinto gold hedgingtransactions, the effect ofwhich is brought into accountin gold revenue.Net sundry revenue andexpenditure includes interest,royalties, tribute revenue, etc.DRDGold included as fromApril 2009.

For detailed company working results go to: www.chamberofmines.org.za

Production of major gold producersOre milled Kilograms Grade Total

metric tons fine gold g/ton fine goldQuarter 1 000 total milled kgJan-Mar 12 010 40 720.6 3.39 43 743.0April-June 17 215 42 674.9 3.20 46 049.9July-Sept 17 912 44 140.9 3.34 47 838.1Oct-Dec 18 408 42 761.8 3.23 46 411.8Totals/average 65 545 170 298.2 3.29 184 042.8

RevenueNet sundry

Operating Revenue/ revenuerevenue metric ton & expenditure

Quarter R1 000 milled (R) R1 000Jan-Mar 10 235 635 852.23 171 948 Apr-Jun 10 075 608 585.28 Dr 441 725July-Sept 10 733 302 599.22 Dr 36 151Oct-Dec 11 177 048 607.18 Dr 211 021Totals/average 42 221 593 644.15 Dr 516 949

Profits Operating profit/ Total operating Totalmetric ton milled profit profit

Quarter (R) R1 000 R1 000Jan-Mar 379.71 4 560 537 3 230 292April-June 218.44 3 760 371 1 393 122July-Sept 200.27 3 587 291 1 565 811Oct-Dec 222.36 4 093 150 2 068 249Totals/average 244.12 16 001 349 8 257 474


Text 2010 CMYK 3 10/18/10 10:01 AM

28

2009 Quarterly summary of operating results of Chamber gold producers

Q1 Q2 Q3 Q40

100

200

300

400

500

R/t

on m

illed

Q1 Q2 Q3 Q40

50

100

150

200

250

300

350

400

R/t

on m

illed

NOTES:In addition, gold production by non-Chamber members has been ascertained to be 20 880.0 kg.The gold producers above treated 2 470 516 metric tons of material to produce 654 086 kg of uranium oxide of grade =0.265 kg/ton.The financial results are published in accordance with international financial accounting standards.AngloGold Ashanti: profit from sales of the by-products uranium and acid/pyrite is offset against cash costs in accordancewith the Gold Institute definition.DRDGold included as from April 2009.Retrenchment costs are included net of other costs.The data refers to South African operations only.Totals may not add owing to rounding.

Cash operating costs per ton milledon Chamber gold mines, 2009

Operating profit per ton milled onChamber gold mines, 2009

Cash operating costsCosts/ Costs/ Total

metric ton kilogram otherTotal milled gold costs

Quarter R1 000 R R R1 000Jan-Mar 5 675 098 472.52 139 367 1 502 193Apr-Jun 6 315 237 366.84 147 985 1 925 524July-Sept 7 146 011 398.95 161 891 1 985 329Oct-Dec 7 083 898 384.82 165 659 1 813 880Totals/av 26 220 244 400.03 153 967 7 226 926

Taxation/Capex/DividendsTax & state’s Capex (less

share of profits recoup-(estimated) ments) Dividends

Quarter R1 000 R1 000 RJan-Mar 856 219 2 176 963 0Apr-Jun 302 752 2 636 937 232 607 685July-Sept 18 119 2 648 143 0Oct-Dec 270 284 2 814 402 273 864 349Totals/av 1 447 374 10 276 445 506 472 034


Text 2010 CMYK 3 10/18/10 10:01 AM

29

Annual average unit cash operating, costs & profitsof Chamber member gold producers, 2000 – 2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

50000

100000

150000

200000

250000

Operating revenue/kg

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

Cash operating profit/kg

R/k

g

R/k

g

Cash Cash Cash Cashoperating operating operating operatingrevenue/ costs/ costs/ profits

metric ton metric ton kilogram metric ton 2000 284.25 219.54 48 752 64.712001 309.88 219.00 53 040 90.882002 435.20 256.42 58 624 178.782003 405.17 313.67 67 755 91.502004 393.53 335.16 70 949 58.372005 464.29 376.02 73 070 88.272006 588.79 366.21 78 447 222.582007 616.23 406.09 98 653 210.142008 776.36 449.27 125 557 327.092009 644.15 400.03 153 967 244.12



Text 2010 CMYK 3 10/18/10 10:01 AM

30

SA manganese & chrome production & sales

Manganese

The manganese mining industry was significantlyaffected by the global economic crisis, as poordemand and customers destocking inventoriesforced mining companies to cut back on productionto match both lower demand and lower prices.Both the manganese ore and manganese alloymarkets reflected the decline in world crude steelproduction, given the strong relationship betweensteel production and manganese metal use. In2009, global steel production fell by 15.2% to 1.2million tons. Mine production of manganese fell by22% to 35 million tons, while the actual productionunits amounted to 11 million tons, a decrease of23% (IMI). Manganese ore prices declinedsignificantly in the first half of 2009 and thengradually recovered in the second half of the year,as market conditions improved.

South Africa, traditionally the world’s largest producer of manganese, cut back on production by32.8% to 4.6 million tons, in response to the collapse in demand and prices in the first half of 2009.South African ore production was down by more than 41% in the first half of 2009. The year-on-yearrate of decline in production slowly eased during the remainder of the year, as market conditionsgradually improved. With lower prices and production, South African manganese ore sales fell by67% to R5.6-billion in 2009, with export sales falling by 67% to R5-billion.

In 2009, the manganese mining sector employed 4988 people, which is up 21% on the previousyear’s number. These workers were paid R666-million in salaries and wages.

J JJ

JJ

JJ

J

J

J

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

100

200

300

400

500

600

700

800

Ave

rage

num

ber

of e

mp

loye

es in

ser

vice

Tota

l em

plo

yee

earn

ings

R'm

illio

n


J Total employee earnings

Employment and total employee earnings on SA manganese mines

Source: DMR

SA manganese minesProduction Total sales1 000 tons Value R1 000

2000 3 635.4 1 232 115.42001 3 274.1 1 305 345.12002 3 358.4 1 632 626.52003 3 546.6 1 477 629.42004 4 282.0 1 738 719.42005 4 611.7 2 200 826.32006 5 213.3 2 245 835.02007 5 996.1 3 571 426.82008 6 807.1 17 343 408.02009 4,575.8 5 586 612.7

Source: DMR

Text 2010 CMYK 3 10/18/10 10:01 AM

Platinum & pgm production in SA

l ll

l

l

ll

l

l

l

2000 2001 2002 2003 2004 2005 2006 2007 2008 200950000

70000

90000

110000

130000

150000

170000

190000

210000

0

5000

10000

15000

20000

25000

Ave

rage

num

ber

of e

mp

loye

es in

ser

vice

Tota

l em

plo

yee

earn

ings

R'm

illio

n

Average number of employees in service l Total employee earnings

Employment and total employee earnings on SA PGM mines

OverviewPlatinum group metals (pgms) have a wide range of industrial and technological applications, but are also

used extensively in the jewellery and investment markets. With 63% of the demand for the three main pgms ofplatinum, palladium and rhodium being attributable to catalytic converter and industrial applications, the globaleconomic crisis had a negative impact on the pgm markets and pgm mining sector, as global car productionand industrial production plummeted. Global demand for the three main pgms fell by 9.6% to 482.9 tons, asthe 25.6% increase in pgm jewellery demand and 31.8% increase investment demand were not sufficient tooffset the decline in demand for pgms for catalytic converters (down 22%) and industrial applications (down20.4%). In late 2008 and early 2009 the automotive and industrial centres cut back on pgm demand fromprimary sources as they tried to reduce inventories. However, strong growth in jewellery demand (up 25.6% to199 tons) and investment demand (up 31.8% to 40 tons), helped compensate for the reduced demand forindustrial and automotive applications.

In 2009, the global new mine supply of the three main pgms decreased by 1.1% to 428.9 tons, as lowerproduction rates from non-South African producers affected supply. South Africa’s supply of the three mainpgms rose by 0.6% to 235.2 tons, but Russian supply was down 1.3% to 139.7 tons and North American mineproduction fell by 17.8% to 32 tons. By contrast, Zimbabwe’s pgms production increased by 28.1% to 13.3tons. Scrap recycling of the three main pgms in 2009 fell by 17.7% to 94 tons, resulting in total supply of thethree main pgms decreasing by 4.6% to 522.9 tons. This was the first time in nearly twenty years that scraprecovery levels actually dropped. In 2009, South Africa accounted for 54.8% of global new mine supply of thethree largest pgms, up from 53.9% in 2008. Russia is second with 32.6% of the total, North America third at7.5% and Zimbabwe fourth at 3.1%. South Africa is the dominant global producer of platinum (76.5%) andrhodium (86.1%) while Russia is the dominant supplier of palladium (51.2%). Recycling of scrap pgms is thefourth largest source of supply to the market and accounted for 94 tons in 2009.

Overall the platinum price was 24% lower at US$1199 per ounce in 2009, versus the previous year. Giventhe sharp declines in palladium and rhodium prices the overall production weighted basket price for SouthAfrican production for the main three pgms fell by a substantial 42.5% to US$948 per 3E ounce.

In 2009, total South Africa pgm production fell by a modest 1.6% to 271.4 tons as production from highercost mines was constrained. Total South African sales of pgms, with slightly lower production volumes andmuch lower prices, fell by 36.7% to R57.8 billion, a significant decline in the overall revenue of the sector. Thisbig decline resulted in the pgm mining sector falling to position two after coal in terms of total sales value.Nevertheless, the pgm mining industry employed the largest number of workers at 184 613 people and paidR24.9 billion in salaries and wages. The industry accounted for 9.6% of the country’s merchandise exports.

Source: DMR31

Text 2010 CMYK 3 10/18/10 10:01 AM

32

PlatinumThe platinum market swung from a deficit of 6.8 ton in

2008 to an 8.5 ton surplus in 2009 as the 8.5% decline indemand overshadowed the 0.3% decline in total supply. Newmine supply of platinum fell by a marginal 0.3% to 184.1 tonsas a result of stabilisation in South African supply, which grew0.3% to 140.9 tons and the 27.8% rise in Zimbabwe’sproduction to 7.2 tons. These increases offset the 2.5%decline in Russia’s production (24.4 tons) and NorthAmerican production which fell 20% to 8.1 tons. Therecycling of platinum scrap declined by 23.2% to 43.7 tons,but this still remained the second largest source of supplyafter South Africa’s production.

Total demand fell by 8.5% to 175.3 tons mostly as a resultof the slump in global automobile production which resultedin demand for platinum for catalytic converters falling by 39%to 69.4 tons. With European and Japanese automobileproduction down by 20.6% and 30.6% respectively in 2009, this was bound to affect platinum demand.In the first half of 2009 automotive manufacturers cut back on demand and concentrated on reducinginventories. By the second half of 2009, the rebuilding of inventories and government incentive schemeshelped support the recovery in demand. Demand for platinum for industrial purposes declined by 33.7%to 35.5 tons as lower activity in the electrical, chemical, glass and petroleum sectors affected offtake.

However, the two big stories of the demand equation relate to the surge in jewellery and investmentdemand. Demand for platinum in jewellery rose by 46.1% to 93.6 tons on the back of lower prices andstrong consumer demand in China, while investment demand rose by 18.9% to 20.5 tons as investorssought the safe havens of precious metals.

The volatility of the platinum price in 2008 – when it dropped below US$850 per ounce in September 2008 –after having traded at above US$2000 per ounce six months earlier, was not repeated in 2009, which wascharacterised by a steady recovery in the platinum market as the global economy started to recover.Platinum started 2009 at US$956 per ounce on average in January and ended the year at US$1450 perounce on average in December. The price averaged US$1199 per ounce in 2009, a 24% decline on theprevious year. In rand terms the 2.2% depreciation in the rand-dollar exchange rate to R8.44 per US dollarand the lower dollar price resulted in the average rand price falling by 22.3% to R324 924 per kilogram in2009.

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

20

40

60

80

100

120

140

160

180

met

ric t

ons

South Africa Russia North America Other

Annual platinum supply by country

Source: Johnson Matthey Platinum 2010

Total platinum Total PGMproduction productionmetric tons metric tons

2000 114.5 206.82001 129.7 228.72002 133.8 236.62003 148.3 266.52004 160.0 276.42005 163.7 303.02006 169.9 309.32007 160.9 304.02008 146.1 275.82009 140.8 271.4

Source: DMR

Text 2010 CMYK 3 10/18/10 10:01 AM

Platinum supply & demand, 2000 – 2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

20

40

60

80

100

120

140

160

180

Met

ric t

ons


Annual palladium supply by country

Source: Johnson Matthey Platinum 2010

33

Annual platinum demand by application in metric tons2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Autocatalysts: gross 58.8 78.4 80.6 101.7 108.6 118.0 121.5 128.9 113.7 69.4

recycling -14.6 -16.5 -17.6 -20.1 -21.5 -23.9 -26.7 -29.1 -35.1 -25.8

Chemical 9.2 9.0 10.1 10.0 10.1 10.1 12.3 13.1 12.4 9.2

Electrical: gross 14.2 12.0 9.8 8.1 9.3 11.2 11.2 7.9 7.2 5.9

recycling 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.2 -0.3

Glass 7.9 9.0 7.3 6.5 9.0 11.2 12.6 14.6 9.8 0.3

Investment -1.9 2.8 2.5 0.5 1.4 0.5 -1.2 5.3 17.3 20.5

Jewellery: gross 88.0 80.6 87.7 78.1 67.2 76.7 68.3 65.6 64.1 93.6

recycling 0.0 0.0 0.0 0.0 0.0 -15.6 -17.3 -20.4 -21.6 -17.6

Medical & Biochemical 0.0 0.0 0.0 0.0 0.0 7.8 7.8 7.2 7.6 7.8

Petroleum 3.4 4.0 4.0 3.7 4.7 5.3 5.6 6.4 7.5 6.4

Other 11.7 14.5 16.8 14.6 14.6 7.0 7.5 8.2 9.0 5.9

Total demand 176.7 193.8 201.2 203.1 203.4 208.2 201.4 207.8 191.6 175.3

Movement

in stocks -12.1 -11.5 -15.6 -10.3 -1.6 -1.7 11.0 -2.5 -6.8 8.9

Data may not add due to roundingSource: Johnson Matthey, Platinum 2010

Text 2010 CMYK 3 10/18/10 10:01 AM

34

Palladium supply & demand, 2000 – 2009

PalladiumIn 2009, the palladium market remained oversupplied with 23.6 tons added to stocks. This was

due to the supply of palladium falling at a slower pace (down 2.9% to 220.8 tons) than the declinein demand which fell by 5% to 197.2 tons. Primary mine supply shrank by 2.9% to 220.8 tons as the28.6% rise in Zimbabwe’s production to 5.6 tons was overshadowed by the 2.5% decline in SouthAfrican production to 73.7 tons, the fall in Russia’s production by 0.7% to 113.1 tons and the 17%decline in North America’s production to 23.5 tons. JM estimates that Russia’s stock sales were 29.8tons in 2009 and the likelihood is that the drawdown of Russian stockpiles is coming to an end.

On the demand side, all categories of palladium experienced declines, with the exception ofinvestment demand which increased by 48.8% to 19.4 tons. Total demand excluding scrap fell by5% to 197.2 tons. Hardest hit was the demand for palladium for jewellery which fell by 17.3% to 25.3tons, followed by the 9.3% decline in demand for palladium for catalytic converters which fell to 126tons. Fortunately the strong growth in China’s production of automobiles resulted in a 75.6%increase to 21.3 tons for palladium demand for this sector in China, which helped to compensate forthe declines in Japan and North America.

In many respects the palladium price mirrored the movements in the platinum price during thecourse of 2009. The palladium price performed relatively well during the year, riding the wave of theimproved fundamentals related to the global recovery, the positive performance of precious metalsand the weakening of the United States currency. Strong flows into exchange traded funds helpedboost investment and cover other areas of weakening demand. The palladium price started the yearat an average of US$189.64 per ounce in January and ended over double this level at an average ofUS$375.36 per ounce in December. The palladium price averaged US$264 per ounce for 2009, ayear-on-year decline of 25%.

Annual palladium demand by application in metric tons

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Autocatalysts: gross 175.4 158.3 94.9 107.3 117.9 120.2 124.9 141.4 138.9 126.0

recycling -7.2 -8.7 -11.5 -12.8 -16.5 -19.4 -25.0 -31.6 -35.5 -30.0

Chemical 7.9 7.8 7.9 8.2 9.6 12.9 13.7 11.7 10.9 10.1

Dental 25.5 22.6 24.4 25.7 26.4 25.3 19.3 19.6 19.4 19.1

Electrical: gross 67.2 20.8 23.6 28.0 28.6 39.7 46.5 48.2 42.6 39.5

recycling 0.0 0.0 0.0 0.0 0.0 -9.5 -9.0 -9.8 -10.7 -12.3

Jewellery: gross 7.9 7.5 8.4 8.1 28.9 46.3 35.5 29.5 30.6 25.3

recycling 0.0 0.0 0.0 0.0 0.0 -1.9 -4.2 -7.3 -4.0 -2.2

Investment 0.0 0.0 0.0 0.9 6.2 6.8 1.6 8.1 13.1 19.4

Other 1.9 2.0 2.8 3.4 2.8 8.2 2.6 2.6 2.3 2.2

Total demand 278.7 210.3 150.5 168.9 204.0 228.8 205.7 212.4 207.6 197.2Movement

in stocks -36.1 17.4 12.8 31.7 62.8 32.7 41.5 54.4 19.8 23.6

Totals may not add due to roundingSource: Johnson Matthey, Platinum 2010

Text 2010 CMYK 3 10/18/10 10:01 AM

Rhodium supply & demand, 2000 – 2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

5

10

15

20

25

Met

ric t

ons


Annual rhodium supply by country

RhodiumThe rhodium market was also in oversupply in 2009 as 10.8% increase in supply to 23.9 tons

generated a surplus over demand which had fallen by 21% to 16.5 tons. Some 7.5 tons was added tostockpiles in 2009. Given the dominance of automotive uses of rhodium, which account for about 86%of demand, it was clear that the rhodium market would be especially hard hit by the impact of the globaleconomic crisis on new car production. Gross demand for rhodium for the automotive sector fell by19.4% to 19.3 tons, while demand for industrial purposes fell by 24.8% to 3 tons.

Primary supply of rhodium grew by 10.8% to 23.9 tons as growth in South Africa’s production, whichwas up by 15.5% to 20.6 tons, and an increase in Zimbabwe’s production, offset production declines inNorth America and Russia. Scrap recovery fell by 17.6% to 5.8 tons, the first such decline in over 20years.

The rhodium price averaged US$1592 per ounce in 2009, a substantial 75.7% decline on the previousyear’s price of US$6564 per ounce. Rhodium started the year at an average of US$1152 per ounce inJanuary and ended the year at an average of US$2422 per ounce. In rand terms the price averaged R386880 per kilogram in 2009.

35

Annual rhodium demand by application in metric tons2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Autocatalysts: gross 24.7 17.6 18.6 20.5 23.6 25.8 26.8 27.6 23.9 19.3recycling -2.5 -2.7 -3.1 -3.9 -4.4 -4.3 -5.3 -6.0 -7.1 -5.8

Chemical 1.2 1.4 1.2 1.2 1.3 1.5 1.5 2.0 2.1 1.7Electrical 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.1 0.1 0.1Glass 1.3 1.3 1.2 0.8 1.4 1.8 2.0 1.8 1.1 0.6Other 0.3 0.3 0.3 0.4 0.4 0.6 0.7 0.7 0.7 0.7

Total demand 25.3 18.0 18.4 19.3 22.7 25.7 26.1 26.3 20.8 16.5Movement

in stocks -1.4 0.8 0.7 3.2 -0.3 -2.3 -1.1 -0.6 0.8 7.5

Totals may not add due to roundingSource: Johnson Matthey, Platinum 2010

Text 2010 CMYK 3 10/18/10 10:01 AM

36

Silver: annual SA output & sales, 1910 – 2009

NOTES:+ From 1981 the figuresrepresent sales of silver.* Provisional

Source: DMR

n

n

n

nn

n

nn

n

n

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

0

20

40

60

80

100

120

140

160

180

0

50

100

150

200

250

300

350

tons R-m

Sales tons

nSales valueR-m

SA silver output and value of sales

Production Sales

Kilograms ValueYear fine R1910 25 287 181 5801911 27 888 197 0141912 31 695 248 7481913 29 629 231 6441914 27 706 204 9421915 30 051 212 4901916 30 137 212 6221917 29 180 345 9941918 27 294 375 2161919 27 723 457 6081920 27 763 491 7421921 25 826 274 8821922 34 701 342 8541923 42 734 395 7761924 43 450 424 9401925 36 126 333 7961926 30 523 253 1601927 31 469 237 0621928 32 079 248 1281929 32 092 227 0061930 32 660 166 8281931 33 065 139 5201932 34 857 131 6781933 33 126 173 7081934 31 172 191 3741935 32 416 271 8061936 33 456 194 1021937 34 233 198 9261938 35 314 199 3481939 36 780 217 0001940 40 195 259 1081941 45 123 313 1281942 45 957 312 8101943 41 493 282 432

ProductionSales

Kilograms ValueYear fine R1944 37 730 256 8181945 38 675 315 1441946 37 554 489 0721947 35 697 436 1241948 36 421 439 5261949 36 061 475 5361950 34 809 604 2301951 36 161 754 2141952 36 591 728 7961953 37 111 735 2261954 38 426 756 5261955 45 876 958 0741956 49 712 1 054 0661957 54 975 1 135 7621958 55 843 1 163 1861959 62 853 1 325 5621960 69 243 1 471 8821961 71 173 1 576 3551962 79 289 1 952 2001963 85 126 2 511 9411964 90 718 2 720 3491965 97 403 2 902 5641966 97 480 2 936 8871967 95 286 3 536 4491968 103 794 3 546 137

1969 103 718 4 114 0991970 109 701 4 392 3651971 105 071 4 566 8731972 102 443 5 239 1651973 113 591 7 331 1631974 83 940 8 207 6601975 95 923 10 012 4721976 87 736 10 617 725

Production/sales+ Sales

Kilograms ValueYear fine R1977 97 364 12 607 0891978 96 559 14 695 0911979 100 664 29 872 5171980 222 188 82 520 6891981+ 228 834 55 822 1211982 242 748 53 171 2691983 201 752 71 139 7991984 217 068 66 186 3531985 208 384 75 010 1691986 222 241 73 975 3311987 208 150 74 187 9981988 199 746 79 469 2241989 179 829 69 628 3111990 161 003 57 314 7581991 170 832 38 329 3391992 190 462 55 816 4501993 182 513 67 922 8501994 195 794 78 913 4901995 163 048 68 640 3321996 155 529 83 012 9401997 187 402 102 261 0001998 160 828 122 821 4381999 160 807 153 509 7732000 168 617 169 937 577

2001 126 482 141 723 4872002 118 256 168 674 3332003 101 119 111 215 5482004 76 594 101 478 2162005 102 265 143 503 5952006 99 343 250 621 1322007 80 549 235 040 6232008 94 830 346 844 9872009* 77 780 287 103 382

Text 2010 CMYK 3 10/18/10 10:01 AM

NOTES:= Includes production fromFree State Cons. Gold MinesMetallurgical Scheme.These figures are excludedfrom the grade calculation.* Total production includesoutput of non-members ofthe Chamber.

Uranium output of Chamber members & totalannual SA production, 1955 – 2009

37

Members of the Chamber

Metric Uranium Total SA uraniumtons oxide Grade production

treated produced kg/ton metricYear 1 000 kilograms treated tons1955 13 684 2 998 077 0.219 2 9981956 16 300 3 832 583 0.235 3 9631957 19 617 5 026 589 0.256 5 1741958 21 339 5 492 254 0.257 5 6691959 21 725 5 681 806 0.262 5 8461960 21 901 5 634 546 0.257 5 8141961 15 506 4 941 236 0.319 4 9611962 12 806 4 557 954 0.356 4 5581963 11 414 4 111 750 0.360 4 1121964 10 484 4 032 709 0.384 4 0421965 7 403 2 669 277 0.360 2 6731966 8 620 2 981 191 0.346 2 9831967 9 525 2 915 417 0.306 3 0481968 12 389 3 522 550 0.284 3 5221969 12 937 3 609 642 0.279 3 6101970 13 976 3 736 819 0.267 3 7371971 14 253 3 800 007 0.267 3 8001972 14 609 3 629 265 0.248 3 7781973 12 828 3 093 982 0.241 3 2301974 14 654 3 074 418 0.210 3 1771975 14 873 2 809 490 0.189 2 9021976 17 267 3 111 366 0.180 3 2881977 19 855 = 3 873 795 0.179 3 9721978 21 976 = 4 531 157 0.171 4 6871979 26 096 = 5 539 081 0.168 5 6371980 30 841 = 6 086 442 0.166 7 2951981 31 362 = 6 030 171 0.157 7 2341982 30 415 = 5 733 188 0.160 6 8631983 32 010 = 6 138 282 0.169 7 1281984 29 490 = 5 896 062 0.180 6 7621985 25 856 = 5 114 008 0.175 5 7511986 24 836 = 4 799 301 0.172 5 4601987 21 805 = 3 920 002 0.159 4 7351988 20 174 = 3 783 364 0.163 4 5831989 15 326 = 3 185 428 0.179 3 4561990 14 213 = 2 697 125 0.178 2 9131991 10 145 1 885 257 0.186 2 0341992 9 768 1 854 946 0.190 1 9711993 9 675 1 912 921 0.198 2 0081994 9 250 1 818 717 0.197 1 9061995 8 345 1 554 210 0.186 1 7011996 8 661 1 594 506 0.184 1 7061997 6 536 1 198 742 0.183 1 3241998 4 810 1 061 492 0.221 1 1381999 4 021 997 297 0.248 1 0932000 3 098 894 109 0.289 1 0152001 2 824 1 024 838 0.363 1 0652002 2 789 979 865 0.351 9982003 2 836 915 861 0.323 8942004 2 799 880 943 0.315 8872005 2 638 793 943 0.301 7952006 2 705 630 103 0.233 6392007 2 462 557 525 0.226 6192008 2 502 582 001 0.233 6542009 2 471 654 086 0.265 629


Text 2010 CMYK 3 10/18/10 10:01 AM

38

NOTES:a Consolidated operationsof the company and itswholly owned subsidiaries.b Ceased production inOctober 1956, because offlooding and subsequentlybecame a wholly ownedsubsidiary of Harmony.c Became a wholly-ownedsubsidiary of Harmony.d Ceased uraniumproduction at the end of1974, resumed production1976 and ceased uraniumproduction in 1981.e Includes Joint ProductionScheme with Vaal Reefs. Asfrom 20 September 1971,merged with Vaal Reefs.f From 1 July 1972, mergedwith Hartebeestfontein.g From 1977, merged withFree State Geduld – seenote h.h These mines, togetherwith Free State Geduld, FreeState Saaiplaas, andWestern Holdings areparticipants in the AngloAmerican OFS JointMetallurgical ProductionScheme, which has mergedwith Free State Cons. (Southregion).i From 1999, Vaal Reefsrenamed Vaal RiverOperations and reportsunder the name AngloGoldAshanti.

Cumulative uranium output, from start of operations to Dec. 2009 – Chamber members

Metric Uraniumtons oxide Grade

Commenced treated produced (kg/tonCompany production 1 000 kilograms treated)AngloGold Ashanti i May 1956 206,765 48,293,259 0.234Blyvooruitzicht April 1953 37,947 6,551,267 0.173Buffelsfontein

(Buffels Section) July 1957 83 820 18 237 778 0.218Daggafontein April 1953 11 183 2 160 591 0.193Dominion Reefs June 1955 3 578 1 822 873 0.510Doornfontein Oct. 1956 1 835 266 238 0.145Driefontein Cons.

(West Drie.) Oct. 1956 20 529 3 915 762 0.191East Champ d’Or Feb. 1954 1 371 552 993 0.396Ellaton Oct. 1954 2 153 329 585 0.153Freddies Cons. g Feb. 1955 4 555 580 667 0.127Freestate Saaiplaas h Feb. 1955 350 45 545 0.130Harmony a July 1955 103 261 12 490 823 0.121Hartebeestfontein Nov. 1956 103 426 16 456 207 0.159Loraine Nov. 1956 2 807 330 969 0.118Luipaardsvlei Jan. 1955 4 518 3 518 258 0.779Merriespruit b c Mar. 1956 518 14 249 0.028President Brand h Feb. 1955 4 521 566 693 0.125President Steyn h Feb. 1955 5 566 736 015 0.132Randfontein Feb. 1954 45 248 12 060 225 0.266St Helena (Beisa Sect.) Jan. 1982 2 298 1 061 698 0.462Stilfontein Oct. 1953 7 328 987 707 0.135Virginia c Sept. 1955 22 067 5 279 693 0.239Vogelstruisbult April 1955 3 480 844 797 0.242Welkom h May 1957 3 453 491 898 0.142West Rand Cons. d Sept. 1952 22 332 13 035 712 0.584Western Areas Jan. 1982 9 408 4 037 235 0.429Western Deep Levels Feb. 1970 17 136 2 553 326 0.149Western Reefs e Oct. 1953 34 933 8 475 181 0.243Zandpan f Mar. 1966 4 205 1 419 095 0.337Free State Cons. Joint

Metallurg. Scheme 1977 – 8 583 087 –Miscellaneous Chamber

member producers 1978 – 598 240 –


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South African Mining industry

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