- Fossil Fuel Foundation

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)
Outline of talk
1.
2.
3.
4.
5.
6.
7.
Introduction – Overview
Focus – The Mineral Resources of Limpopo
The Platinum Industry
The Coal Industry
Chrome and Chromium
Base Metals – Copper - Iron Ore – Vanadium
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
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
Locality Map and Regional Infrastructure
1.
Magisterial Districts of Limpopo Relative to
Surrounding Provinces & Countries
Zimbabwe
Botswana
Vhembe
Capricorn
Mopani
Waterberg
Sekhukhune
Mpumalanga Province
North-West Province
Modified After: Wikipedia 2015
Gauteng
Province
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
Blouberg, Aganang, Molemole,
Polokwane, Lepelle-Nkumpi
Capricorn
Waterberg
Thabazimbi, Lephalale,
Mookgophong, Modimolle, BelaBela, 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
Economic Growth Rate of USA, China & EU
2000 – 2018 Compared with South Africa
Note SA Above that
of the US, EU & SubSaharan Africa
Growth in Africa starts
overtaking advanced
economies
Growth Rate Comparison Limpopo VS South Africa
1.5
1.0
0.5
0.0
2.3
North West
3.0
3.3
3.5
3.7
Real annual economic growth rate per region (20032013)
GDPR at
market
prices
2.3
2.5
Northern
Cape
Limpopo
2.6
2.0
Free State
2.5
2.6
Eastern
Cape
3.0
Mpumalanga
Source: SSA
KwaZuluNatal
3.5
3.7
4.0
Gauteng
Western
Cape
% change
Growth Rate Comparison Limpopo VS South Africa
1.0
0.5
0.0
1.1
1.7
Mpumalan
ga
GDPR at
market
prices
Eastern
Cape
1.7
Free State
2.6
2.4
2.5
2.3
2.2
2.1
1.5
KwaZuluNatal
2.0
2.1
Western
Cape
Limpopo
2.5
Northern
Cape
Source: SSA
North
West
Gauteng
% change
Growth Rate Comparison Limpopo VS South Africa
3.0
Real annual economic growth rate per region (2013)
Mining Statistics –
Resources of Limpopo
in Context
The Chamber of Mines Annual Report for 2013 -2014
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)
The Mineral Resources of Limpopo
in Context
The mining industry contributes 14% to FDI in 2013, down
from 25% in 2010. 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!)
Mining is the Flywheel of the Economy
Mining is the Flywheel of the Economy
Platinum/Chrome Mines & Projects
in Limpopo
Limpopo’s Key Mineral Heritage
Platinum, Chrome. Coal &UG
Coal Mines & Projects
+ CBM & UCG?
Limpopo’s Mineral Heritage
1
Precious Metals: Platinum group elements 9
(pge): (Merensky and Chromite Reefs)
Platinum, palladium rhodium, etc and gold 10
2
Nickel and Copper with pge (Esp
Mogalakwena Mine PlatReef)
3
Copper and Phosphate (Palabora)
4
Iron ore, (magnetite) (Bushveld, Banded
Iron Formation and Palabora)
5
Chromite (Bushveld Complex)
6
Blend coking and,
steam coal, (With associated uranium in
the Springbok Flats
7
Diamonds (Venetia)
8
Antimony (Tzaneen Region)
Tin (Rooiberg
Area, Waterberg)
Industrial Minerals
and Dimension
Stone
Brick Clay
Scheelite,
Vermiculite,
Silicon,
Feldspar
Granite, (Black
and other colours)
Emeralds
Corundum,
Limestone
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: > 9 934 t
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)
Coal and Platinum
Mines of Limpopo
Waterberg Coalfield
1Tcf Gas
48 coal prospecting rights
Northern Limpopo Coalfields
Vele Mine and Makhado
Project (Coal of Africa)
Springbok Flats Coalfield
Springbok
Flats
Coalfield
1. The Basin lies about
90km north of
Johannesburg,
40km from Pretoria
2. The basin covers
and area of about
930 000ha
3. It is about 209km in
length and 50-60 km
in width
4. The field has
substantial coal bed
methane (CBM)
and uranium
potential
24
In-Situ Coal Resource Estimate –
Springbok Flats Coalfield
Regions and Areas
Areas From Maps
1 NE Region
3,245,614,384
2 NE Shallow Area
1,131,701,793
3 NE Deep Area
2,113,912,591
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
10
Total Resource
1,010,390,289
(1+4+7)
Area
7,836,352,763
Eastern Limb
Platinum and
Chrome Mines
1.
2.
Steelpoort
3.
4.
There are +40
projects or mines on
the Eastern Limb
The area is
important historically
as it was here that
the Merensky Reef
was discovered (3)
Outcrop in Limpopo
of the Platinum and
Chrome reefs is over
180km in length
There are at least
three significant
chrome operations
north of Steelpoort in
Limpopo
Western Limb
Platinum &
Chrome Mines
in Limpopo
27
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
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;
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
Lead
Zinc
Molybdenum
Dolomite
Manganese
Silver
Building
Stone
Clays - Kaolinite
Feldspar
Limestone
Bauxite
Quartz
Mica
Fluorspar
Diamonds
Phosphate
Glenover
Copper Potential
Andalusite
Magnetite/
Vanadium
BIF Iron Ore
Phosphate/
Mica / Mt
Palaborwa
Uranium
Tin Fields
Magnetite
and
Vanadium
Proposed Transport Corridors and Special Economic
Zones in Limpopo
Lephalale
Energy Coal
Development
Zone
Musina
Development
Zone
Tubatse
Development
Zone
Beneficiation
Platinum, Coal, Iron Ore and Chrome are extensively
beneficiated in Limpopo and in South Africa before
being sold
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
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
• Estimated Reserves
•Pt:
203.3M
troy
(6,323 tonnes)
•Pd 116.1 million troy
(3,611 tonnes).
ounces,
ounces
• Inferred resources
•Pt:
939
million
(29,206 tonnes)
•Pd:
711
million
(22,115 tonnes).
.
(SAMREC Cawthorn Reserves: Proven and Probable)
troy
ounces
troy
ounces
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
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
combination with 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.
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
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
Railway
capacity
constraints
at Transnet
Skills
shortages
Railway
capacity
constraints Deep level
at Transnet mining
Increasing
operating
costs
pressures
Key
Industry
Challenge
s
Deep level
mining
Electricity
supply
shortages
Environmental
concerns
Safety
concerns
Electricity
supply
shortages
Safety
concerns
Safety
concerns
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 in Africa for mining engineers, geologists and artisans.
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 a century.
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
Kealeboga – Thank you
Any question?