South Africa’s 2006 total mineral sales of R195,6-billion represented a more than 34% increase over the previous year’s figure of R145-billion and illustrates the industry’s more effective exploitation of the global commodities boom, reported outgoing president Lazarus Zim in the presidential address to the Chamber of Mines of South Africa’s annual general meeting in November last year.
He said there was a corresponding 33% hike to R140-billion in the value of primary mineral exports.
“A most spectacular sales performance was in platinum group ÂÂmetals [PGMs] where the value of sales increased by 70% to R65,6-billion. Total coal and gold sales amounted to almost R38-billion and R37-billion respectively.
“The aggregated sales of PGMs, gold and coal accounted for some 72% of total mineral sales in 2006.”
Looking at the diamond sector, production declined by 2,6% in 2006, but the value of sales remained constant at just more than R10-billion.
The fifth largest component of the South African minerals industry is the iron ore sector, which recorded total sales valued at R9,9-billion last year. Iron ore exports earned R8,5-billion.
In other commodities there was a 98% growth in nickel sales to R7,8-billion and a similar 92% growth in copper sales, which amounted to R5-billion.
Zim described the mining industry as the “bedrock of South Africa’s economic development”.
The value of mining to the South African economy is considerable and substantiated by statistics, which show that the industry accounts for:
18% of gross domestic product;
more than 50% of merchandise exports; and
jobs for one million people (direct and indirect employment).