South African Mining industry

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Contents Industry snapshot

2

Overview of the SA mining industry

3 5 6 8 9

General exploration expenditures by region, US dollar millions Key mineral industry statistics for SA SA’s role in world mineral reserves, production & exports Provincial overview

General mining industry data

Safety: fatalities and fatality frequency rates Employment and remuneration on Chamber gold and coal mines Employment and remuneration on SA mines Income and expenditure of all SA mines 2009

Aggregate and sand

Total sales, employment and total earnings

Base minerals

Chromite production and sales Iron ore and copper production and sales

Coal industry data

Annual South African coal production, sales and exports Analysis of coal sold by member coal producers Distribution of annual coal trade Employment on coal mines

Diamond data

South African diamond production and sales Estimated production by country & ranking

Gold industry data

SA’s proportion of global gold production South African gold output and sales Annual gold production and average grade, 2000 – 2009 Average employees on Chamber gold mines, 2000 – 2009

2009 Quarterly summary of principal operating results of Chamber gold producers Gold production, average grades, revenue and profit data Cash operating cost data, taxation, capex and dividends Average unit cash operating costs and profits

Manganese and chrome data

SA manganese and chrome production and sales

PGM data

SA platinum and PGM production Platinum supply and demand Palladium supply and demand Rhodium supply and demand

Silver industry data

Annual SA silver production and sales

Uranium industrial data

Uranium output, 1955 – 2009 Cumulative uranium output

10 12 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

27 28 29 30 31 33 34 35 36 37 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 (if secondary beneficiated mineral exports are added); about 1 million jobs (about 500 000 jobs indirectly); about 18% of gross investment (10% directly); approximately 30% of capital 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 electricity generating capacity; about 30% of the country’s liquid fuel supply; the largest contributor by value to black economic empowerment in the economy (in terms of the value of BEE transactions completed) and about 10% to 20% of direct corporate tax receipts (R33 billion in 2008, R10.5 billion in 2009) ° Research into the multiplier and induced effects of the mining sector indicate that while mining accounts for 8.8% of GDP directly the backward linkage to side stream beneficiation adds another 2.3 percentage points to GDP. Add the downstream linkages another 2.2 percentage points are added plus the induced effects adding another 5-6 percentage points, resulting in the overall contribution of the minerals cluster being closer to 19% of GDP. Add in the contribution of over 50% of merchandise exports and one million jobs (500 000 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% growth in 2007, 13.2% growth in 2008 to only 2.7% growth in 2009. Falling mining production combined with lower prices and revenues meant that mining GDP contracted by the largest amount since 1974. In 2009, mining GDP fell by 7.2% as the industry was hit by the global financial crisis and further domestic constraints. In the past two years mining GDP in real terms has fallen by a significant 12.2% and effectively the sector in 2009 is smaller in real GDP terms then it was in 1994 ° The value of South African mineral sales fell by 19.6% to R241.3 billion due to the impact of the global financial crisis. The top three minerals (coal, pgms and gold) accounted for 71.2% of South Africa’s total mineral sales in 2009 ° Total primary mineral exports sales fell by 19.7% to R176,4 billion. Primary mineral exports accounted for 31.7% of South Africa’s total merchandise exports. The addition of secondary beneficiated minerals to primary exports, such as pgm catalytic converters, ferro-alloys, steel, chemicals, plastics and so on, takes the exports of the mineral complex to 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 for the decline in 2009 include the 52.6% decline in diamond production, the 32.8% fall in manganese production, the 29.1% decline in chrome production, the 7.1% decline in gold production and the 1.6% decline in platinum group metals production. The only substantive area where production increased was iron ore, which had a 12.9% increase in production to 55.3 million tons ° 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, implying a small gross surplus of R20 billion.However, if taxes, dividends and capital expenditure is included, the total expenditure of the mining industry was R399 billion 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 and services and local operating costs, R71 billion went on salaries and wages, R51.5 billion went into capital investment in the sector, R12.2 billion was paid to the providers of loan capital (in the form of interest), R35 billion was provided to cover depreciation and impairments, R10 billion was paid in the form of direct taxes to government, R25.5 billion was paid as reward to the providers of capital (shareholders) ° The South African mining sector employed 491 922 employees compared to 518 519 employees in 2008, a decline of 5.1%. Mining accounted for 6% of total non-agricultural formal employment in the economy and 7.8% of total private sector non-agricultural employment. If the indirect and induced effects of mining are included than another 500 000 jobs are estimated to exist in addition to the direct mining jobs. Some R71-billion was paid to 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 of assets

2

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South African mining industry overview 2009 Contribution to the economy The 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. This cluster of industries includes: energy, financial services, water services, engineering services, specialist seismic, geological and metallurgical services, etc., that are world class in their own right and that owe their very existence to the mining sector. For example, the Johannesburg Securities Exchange (JSE) was originally established on the basis of funding the mining sector in the late 19th century. The mining sector still accounts for a significant one third of the market capitalisation of the JSE and continues to act as a magnet for foreign investment to the country. Once established the JSE was able to provide the basis for “capital-raising” for other sectors of the economy. This cluster of industries has gone on to service other parts of the economy and provided a significant export base to service the global mining industry. This in itself should be recognised as a significant type of beneficiation contribution to South Africa by the mining sector.

Not only does the mining sector use considerable services and inputs from the domestic economy, it also supplies many associated industries that use mining products to keep the wheels of the South African economy moving. For example, 98% of the country’s cement and more than 90% of the country’s steel is fabricated locally from locally produced minerals. It is estimated that another R200 billion in value is added to the local economy through the intermediate and final product industries that use minerals produced by the South African mining sector. This indicates that where the commercial opportunities exist that further downstream beneficiation is taking place.

SA mineral sales and exports In 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 the production declines for most minerals, which resulted in the value of South African mineral sales falling by a substantial 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 mining production fell by 6.6% in 2009.

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

The contribution of mining to SA over the past decade expressed in 2009 real rand terms 2500 2182.7 2000

R'billions

1613.8

1559.2

1500

1000 498.1

500

350

Source: Chamber of Mines/StatsSA

3

Fixed investment

Employee remuneration

GDP

Export earnings

Sales revenue

0

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Industry overview 2009 mining industry by sales value with total sales of R65.4 billion, followed by platinum group metals at R58 billion and gold at R49 billion. The top three minerals accounted for 71.2% of South Africa’s total mineral sales in 2009.

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

Income and expenditure of the South African mining industry In 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 was made up of R193 billion spent on the procurement of goods and services and local operating costs, R71 billion went on salaries and wages, R51.5 billion went into capital investment in the sector, R12.2 billion was paid to the providers of loan capital (in the form of interest), R35 billion was provided to cover depreciation and impairments, R10 billion was paid in the form of direct taxes to government, R25.5 billion was paid as reward to the providers of capital (shareholders). Only a small portion of the expenditure in the form of capital equipment and dividends were acquired or paid for from offshore – so most of the benefit accrues locally.

Employment and wages In 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 to respond to the global crisis and to try and reduce retrenchments, helped reduce the number of actual retrenchments. The stakeholders had expected some 100 000 jobs to be threatened in the mining sector. As it turned out employment fell by on average by 26 597 people. Nevertheless, mining accounted for 6% of total non-agricultural formal employment in the economy and 7.8% of total private sector non-agricultural employment. If the indirect and induced effects of mining are included than another 500 000 jobs are estimated to exist in addition to the direct mining jobs. In 2009, some R71 billion was paid to workers in the form of salaries and wages. This contributed substantially to the economy and to the purchasing power of workers.

Commodity summary January – December 2009 Commodity

Precious metals Gold PGMs Silver Sub total Base minerals Chrome Copper (content) Iron ore Lead concentrate Manganese Nickel Other metallic Coal Feldspar Limestone & lime Other non-metallic Miscellaneous* Sub total Grand total

Local sales

Total sales

Total exports

R1 000

R1 000

R1 000

1 701 334 4 322 869 30 906 6 055 109

48 695 503 57 782 176 287 103 106 764 782

46 994 169 53 459 307 256 198 100 709 673

96.5 92.5 89.2

2 066 278 2 835 737 1 888 801 0 583 602 949 855 191 360

3 262 329 3 858 519 27 131 735 482 903 5 586 613 4 201 208 277 927

1 196 051 1 022 782 25 242 934 482 903 5 003 011 3 251 353 86 566

36.7 26.5 93.0 100.0 89.6 77.4 31.1

30 934 920 0 11 263 379 723 8 068 381 75 679 887 176 389 560

47.3 0.0 0.5 5.1 54.8 56.2

34 463 55 2 105 7 105 6 655 58 900 64 955

054 248 297 622 620 475 584

65 397 55 2 116 7 485 14 724 134 580 241 345

974 248 561 345 001 362 144

NOTES: Totals might not add due to rounding. * Includes strategic and minor commodities not otherwise enumerated.

As at June 12/07/2010

4

% exports to total sales

Source: Minerals Bureau, DMR

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Exploration: global expenditures by region

Global exploration expenditures, not surprisingly given their discretionary status, were also trimmed in 2009. According to the Metals Economics Group (MEG) global non-ferrous metals exploration budgets fell by 45% in 2009 to US$7.3 billion, when compared to US$13.2 billion spent in 2008. Grassroots exploration was sorely affected as established mining companies concentrated on core projects. Similarly, exploration by junior resource companies fell sharply. Cutbacks in exploration expenditure at the grassroots greenfields level may 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 Other 9% PGMs 2% Diamonds 5%

Gold 48%

Base meals 36%

Large-scale non-ferrous global exploration 14

B 12

B

8

B

B

6

B

B

1993

B

B B

B

B B

B

B

B 2002

B

1992

2

B

2001

B

4

1991

B

5

2009

2008

2007

2006

2005

2004

2003

2000

1999

1998

1997

1996

1995

0

1994

US$ bilions

10

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Key mineral industry statistics for SA Description Gross domestic product Direct contribution of mining to GDP Direct contribution of mining to GDP Direct contribution of mining to GDP Mining GDP growth rate Direct contribution of mining to GDP South African GDP South African GDP Mining’s contribution as % of total GDP nominal terms Mining’s contribution as % of total GDP real terms Fixed investment Direct contribution of mining to fixed investment (GFCF) Direct contribution of mining to fixed investment (GFCF) Direct contribution of mining to fixed investment (GFCF) Total private sector fixed investment (private GFCF) Total SA fixed investment (GFCF) Mining fixed investment growth rate Direct contribution to fixed investment (GFCF) Mining’s contribution to private sector fixed investment (GFCF) Mining's contribution as % of total investment Sales and exports Total primary mineral sales Total primary mineral sales Total primary mineral sales Mining industry primary exports Mining industry primary exports Mining industry primary exports Total SA merchandise exports Total SA exports (goods and services) Primary mineral exports as % of total SA merchandise exports Primary mineral exports as % of total SA exports Employment Mining industry direct employment Total private non-agricultural employment Total SA formal non-agricultural employment Mining as % of total private non-agricultural employment Mining as % of total non-agricultural formal employment Remuneration paid to employees in mining Remuneration paid to employees in mining Average annual remuneration per mineworker Exchange rates Rand per US$ exchange rate Rand per Euro Rand real effective exchange rate Commodity prices Gold price Gold price Gold price Platinum price Platinum price Palladium price Palladium price Rhodium price Rhodium price PGM price production weighted average basket price PGM price production weighted average basket price Coal spot price to the ARA market 5900 NAR coal Coal price – average for local sales (received price) Coal price – average for export sales (received price) Source: Chamber of Mines, SARB, StatsSA, DMR, SACR, Johnson Matthey Platinum Reports

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Units of measure

2000

2001

2002

2003

R’m nominal terms R’m constant 2005 prices R’m 2009 money terms % YoY US$ equivalent R’m nominal terms R’m constant 2005 prices % %

63 391 99 122 109 425 -1.1 9 140 922 148 1 301 773 6.9 7.6

77 214 99 019 126 397 -0.1 8 975 1 020 007 1 337 382 7.6 7.4

92 730 99 960 137 884 1.0 8 818 1 171 086 1 386 435 7.9 7.2

85 770 103 355 120 458 3.4 11 338 1 272 537 1 427 322 6.7 7.2

R’m nominal terms R’m constant 2005 prices R’m 2009 money terms R’m nominal terms R’m nominal terms % YoY US$ equivalent % %

13 847 18 233 23 903 100 095 137 656 11.7 1 997 13.8 10.1

15 871 19 684 25 980 113 039 151 008 8.0 1 845 14.0 10.5

19 802 22 354 29 444 126 122 172 151 13.6 1 883 15.7 11.5

21 706 23 461 30 485 142 386 196 999 5.0 2 869 15.2 11.0

R’m nominal terms US$ equivalent R’m 2009 money terms R’m nominal terms US$ equivalent R’m 2009 money terms R’m nominal terms R’m nominal terms % %

98 547 14 210 170 111 76 497 11 030 132 047 222 061 274 443 34.4 27.9

115 853 13 466 189 649 90 833 10 558 148 691 265 832 328 428 34.2 27.7

139 452 13 260 207 357 109 363 10 399 162 616 333 251 408 271 32.8 26.8

117 759 15 567 165 385 86 910 11 489 122 060 291 434 376 158 29.8 23.1

numbers numbers numbers % % R’m current R’m 2009 money terms Rand

418 294 3 116 351 4 734 158 13.4 8.8 22 127 38 195 52 898

407 154 3 075 527 4 657 938 13.2 8.7 24 409 39 957 59 950

416 925 4 026 949 5 575 891 10.4 7.5 26 406 39 264 63 335

434 859 4 851 847 6 396 794 9.0 6.8 30 801 43 258 70 830

R/US$ R/Euro Rand index

6.94 6.39 100.00

8.60 7.71 91.39

10.52 9.90 82.55

7.56 8.53 103.23

Rand /kg Rand/kg 2009 money terms US$/oz Rand/kg US$/oz Rand/kg US$/oz Rand/kg US$/oz Rand/3E kg produced US$ per 3E oz produced US$/ton (FOB) R/ton (FOR) R/ton (FOB)

62 132 107 251 279 121 424 545 152 011 682 445 504 1 998 154 936 695 37 56 159

75 174 123 058 271 146 325 529 166 857 603 443 630 1 604 173 093 626 41 63 246

104 242 155 002 310 182 476 540 114 022 337 283 356 838 168 613 499 33 74 275

88 092 123 719 364 168 268 692 48 791 201 128 967 530 128 427 528 46 79 188

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2002

2003

2004

2005

2006

2007

2008

2009

10 yr total/average

2 730 9 960 7 884 1.0 8 818 1 086 6 435 7.9 7.2

85 770 103 355 120 458 3.4 11 338 1 272 537 1 427 322 6.7 7.2

91 198 104 915 126 547 1.5 14 139 1 415 273 1 492 330 6.4 7.0

105 992 105 992 142 405 1.0 16 661 1 571 082 1 571 082 6.7 6.7

132 301 105 364 169 897 -0.6 19 550 1 767 422 1 659 121 7.5 6.4

156 969 105 335 188 074 0.0 22 251 2 017 102 1 750 139 7.8 6.0

210 079 99 648 225 625 -6.0 25 459 2 283 823 1 814 521 9.2 5.5

212 469 92 478 212 469 -12.2 25 182 2 407 689 1 782 262 8.8 5.2

1 228 113 1 015 188 1 559 181 -1.3 159 616 15 848 169 15 522 367 7.7 6.5

9 802 2 354 9 444 6 122 2 151 13.6 1 883 15.7 11.5

21 706 23 461 30 485 142 386 196 999 5.0 2 869 15.2 11.0

17 917 18 950 24 862 165 866 226 180 -19.2 2 778 10.8 7.9

16 743 16 743 22 495 196 267 263 754 -11.6 2 632 8.5 6.3

27 715 24 904 35 591 236 118 324 083 48.7 4 095 11.7 8.6

39 742 32 318 47 617 284 364 406 918 29.8 5 634 14.0 9.8

51 266 36 593 55 060 333 899 513 749 46.9 6 213 15.4 10.0

54 545 37 589 54 545 322 600 543 392 16.3 6 465 16.9 10.0

279 154 250 829 349 981 2 020 756 2 935 890 14.9 36 410 13.8 9.5

9 452 3 260 7 357 9 363 0 399 2 616 3 251 8 271 32.8 26.8

117 759 15 567 165 385 86 910 11 489 122 060 291 434 376 158 29.8 23.1

125 239 19 417 173 782 89 714 13 909 124 488 310 525 394 923 28.9 22.7

143 448 22 548 192 729 102 487 16 110 137 696 358 361 459 719 28.6 22.3

195 455 28 883 250 998 139 855 20 667 179 599 447 690 571 540 31.2 24.5

224 325 31 799 268 777 162 203 22 993 194 345 533 791 679 350 30.4 23.9

300 315 36 394 322 538 219 594 26 612 235 844 704 293 857 899 31.2 25.6

241 345 28 605 241 345 176 390 20 906 176 390 556 432 691 188 31.7 25.5

1 701 738 224 150 2 182 670 1 253 846 164 673 1 613 775 4 023 670 5 041 919 31.2 24.9

6 925 6 949 5 891 10.4 7.5 6 406 9 264 3 335

434 859 4 851 847 6 396 794 9.0 6.8 30 801 43 258 70 830

448 909 5 095 546 6 659 540 8.8 6.7 33 656 46 701 74 973

444 132 5 505 657 7 109 285 8.1 6.2 36 682 49 284 82 593

456 337 6 235 507 7 910 778 7.3 5.8 38 989 50 069 85 439

495 150 6 575 501 8 322 650 7.5 5.9 50 072 59 994 101 125

518 519 6 644 060 8 469 409 7.8 6.1 60 876 65 381 117 404

491 922 6 326 193 8 218 498 7.8 6.0 66 043 66 043 134 255

4 532 201 51 453 136 68 054 941 8.8 6.7 390 061 498 146 842 802

10.52 9.90 82.55

7.56 8.53 103.23

6.45 8.01 110.13

6.36 7.91 112.50

6.77 8.52 108.87

7.05 9.66 105.05

8.25 12.05 94.09

8.44 11.70 101.43

7.69 9.04 100.92

4 242 5 002 310 2 476 540 4 022 337 3 356 838 8 613 499 33 74 275

88 092 123 719 364 168 268 692 48 791 201 128 967 530 128 427 528 46 79 188

84 785 117 648 409 175 382 846 47 701 230 203 580 982 138 228 667 75 76 212

90 825 122 027 445 183 488 897 41 211 201 420 597 2 056 156 896 767 63 86 297

131 323 168 641 604 248 431 1 142 69 703 320 990 292 4 552 248 214 1 141 67 92 314

157 241 188 400 697 295 684 1 304 80 484 355 1 404 040 6 191 316 306 1 395 95 107 364

229 417 246 394 872 418 164 1 576 93 359 352 1 741 395 6 564 414 208 1 561 156 151 734

260 644 260 644 971 326 977 1 205 71 531 264 431 741 1 592 256 113 944 77 171 517

128 387 161 278 522 226 662 928 88 567 355 649 310 2 691 215 509 882 69 95 331

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

Resource base Mass

Aluminium= Alumino-silicates Antimony Chrome ore Coal Copper Ferrochromium

Production

%

Rank

Mass

Exports

% Rank

Location of

Mass % Rank

major reserves

*

*

*

858kt

51Mt

*

*

220kt

55.0

1

148kt

200kt

5

6

3 370t

2.1

3

*

4.2

6

57.9Mt

*

*

China USA India

27kt

*

*

Chile USA Peru

2 525kt

*

1

n/a

827kt

3.5

7

n/a

*

n/a

*

China Bolivia Russia

5 500Mt

72

1

9 683kt

30 408Mt

4

8

250.4Mt

762kt

SA Zimbabwe Kazakhstan

13Mt

1

14

93kt

*

*

*

*

*

3 269kt

*

1

*

*

*

704kt

*

*

626kt

*

*

n/a

*

*

*

134kt

*

*

44.2kt

*

*

n/a

80Mt

17

2

299kt

6.0

4

276kt

*

*

n/a

31 000t

30

1

213t

8.8

3

190t

*

*

Indonesia Russia SA

Ferro-alloys of manganese Ferro-silicon Fluorospar Gold 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

3 572kt 23.6

2

SA CIS Gabon

*

Cuba Australia Canada SA Russias USA

4 000Mt

80

1

5 589kt

14.2

2

Nickel

12Mt

8

5

32kt

2.0

13

22.2kt

*

PGMs

70 000t

88

1

276t

57.9

1

223t

*

*

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

Poland China USA

*

*

*

75.2t

0.4

20

87t

*

*

Titanium minerals 244Mt

16

2

1 211kt

19.4

2

*

*

*

China SA India

Uranium

300kt

10

4

655t

5.7

12

*

*

*

Australia Canada

12 000kt

32

2

20.3kt

35.4

1

12.1kt

*

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

Kazakhstan Vanadium

Russia China SA

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

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Provincial overview (latest available data) Capital

EC

FS

GP

Bisho

Bloem

Jhb

LP

MP

Ulundi Polokwane

KZN

Nelspruit

NC

WC

Mafikeng Kimberley

NW

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

13.8

10.6

1.4

7.7

10.3

6.3

8.6

30.5

10.6

7.5

5.2

33.1

16.4

7.2

7.6

6.5

2.3

14.8

basic prices (2008) 0.3

7.1

9.8

7.1

23

22.9

21.4

6.9

1.0

4.0

8.6

1.9

15.4

26.2

26.6

14.6

2.5

0.04

0.28

0.20

0.05

0.15

0.11

0.02

0.11

27.7

28

21.1

20.8

22.6

28.1

28.1

30.1

21.8

39 141

50 181

77 700

44 612

29 042

43 026

43 784

38 389

10 2977

14

15

16

7

13

13

7

6

% of SA area % contribution to GDP (2008) Total mining % GDP value added at Mineral sales

per region (2008)* 0.2 Access to electricity (2009) 0.04 Official unemployment (2010 - Q2) poverty index (mean household expenditure in R/y 2008)

% Prevalence of HIV (2008)

11

Source: Stats SA/Dept. Trade and Industry NOTE: Data refers to 2008 unless otherwise specified

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

0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2006

2007

2008

2009

FFR – gold mines

0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

2000

2001

2002

2003

2004

2005

2009

FFR – platinum mines 0.25 0.2 0.15 0.1 0.05 0

2000

2001

2002

2003

2004

2005

2006

10

2007

2008

2009

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s Fatalities 2000 to 2009 for different commodities Gold Platinum Coal Chrome Diamonds Copper Iron ore Other

2000 173 46 31 2 12 2 1 18

2001 182 49 19 2 11 2 2 21

2002 172 53 20 4 26 1 2 12

2003 146 60 22 4 17 2 1 20

2004 108 65 20 16 15 2 1 19

2005 105 47 16 6 7 0 2 18

2006 114 40 20 2 3 2 2 17

2007 115 53 15 4 12 1 4 17

2008 85 36 20 4 6 1 2 17

2009 80 41 18 3 3 1 3 18

Total

285 288 290 270 246 201 200 220 171 167

FFR – coal mines

0.25 0.2 0.15 0.1 0.05 0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

FFR – other mines 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

2000

2001

11

2002

2003

2004

2005

2006

2007

2008

2009

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Employment and remuneration on Chamber member gold & coal mines 2009 Gold mines

Coal mines*

u Average number of employees in service during 2008 Company employees Contractors* Total

125 826 17 442 143 268

Total

32 771 24 572 57 343

158 597 42 014 200 611

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

22 080.1

*provisional

Employment and remuneration on all mines in SA, 2009 Number of employees Gold PGMs Iron ore Chrome Manganese Diamonds Coal Aggregate & sand Other mines & quarries

Total:

160 102 183 914 13 722 10 893 4 988 12 046 70 703 6 689

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

28 865

491 922

Total. no. of Earnings (Rmillion) employees 418 294 22 127 407 154 24 409 416 925 26 406 434 859 30 801 448 909 33 656 444 132 36 682 456 337 38 989 495 150 50,072 518 519 60 876 491 922 66 043

Av. earnings per employee per year 52 898 59 950 63 335 70 830 74 973 82 593 85 439 101 125 117 404 134 255 Source: DMR

Source: DMR

Percentage earnings on all South African mines incl. contractors Other mines & quarries (5.9%) Aggregate & sand (1.4%) Coal (14.4%)

Gold (32.5%)

Diamonds (2.4%) Manganese (1%) Chrome (2.2%) Iron ore (2.8%)

PGMs (37.4%)

Source: Chamber of Mines

12

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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 R312 billion, implying a small gross surplus of R20 billion.However, if taxes, dividends and capital expenditure is included, the total expenditure of the mining industry was R399 billion 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 and services and local operating costs, R71 billion went on salaries and wages, R51.5 billion went into capital investment in the sector, R12.2 billion was paid to the providers of loan capital (in the form of interest), R35 billion was provided to cover depreciation and impairments, R10 billion was paid in the form of direct taxes to government, R25.5 billion was paid as reward to the providers of capital (shareholders)

2008

2009

R’millions

R’millions

% difference

Income items 341 657

314 519

-7.94

Interest received

5 249

7 246

38.05

Dividends received

3 519

3 165

-10.06

13 804

7 205

-47.80

364 229

332 135

-8.81

144 581

192 878

25.38

58 609

71 184

11.89

Railage and transport

8 760

-*

23.29

Interest paid

9 169

12 243

25.23

Repairs and maintenance

9 829

-*

7.70

Electricity, water and rentals

8 798

-*

8.63

Depreciation and impairments

21 179

35 333

3.63

Taxation

32 157

10 051

50.24

Dividends

25 028

25 521

-35.57

Capital expenditure

64 934

51 498

23.46

398 708

15.16

Turnover (from mining)

Other income

Total income Expenditure items Other purchases and operating costs Labour costs

Total capital expenditure Source: StatsSA

383 044 13

*2009 data included in “other purchases”

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

Mass 1 000 t 28 27 28 32 47 50 58 63 61 52

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Value R1 000

597.0 632.0 916.0 587.0 381.0 186.6 563.0 872.8 396.0 157.1

1 2 2 2 3 3 3

804 832 958 356 085 233 789 374 753 799

817.0 238.0 718.0 071.0 364.0 340.9 555.0 162.2 429.0 708.0

Source: DMR

Employment and total employee earnings on SA aggregate and sand quarries 900

6500

800

6000

700

5500 5000

l

4500 4000 3500 3000 2500

l

l

l

2000

2001

2002

l

l

l

l

l

600 500

l

400 300

Total earnings R'million

Average number of employees in service

7000

200

2000

100 2003

2004

2005

2006

2007

2008

2009

Average number of employees in service

l

Total employee earnings

Source: DMR

14

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Base minerals production and sales, 2000 – 2009: chromite

SA chromite mines Production 1 000 tons 6662.2 5502.0 6435.7 7405.4 7676.8 7552.2 7425.9 9664.7 9682.6 6864.9

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Total sales Mass Value 1 000 tons R1 000 6 779.4 1 080 398.5 5 529.0 1 002 309.1 5 951.5 1 101 358.8 6 835.6 1 154 497.4 7 256.2 1 687 739.5 6 785.3 1 910 565.8 7 127.5 2 309 763.9 8 281.6 3 006 448.4 7 878.5 5 398 384.5 5 890.6 3 262 329.2 Source: DMR

Employment and total employee earnings on SA chromite mines

1750

11000

l

9000

1600 1450 1300 1150 1000

l

7000 5000 3000

l

l

l

l

l

l

850

l

700 550

l

400

Total employee earnings R'million

13000 Average number of employees in service

Text 2010 CMYK 3

250

1000

100 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Average number of employees in service

l

Total employee earnings

15

Source: DMR

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Base minerals production & sales, 2000 – 2009: Iron ore & copper 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 transport industry and GDP growth at the global level. In that year, global steel production fell by a significant 15.2% to 1.2 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 decreased by 7.6% to 1.6 billion tons. Despite this, the global trade in iron ore increased by 6.3% to 951 million tons, on the basis of a surge in import demand from China. As a result Australia, India and South Africa were still able to raise their exports of iron ore.

In 2009, South African iron ore production increased by 12.5% to 55 million tons, with total sales amounting to R27.1 billion. Export sales increased by 36.4% to 44.6 million tons in 2009, which was due to the improved export facilities between Sishen and Saldanha. Iron ore is the fourth largest component of the South African mining sector and continues to grow its contribution to the economy. The large capital projects in terms of the mine developments at Kolomela and Khumani, combined with further upgrades to the Sishen-Saldanha heavy haul 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% when compared to 13 256 people employed in 2008. R2.2 billion in salaries and wages were paid to these employees in that year.

SA copper mines

SA iron ore mines Total sales

Total sales

Value R1 000 1 573 603.2 1 927 164.9 2 143 348.4 1 641 236.2 2 026 122.3 2 583 099.8 4 956 077.7 5 853 850.9 5 627 920.0 3 858 519.0

Mass 1 000 tons 124.6 143.1 131.4 122.5 113.2 112.0 108.2 113.9 101.4 94.9

Production 1 000 tons 33 707.4 34 757.2 36 484.0 38 085.9 39 322.1 39 542.1 41 371.9 42 083.1 48 982.5 55 313.1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Mass 1 000 tons 32 142.2 34 892.4 35 361.1 36 155.3 37 176.0 38 637.3 39 406.6 43 174.3 44 023.8 52 919.3

Employment and total employee earnings on SA iron ore mines l

13000

1900

l

11000

1600

l

9000

1300

7000

3000

2200

1000

l

l

2000

2001

l

l

l

l

l

700 400

1000

Total employee earnings R'million

15000

5000

100 2002

2003

2004

2005

2006

2007

2008

2009

Average number of employees in service

l

Total employee earnings

16

Value R1 000 3 064 749.5 4 128 902.8 5 313 718.3 4 191 071.2 4 585 485.1 7 519 572.2 9 931 281.2 13 755 560.3 22 241 835.7 27 131 734.5 Source:DMR

Source:DMR

Average number of employees in service

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Production 1 000 tons 137.1 141.9 129.5 120.9 102.6 103.9 109.6 117.1 97.2 92.9

Source:DMR

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Annual SA coal production, sales & exports, 2000 – 2009 Coal Despite the impact of the global economic crisis, which reduced electricity and steel production in many advanced countries, overall global hardcoal production rose by 2.5% to 6 billion metric tons in 2009. There were large variations in coal production per region, with Asia, led by China, leading the way and most advanced economies experiencing demand and production recessions. China’s hardcoal production rose by 7.6% to 3 billion tons, which is now half of total global production, whereas North American production fell by 8.7% to 919 million tons. The rapid increase in electricity production in China and India has also resulted in these countries becoming large net importers, and this contributed to

Sales Exports

Local sales Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2008

Mass 1 000 t 155 531.9 152 162.4 157 613.6 168 942.5 178 674.9 173 437.3 177 049.0 182 769.6 197 082.8 184 709 0

Value R1 000 8 835 357.3 9 564 520.7 11 771 017.4 13 243 714.2 13 644 186.2 14 878 140.0 16 245 873.7 19 718 642.1 30 119 929.2 34 463 054 1

Mass 1 000 t 69 955.0 69 303.9 69 437.9 71 556.5 67 946.5 71 442.1 68 747.3 67 675.4 57 890.4 60 463 8

Total sales

Value R1 000 11 203 340.7 17 031 522.0 18 696 806.9 13 490 623.1 14 494 479.4 21 155 176.0 21 620 934.2 24 447 656.2 42 388 395.7 30 934 920 1

Mass 1 000 t 225 486.8 221 466.4 227 051.6 240 498.9 246 621.4 244 879.4 245 796.3 250 445.1 254 973.1 245 172 7

Value R1 000 20 038 698.1 26 596 042.7 30 467 824.3 26 734 337.2 28 138 665.6 36 033 316.0 37 866 807.9 44 166 298.4 72 508 324.9 65 397 974 2 Source: DMR

Saleable production Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2008

Metric tons 224 223 220 237 243 244 244 247 252 250

906 494 269 872 371 988 832 666 213 581

677 679 559 103 530 246 433 358 358 674

Volume of local and export components SA coal sales, 2009

Value of local and export components of SA coal sales, 2009

Exports

Exports

Local sales Local sales

Source: DMR Source: DMR

17

Source: DMR

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Analysis of coal sold by Chamber member coal producers in 2009 Name of company

Name of company

sales tons

Anglo Operations Ltd Goedehoop Isibonelo Kriel New Denmark New Vaal SA Coal Estates BHP Billiton BHP Billiton Exxaro (Eyesiswe) Arnot North Block Complex Matla New Clydesdale Exxaro (Kumba Resources) Grootegeluk Leeuwpan Tshikondeni Kangra Savmore

sales tons

Kuyasa Delmas Optimum Coal Optimum Sasol Coal Sasol Mining Siyanda Coal Koornfontein (Gloria) Total Coal SA Dorstfontein Forzando North Forzando South Tweewaters Fuel Springlake Umcebo Mining Umcebo - Xantium Xstrata Coal Xstrata Coal

6 706 980 5 061 810 11 161 696 3 728 928 17 553 712 12 036 849 30 985 000 5 212 731 3 116 928 11 264 453 703 952 18 377 751 2 590 744 268 416 2 736 532

1 592 828 9 485 774 44 470 000 3 643 692 532 545 962 743 798 432 401 205 6 658 258 20 066 489 220 118 448

TOTAL

Source: Chamber of Mines

Percentage of coal sales value by Chamber members Umcebo Mining 3.2% Xstrata 13.6%

Anglo Operations Limited 23.4%

Tweewaters Fuel 0.4% Total Coal SA 2.2% Siyanda Coal 2.1%

Sasol Coal 13.7%

Exxaro 15.6%

Optimum Coal 5.4% Kuyasa 0.6% Kangra 2.4% BHP Billiton 17.5%

Source: Chamber of Mines

Monthly analysis of coal sold by Chamber members Jan. Feb. March April May June

Coal sold metric tons 16 913 061 17 766 229 18 856 960 17 345 509 17 583 959 18 739 798

4 5 4 4 3 4

Sales value R 806 792 110 277 564 923 909 718 329 432 718 318 647 049 620 276 765 864

18

July Aug. Sept.

Oct. Nov. Dec. Total

Coal sold metric tons 19 692 268 19 838 962 17 611 525 19 347 955 17 745 162 18 677 060 220 118 448

4 4 3 4 4 4 52

Sales value R 256 621 186 310 213 598 612 680 141 588 482 809 294 784 025 249 674 598 663 065 521

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Distribution of annual coal trade in SA, 2000 – 2009 Market (metric tons, millions) Metal- Merchants Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

Export 68.13 66.58 69.23 71.46 67.07 71.42 68.75 67.68 57.89 60.46

Transport 0.00 0.00 0.00 0.00 0.00 0.00 0.11 0.13 0.00 0.00

Electricity 95.19 91.73 92.62 104.08 110.98 106.30 108.75 112.17 126.07 118.16

Mining 0.15 0.05 0.07 0.05 0.04 0.26 0.31 0.44 0.40 0.38

Industry 51.78 53.93 54.32 53.15 54.89 52.39 53.73 52.71 53.17 49.83

lurgical & domestic 5.74 4.50 5.45 3.73 5.81 5.00 6.01 5.75 6.85 6.78 7.03 7.48 8.44 5.70 6.23 10.72 5.69 11.75 5.33 11.01

Other

0.37 0.00 0.00

Total 225.49 221.47 227.05 240.50 246.62 244.88 245.80 250.45 254.97 245.17 Source: DMR

*Estimates

Sectors of South African coal market in 2009 Metric tons, millions 118.16 120

100

80 60.46 49.83

60

40

20 0

5.33

0.38

11.01

Merchants & domestic

Metallurgical

Industry

Mining

Electricity

Transport

Export

*Estimate

Other

0

0

Source: DMR

19

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Employment on SA coal mines, 2009

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 rates of the global hardcoal industry. Nevertheless, the key issue that is arising in the South African industry is the need for significant growth in production to meet domestic power generation needs and export growth requirements, which will necessitate an extra 100 million tons of production by 2020.

In 2009, South Africa’s coal mining industry became the largest component of the 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 volumes increased 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 paid R12.8 billion in wages. It accounted for 5.6% of total merchandise exports and the industry continued to play a significant role in the domestic economy as the key source of primary energy for electricity and the production of other products, among them liquid fuels, fertilisers, plastics, polymers and lubricants.

Employment and total employee earnings on South African coal mines 15000

l

70000

l

65000 60000 55000 50000

l

l

l

l

l

l

l

13000 11000

l

9000 7000 5000

Total earnings R'million

Averge number of employees in service

75000

3000

45000

1000

40000 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Average number of employees in service

l

Source: DMR

Total employee earnings

20

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Diamond production and sales, 2000 – 2009 Production Carats 10 780 235 11 238 410 10 905 889 12 666 536 14 294 662 15 776 427 15 153 542 15 250 079 12 901 018 6 118 974

Diamonds In line with most other products in the luxury market sector, the diamond industry was severely affected by the global economic crisis in 2009. Significant retraction in demand in the key consumer centres of the United States, Europe and Japan, which traditionally account for 75% of total demand for polished diamonds, affected the entire diamond pipeline negatively.

In 2009, global mine production fell by 23.4% to 124 million carats and the value of rough diamond production fell by 32% to US$8.6 billion. The sales of rough to the diamond cutting centres fell by 51.1% to US$7 billion, the value of polished diamonds fell 35.9% to US$12.6 billion and the retail sales of diamond jewellery fell by 9.4% to US$58.7 billion as consumers reduced demand.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: DMR

Note: 1999 - 2002 excludes alluvial diamonds from ‘diggers’

Employment and total employee earnings on SA diamond mines

Average number of employees in service

l 20000 l

l

2500 l

l

l l

15000

10000

l

l

l

2000

1500

1000

5000

500

0

Total employee earnings R'million

3000

25000

0 2000

2001

2002

2003

2004

2005

Average number of employees in service l

2006

2007

2008

2009

Source: DMR

Total employee earnings

21

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Diamond production (estimate), 2009

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

The South African diamond mining industry was not spared the impact of the global economic crisis. Domestic production shrank by 52% to 6.1 million carats as the industry responded to the collapse in demand and prices. Further domestic challenges in terms of the activities of the State Diamond Trader and the Precious Metals and Diamonds regulator served to exacerbate the crisis facing the South African diamond mining sector. The pressure faced by the local diamond mining industry resulted in the number of employees in the sector falling to an average of 12 046. These workers earned R1.8 billion in wages and salaries.

Value of world diamond production (US$-bn), 2009 ($8.6bn total) Other 4% Angola 14% South Africa 10%

Australia 4%

Botswana 17%

Russia 27%

Canada 17%

Namibia 5%

Source: Kimberly Process Certification Scheme

Congo 3%

22

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Gold production: estimated total world & proportion produced by SA Gold 2009 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 unprecedented levels of gold because of its stable investment potential and in the face of global financial and economic risks and concerns about the fragility of global economic recovery. In 2009, the quantum of net central bank selling of gold fell to negligible levels. Continued reasonable levels of bar hoarding, together with producer de-hedging and significant investment demand outweighed the slight uptick in new mine supply and increased sales

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

SA gold production metric tons 428.0 393.5 395.2 375.8 342.0 297.3 275.1 254.7 217.6 204.9

Total world gold prod. metric tons 2 620.4 2 645.7 2 618.4 2 622.8 2 494.3 2 549.1 2 483.1 2 473.2 2 408.8 2,571.8

SA as % of total world 16.33 14.87 15.09 14.33 13.71 11.66 11.08 10.30 9.03 7.97

Source: GFMS/Chamber of Mines

South African gold production as a percentage of total world production

% 18 16 14 12 10 8 6 4 2 0 2000 Source: GFMS

2001

2002

2003

2004

23

2005

2006

2007

2008

2009

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SA gold output & sales 2000 – 2009

South African gold output Fine gold kg 427 981 393 523 395 173 375 787 341 998 297 312 275 119 254 685 217 649 204 923

Metric tons treated 1 000 80 894 74 458 73 160 77 170 66 517 53 817 52 743 56 362 54 312 n/a

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

Realised value R1 000 26 506 673 28 678 671 41 100 382 32 908 846 28 877 447 27 214 685 36 414 038 38 394 267 47 660 255 51 246 219

Source: Chamber of Mines / DMR

NOTES:: *Data not available at time of going to press Metric tons treated exclude slimes and sand treatment

Employment and total employee earnings on SA gold mines

200000

150000

l

l

l

l

l

l

l

l

l

l

18000 16000 14000 12000 10000 8000

100000

6000 4000

50000

Total employee earnings R'million

Average number of employees in service

250000

2000 0

0 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Average number of employees in service

l

Total employee earnings

24

Source: DMR

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Annual gold production & average grade of Chamber member gold producers, 2000 – 2009 of old gold scrap. The multiplicity of positive fundamental issues supported the continued upward trajectory in gold and the price reached a new average annual record in 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 was by a significant 6.8% to 2571 tons in 2009, even though production continued to fall in the more mature producer countries such as South Africa and the USA. Rising prices and the benefits of strong exploration expenditures in gold in the preceding five years have led to higher production in most other countries. China reaffirmed its status as the world’s largest producer with an increase in production of 11% to 324 tons, followed by Australia at 222.8 and South Africa with 219.8 tons (a decrease of 6%). The GFMS number for South Africa of 219.8 tons is slightly more than the 204.9 tons recorded by the Chamber as the GFMS number includes an estimate for the production of illicit gold in the country. Scrap supply surged in 2009 by 27.2% to 1674 tons as various gold consumers decided to take advantage of the high gold price within the context of a difficult global economic environment.

Despite the fall in production, the gold mining sector remained a key contributor to the South 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 and induced 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 group metals. The industry invested R10.3 billion in capital expenditure in the country, paid an estimated R1.4 billion in direct taxation to the state and R506 million in dividends to the providers of capital. Gold accounted for 19.3% of total fixed investment in the mining sector and for 32.5% of all the people employed in the sector.

Ore milled Year 2000 2001

metric tons 1 000 83 956 82 962

2002 2003 2004 2005 2006 2007 2008 2009

81 422 68 215 59 702 49 609 50 349 53 257 50 999 65,545

Production kilograms 378 071.2 342 551.9 347 311 282 255 235 219 182 170

Source: Chamber of Mines

25

542.6 257.8 030.6 290.4 042.5 223.1 489.8 298.2

Grade g/ton 4.50 4.13 4.27 4.56 4.72 5.15 4.67 4.12 3.58 3.29

A

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

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

Average number of employees in service

200000

150000

100000

50000

0 2000

2001

2002

2003

Year

2004

2005

2006

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) * From 2000-2001 excludes ARMgold # As from 2003 Q2, DRD mines are no longer members of the Chamber and their data is omitted.

Source: Chamber of Mines

26

2007

2008

2009

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2009 Quarterly summary of operating results of Chamber gold producers Production of major gold producers Ore milled metric tons 1 000 12 010 17 215 17 912 18 408 65 545

Quarter Jan-Mar April-June July-Sept Oct-Dec Totals/average

Kilograms fine gold total 40 720.6 42 674.9 44 140.9 42 761.8 170 298.2

Grade g/ton milled 3.39 3.20 3.34 3.23 3.29

Total fine gold kg 43 743.0 46 049.9 47 838.1 46 411.8 184 042.8

Revenue Revenue/ metric ton milled (R) 852.23 585.28 599.22 607.18 644.15

Operating revenue R1 000 10 235 635 10 075 608 10 733 302 11 177 048 42 221 593

Quarter Jan-Mar Apr-Jun July-Sept Oct-Dec Totals/average

Net sundry revenue & expenditure R1 000 171 948 Dr 441 725 Dr 36 151 Dr 211 021 Dr 516 949

NOTES: Operating revenue includes revenue from gold and silver and, in certain cases, from other sources, but excludes revenue from uranium and sulphuric acid.

Certain mines have entered into gold hedging transactions, the effect of which is brought into account in gold revenue.

Net sundry revenue and expenditure includes interest, royalties, tribute revenue, etc.

DRDGold included as from April 2009.

Profits

Quarter Jan-Mar April-June July-Sept Oct-Dec Totals/average

Operating profit/ metric ton milled (R) 379.71 218.44 200.27 222.36 244.12

Total operating profit R1 000 4 560 537 3 760 371 3 587 291 4 093 150 16 001 349

Total profit R1 000 3 230 292 1 393 122 1 565 811 2 068 249 8 257 474

For detailed company working results go to: www.chamberofmines.org.za Gold production on Chamber member gold mines: 2009

Ore milled on Chamber member gold mines: 2009

50000

20000

45000

Kilograms fine

Metric tons

18000 16000 14000

40000

35000

12000

Source: Chamber of Mines

10000 Q1

Q2

Q3

Q4

30000 Q1

27

Q2

Q3

Q4

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2009 Quarterly summary of operating results of Chamber gold producers

Cash operating costs

Quarter Jan-Mar Apr-Jun July-Sept Oct-Dec Totals/av

5 6 7 7 26

Total R1 000 675 098 315 237 146 011 083 898 220 244

Costs/ metric ton milled R 472.52 366.84 398.95 384.82 400.03

Costs/ kilogram gold R 139 367 147 985 161 891 165 659 153 967

1 1 1 1 7

Total other costs R1 000 502 193 925 524 985 329 813 880 226 926

Taxation/Capex/Dividends Tax & state’s share of profits (estimated) R1 000 856 219 302 752 18 119 270 284 1 447 374

Quarter Jan-Mar Apr-Jun July-Sept Oct-Dec Totals/av

Capex (less recoupments) R1 000 2 176 963 2 636 937 2 648 143 2 814 402 10 276 445

Dividends R 0 232 607 685 0 273 864 349 506 472 034

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 accordance with 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.

Operating profit per ton milled on Chamber gold mines, 2009

Cash operating costs per ton milled on Chamber gold mines, 2009

400

500

350 300

R/ton milled

R/ton milled

400

300

200

250 200 150 100

100 50

Source: Chamber of Mines

0 Q1

Q2

Q3

0 Q1

Q4

28

Q2

Q3

Q4

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

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Cash operating revenue/ metric ton 284.25 309.88 435.20 405.17 393.53 464.29 588.79 616.23 776.36 644.15

Cash operating costs/ metric ton 219.54 219.00 256.42 313.67 335.16 376.02 366.21 406.09 449.27 400.03

Cash operating costs/ kilogram 48 752 53 040 58 624 67 755 70 949 73 070 78 447 98 653 125 557 153 967

Cash operating profits metric ton 64.71 90.88 178.78 91.50 58.37 88.27 222.58 210.14 327.09 244.12

Operating revenue/kg 250000

150000

100000

50000

0 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: Chamber of Mines

Cash operating profit/kg 100000 90000 80000 70000 60000 50000

R/kg

R/kg

200000

40000 30000 20000 10000 0 2000

2001

2002

2003

2004

Source: Chamber of Mines

29

2005

2006

2007

2008

2009

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SA manganese & chrome production & sales

Manganese SA manganese mines

The manganese mining industry was significantly affected by the global economic crisis, as poor demand and customers destocking inventories forced mining companies to cut back on production 3 635.4 1 232 115.4 2000 to match both lower demand and lower prices.

2001 3 274.1 1 305 345.1 Both the manganese ore and manganese alloy 3 358.4 1 632 626.5 2002 markets reflected the decline in world crude steel 2003 3 546.6 1 477 629.4 production, given the strong relationship between 2004 4 282.0 1 738 719.4 steel production and manganese metal use. In 2005 4 611.7 2 200 826.3 2009, global steel production fell by 15.2% to 1.2 2006 5 213.3 2 245 835.0 million tons. Mine production of manganese fell by 3 571 426.8 2007 5 996.1 22% to 35 million tons, while the actual production 2008 6 807.1 17 343 408.0 units amounted to 11 million tons, a decrease of 2009 4,575.8 5 586 612.7 23% (IMI). Manganese ore prices declined Source: DMR significantly in the first half of 2009 and then gradually 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 by 32.8% 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-year rate of decline in production slowly eased during the remainder of the year, as market conditions gradually improved. With lower prices and production, South African manganese ore sales fell by 67% 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 previous year’s number. These workers were paid R666-million in salaries and wages.

Production 1 000 tons

Total sales Value R1 000

Employment and total employee earnings on SA manganese mines 800

5000

J

4500

J

4000

700 600

3500 500

3000

J

2500 2000 1500 1000 500 0

J

J

J

J

J

J

J

400 300 200

Total employee earnings R'million

Average number of employees in service

5500

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Average number of employees in service

J

Total employee earnings

30

Source: DMR

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Platinum & pgm production in SA Overview Platinum 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 of platinum, palladium and rhodium being attributable to catalytic converter and industrial applications, the global economic crisis had a negative impact on the pgm markets and pgm mining sector, as global car production and industrial production plummeted. Global demand for the three main pgms fell by 9.6% to 482.9 tons, as the 25.6% increase in pgm jewellery demand and 31.8% increase investment demand were not sufficient to offset the decline in demand for pgms for catalytic converters (down 22%) and industrial applications (down 20.4%). In late 2008 and early 2009 the automotive and industrial centres cut back on pgm demand from primary sources as they tried to reduce inventories. However, strong growth in jewellery demand (up 25.6% to 199 tons) and investment demand (up 31.8% to 40 tons), helped compensate for the reduced demand for industrial and automotive applications.

In 2009, the global new mine supply of the three main pgms decreased by 1.1% to 428.9 tons, as lower production rates from non-South African producers affected supply. South Africa’s supply of the three main pgms rose by 0.6% to 235.2 tons, but Russian supply was down 1.3% to 139.7 tons and North American mine production fell by 17.8% to 32 tons. By contrast, Zimbabwe’s pgms production increased by 28.1% to 13.3 tons. Scrap recycling of the three main pgms in 2009 fell by 17.7% to 94 tons, resulting in total supply of the three main pgms decreasing by 4.6% to 522.9 tons. This was the first time in nearly twenty years that scrap recovery levels actually dropped. In 2009, South Africa accounted for 54.8% of global new mine supply of the three largest pgms, up from 53.9% in 2008. Russia is second with 32.6% of the total, North America third at 7.5% and Zimbabwe fourth at 3.1%. South Africa is the dominant global producer of platinum (76.5%) and rhodium (86.1%) while Russia is the dominant supplier of palladium (51.2%). Recycling of scrap pgms is the fourth 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. Given the sharp declines in palladium and rhodium prices the overall production weighted basket price for South African 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 higher cost mines was constrained. Total South African sales of pgms, with slightly lower production volumes and much lower prices, fell by 36.7% to R57.8 billion, a significant decline in the overall revenue of the sector. This big 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 paid R24.9 billion in salaries and wages. The industry accounted for 9.6% of the country’s merchandise exports.

Employment and total employee earnings on SA PGM mines l

l

25000

190000 20000

l

170000 150000

15000

130000 110000 90000 70000

l

l

l

l

l

l

l 10000

5000

50000

0 2000

2001

2002

2003

2004

2005

Average number of employees in service

31

2006

l

2007

2008

2009

Total employee earnings

Source: DMR

Total employee earnings R'million

Average number of employees in service

210000

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Platinum

Total platinum production metric tons 114.5 129.7 133.8 148.3 160.0 163.7 169.9 160.9 146.1 140.8

Total PGM production metric tons 206.8 228.7 236.6 266.5 276.4 303.0 309.3 304.0 275.8 271.4

The 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 in demand overshadowed the 0.3% decline in total supply. New 2000 mine supply of platinum fell by a marginal 0.3% to 184.1 tons 2001 as a result of stabilisation in South African supply, which grew 2002 0.3% to 140.9 tons and the 27.8% rise in Zimbabwe’s 2003 production to 7.2 tons. These increases offset the 2.5% 2004 decline in Russia’s production (24.4 tons) and North 2005 American production which fell 20% to 8.1 tons. The 2006 recycling of platinum scrap declined by 23.2% to 43.7 tons, 2007 but this still remained the second largest source of supply 2008 after South Africa’s production.

2009 Total demand fell by 8.5% to 175.3 tons mostly as a result of the slump in global automobile production which resulted Source: DMR in demand for platinum for catalytic converters falling by 39% to 69.4 tons. With European and Japanese automobile production 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 reducing inventories. By the second half of 2009, the rebuilding of inventories and government incentive schemes helped 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 investment demand. Demand for platinum in jewellery rose by 46.1% to 93.6 tons on the back of lower prices and strong consumer demand in China, while investment demand rose by 18.9% to 20.5 tons as investors sought 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 was characterised 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 per ounce on average in December. The price averaged US$1199 per ounce in 2009, a 24% decline on the previous year. In rand terms the 2.2% depreciation in the rand-dollar exchange rate to R8.44 per US dollar and the lower dollar price resulted in the average rand price falling by 22.3% to R324 924 per kilogram in 2009.

Annual platinum supply by country 180 160 140

metric tons

120 100 80 60 40 20 0 2000

2001

South Africa

2002

2003

2004

Russia

2005

2006

2007

North America

2008

2009

Other

Source: Johnson Matthey Platinum 2010

32

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Platinum supply & demand, 2000 – 2009

Annual platinum demand by application in metric tons 2000

2001

2002

2003

2004

2005

2006

2007

2008

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 9.2

Autocatalysts: gross Chemical gross

Electrical:

recycling Glass Investment gross

Jewellery:

recycling

2009

9.2

9.0

10.1

10.0

10.1

10.1

12.3

13.1

12.4

14.2

12.0

9.8

8.1

9.3

11.2

11.2

7.9

7.2

5.9

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-0.2

-0.3

7.9

9.0

7.3

6.5

9.0

11.2

12.6

14.6

9.8

0.3

-1.9

2.8

2.5

0.5

1.4

0.5

-1.2

5.3

17.3

20.5

88.0

80.6

87.7

78.1

67.2

76.7

68.3

65.6

64.1

93.6

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 Total demand

11.7

14.5

16.8

14.6

14.6

7.0

7.5

8.2

9.0

5.9

176.7

193.8

201.2

203.1

203.4

208.2

201.4

207.8

191.6

175.3

-12.1

-11.5

-15.6

-10.3

-1.6

-1.7

11.0

-2.5

-6.8

8.9

Movement in stocks

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

Annual palladium supply by country 180 160 140

Metric tons

120 100 80 60 40 20 0 2000

2001

2002

South Africa

2003

2004 Russia

2005

2006

2007

North America

2008

2009 Other

Source: Johnson Matthey Platinum 2010

33

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Palladium supply & demand, 2000 – 2009

Palladium In 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 decline in demand which fell by 5% to 197.2 tons. Primary mine supply shrank by 2.9% to 220.8 tons as the 28.6% rise in Zimbabwe’s production to 5.6 tons was overshadowed by the 2.5% decline in South African 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 29.8 tons 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 of investment demand which increased by 48.8% to 19.4 tons. Total demand excluding scrap fell by 5% to 197.2 tons. Hardest hit was the demand for palladium for jewellery which fell by 17.3% to 25.3 tons, followed by the 9.3% decline in demand for palladium for catalytic converters which fell to 126 tons. 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 for the declines in Japan and North America.

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

Annual palladium demand by application in metric tons 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

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

7.9

7.8

7.9

8.2

9.6

12.9

13.7

11.7

10.9

10.1

25.5

22.6

24.4

25.7

26.4

25.3

19.3

19.6

19.4

19.1

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

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

0.0

0.0

0.0

0.9

6.2

6.8

1.6

8.1

13.1

19.4

Autocatalysts: gross Chemical Dental Electrical: Jewellery: Investment Other Total demand Movement in stocks

gross

1.9

2.0

2.8

3.4

2.8

8.2

2.6

2.6

2.3

2.2

278.7

210.3

150.5

168.9

204.0

228.8

205.7

212.4

207.6

197.2

-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 rounding Source: Johnson Matthey, Platinum 2010

34

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Rhodium supply & demand, 2000 – 2009 Rhodium The 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 to stockpiles 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 global economic crisis on new car production. Gross demand for rhodium for the automotive sector fell by 19.4% 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, which was up by 15.5% to 20.6 tons, and an increase in Zimbabwe’s production, offset production declines in North America and Russia. Scrap recovery fell by 17.6% to 5.8 tons, the first such decline in over 20 years.

The rhodium price averaged US$1592 per ounce in 2009, a substantial 75.7% decline on the previous year’s price of US$6564 per ounce. Rhodium started the year at an average of US$1152 per ounce in January and ended the year at an average of US$2422 per ounce. In rand terms the price averaged R386 880 per kilogram in 2009.

Annual rhodium supply by country

25

Metric tons

20

15

10

5

0 2000

2001

2002

South Africa

2003

2004

2005

Russia

2006

2007

2008

North America

2009

Other

Annual rhodium demand by application in metric tons 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Autocatalysts: gross recycling Chemical Electrical Glass Other

24.7 -2.5 1.2 0.2 1.3 0.3

17.6 -2.7 1.4 0.2 1.3 0.3

18.6 -3.1 1.2 0.2 1.2 0.3

20.5 -3.9 1.2 0.2 0.8 0.4

23.6 -4.4 1.3 0.2 1.4 0.4

25.8 -4.3 1.5 0.3 1.8 0.6

26.8 -5.3 1.5 0.3 2.0 0.7

27.6 -6.0 2.0 0.1 1.8 0.7

23.9 -7.1 2.1 0.1 1.1 0.7

19.3 -5.8 1.7 0.1 0.6 0.7

Total demand Movement in stocks

25.3

18.0

18.4

19.3

22.7

25.7

26.1

26.3

20.8

16.5

-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 rounding Source: Johnson Matthey, Platinum 2010

35

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Silver: annual SA output & sales, 1910 – 2009 Sales

ProductionSales

Kilograms fine 25 287 27 888 31 695 29 629 27 706 30 051 30 137 29 180 27 294 27 723 27 763 25 826 34 701 42 734 43 450 36 126 30 523 31 469 32 079 32 092 32 660 33 065 34 857 33 126 31 172 32 416 33 456 34 233 35 314 36 780 40 195 45 123 45 957 41 493

Value R 181 580 197 014 248 748 231 644 204 942 212 490 212 622 345 994 375 216 457 608 491 742 274 882 342 854 395 776 424 940 333 796 253 160 237 062 248 128 227 006 166 828 139 520 131 678 173 708 191 374 271 806 194 102 198 926 199 348 217 000 259 108 313 128 312 810 282 432

Kilograms fine 37 730 38 675 37 554 35 697 36 421 36 061 34 809 36 161 36 591 37 111 38 426 45 876 49 712 54 975 55 843 62 853 69 243 71 173 79 289 85 126 90 718 97 403 97 480 95 286 103 794

1969 1970 1971 1972 1973 1974 1975 1976

103 109 105 102 113 83 95 87

718 701 071 443 591 940 923 736

Production/sales+

1 1 1 1 1 1 1 2 2 2 2 3 3 4 4 4 5 7 8 10 10

Value R 256 818 315 144 489 072 436 124 439 526 475 536 604 230 754 214 728 796 735 226 756 526 958 074 054 066 135 762 163 186 325 562 471 882 576 355 952 200 511 941 720 349 902 564 936 887 536 449 546 137 114 392 566 239 331 207 012 617

099 365 873 165 163 660 472 725

12 14 29 82 55 53 71 66 75 73 74 79 69 57 38 55 67 78 68 83 102 122 153 169

Value R 607 089 695 091 872 517 520 689 822 121 171 269 139 799 186 353 010 169 975 331 187 998 469 224 628 311 314 758 329 339 816 450 922 850 913 490 640 332 012 940 261 000 821 438 509 773 937 577

2001 2002 2003 2004 2005 2006 2007 2008 2009*

141 168 111 101 143 250 235 346 287

723 674 215 478 503 621 040 844 103

126 118 101 76 102 99 80 94 77

482 256 119 594 265 343 549 830 780

SA silver output and value of sales

tons

160

120 100 80

350

n n

487 333 548 216 595 132 623 987 382

R-m

n

180

140

300

n

n

n

n n

60

150

n

100

40 50

20 0

2009

2008

2007

2005

2004

2003

2002

0

36

Sales tons

250

200

n

2001

Source: DMR

Sales

Kilograms fine Year 97 364 1977 96 559 1978 100 664 1979 222 188 1980 1981+ 228 834 242 748 1982 1983 201 752 1984 217 068 1985 208 384 1986 222 241 208 150 1987 1988 199 746 1989 179 829 1990 161 003 1991 170 832 1992 190 462 1993 182 513 1994 195 794 1995 163 048 1996 155 529 1997 187 402 1998 160 828 1999 160 807 2000 168 617

2006

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

Year 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968

2000

Year 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943

Production

n

Sales value R-m

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Uranium output of Chamber members & total annual SA production, 1955 – 2009 Members of the Chamber

Year 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Metric tons treated 1 000 13 684 16 300 19 617 21 339 21 725 21 901 15 506 12 806 11 414 10 484 7 403 8 620 9 525 12 389 12 937 13 976 14 253 14 609 12 828 14 654 14 873 17 267 19 855 21 976 26 096 30 841 31 362 30 415 32 010 29 490 25 856 24 836 21 805 20 174 15 326 14 213 10 145 9 768 9 675 9 250 8 345 8 661 6 536 4 810 4 021 3 098 2 824 2 789 2 836 2 799 2 638 2 705 2 462 2 502 2 471

Source: Chamber of Mines

= = = = = = = = = = = = = =

Uranium oxide produced kilograms 2 998 077 3 832 583 5 026 589 5 492 254 5 681 806 5 634 546 4 941 236 4 557 954 4 111 750 4 032 709 2 669 277 2 981 191 2 915 417 3 522 550 3 609 642 3 736 819 3 800 007 3 629 265 3 093 982 3 074 418 2 809 490 3 111 366 3 873 795 4 531 157 5 539 081 6 086 442 6 030 171 5 733 188 6 138 282 5 896 062 5 114 008 4 799 301 3 920 002 3 783 364 3 185 428 2 697 125 1 885 257 1 854 946 1 912 921 1 818 717 1 554 210 1 594 506 1 198 742 1 061 492 997 297 894 109 1 024 838 979 865 915 861 880 943 793 943 630 103 557 525 582 001 654 086

Grade kg/ton treated 0.219 0.235 0.256 0.257 0.262 0.257 0.319 0.356 0.360 0.384 0.360 0.346 0.306 0.284 0.279 0.267 0.267 0.248 0.241 0.210 0.189 0.180 0.179 0.171 0.168 0.166 0.157 0.160 0.169 0.180 0.175 0.172 0.159 0.163 0.179 0.178 0.186 0.190 0.198 0.197 0.186 0.184 0.183 0.221 0.248 0.289 0.363 0.351 0.323 0.315 0.301 0.233 0.226 0.233 0.265

37

Total SA uranium production metric tons 2 998 3 963 5 174 5 669 5 846 5 814 4 961 4 558 4 112 4 042 2 673 2 983 3 048 3 522 3 610 3 737 3 800 3 778 3 230 3 177 2 902 3 288 3 972 4 687 5 637 7 295 7 234 6 863 7 128 6 762 5 751 5 460 4 735 4 583 3 456 2 913 2 034 1 971 2 008 1 906 1 701 1 706 1 324 1 138 1 093 1 015 1 065 998 894 887 795 639 619 654 629

NOTES: = Includes production from Free State Cons. Gold Mines Metallurgical Scheme.

These figures are excluded from the grade calculation. * Total production includes output of non-members of the Chamber.

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

Company AngloGold Ashanti i Blyvooruitzicht Buffelsfontein (Buffels Section) Daggafontein Dominion Reefs Doornfontein Driefontein Cons.

(West Drie.)

East Champ d’Or Ellaton Freddies Cons. g Freestate Saaiplaas h Harmony a Hartebeestfontein Loraine Luipaardsvlei Merriespruit bc President Brand h President Steyn h Randfontein St Helena (Beisa Sect.)

Stilfontein Virginia c Vogelstruisbult Welkom h West Rand Cons. d Western Areas Western Deep Levels Western Reefs e Zandpan f Free State Cons. Joint Metallurg. Scheme Miscellaneous Chamber member producers

Commenced production May 1956 April 1953

Metric tons treated 1 000 206,765 37,947

Uranium oxide produced kilograms 48,293,259 6,551,267

Grade (kg/ton treated) 0.234 0.173

July April June Oct.

1957 1953 1955 1956

83 11 3 1

820 183 578 835

18 237 778 2 160 591 1 822 873 266 238

0.218 0.193 0.510 0.145

Oct. Feb. Oct. Feb. Feb. July Nov. Nov. Jan. Mar. Feb. Feb. Feb. Jan. Oct. Sept.

April May Sept.

Jan. Feb. Oct. Mar.

1956 1954 1954 1955 1955 1955 1956 1956 1955 1956 1955 1955 1954 1982 1953 1955 1955 1957 1952 1982 1970 1953 1966

20 1 2 4

529 371 153 555 350 261 426 807 518 518 521 566 248 298 328 067 480 453 332 408 136 933 205

3 915 552 329 580 45 12 490 16 456 330 3 518 14 566 736 12 060 1 061 987 5 279 844 491 13 035 4 037 2 553 8 475 1 419

762 993 585 667 545 823 207 969 258 249 693 015 225 698 707 693 797 898 712 235 326 181 095

0.191 0.396 0.153 0.127 0.130 0.121 0.159 0.118 0.779 0.028 0.125 0.132 0.266 0.462 0.135 0.239 0.242 0.142 0.584 0.429 0.149 0.243 0.337

103 103 2 4 4 5 45 2 7 22 3 3 22 9 17 34 4

1977

–

8 583 087

–

1978

–

598 240

–

Source: Chamber of Mines

38

NOTES: a Consolidated operations of the company and its wholly owned subsidiaries. b Ceased production in October 1956, because of flooding and subsequently became a wholly owned subsidiary of Harmony. c Became a wholly-owned subsidiary of Harmony. d Ceased uranium production at the end of 1974, resumed production 1976 and ceased uranium production in 1981. e Includes Joint Production Scheme with Vaal Reefs. As from 20 September 1971, merged with Vaal Reefs. f From 1 July 1972, merged with Hartebeestfontein. g From 1977, merged with Free State Geduld – see note h. h These mines, together with Free State Geduld, Free State Saaiplaas, and Western Holdings are participants in the Anglo American OFS Joint Metallurgical Production Scheme, which has merged with Free State Cons. (South region). i From 1999, Vaal Reefs renamed Vaal River Operations and reports under the name AngloGold Ashanti.

Text 2010 CMYK 3

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Text 2010 CMYK 3

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