BULK MINING AND ASSOCIATED

INFRASTRUCTURE DEVELOPMENT CAN SUPPORT

AFRICA’S ECONOMIC GROWTH

BULK MINING AND ASSOCIATED

INFRASTRUCTURE DEVELOPMENT CAN SUPPORT

AFRICA’S ECONOMIC GROWTH

Dr CJ FauconnierChief Executive

10 February 2004Investing in African Mining Conference / Indaba 2004

Intensity of Steel Consumption - 2001Intensity of Steel Consumption - 2001

1

India

China

Brazil

South Africa

Poland

Argentina

Australia

Germany

USA

Japan

Korea

Taiwan

0

100

200

300

400

500

600

700

800

900

1000

0 5000 10000 15000 20000 25000 30000 35000 40000GDP PER CAPITA($/p)

ST

EE

L C

ON

SU

MP

TIO

N P

ER

CA

PIT

A (

kg

/p)

BEST-FIT STEEL INTENSITY CURVE

Africa

Sources: IISI and Global Insight

China's Steel Consumption & Iron Ore ImportsChina's Steel Consumption & Iron Ore Imports

2

0

20

40

60

80

100

120

140

160

180

2001992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

0

50

100

150

200

250

300

Iron Ore Imports (Left-hand scale)

Steel Consumption (Right-hand scale)

Compound Average Growth Rate 1992 - 2003Iron Ore Imports = 17.5% per annumSteel Consumption = 10.1% per annum

Iro

n O

re I

mp

ort

s (M

t)

Ste

el

Co

nsu

mp

tio

n (

Mt)

Sources: UNCTAD, CRU, IISI

Flourishing Bulk Mining-driven Infrastructure ProjectsFlourishing Bulk Mining-driven Infrastructure Projects

3

Sishen-Saldanha example

South Africa's Historical Iron Ore ExportsSouth Africa's Historical Iron Ore Exports

4

Growth in iron ore exports since the establishment of the Sishen-Saldanha railway line and export terminal

Source: SA Department of Minerals and Energy

Exp

ort

Mas

s (

Mt)

Exp

ort

Val

ue

(F

OB

, U

S$m

illi

on

)

0

5

10

15

20

25

30

35

0

50

100

150

200

250

300

350

400

450Mass (Left-hand scale)

FOB Value (Right-hand scale)

Flourishing Bulk Mining-driven Infrastructure ProjectsFlourishing Bulk Mining-driven Infrastructure Projects

5

Richards Bay example

South Africa's Historical Coal ExportsSouth Africa's Historical Coal Exports

6

Growth in coal exports since the establishment of the Richards Bay Coal Terminal and railway line

Source: SA Department of Minerals and Energy

Exp

ort

Mas

s (

Mt)

Exp

ort

Val

ue

(F

OB

, U

S$m

illi

on

)

0

10

20

30

40

50

60

70

80

90

100

0

500

1000

1500

2000

2500

Mass (Left-hand scale)

FOB Value (Right-hand scale)

- dependent on infrastructure development

Benefits from Bulk Mining in AfricaBenefits from Bulk Mining in Africa

SENEGALSENEGAL

GUINEAGUINEA

GABONGABON DRCDRC

MOZAMBIQUEMOZAMBIQUE

RSARSA

77

InfrastructureInfrastructure

8

– the key to unlocking the full Northern Cape ferrous mineral andWaterberg coal potential