Dr. Herwig Marbler

Geologist at the German Mineral Resources Agency as part of the

Federal Institute for Geosciences and Natural Resources (BGR), Berlin, Germany

Mineral Resources in South Africa and activities of theGerman Mineral Resources Agency (DERA)

Inkaba yeAfrica Workshop 201226.-30.11. GFZ-Potsdam

Mineral Resources in South Africa

Overview:

• Introduction of the German Mineral Resources Agency (DERA)

• Mineral Resources and Production in South Africa

• Importance for the German Industry

• DERA activities in South Africa

Mineral Resources in South Africa

Dr. Herwig Marbler

Founded in October 2010 by Minister Brüderle in Hannover

• Supply and delivery security of raw materials for the German industry

• Market transparency in the mineral resources sector

The German Mineral Resources Agency

Opening of the DERA in Berlin in August 2012 by BM Dr. Rösler

“Mineral supply for the German industry has a high priority forus. Moving the German Mineral Resources Agency to Berlin isa consequent next step”

Dr. Herwig Marbler

Tasks and goals of the German Mineral Resources Agency

Availability of mineral resources, supply and demand analyses

“Critical“ raw materials for the German industry, delivery risk analysis

Evaluation of mining projects

Resources efficiency at primary production

Secondary raw material potentials e.g. in tailing dumps and residues

Sustainability in the mining sector and the supply chain of mineral raw materials

Dr. Herwig Marbler

DERA study on critical raw materials

NiAu

Kaolin

Ag Bentonite

Ni

Zn

Cu

Fe

PotashMica

ZnAl

Talk

Cr

Si

LiZr

Sn

SnV

Co

Graphite

GarnetPd

MagnesiteSb

WMg

Bi

Pt Nb

Ti

–1,5

–1,0

–0,5

0,0

0,5

1,0

1,5

Herfindahl-Hirschman-Index of production 2009/2010 (country concentration )400 1.000 10.0001.500

low medium high

high

Wei

ghte

dco

untr

yris

kof

prod

uctio

n, w

orld

bank

data

Metals (ore) Metals (refined) Industrial minerals

PbCoBx

REE

Phosphate

2.500

Rutile

Pb

Mo

Baryte

In

FeCr

Fluorite

MnCd

Steel

Cu

Dr. Herwig Marbler

Analyses of raw material potential

South AfricaAustralia

Canada

Chile

Kazakhstan

Russia

Mongolia

Arctic

Greenland

• In cooperation with: Geological Surveys

Dr. Herwig Marbler

Mineral reserves and mining in South Africa

1

10

100

1 000

10 000

100 000

1 000 000

10 000 000

100 000 000

1 000 000 000

Met

ric to

nsReservesProduction

1

1

1

12

3

2

4

2

4

5

5

11

5

5

1

1

4

2

Reserves and production of most important mineral commodities in South Africa (2011) including world rank

South Africa: the fifth largest mining sector worldwide

Source: BGR 2012, Raw Materials Data 2012

Dr. Herwig Marbler

Mineral reserves and mining in South Africa

global importance of platinum and chromite production in South Africa (2011)

Source: BGR 2012, Raw Materials Data 2012

South Africa(147 800 kg)

Russia(25 485 kg)

Canada(9 600 kg)

Simbabwe( 8 000 kg)

rest of theworld

(4 800 kg)

South Africa(10.8 mt)

Kazakhstan(5.1 mt)

India(4.1 mt)

Turkey(2.3 mt)

Finnland(0.7 mt)

Rest ofthe world

(4 mt)

Pt Chromite

76 % Pt production 40 % chromite production

Dr. Herwig Marbler

2011:• 1000 active mines• 1 Mio. jobs (500.000 direct and 500.000 indirect)• 19 % of South African GDP• 20 % of investigations• 15 % of the electric energy• 50 % of the total transport volume (railwais and ports) • in 2010: selling of commodities of 37 Billion US$ - top selling minerals: PGE, gold, coal (66 %)

Mining sector in South Africa

0

20

40

60

80

100

120

140

160

180

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% d

evia

tion

ChromiteCoalGoldPGEIron oreDiamondsVanadium

Source: BGR 2012, pwc 2011 Raw Materials Data 2012

Dr. Herwig Marbler

PGE

Iron ore

Chrome

Hard coal

Gold

Manganese

Titanium

Vanadium

Fluorspar

ind. Minerals

37.7%

12.2% 17.5%

6.1%

10.2%

10.2%

2.7%

1.8%

0.8%

0.9%

Source: BGR 2012

2.66 Billion €~ 7 % of total

mineral comm. imports

German imports of mineral commodities from South Africa (2011)

South African importance for German Economy

Dr. Herwig Marbler

South African importance for German Economy

German imports from South Africa percental to total imports (2011)

0

10

20

30

40

50

60

70

80%

of t

otal

val

ue

Source: BGR 2012

Dr. Herwig Marbler

German-South African cooperation in raw materials

Collective commodity study of South Africa

Opportunities of investments and participation for German companies in theSouth African mining sector

Investment framework: political and economical situation

16 most important metal und non-metal commodities of South Africa (Reserves, Production, Projects, Companies)

Completed within 2012

Dr. Herwig Marbler

German-South African cooperation in raw materials

• Antimony, REEs, Zircon, Chromite, Fluorspar, Graphite, Vanadium

• for potential investors und purchasers

Target: Compilation of an “Investors Guide“ concerningcritical commodities for the German Industry

Cooperation since November 2011

Dr. Herwig Marbler

Investors Guide South Africa

Assess (new) potentials of critical raw materialsand investment options for German companiesin the raw material sector

Investigated commodities:

Antimony Fluorspar

Rare Earth Elements Chromite

Heavy Mineral Sands Vanadium

Graphite and other

German-South African cooperation in raw materials

Cooperation on state and industry level

Vergenoeg Mining Company

Dr. Herwig Marbler

Investors Guide South Africa

• ConsMurch antimony (and Au) mine within theMurchison Greenstone Belt (Limpopo), theonly Sb producer in South Africa, but thelargest producer outside China

• Production in 2011: 1 600 t Sb

• Primary Sb Resources: 206 000 t; Reserves: 27 000 t Sb, (350 t Au)

• Secondary Sb-Reserves from tailing dumps: 46 000 t Sb

German-South African cooperation in raw materials

ConsMurch Athens Shaft - Sb Au mine

ConsMurch tailing dumps

Dr. Herwig Marbler

Investors Guide South Africa

• Several REE potentials in phosphate andfluorspar deposits, mostly within monazite, xenotime and bastnäsite

• 3 advanced REE projects and additional REE occurrences – at least 6 REE deposits

German-South African cooperation in raw materials

Vergenoeg Fluorspar Mine

Glenover Phosphate Mine

Dr. Herwig Marbler

Investors Guide South Africa

• The largest heavy mineral sand deposits(zircon, ilmenite, rutile) near Richards Bay and in the Western Cape

• Total yearly production of 423 000 t zircon, 1.2 mt ilmenite and 135 000 t rutile (2011)

• 3 producing mines and several other smallerdeposits along the eastern and western coast

German-South African cooperation in raw materials

KZN

Richards Bay

Dr. Herwig Marbler

South African potentials of REEs, Sb and heavy mineral sands

deposits and potentialsof REE, Sb and HM sands investigatedduring the field work

Dr. Herwig Marbler

South African distribution of mineral deposits

Dr. Herwig Marbler

Thank youfor your attention!