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By P. Leeuw, H. Mtegha

"The aim of this paper is to enhance the understanding of the nature of mining input technologies in the South African mining industry. In the context of this research, mining inputs refer to input technology into the activities in mining engineering fields, which include mining-related production activities, rock engineering, mine ventilation, and mine transportation (handling of personnel, material, broken rock, and pumping). Input technologies in supporting fields such as geology, other engineering disciplines, human resource, procurement, finance, as well as downstream fields that include metallurgy, and marketing of minerals, were disregarded.The mining input technologies were divided into 12 nodes, and data from a sample of 150 first-tier mining suppliers was analysed. It was found that, in general, there is a high local content in mining input technologies, particularly as regards technical support services, artefacts, and machine technologies. This points to the presence of mining-induced backward linkages in the South African mining industry. The majority (83%) of companies that provide input technologies into mining are located in Gauteng Province, and relatively few are found in provinces where mining is concentrated such as North-West, Limpopo, Mpumalanga, and Free State. IntroductionSouth Africa is well endowed with minerals, with more than fifty different minerals being mined throughout the country. For this and other reasons, mining is one of the crucial pillars in the South African economy and its importance is well documented (Robinson and von Below, 1990; Creamer, 2010; Department of Mineral Resources, 2015). In 2013, South Africa was the largest global producer of chromium, ferrochrome, platinum group metals (PGMs), and vermiculite and the second largest global producer of antimony, manganese, titanium, and vanadium (Chamber of Mines of South Africa, 2014). In 2013, the mining industry contributed 6.7% to South Africa’s GDP and was the fifth largest sector in the economy, as shown in Figure 1."

Jan 1, 2016

Book Reviews Linari-Linholm, A. A. Occurrence, mining and recovery of diamonds.Diamond Promotion Services (P.O. Box 62349, Marshalltown, Transvaal). 1974. Rl,OO. Metal Statistics 1962-1972. Metallgesellschaft Aktiengesellschaft. 60th Edition. Frankfurt am Main 1973. 328 pages. Published by Metallgesellschaft A.G., 6000 Frankfurt am Main, Reuterweg 14, Post Box 3724, Western Germany. Symposium on underground mining equipment maintenance~1973. Institution of Mining Engineers, and Association of Mining Electrical and Mechanical Engineers. Colloquium and general meeting A General Meeting and Colloquium on 'Motivation and productivity in the mining industry' was held on May 22nd, 1974, at Kelvin House, Johannesburg. Mr P. W. J. van Rensburg (President) was in the chair. The Colloquium was attended by 170 delegates and was opened by the President at 09h25. Minutes

Jan 8, 1974

By R. T. Rudd

DISCUSSION R. T. RUDD I have the following comments on Mr Bosman's paper. Before giving the company permission to discharge neutralized mine drainage containing 1800 mg/l of dissolved solids into a public stream, my Department had to consider the matter from both the legal and the practical viewpoint.

Jan 4, 1974

By F. Petersen, W. van Dyk, J. Bonsu, A. Isafiade

"This paper aims to demonstrate how a systemic approach can be applied to the analysis of the causes of accidents in South African mines. The accident analysis framework used was developed previously by the authors from the combination of the Mark III version of the Swiss Cheese model, Incident Cause Analysis Method (ICAM), the Nertney Wheel model, and safety management principles. Data on 91 accidents occurring from 2010 to 2012 at the site of a platinum mine in South Africa were used to populate the newly developed framework. The results obtained show that while routine violations (45% of all accidents analysed) were the most common form of human error, problems in the physical environment of workers were the most common workplace factor (39.6% of all accidents analysed). Furthermore, inadequate leadership was found to be the most common systemic factor responsible for accidents (51.6% of all accidents analysed). Some workplace factors were more commonly associated with particular unsafe acts than others, and some systemic factors were more associated with particular workplace factors than others. The outcome of this study demonstrates that systemic factors, rather than human errors and violations, are the chief causes of accidents in the mining sector. IntroductionThe mining industry is a very important sector of the South African national economy. A major factor threatening the sustainability of this industry is mining accidents, which frequently result in injuries or deaths, destruction of property, and pollution of the environment. In the past, mining accidents have led to the shutdown and threat of shutdown of mines (Ryan, 2008; Mail and Guardian, 2011). The country stands the risk of incurring significant losses if the mining industry continues to experience shutdowns. In 2012, the mining sector accounted for R262.7 billion (equivalent to US$32.83 billion) representing 8.3% of GDP directly, on a nominal basis (Chamber of Mines of South Africa, 2013).Mining safety is a global concern and has attracted significant international attention. This has precipitated various studies into different aspects of mining. Unfortunately, human error has been blamed for the majority of these accidents. A study by the US Bureau of Mines found that human error is the cause of almost 85% of all accidents (Patterson and Shappell, 2008). In Australia, it is the cause of two out of every three occupational accidents (Patterson and Shappell, 2008). Various mining companies maintain that they run efficient systems, and hence the behavioural problems of workers are to blame for most accidents. An understanding of accident causality could be a major step in the quest to reduce accidents. Only with a good understanding of the accident process can effective remedies can be designed."

Jan 1, 2017

By D. F. Malan, P. J. Le Roux

Almost no work has been published on the strength of pillars in mines exploiting the LG6/LG6A chromitite bands in the Western Bushveld Complex. The strength of these pillars is unknown, and the hard rock industry still uses the Hedley and Grant formula. Numerical modelling, using inelastic constitutive models, may be of some value in estimating the pillar strength, but this approach is difficult and prone to errors as many assumptions are made. This paper explores the alternative approach of the back-analysis of actual LG6/LG6A mining layouts, using displacement discontinuity codes to simulate the average pillar stresses on a mine-wide scale. From this, and underground observations, a ‘minimum’ pillar strength (K-value in the pillar strength formula) can be estimated. The codes TEXAN and Map3D are both used in the paper to simulate the actual pillar shapes and sizes in an LG6/LG6A mine. The results are encouraging as the two codes produced similar APS values for a complex pillar geometry. An estimated K-value of 77 MPa was determined for the LG6/LG6A pillars in this particular area. This is more or less similar to earlier work done for the UG2 chromitite seam, but higher than the K-value of 39 MPa for a linear formula obtained by other workers for LG6/LG6A pillars. Caution should therefore be exercised before using this higher value for all areas. The effect of element sizes and explicitly simulating the effect of the surface for shallow pillars is illustrated in the manuscript using both codes. The need for actual pillar observations and an iterative design process, which cycles between modelling and observations, is also emphasized.

Nov 27, 2024

The November General Meeting of the Institute was held in Kelvin House, Johannesburg, on Wednesday, 18th November, 1970, at 4.00 p.m. V. C. Robinson (President) was in the Chair. There were also present 30 Fellows, including J. K. E. Douglas, R. C. J. Goode, Dr J. P. Hugo, Prof J. de V. Lambrechts, D. G. Maxwell, Prof R. P. Plewman, Dr M. D. G. Salamon, P. W. J. van Rensburg, L. W. P. van den Bosch (Council Members), R. E. Burnton, S. Craib, D. de Villiers Oxford, J. C. Fritz, G. W. Gray, G. H. Henderson, S. D. Hill, C. H. Kruger, B. Leach, C. S. MacPhail, D. J. Molony, W. G. Fyne Mercier, R. A. Scott, M. v. R. Steyn, I. E. van Aswegan, A. D. Vos, J. M. Vosloo and N. Zolezzi. Four Members, including I. G. Evans, R. W. Shearer, W. Wilson. One Associate: P. M. C. Wilson. Four Students: H. G. Albertyn, J. T. Davies, P. G. Henderson and P. J. Pretorius. Fourteen Visitors, including S. R. Barker, F. H. Deist, Dr de Jager, L. F. Duvel, P. du P. Kruger, B. D. Maree, B. R. Meyer, R. Redmond, J. Rietief, A. W. S. Schumann, Mrs A. W. S. Schumann, T. S. Stoffberg, C. A. Visser and R. van der Wait. Secretary, D. C. Visser. Total present 55. The President: "Gentlemen, I would like to welcome all members of the Institute who are present, and visitors, and I would like specially to welcome any members of the Suid-Afrikaanse Akademie who are present this afternoon." OBITUARIES The President: "Before starting on the agenda the first item, of course, is unfortunately obituaries and it is my sad duty to announce the death of the following: I would like to start with a person who is not actually a member of the Institute but who, in his capacity as President of the Chamber of Mines, was Honorary President of this Institute three times and I refer, of course, to Mr Herman Calderwood Koch who passed away last Saturday. Then I would refer to Richard Beaumont Tasker, Life Fellow, who joined this Institute in 1932, and who died on the 22nd of October, 1970. Then, lastly, Mr Jean Francois du Plessis, a student, who joined the Institute on the 19th June, 1968, and passed away on the 11th of November, 1970, as the result of an accident. Mr du Plessis was to have received a Student Prize today for his paper entitled, Displacements and stresses in the vicinity of a horizontal long-wall'. We were all most upset to learn of his death last week, and we are now going to make arrangements to hand his prize to his widow on a suitable special occasion. As a mark of respect to the memory of the deceased, and in sympathy with the bereaved, I would ask you all to stand and observe a few moments' silence. Thank you." CONFIRMATION OF MINUTES The President: "May we confirm the minutes of the monthly general meeting which was held on 16th September, 1970, as published in the November Journal?" Agreed. MEMBERSHIP The President: "I have much pleasure in announcing that the names of the undermentioned candidates having been published in accordance with By-Law 5.2.2, Council has elected them to membership of the Institute in the following grades: Fellow: Ronald White Ballantine. Members: Jan Johannes Hertzog Viljoen, Agge Petrus Rutgerus van der Meer, Peter Anthony Reynolds, Ernest Esdaile Leyde Hans Lutz Klingmann, Ronald Archer.' Graduates: Trevor Stanley Schultz, Thomas Cochrane Meiklejohn, Leslie Harold Heyman, Dennis William Bosch, Sydney Stuart Absolom. Associates:Roderick James.Vermaak, Theodorus Daniel van Wyk, Michael Osmond Savignac Stedman, Leslie Owen Raymer, Bryan Arthur McKay, Leon Ellis Finlay Leask, Dudley Graham Lovedren Hall, John Arthur Gibbon, Richard Reginald de Villiers, Carel Frederik Boshoff. Students: Frederik Wilhelm Christian Coetzer, Phillippus Johannes de Wit, Jan van der Merwe Grimes, Davood Khareghani, Jan Wolvaardt Oberholzer, Johannes Lodewikus Pretorius Pieter Jacobus Strobos, Herbert Gerald Waldeck.' MEMBERS TRANSFERRED TO A HIGHER GRADE From Associate to Fellow: Howard Mitchell Wells. From Associate to Member: Ernest John Dominy. "I welcome the newly elected members to the Institute and congratulate the members who have been transferred to a higher grade." AWARDS The President: "It is with very great pleasure that I can announce that Council has agreed to make the following awards for papers presented to the Institute during the year ended July, 1970. Gold Medals to Prof Plewman and W. D. Ortlepp for their paper entitled 'The development and application of a digital computer method for the solution of strata control problems' written jointly with F. H. Deist (Visitor) and presented in September, 1969. A Silver Medal to Dr Finkelstein for his paper entitled 'The Influence of sulphydryl and cationic flotation reagents on cyanidation of native gold' written jointly with Dr K. G. Ashurst (Visitor), and presented in June 1969 at the Symposium on the Recovery of Pyrite. ' May I congratulate these gentlemen on the high honour they have won with their papers. As new medals are in the process of being designed the actual awards will be made at a later date to be announced to members.

By J. Levin

The Bond standard grindability test provides a Work Index that is widely used to estimate the energy required for grinding, but the test cannot be applied to fine materials such as plant tailings and middlings. For such materials, a comparative grinding test must be used in which a reference material from an operating plant is ground in a laboratory mill to determine the 'equivalent' energy consumption per revolution of the laboratory mill. As the Bond grindability test mill and its operating conditions are specified, its equivalent energy consumption per revolution should be a constant, here designated as B. Once B has been determined, the mill can be used to estimate the grindability of fine materials without the need for reference materials. A value of B can be calculated from any Bond grindability test, and 245 tests that were conducted at Mintek were examined to determine its value. A wide range of values was found, but most of them were grouped around 198 x 10- 7 kWh/rev, which is taken as the best estimate of B that is available at present. Values of B that are not close to this figure are obtained from materials for which the Bond grindability test gives misleading or 'spurious' Work Indexes. These spurious Work Indexes lead to the apparent departure of B from its true value. Some limitations of the Bond grindability test arise from its use of a mill without litters and of screening, instead of classification, to close the circuit.

Jan 1, 1989

By W. P. C. Duyvesteyn, J. R. Cutland, J. R. L. Russell

In 1970 it was decided to build a large new plant at the Chingola Division of N.C.C.M., Ltd., to treat concentrator tailings and leach residues with a low copper content by a leach-solvent extraction-electrowinning process. In order to assist in the establishment of the design parameters for the new plant, and to study the interaction of this plant with the existing leach-electrowinning plant, mathematical models, formulated as linear programs, have been developed and used extensively. The paper outlines the metallurgy of the plants and describes briefly the way in which the models have been formulated and used. The formulation involved the use of separable programming to form the products of some variables.

Jan 1, 2014

By M. Z. Emad, A. Khan, N. Abbas, K. G. Li

Probability-based empirical methods were employed as an alternative approach to predicting uncertainties associated with rock mass properties. The focus was on developing probabilistic spreadsheets to forecast rock mass classification indexes. Histograms were constructed to describe the best distribution in predicting rock mass properties. The developed models also offer utility in predicting the impact of discontinuities within the rock mass on rock strength and rock mass classification systems. Statistical analyses identified volumetric joint count, joint spacing, joint frequency, and rock strength as the most influential parameters. Moreover, the statistical analysis revealed varying degrees of correlation among different rock mass properties. While some properties demonstrated significant correlations suitable for modelling, others did not align well with any correlation model. The results highlight the need for a comprehensive approach to rock mass characterization, considering multiple factors beyond volumetric joint count. Geological complexities, including tectonic activity and weathering processes, may obscure direct correlations. These results emphasize the importance of empirical modelling and detailed site investigations for accurate assessment of rock mass quality and stability in the Himalaya.

Jun 10, 2024

By H. M. Friede, R. H. Steel

Tin mining and smelting in the Transvaal during the Iron Age by H. M. FRIEDE*. Ph.D. and R. H. STEEL* (Visitors) This paper reviews the historical, archaeological, and metallurgical evidence on Iron Age tin mining and tin smelting in Southern Africa. The results of the analysis of twenty samples of tin ore, tin slag, and tin ingots found associated with Iron Age materials in the Transvaal (mostly in the Rooiberg area) are reported and discussed. The types of ingots preserved in local collections are described. A small experimental tin-smelting furnace was constructed and worked according to traditional African Iron Age technology. Qualitative and quantitative results of this experiment are reported.

Jan 7, 1976

By H. M. Friede

An experimental study of iron-smelting techniques used in the South African Iron Age by H. M. FRIEDE, Ph.D. and R. H. STEEL (Visitors) The main factors involved in the primitive smelting of iron (ore, charcoal, temperature, air supply, process control) were evaluated in an experimental furnace that was constructed to the pattern of an Iron Age furnace found at Melville Koppies Nature Reserve, Johannesburg. In particular, the characteristics, action, and efficiency of skin bellows were investigated to gaina better understanding of the air-supply system used. Sixteen specimens of iron ore, slag, and metallic iron (excavated material and material produced in the experimental furnace) were submitted to analysis. The results of the analyses are reported and discussed.

Jan 6, 1977

By G. G. Stanley

Mechanisms in the autogenous mill and their mathematical representation by G. G. STANLEY, B.Sc. (Eng.) (Wits.), M.E. (Queensland), Ph.D., (Fellow) The special characteristics of the autogenous mill are stated, and a suitable type of model for the mill is presented. Details of the test plant and experimental techniques for obtaining the data for model development are next given. followed by a discussion of the methods developed for the computation of the model parameters, namely the appearance matrix, the abrasion and crushing breakage-rate functions, and the discharge-rate function. Examples of results obtained with the model are given, and finally there is a brief account of confirmatory work on a fullscale autogeneous mill.

Jan 11, 1974

By B. K. Loveday

The use of large flotation machines is well established, resulting in substantial savings in both capital and operating costs. Therefore, when a new plant is designed, laboratory and pilot-plant tests should be used to simulate large flotation cells, or appropriate scale-up factors should be employed. 'Conference on titanium The Fifth International Conference on Titanium will be held from 10th to 14th September, 1984, in Munich, West Germany, organized by the Deutsche Gesellschaft fur Metallkunde e.V., in association with the American Society for Metals, Societe Francaise de Metallurgie, The Academie of Sciences U.S.S.R., The Japan Institute of Metals, The Metallurgical Society of A.I.M.E., and The Metals Society.

Jan 1, 1983

By A. P. Van Wyk, G. Pirnaar

The effect of vanadium on the susceptibilities of chromium and chromium-nickel steels to reversible temper embritlement was evaluated. The steels investigated were approximately equivalent to steels of as 970 Grade 708A42 and as 970 Grade 817M40, the major difference being that molybdenum had been replaced by vanadium in various concentrations. It was found that the vanadium had a detrimental effect and, in al the concentrations tested, enhanced the susceptibility to reversible temper embritlement of both the chromium and the chromium-nickel steel. The detrimental role played by vanadium in reversible temper embritlement is explained by a consideration of the effect of vanadium carbide, as well as of free vanadium, in solid solution in ferrite.

Jan 1, 1987

By P. Minkkinen, R. C. A. Minnitt

Particle size distribution analysis is important to many industries for assessing product quality, process efficiency, and compliance with contractual standards, while ensuring sample accuracy, and representativeness. Inaccurate particle size distribution results, arising from fines due to excessive handling can lead to penalties and buyer-seller disputes. A non-representative particle size distribution means samples will not accurately represent the chemical components either. Sampling blasthole cuttings poses challenges due to large material volumes, segregation, and uneven settling of particles in dense gold bearing ores. Commonly used sampling methods, such as spear or sectoral sampling, may lack representativeness. Particle size distribution analysis is crucial for evaluating sampling methods by comparing test sample representativeness against a reference standard derived from multiple particle size distribution analyses. Acceptable samples must fall within the 97.5% confidence intervals of the standard; deviations analyses lying outside these boundaries indicate a strong likelihood of segregation errors. A case study demonstrates this approach by using a 6.005 kg benchmark sample to assess two additional samples (1 kg and 5 kg), highlighting particle size distribution’s role in detecting sampling errors and refining protocols. An example of three test samples collected from reverse circulation drill cuttings compared to a standard reference sample is presented to illustrate a quality assurance/quality control procedure for reverse circulation drilling.

Oct 2, 2025

By K. I. Afewu, L. C. Woollacott

The design of in-pulp adsorption vessels in the gold industry has, for the most part, been seen as a problem involving the suspension of fine particles o ore in a slurry. The need for the vessel to be designed as a mass-transfer contactor has received insufficient attention. The current series of papers addresses this need The previous paper considered the question of the scale dependence of the film transfer coefficient. This paper examines the mixing considerations that are relevant. A review of the literature and an examination of a limited set of data provide some insight into the mixing conditions needed for the dispersion of the particles of adsorbent. The mixing requirements for the suspension of the ore particles are also considered, and conclusions are drawn in regard to the design of mechanically agitated vessels for gold in-pulp adsorption circuits.

Jan 1, 1995

By B. X. Huang

Hydraulic fracturing technology is presented as a solution to improve permeability and thus solve the extraction problem of coal seam gas in low-permeability gas-bearing coal seams. Given an existing group of original cracks, the propagation of main hydraulic cracks and hydraulic wing cracks was simulated using realistic failure process analysis software. The process represents the structural transformation of hydraulic fracturing and permeability improvements caused by it. In addition, a field test for improving the permeability of gassy coal seams by hydraulic fracturing was also conducted. The propagation of the main cracks and wing cracks by hydraulic fracturing forms a network of original joint cracks, hydraulic wing cracks, and main hydraulic cracks, which improve the permeability of the coal seam. High-pressure water in the drill hole and in the main hydraulic cracks permeates the two flanks of the hole, forming the permeating water pressure. With an increase in drill water pressure and an extension of the main hydraulic cracks, the permeating water pressure on both sides of the main hydraulic cracks in the coal mass also increases. Hydraulic cracks tend to form connections through rock bridges. The extension of hydraulic wing cracks through connections in the rock bridges between the cracks transforms the rock mass to a fractured structure and improves its permeability. Hydraulic fracturing technology for improving permeability in underground conditions can increase the amount of gas drainage by a factor of 15. A stress relief area develops at a radial distance of 10-2.0 m from the hydraulic fracturing drill hole, while an area of rising stresses, called the pressurized area, develops a further 15 m away from the pressurized hole. Practice has proved the existence of the stress transfer phenomenon and the high stress area after fracturing. This kind of hydraulic fracturing technology is more effective in holes drilled from underground than in surface drill holes, with respect to costs and controllability, and is therefore the major trend in gas drainage development in coal mines.

Jan 1, 2012

By S. Gqebe, A. Lewis, M. Rodriguez-Pascual

"Gravitational sedimentation of suspensions in various precipitation processes is hindered by colloidal stability. This is due to the high surface charge of the suspension and results in strong attraction/interaction between the ions on the particle surface and counter-ions in solution. Moreover, this strong interaction results in a charge build-up that renders the suspension stable. In order to induce gravitational sedimentation of these particles, a redistribution of ions close to the particle surface is required. We therefore sought to redistribute ions close to the particle surface by applying a magnetic field. This results in the reduction of interparticle electrostatic repulsive forces and a subsequent increase in the zeta potential of a suspension. For the purpose of this study, a copper sulphide suspension was used. Copper sulphide particles were exposed to a range of field strengths for set exposure times and their zeta potential was measured before and after exposure. All particles had an initial zeta potential value equal to or less than –40 mV prior to magnetic field exposure. A significant increase in zeta potential was observed, with values reaching a maximum of –16.5 mV when exposed to a 2 T field strength for 40 minutes. This is due to Lorentz ion shifts resulting from the Lorentz force exerted by the magnetic field on the particle surface. IntroductionMetal sulphide precipitation is a process for treating industrial waste streams with high residual concentration of mixed metal ions and acid mine drainage. This process has been reported to achieve higher metal removal compared with the industrially prevalent lime precipitation, due to the sparingly soluble nature of the metal sulphide precipitates formed. However, precipitation is governed by high levels of supersaturation which favour the formation of fine particles (Lewis, 2010). Consequently, some of the metal sulphide fines formed exhibit slow settling dynamics and thus tend to remain suspended in solution."

Jan 1, 2016

By C. Holck, J. Yarmuch, J. Read

"Steepening of slopes provides the means to reduce waste extraction and increase ore recovery in open pit mines; however, it may also adversely affect safety by posing a higher risk of slope failure. The implementation of slope monitoring programmes is recommended to manage this risk inherent in steeper slopes. In this paper, the design and evaluation of monitoring campaigns to measure subsurface deformation and groundwater pore pressure in open pit mines is presented. The monitoring programmes were applied to a theoretical case of an open pit mine designed using DeepMine software (BOAMine SpA, 2015). Mine plans were developed based on the initial base case scenario with monitoring programmes considered for four types of monitoring instrumentation: two established technologies, in-place inclinometers (IPIs) and vibrating wire piezometers (VWPs); one emerging technology, the ShapeAccelArray (SAA); and a novel technology under development, the Enhanced Networked Smart Markers (ENSMs). Technical and economic appraisals of the monitoring programmes and sensitivity analysis of the developed mine plans showed that using ENSMs spaced every 4 m had the lowest cost per unit of data gathered. IntroductionSeveral open pit mines have already exceeded their design life and, as they become deeper and reach depths over 1000 m, they face higher rock stress levels and tensile deformations (Stacey and Xianbin, 2004; Stacey et al., 2003). The more complex the conditions in modern open pit mines, the more difficult it is to achieve long-lasting, stable pit slopes and to meet the mine’s economic needs: maximize financial returns, minimize risks to operational safety, achieve optimal ore recovery, and minimize waste extraction (Stacey, 2009). Steepening of slopes provides the means to reduce waste extraction and increase ore recovery (Stacey, 2009; Calderon and Tapia, 2006; Bye and Bell, 2001; Jefferies, Lorig, and Alvarez, 2008); however, it may adversely affect operational safety, as steeper slopes are less stable than shallow slopes (Steffen et al., 2008; Mphathiwa and Cawood, 2014)."

Nov 1, 2018

By K. Dewar

The catalytic converter industry is composed largely of global multinational manufacturers who supply to vehicle manufacturers (original equipment manufacturers ? OEMs) from facilities strategically located internationally, including plants in South Africa. The South African catalytic converter production facilities were established at the request of the OEMs and commenced manufacture in the early 1990s. This near 100 per cent export focused industry exists in South Africa because of the incentives offered by the Motor Industry Development Programme (MIDP), which ultimately provide the OEM with import duty rebates. The South African catalytic converter industry is a complex vertically-integrated supply chain with a local content in excess of 85 per cent, substantially more than any other exported automotive component. The industry remains one of the very few downstream manufacturing industries where South Africa has a significant global footprint. This is even more important when it is considered that this industry is the key end-user for two of South Africa?s most important mineral resources, namely platinum group metals (PGMs) and chromium, and is in an industry which will see massive global growth as the developing nations of the BRICs grow their auto industries. In over 15 years of existence in South Africa, the catalytic converter industry has achieved remarkable growth, averaging compound growth in the region of 14 per cent per annum. The industry is the highest contributor to automotive component export revenue. South Africa holds >8 per cent% of global PGM reserves. During 2011, South Africa supplied 59 per cent, 29 per cent, and 72 per cent of the global demand for platinum, palladium, and rhodium respectively, as well as over 50 per cent of the global chromium demand. Global autocatalyst production remains the largest consumer of PGMs, and South Africa alone beneficiated 15 per cent of locally mined PGMs in the production of catalytic converters ? all is converted from PGM sponge (powdered metal) into PGM solutions for coating onto catalysts. Beneficiation of PGMs also takes place via the production of jewellery and electronic goods; but compared to catalytic converters, this volume is negligible. The industry is also the largest consumer of locally produced stainless steel (>50 000 t/a), exceeding 38 per cent of local consumption. The industry is a substantial generator of highly skilled employment, with over 5 000 direct jobs (excluding OEMs and stainless steel manufacture) and an estimated more than 30 000 indirect jobs resulting from upstream and side-stream suppliers. The industry places a high focus on skills transfer and development, with all companies providing high-tech training and education both locally and overseas. The industry has invested in excess of R5 billion in plant, equipment, people development, and process development over the last 15 years to support transfer of production and new technologies to South Africa. This has resulted in significant skills development in the support industries as well as within the catalytic converter industry. The current projections for local PGM beneficiation via catalytic converters reflect a downward trend as a result of production being moved to other global locations due to uncertainty around changes to government incentive programmes. The industry is currently capacitated to support 23.7 million units per annum. During 2011 it utilized about 70 per cent of this capacity, but forecast projections suggest that this will be at 46 per cent of this level by 2016. At full capacity the industry would represent 19 per cent of global autocatalyst production compared with the current 13 per cent in 2011. The industry believes that there is potential to make South Africa the preferred location for catalytic converters worldwide, given suitable support from the mines and Government.

Jan 1, 2012