SA Mine 2023

Adapt to thrive

Overview

South African mining companies must find a new formula for success. The era of critical minerals has arrived, and it’s the most momentous change the industry has seen in decades.

As the plans and executions towards net zero take place, there is greater emphasis to secure critical minerals for our decarbonisation efforts. What are these critical minerals and their use? Southern Africa has some of the critical metals, and it is important for the region to look at the opportunities and take advantage of them. To take advantage of these opportunities will require significant cooperation between public and private stakeholders.

From record levels of performance and shareholder returns provided by South African mining companies since the post-COVID-19 economic rebound, there has been a regression experienced in these metrics. Decreases in the prices of certain minerals, productivity and infrastructure constraints and increases in input costs have resulted in a decrease in profits and operating cash flows experienced by South African mining companies. Strong balance sheets have enabled miners to increase investment into operations and pay dividends.


As of 30 June 2023, South Africa has approximately 68Moz of gold reserves declared as proven and probable from all operational mines. Approximately 84% of these declared reserves are concentrated in Gauteng, with the remaining declared reserves being in Mpumalanga, the Free State and North West.

Produc

t

Province

Unit of measure

Reserves

Total Exclusive Resource

Reserves / Exclusive Resource*

Total output 

Years left*

Gold

Free State

Moz

3.37 

39.96 

0.08 

0.55 

Gauteng

Moz

56.88 

66.84 

0.85 

1.56 

37 

Mpumalanga

Moz

3.31 

9.27 

0.36 

0.20 

16 

North West

Moz

4.53 

7.61 

0.60 

0.25 

18 

Total

Moz

68.09 

123.68 

0.55 

2.56 

27 

*Indicates an average

As of 30 June 2023, there are seven iron ore mines operated by three different companies. The total reserve for these mines equates to 696.48Mt. At current production rates, this translates roughly into 13 years left of iron ore mining in South Africa. Of the total reserves detailed above, roughly 80% can be attributed to only two mines.

Product

Province

Unit of measure

Reserves

Total Exclusive Resource

Reserves / Exclusive Resource*

Total output

Years left*

Iron ore

Northern Cape

Mt

696.48 

475.38 

1.47 

55.15 

13 

*Indicates an average

Coal mining occurs predominantly in Mpumalanga and Limpopo. As of 30 June 2023, there is an estimated 5,106Mt of coal reserves from operational mines. Approximately 48% of these reserves are based in Mpumalanga and 50% are based in Limpopo, with this being concentrated largely to one mine which has declared reserves of approximately 2,568Mt.

Product

Province

Unit of measure

Reserves

Total Exclusive Resource

Reserves / Exclusive Resource*

Total output

Years left*

Coal

Free State

Mt

24.99 

141.00 

0.18 

1.10 

23 

KwaZulu-Natal

Mt

11.14 

11.98 

0.93 

0.47 

24 

Limpopo

Mt

2,584.99 

1,629.97 

1.59 

30.20 

86 

Mpumalanga

Mt

2,484.67 

5,520.54 

0.45 

93.73 

27 

Total

Mt

5,105.78 

7,303.49 

0.70 

125.51 

41 

*Indicates an average

South Africa’s Igneous Bushveld Complex is world-renowned for its rich PGM deposits, which have enabled the country to be a major player in PGM mining and refining. As of 30 June 2023, there are approximately 261Moz 4E in reserves from operational mines. Seventy-two percent of these reserves are in Limpopo, whilst the remainder are situated in the North West.

Product

Province

Unit of measure

Reserves

Total Exclusive Resource

Reserves / Exclusive Resource*

Total output

Years left*

PGMs

Limpopo

Moz 4E

188.80 

549.59

0.34

3.19

59 

North West

Moz 4E

72.21 

287.22 

0.25 

3.74 

19 

Total

Moz 4E

261.01 

836.81 

0.31 

6.94 

38 

*Indicates an average

Illustration: Women doing calculations

Register to download:

SA Mine 2023 publication 

Contact us

Andries Rossouw

Andries Rossouw

Africa Energy, Utilities and Resources Leader, PwC South Africa

Tel: +27 (0) 11 797 4060

Vuyiswa Khutlang

Vuyiswa Khutlang

Partner, PwC South Africa

Tel: +27 (0) 11 287 0773

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