South Africa - A Vital Source And Reliable Supplier Of Strategic Minerals

INTRODUCTION It is my intention in this paper to deal with gold, uranium, diamonds, platinum, manganese, chrome, vanadium and heavy mineral sands. These are the most important strategic minerals produced by the Republic of South Africa which are not covered in other sessions of this program. In each case I have high- lighted the statistics and peculiar advantages which combine to make South Africa a vital source of these minerals. Before proceeding to give individual attention to these minerals I believe it would be useful to define what I mean by 'strategic'. The Concise Oxford Dictionary defines strategic in the context of materials as 'essential for war'. However it is commonly used in a much broader sense than this (often, in fact, very loosely) and I prefer to define it as 'concerned with the acquisition and maintenance of power, whether economic, political or military.' A VITAL SOURCE In dealing with the individual minerals I have quoted statistics which are contained in Tables 1, 2 and 3. Table 1 clearly shows the absolute size of the South African mineral industry. However, it can also be used to demonstrate the importance of the industry to the South African economy if compared with the GNP in 1980 of about R60 billion. Table 4 illustrates clearly how important South Africa is as a supplier of these minerals to most of the important industrialized countries of the Western World. Gold If anyone had any doubts about the inclusion of gold in a list of strategic minerals I am sure that the above definition of 'strategic' will convince them that it certainly belongs there. Similarly no one is likely to have any doubt about the fact that South Africa is a vital source of supply. Tables 2 and 3 show that in 1980 we had 51% of the world's reserves and accounted for 55% of world production. The figures for the Western World are considerably higher. The only other major producer, of course, is Russia, with small but significant production in the Pacific Rim area coming from Australia, Canada, Latin America, Papua New Guinea, Philippines and the U.S. All South African mine gold production is shipped in bullion form containing about 88% gold and 9% silver to the Rand Refinery which is a modern refinery with large scale units capable of refining half a ton of bullion at a time. The Refinery is equipped to produce standard 'good delivery' gold as well as 9999 gold and 999 silver. The Refinery also produces the 22 karat blanks which are, used by the South African Mint to produce Kruger Rands. It goes without saying that the South African gold mining industry leads the world in all aspects of deep-level, narrow-reef mining technology. The industry's metallurgists, too, have a record of tenacious and continuing efforts to improve extraction to the level of the present finely honed efficient process used on all the modern mines. Uranium In 1980 South Africa had 14% of the uranium reserves of the Western World and accounted for 14% of production. In view of the paucity of data I am not in a position to estimate figures for the total world. All the other major sources of uranium in the Western World are situated around the Pacific Rim, with the U.S. and Canada already being major suppliers and accounting for 38% and 17% of Western World production in 1980. Australian production at the time was small but they have very large reserves and production is already rising rapidly. The U.S., Canada and Australia account respectively for 22%, 19% and 29% of the uranium reserves of the Western World. South Africa has been a major producer continuously for 30 years. Nearly all the uranium produced, amounting to about 115 000 tons up to the end of 1981, was a by-product or co-product of gold extraction. During that time the industry has frequently led the world in technological innovation, and has established a reputation as a reliable producer of a consistent, high-grade product. In the latter respect, it is helped by the fact that production is marketed by one company, Nuclear Fuels Corporation, which also blends, dries and calcines the product from the individual mines and samples and assays it before shipping. Diamonds Diamonds are the rock on which the South African mineral industry is founded. The discovery of diamonds in 1866 gave rise to the first major mineral industry in the country and the profits from diamond mining helped to finance the gold mining industry 20 years later. Although now overshadowed by gold, diamonds are still very important in the overall picture of mineral production and exports, as can be seen in Table 1. There are really three separate diamond markets - gem, natural industrial, and synthetic - and, to be meaningful, statistics should be provided separately. Unfortunately separate figures are not available. The figures in Tables 2 and 3 show that, for gem and natural industrial together, South Africa ranks third in the world in production and second in reserves. South Africa is a major producer of synthetics and probably ranks second in the world after the U.S. Recently, of course, Australia was the scene of a major diamond discovery and will soon become the only