$7.5 Billion Project Investment for South African Mine Development

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston, Texas). In the period 2002 to 2004, mining companies operating in South Africa have already committed $7.5 billion to the development of capital projects. Platinum projects take up 35% of the total with Anglo Platinum targeting 3.5 million ounces by 2006, Impala Platinum increasing annual production from 1.1 million ounces to 1.6 million ounces annually and Lonmin aiming for an annual production of 1 million ounces by 2007.

Gold mining will take $19.5 million including Avgold's development of the Target mine and Placer Dome's South Deep. The lift in production will see the annual production in 2001 of 400 tons (the lowest since 1956) rise to 405 tons in 2002 and 408 tons by 2004.

If beneficiated (value added) products are included, the contribution of this sector to South Africa's total merchandise exports is more than 60% of the total. If ferro-alloys, steel and chemicals produced from coal are included, the total is in excess of 60% of exports with straight mineral exports representing 35%.