The journal of the south african institute of mining and metallurgy januaryfebruary 2004 45 introduction one of the consequences of globalizing mine finance is the necessity to apply uniform mineral property valuation standards that are clearly understood and consistently implemented by the global investment community. Mining in south africa has major costs for many mineworkers, no less than 2,869 of whom have died in. Chinese investment in south africa as a hong kong listed company, taung is acutely aware of the significance of chinese investment in south africa. South african mine valuation chamber of mines of south. Chamber of mines of south africa, 1977 mine valuation 472 pages. The south african mining landscape 6 improving value to stakeholders 18 the regulatory landscape in africa 20 south africa mining charter 21 south africa diesel refund scheme 22 tanzania the impact of regulatory changes 26 drc new mining code upsetting miners 27 financial performance 28 glossary 44 companies included in the analysis 46. Methods and techniques for the valuation of mineral assets. South africa, because of its general aridity and high variability of rainfall in space and time, is especially vulnerable to changes in water availability. Samcodes is a notforprofit organisation established to develop, maintain, administer, ensure compliance with and promote the south african mineral codes, collectively known as samcodes. The south african banking system is well developed and effectively regulated, comprising the south african reserve bank sarb, some large, financially strong banks and investment institutions and a number of smaller banks. Kumba iron ores massive operations in the northern cape include sishen mine and kolomela mine. A perspective on the south african mining industry in the.
Pdf key challenges facing the mining and minerals sector in. The south african mineral asset valuation samval working group za glossary of terms. South africas manufacturing industry south african market. It is the purpose of this paper to describe the current situation in south africa with regard to valuation of mineral properties, and to suggest a way forward. In june 2019 the manufacturing industry in south africa sold goods to the value of r203.
Set aside for research and to participate in international coordination. During transportation, disaggregation of diamondbearing peridotites yields several other minerals such as pyrope garnets, olivine, spinel, ilmenite, chromediopside and chromite. Fuer homepage valuation of metals and mining companies. A code for the valuation of mineral properties and projects. Worldcat is the worlds largest library catalog, helping you find library materials online.
The countrys stock exchange in johannesburg was established in 1887, a decade after the first diamonds were discovered on the banks of the orange river, and almost simultaneously with the gold rush on the worldfamous witwatersrand. Modern diamond mining started during the 1870s in south africa, following the discovery of the star of south africa diamond 83. The mining sector in south africa has an overall industry value of over r 450 billion, and accounts for approximately 60% of the countrys exports. The institute of mine surveyors is also actively involved with the education and training of mine surveyors and is affiliated to the international society for mine surveying ism and the south african geomatics council sagc which is our registration body. The current education model available to mine surveyors three distinct routes of qualifications have been developed since the original establishment. Read more invitation to present at or join the responsible raw materials online conference, 1115 may 2020. The paper draws on the experience of different south african centres in this regard. History of the south african coal mining industry 1.
Formats and editions of south african mine valuation. The south african code for the reporting of mineral asset valuation the samval code 2008 edition as amended july 2009 prepared by. The valuer must apply at least two 2 methods in the valuation report. It has been drawn up by the working group of the ssc committee under the joint auspices of the southern african institute of mining and metallurgy saimm and the geological society of south africa gssa. The south african gold mining sector is currently locked into existing mine designs and methods, which are producing at near full capacity. The south african council for the quantity surveying profession sacqsp psm 8 basic principles of property law in sa 2 of 50 organisational component 1. Introduction methods of investigation sampling underground sampling with special reference to gold reefs averaging of underground sampling diamonddrill sampling mass and mineral content of ore organization of a sample office working. South africa gdp from mining 19932019 data 20202022.
Through this, the mining industry remains a conduit of money and opportunity to some of the poorest areas in south africa. Chinese investment in south africa taung gold international. A code for the valuation of mineral properties and. Diamonds were later discovered in significant quantities in kimberlites in what was then known as the transvaal the cullinan mine in 1902 and venetia opened in 1992 and the finsch mine in the northern cape opened in 1978. Mining in south africa has major costs for many mineworkers, no less than 2,869 of whom have died in the mines over the past ten years while. In addition, the department of mineral resources has developed a beneficiation strategy for the south african minerals. Valuation of mineral properties at the exploration stage is an area where both valuators and users of valuations need to understand the challenges and uncertainties involved. During transportation, disaggregation of diamondbearing peridotites yields several other minerals such as pyrope garnets, olivine, spinel. In certain instances, the document did require amendment. Aug 16, 2012 south africa is a world leader in mining. Valuation of mineral exploration properties amc consultants. South africas mining industry south african market insights. All formats 12 book 2 print book 10 ebook 2 refine your search. The imval template is a standards and guidelines template created for the harmonisation of international mineral valuation codes and standards by an international committee comprised of representatives of samval south africa, cimval canada, valmin australasia, the sme valuation standards committee usa, and iima usa.
The paper takes the reader through different stages of metals and mining companies from mineral exploration to mine production and provides an overview of. The level of production was 1,3% lower in 2019 than 2018, which in. In cape town, the mission met with staff of petrosa, and with. South african and foreign mining companies investing in south africa, and which fits into the global standards that have been developed, while at the same time catering for local needs. The south african diamond and precious metals regulator sadpmr, established in terms of the diamonds act, 56 of 1986 and 29 of 2005 as amended, and the precious metals act, 37 of 2005. Mining project evaluation when you plan a new mine or investment, our worldwide team of multidisciplinary specialists can provide a comprehensive, integrated approach to your viability studies including scoping, feasibility and prefeasibility, due diligence. The mission also met with representatives of the national union of mine workers. Thus the manufacturing to total imports ratio is currently sitting at 1.
Sorting the wheat from the chaff can be challenging for nontechnical readers of such valuation. South africa is one of the most resourcerich countries in the world, and is a major global supplier of gold, platinum, diamonds, coal, iron ore, manganese and many other minerals. The country is famous for its abundance of mineral resources, accounting for a significant proportion of world production and reserves, and south african mining companies are key players in the global industry. Sensible valuation of mineral properties has become more critical through the current market cycle. Imssa textbooks the institute of mine surveyors of south africa.
The role of south african coal market plays globally 18 1. The south african diamond board ceased to exist on 30 june 2007 and the south african diamond and precious metals regulator came into effect on 1 july 2007. Gdp from mining in south africa increased to 227400. For a community of 5 million south africans, mining remains a principal ally against poverty the latest population census shows that one in seven african men with a formal sector job in 1996 was employed in the mining industry.
Arguably, productivity in the south african gold sector may be. The existing mining methods are cyclic, noncontinuous, and rely on equipment, such as scraper winches, that has limited capacity and efficiency. Reporting of exploration results, mineral resources and mineral reserves in south africa. Chinese investors have been steadily building their direct and indirect investments in south africa during the last decade. Legislative framework for mineral asset valuation in south africa. In real terms, the sectors value declined by 4 percent between 2007 and 2017.
The purpose of this paper is to find out which valuation methods are available for valuing metals and mining companies and explain why these companies are valued this way in practice. For practical purposes stone, marble and other quarries may be included in this list. Current status of coal mining in south africa 15 1. The south african mining and biodiversity forum has been initiated by the chamber of mines of south africa and the world conservation union in south africa to improve biodiversity management practices in the mining industry. Storrar, editor by, chamber of mines of south africa edition, in english. Mine valuation south africa mineral industries south africa. Economic activity in modernday south africa has been centred on mining activities, their ancillary services and supplies. We take a look at a few highlightslow lights of south africas mining industry as published by statistics south africa exactly a week after delegates closed the 26 th investing in african mining indaba, stats sa released data on the performance of the mining industry in 2019. Trade and industry, the department of mineral resources, the south african revenue service, statistics south africa, the south african diamond and precious metal regulator, and the state diamond trader. Nov 29, 2019 the imval template is a standards and guidelines template created for the harmonisation of international mineral valuation codes and standards by an international committee comprised of representatives of samval south africa, cimval canada, valmin australasia, the sme valuation standards committee usa, and iima usa. Showing all editions for south african mine valuation sort by.