MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
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CONTENTS SECTION G1 2 SECTION G5 28 What is gold? 3 Why gold mining matters 29 The discovery of gold What makes gold special? 4 Factors that favour and hinder gold 31 was a turning point in Uses of gold 5 mining in South Africa South African history, The Krugerrand 8 Safety and health 33 and South Africa’s total Environment 35 SECTION G2 9 gold reserves remain Environment and legacy issues 37 Where gold is currently mined 10 some of the world’s Gold mining technology 39 Major South African gold mining 14 most valuable. companies Modernisation 41 Quotes about gold 43 SECTION G3 15 Fun facts about gold 44 The gold mining life cycle 16 SECTION G6 45 Gold mining in South Africa SECTION G4 20 continues to be a major Terms and definitions 46 People of gold 21 contributor to the economy and the establishment of the Jobs in gold mining 25 nation’s infrastructure. Brief history of gold mining in South Africa 26 PAGE 1
SECTION G1 WHAT IS GOLD? Gold is a metallic element with the atomic number 79 and the chemical symbol Au. Au comes The name gold comes from the Latin aurum, which from an Old English word means ‘shining dawn’. meaning yellow. In Xhosa On the periodic table of elements, gold is referred to as a ‘transition metal’ and is also and Zulu, the precious one of the so-called precious metals. Transition metal is known as igolide. metals are special in that they are usually shiny, are conductive and malleable, and have a tendency to form compounds. Even though we use the metric system, the weight of gold is often reported in troy ounces (1 troy ounce = 31.1034768 grams). When consumers buy gold they do so according to its ‘purity’, which is measured in karats. It is believed that this measure comes from the word carob, because the seeds of the carob tree were apparently used to balance scales in ancient gold markets. Today, karats refers to the percentage of gold in an object – 24 karats = 100% gold, and Rand Refinery Limited 18 karats = 75% gold. PAGE 3
SECTION G1 WHAT MAKES GOLD SPECIAL? Gold, a naturally occurring metal, Not only is gold often used in implants (in stents or pacemakers, for example) because has been used throughout history of its anti-bacterial properties, but gold to symbolise wealth, power, compounds may also be used in drugs. These accomplishment and beauty, have been used as anti-inflammatories for the and as an enduring form of treatment of rheumatoid arthritis, and more recently researchers have found that gold has currency. Gold was used as early the potential for treating HIV and even cancer. as 6000 BC, mainly for its beauty And, the beauty fraternity has found its (rather and symbolism. expensive) value for the rejuvenation of aging or sun-damaged skin. Gold has many unique qualities. Gold has superior electrical and thermal conductivity, You can even eat gold! Pure gold – in leaf, flakes which means it easily allows the transport of an or dust – has been used by renowned chefs to electric charge and quickly conducts thermal add a touch of glamour to food and drink. Gold energy. It also has infrared reflectivity, which is inert so it passes safely through the body. means it reflects infrared radiation. It does not react with air, water and most other substances, so won’t corrode or tarnish. Gold combines well with other metals to form an alloy. Gold is also ductile (can be stretched AngloGold Ashanti Limited into a wire) and is malleable (can be flattened by hammering or rolling). PAGE 4
SECTION G1 USES OF GOLD Throughout history gold has been highly sought-after, revered and cherished. More than that, it is used for a myriad of applications and remains one of the most sought-after precious metals found on the planet. Gold is highly prized not only for its natural beauty but for its rarity, usefulness and versatility, and can be found in almost every JEWELLERY sphere of modern life. Gold’s many, and diverse, The use of gold in making jewellery dates back properties – some of which are unique to gold to around 6,000 years ago. Egyptian pharaoh – make it an indispensable and vital component Tutankhamun’s famous burial mask was made in various fields. Traditionally gold has been from gold. Approximately 78% of the total gold used to make coins, bullion and jewellery, but in mined each year is made into jewellery as it recent times it has been used in a variety of less is very easy to work, can be drawn into wires, typical ways. hammered into thin sheets, melted and cast into shapes, is tarnish resistant, has a very high lustre and a desirable yellow colour. Jewellery is still the most common way gold reaches consumers. PAGE 5
SECTION G1 USES OF GOLD (CONTINUED) FINANCES AND INVESTING DENTISTRY AND MEDICINE Throughout history, gold has been seen as Gold has been used in dentistry since a symbol of wealth and used for financial 700 BC. It is chemically inert, easy to insert transactions. The first purely gold coins are and non-allergenic in nature and therefore believed to have been manufactured in the Asia highly suitable for fillings, crowns, bridges Minor kingdom of Lydia in 560 BC. This tradition and orthodontic appliances. The gold used in continues today and gold is still the most dentistry is predominantly white gold, usually popular precious metal for investments. 15 karat or higher, or a gold alloy. One of the most common ways to hold or Gold is also used in medicine in salt or invest in gold is in gold coins, gold bars, or radioisotope forms which are taken orally or via gold bullion. South Africa’s Krugerrand is the injection to alleviate certain conditions including world’s most widely-held and actively-traded severe rheumatoid arthritis and tuberculosis. gold bullion coin, developed by the country’s Small amounts of gold isotopes are used in the AEROSPACE then Chamber of Mines. The first 22 karat gold diagnosis and treatment of certain illnesses. In Gold plays a vital role in the aerospace industry Krugerrand was minted on 3 July 1967. lagophthalmos, a condition characterised by where consistent and effective technologies a person’s inability to close their eyes, a small are key to survival. Gold is used to lubricate amount of gold is planted in the upper eyelid various mechanical parts, in circuitry to conduct to help the person close their eyes. The gold electricity and to coat the insides of spacecraft isotope, gold-198, is used in the treatment to protect people inside from infrared radiation of cancer. and heat. PAGE 6
SECTION G1 USES OF GOLD (CONTINUED) ELECTRONICS RECOGNITION Gold is a dependable, highly-efficient conductor The unparalleled beautify and qualities of gold Gold is and connector, and it does not corrode making make it one of the highest status symbols. We it perfect for use in circuitry. A small amount is use gold for our most noteworthy objects: even used found in almost all electronic devices, including wedding rings, Olympic medals, religious icons cell phones, televisions, calculators and global and Oscars. in making positioning system (GPS) units. Rapid accurate transmission of digital information is vital in today’s world and gold, as an efficient and reliable conductor, is often energy- found in desktop and laptop computers to efficient glass for facilitate accurate transmission of digital data at remarkable speeds. multi-storey buildings. PAGE 7
SECTION G1 THE KRUGERRAND The Krugerrand is the The Krugerrand was the world’s first ounce- denominated gold coin. Although Krugerrands world’s most widely- are actually legal tender, their value has never held and actively-traded been displayed on the coin. This is because the value of each coin is linked to the prevailing gold bullion coin. It was gold price. developed in the 1960s by The first 22 karat gold Krugerrand was the then Chamber of Mines minted on 3 July 1967. Since that time more than 60 million Krugerrands in all sizes have of South Africa, working been minted. closely with the South In 1980, the fractional Krugerrands (½ oz, ¼ oz African Reserve Bank and and 1/10 oz) were added to the 1oz Krugerrand so the smaller buyer could buy gold at an the South African Mint. affordable price. Unusual for gold coins at the time, the Krugerrand could be converted into any currency. The Krugerrand was the first legal tender gold bullion coin to gain worldwide use in the modern era. PAGE 8
SECTION G2 WHERE GOLD IS CURRENTLY MINED North West Province 4 4 Kalgold Gauteng North West 3 2 1 West Rand Doornkop Free State 2 Evander Moab Khotsong (Cooke) Rand Uranium Kopanang (including Great Tau Lekoa Noligwa) 3 TauTona (including Savuka) South Africa Driefontein Kloof South Deep Mponeng Kusasalethu Target 1 Tshepong Phakisa Masimong Free State 1 Bambanani Legend Unisel AngloGold Ashanti Pan African Resources Harmony Village Beatrix Sibanye Defunct operations Gold Fields Joel Note: Most mining companies have surface and retreatment plants in the vicinity of their mining operations PAGE 10
SECTION G2 WHERE GOLD IS CURRENTLY MINED (CONTINUED) GEOLOGY northern and western margins of this basin, but not in a continuous band. South Africa’s gold ore reserves in The Witwatersrand Basin is covered by younger the Witwatersrand Basin, a gold sedimentary and volcanic rocks such as placer deposit, with gold hosted by those making up the Ventersdorp and Karoo conglomerates and grits, has been Supergroups. The underlying sedimentary rock mined for more than 100 years has been laid down over a period which ended but remains the greatest unmined about 2,700 million years ago, when widespread faulting resulted in extensive lava flows covering source of gold in the world. the Witwatersrand Basin. The Witwatersrand is underlain by an The gold was embedded in a conglomerate and, underground geological formation also known at first, it was assumed that this was alluvial as the Witwatersrand Basin. It lies on the gold in an old riverbed. It was then found that Kaapvaal Craton, and is one of the world’s the conglomerate, or conglomeratic zone, was largest gold placer deposits. This elliptical part of a sedimentary succession. It was traced basin stretches over an arc of roughly 400km east and westward for a continuous distance of traversing across the Free State, North West and 50km and became known as the Central Rand AngloGold Ashanti Limited Gauteng provinces. Gold occurs only along the Gold Field. PAGE 11
SECTION G2 WHERE GOLD IS CURRENTLY MINED (CONTINUED) WITWATERSRAND BASIN Johannesburg Dome Johannesburg EAST RAND “The underlying GOLDFIELD Carletonville WEST RAND EVANDER sedimentary rock GOLDFIELDS GOLDFIELDS has been laid down FAR WEST RAND GOLDFIELDS over a period which Potchefstroom SOUTH RAND GOLDFIELDS ended about 2,700 Vredefort Dome years ago, when widespread faulting Key resulted in extensive Central Rand Group West Rand Group lava flows covering the Welkom FREE STATE GOLDFIELDS Basement Granite Witwatersrand Basin.” Faults Towns 0 40 km PAGE 12
SECTION G2 WHERE GOLD IS CURRENTLY MINED (CONTINUED) The gold in the Witwatersrand Basin occurs conglomerates or reefs are generally tabular in the coarse grained conglomerates forming with varying dips. Most of the Wits basin the upper portions of the ‘Witwatersrand is covered by later stage sediments of the Supergroup’ that hosts roughly 7,000m of Ventersdorp and Karoo groups, with the sedimentation. It is found here in association Wits outcropping in Johannesburg, which with uranium, quartz, carbon seams, started the Wits gold rush over a 100 years phyllosilicates and pyrite. ago and resulted in formation of the city of Johannesburg. After over 100 years of mining on the Kaapvaal Craton, operations in this area have reached South Africa does have other smaller gold depths of 4,000m. At this depth, the natural producers outside of the Witwatersrand, in rock temperatures reach about 50°C and the the form of Archaean greenstone belts. The virgin vertical rock pressures of the order of main gold producing greenstone belts are the Barberton greenstone belt and the Kraaipan 100 MPa provide an indication of the enormity greenstone belt. The Barberton greenstone belt of the challenges facing mining. is situated in Mpumalanga province, just north The Wits sedimentary basin is massive and of Swaziland. The Kraaipan belt is located west stretches through an arc of approximately of Johannesburg, near Kuruman. Other smaller Harmony Gold Mining Company Limited 400km across the Free State, North West belts exist in the Limpopo Province, but have and Gauteng provinces. The gold-bearing been worked sporadically. PAGE 13
SECTION G2 MAJOR SOUTH AFRICAN GOLD MINING COMPANIES For many years until This was the boom period for The following major South African gold mining companies each own a number of mines: South African gold mining with 2006, South Africa was production peaking in 1970 at the world’s dominant more than 1,000 tonnes and gold producer. More the gold price reaching $850/oz AngloGold Ashanti Gold Fields Harmony recently, other countries in 1980. Limited Limited Gold Mining Company Limited have surpassed South Top 10 global gold producers – 2017 – metric tonnes Africa, although none has approached the country’s 426 peak production which Pan African Resources Sibanye Stillwater Village Main Reef occurred in the 1970s. 295 271 These companies are all listed, which means 230 176 their shares are traded on an official stock 162 154 140 131 exchange. A listed company must adhere to 102 the listing requirements of that exchange. Many pension funds such as the Government Employees Pension Fund and private pension China Australia Russia United Canada Peru Indonesia South Mexico Ghana States Africa funds own shares in these companies, so indirectly many South Africans are part-owners. Source: GFMS, Thomson Reuters, US Global Investors PAGE 14
MINING FOR SCHOOLS SECTION G3 Sibanye Gold Limited PAGE 15
SECTION G3 THE GOLD MINING LIFE CYCLE STEP 1 (SURFACE): STEP 2 (SURFACE): STEP 3 (UNDERGROUND): EXPLORATION CONSTRUCTION GOING UNDERGROUND Prior to mining, exploration takes place to The mine site must be prepared for Miners, mining materials and equipment are find gold-bearing ore in commercially viable development. The headgear over the mine transported deep underground via the mine concentrations. Geochemical and geophysical shaft needs to be built and the shaft sunk cage in the vertical shaft, which can go to techniques are used to identify the presence of deep into the ground to transport people and depths of up to 3.5km below the surface. Open- a buried ore deposit. Geologists drill to check materials in and out of the mine. Other required pit gold mining also takes place in South Africa. mineral quality in identified locations. The South infrastructure includes structures for mining, This is a mining technique which excavates at African government regulates the mining licence milling and processing; and various workshops. the surface to extract ore. The mine is open to processes for exploration, mining, environmental the surface for the duration of its life. authorisations and water use. Note: Environmental management and rehabilitation take place at each stage of the mining process. AngloGold Ashanti Limited Sibanye Gold Limited Harmony Gold Mining Company Limited PAGE 16
SECTION G3 THE GOLD MINING LIFE CYCLE (CONTINUED) STEP 4 (UNDERGROUND): STEP 5 (UNDERGROUND): STEP 6 (UNDERGROUND): PLANNING DRILLING BLASTING AND HAULING Mine planning and on-reef development involves Once the stope face has been established and After the stope has been blasted, the rock establishing tunnels – haulages and cross-cuts – the gold-bearing reef exposed, drilling begins in broken in the blast (the gold-bearing ore) to open up the earth and the stope face so that preparation for blasting of the reef. is collected – this is called vamping and the gold-bearing reef can be accessed. sweeping – and transported to the shaft, via conveyors and underground locos, to be hoisted to surface. Note: Environmental management and rehabilitation take place at each stage of the mining process. Harmony Gold Mining Company Limited Harmony Gold Mining Company Limited Harmony Gold Mining Company Limited PAGE 17
SECTION G3 THE GOLD MINING LIFE CYCLE (CONTINUED) STEP 7 (SURFACE): STEP 8 (SURFACE): STEP 9 (SURFACE): TRANSPORTING CRUSHING PROCESSING The ore is hoisted to surface in the materials- The large pieces of ore (broken rock) are fed These sand-like particles are combined with handling shaft from where it is conveyed, either into a series of crushers and grinding mills to water to form a slurry to which additional by overland conveyor, surface rail or truck to the break down the ore into much smaller sized rock chemicals – cyanide and carbon – are added to crushing and milling circuits where the process so that the gold can be more easily extracted. facilitate dissolving the gold and help with its to extract the pure gold from the rock begins. At this stage of the process, the ore is ground extraction. The gold particles, extracted in this down to fine sand-like particles. process, attach themselves to the carbon. The next step in the process involves stripping the carbon from the gold. Most companies retreat Note: Environmental management and rehabilitation take place at each stage of the mining process. their slurry or ‘tailings’ for any remaining gold, * DRDGold is a world leader in surface gold tailings retreatment. uranium and sulphides*. Sibanye Gold Limited Sibanye Gold Limited DRDGOLD Limited PAGE 18
SECTION G3 THE GOLD MINING LIFE CYCLE (CONTINUED) STEP 10 (SURFACE): STEP 11 (SURFACE): STEP 12 (SURFACE): SMELTING REFINING CLOSURE AND REHABILITATION The gold obtained once the carbon has been The doré bars are sent to precious metal Once the gold reserve at a mine has been stripped away is then smelted, that is, heated at refineries for further processing and refining exhausted, the owner must close and extreme temperatures so that it liquefies, and is to a purity of at least 99.5% to meet the good rehabilitate the site. Underground tunnels poured to form doré bars. delivery quality standards set by the London are stabilised and entrances are sealed off. Bullion Market Association. Rehabilitation means the process of returning mined land to its pre-existing condition or to another agreed use. Note: Environmental management and rehabilitation take place at each stage of the mining process. Rand Refinery Limited AngloGold Ashanti Limited PAGE 19
MINING FOR SCHOOLS SECTION G4 Harmony Gold Mining Company Limited PAGE 20
SECTION G4 PEOPLE OF GOLD EMPLOYEE PROFILE The Department of Mineral Resources (DMR) Along with transformation of the employee and gold mining companies encourage women profile, the migrant labour system is also Although employment in South to be active at all levels in the industry. changing. South Africa’s gold mining industry Africa’s gold mining industry has The Mining Charter set a target of 10% for has always relied on migrant labour from other continued to decline since the women in core mining jobs and by 2018 overall South African provinces and neighbouring representation had reached 12%. AngloGold countries to supply labour in its often remote 1980s, the industry still employs Ashanti, Gold Fields, Harmony and Sibanye have locations. This did and can result in the some 101,000 people. all achieved this target. separation of families, often for extended Gold mining activities remain a mainstay of periods of time, which in turn can lead to social employment in many communities around the issues and the placing of huge responsibility on country, and it is estimated that every employee the women left behind. The industry is seeking in the gold sector supports between five and to provide a more stable environment for its 10 dependants. migrant workers. The employee profile of the gold mining In the past, migrant workers were industry is changing to reflect the people of accommodated in barrack-style hostels. The South Africa. The 2004 Mining Charter provided large South African gold producers have made a framework for the entry, at all levels, of significant progress in upgrading hostels and historically disadvantaged South Africans into converting them to single accommodation units the industry, including women. as well as providing family accommodation units and promoting home ownership options. The industry is also exploring alternatives to current labour practices and shift cycles, which Sibanye Gold Limited would enable employees to return home more frequently and for longer periods. PAGE 21
SECTION G4 PEOPLE OF GOLD (CONTINUED) KEY FIGURES IN THE SOUTH AFRICAN GOLD MINING INDUSTRY CECIL JOHN RHODES, THE PEOPLE OF MAPUNGUBWE ALFRED BEIT, BARNEY BARNATO One thousand years ago, Mapungubwe in South Rhodes, Beit and Barnato were entrepreneurs Africa’s Limpopo province was the centre of ready, willing and able to develop the fledgling the largest kingdom in the subcontinent, where South African gold mining industry. The a highly sophisticated people traded gold and discovery of diamonds at Kimberley in 1871 had ivory with China, India and Egypt from around GEORGE HARRISON already attracted substantial capital from British 1200 to 1300. The Mapungubwe people were and European banks to finance the emerging In 1886, Harrison discovered the main reef of ancestors of the Shona people of Zimbabwe and diamond mining houses created by these gold-bearing conglomerate on Langlaagte Farm grew to a population of around 5,000. ‘Randlords’, who eventually united to form near Johannesburg. It did not take long for De Beers Consolidated Mines. The Mapungubwe site was discovered in 1932 fortune-seekers from all over the world to flock and a rich collection of artifacts made of gold to the area though it would become apparent Rhodes founded Gold Fields of South Africa and other materials, as well as human remains, that considerable capital was required to in 1887. By 1933, seven mining houses had were uncovered. The most spectacular of the develop deep underground mines. been established and provided the foundations gold discoveries is a little gold rhinoceros, made of the South African gold industry which of gold foil and tacked with minute pins around has been described as the ‘flywheel’ of the a wooden core. country’s expansion. PAGE 22
SECTION G4 PEOPLE OF GOLD (CONTINUED) NELSON MANDELA Much has been written and said about Mandela’s life, especially as an anti-apartheid freedom fighter, prisoner, politician and statesman. However, it is not common knowledge that, as a young man of 22, he worked, albeit for a brief period in 1941, on one of Johannesburg’s most iconic mining operations, Crown Mines, on the Central Rand. JAMES MOTLATSI Motlatsi entered the mining industry in 1970 and soon became a personnel officer at an Anglo American gold mine in the Free State. SIR ERNEST OPPENHEIMER He was the founding president of The National Oppenheimer was the co-founder of the Anglo Union of Mineworkers (NUM) from 1982. After American Corporation with JP Morgan in 1917. stepping down from the post, he served as He had foreseen the potential in investing in a non-executive director, mostly as deputy gold mining on South Africa’s East Rand and chairman, at AngloGold Ashanti from 1998 – raised £1 million of capital from sources in 2011. His company acquired TEBA of which the UK and the United States, hence the he is executive chairman. He is currently also company name. chairman of Platfields Limited. PAGE 23
SECTION G4 PEOPLE OF GOLD (CONTINUED) GWEDE MANTASHE PATRICE MOTSEPE Long time trade unionist Mantashe served for Motsepe is a South African mining magnate. He 10 years as general secretary of the NUM from is the founder and executive chairman of African 1997 before becoming secretary general of the Rainbow Minerals (ARM), which has interests in ANC in 2007 where he is serving a second five- gold, ferrous metals, base metals and platinum. year term. He made history by becoming the He is also the non-executive chairman of first trade unionist to be appointed to the board Harmony Gold. of directors of a JSE listed company, Samancor, CYRIL RAMAPHOSA In 1994, Motsepe became the first black lawyer in 1995. He is now Minister of Mineral Resources. to be made a partner at the law firm Bowman Ramaphosa is President of South Africa and of Gilfillan, where he specialised in mining and its ruling party. He was the founding general business law before shifting to the mining secretary of the NUM in 1982. Originally a law industry. He started a contract mining operation student and, along with the NUM’s first union called Future Mining which provided various federation, linked to the black consciousness services to Vaal Reefs gold mine. Unable movement, he became part of the ANC’s to secure a loan, he ran his business from a congress movement when he was instrumental briefcase for the first eight months. Motsepe in the founding of COSATU in 1985. He led a formed ARM in 1997 and the rest is history. three-week gold mining wage strike of 250,000 workers in 1987. He was elected secretary general of the ANC in 2002, and led the constitutional negotiations for the ANC. He entered the business world in 1997 after failing to be elected to succeed Nelson Mandela as ANC president, and returned to politics in 2012. PAGE 24
SECTION G4 JOBS IN GOLD MINING The mining industry not only Employment fields within the industry are many and include engineering; geology; finance, contributes to vast economic auditing and accountancy; company secretarial; wealth, but also creates hundreds human resources; medical; environmental of thousands of mining jobs and science; and safety, among others. career paths. The gold mining There are several routes available to people industry currently employs some wishing to take up a career in gold mining. 101,000 people. The Mining Qualifications Authority (MQA) is a Sector Education and Training Authority (SETA) responsible for the administration of skills- development programmes for the mining and minerals sector in South Africa. Mining-related qualifications are offered at the universities of the Witwatersrand, Johannesburg, Pretoria and the Free State. In addition, gold mining companies also offer learnerships, bursaries and scholarships. Sibanye Gold Limited PAGE 25
SECTION G4 BRIEF HISTORY OF GOLD MINING IN SOUTH AFRICA INCLUDING MAJOR EVENTS 1873 First large-scale production began when 1898 Gold output soared to 118 tonnes making 1916 Compensation for pulmonary TB alluvial deposits were discovered at South Africa the world’s leading producer was introduced Pilgrim’s Rest 1899- Anglo-Boer/South African War, brought 1920 Rand Refinery started 1884 Gold was discovered in the Witwatersrand 1902 about to some extent by the struggle for which led to an influx of miners from control of the goldfields, caused extreme 1921- The Rand Rebellion/ Revolt saw white around the world disruptions in the mining industry, and at 1922 mine workers protest the industry’s attempt to replace semi-skilled white some stage, mines were closed men with cheap black labour leaving 1886 - First large gold mining company 1901 The Witwatersrand Native Labour about 200 people dead, more than 1,000 1900 established and the commencement of Association (Wenela) set up by gold miners the development and the population of injured, 15,000 men out of work and a as a recruiting agent for migrant workers Johannesburg increased ten-fold in just four slump in gold production. The government years. A new class, the Randlords, emerged 1904 64,000 Chinese indentured labourers came under pressure to protect skilled brought to work on mines to overcome white workers in mining and three Acts 1887 Africa’s largest stock market, the JSE, was the impasse in the gold industry after were passed that gave employment started specifically to fund the mining sector the War opportunities to whites and introduced a 1889 Chamber of Mines founded 1904- Deep-level mining progressed to reach plan for African segregation 1908 gold lower down in the ground 1925 1890 South Africa began to slow down in Establishment of Mine Rescue Services the 1880s, as the new deposits being 1910 Union of South Africa formed 1930s The great depression hit, but the gold found tended to be pyritic ore and gold could not be extracted from this 1910 Chinese indentured labourers repatriated industry avoided disaster. Employment and replaced by migrant black labour, grew and the industry boomed compound with any of the then available many recruited from neighbouring technologies. John Stewart MacArthur 1946 Gold was discovered in the Orange Free territories State using drilling at locations pin- and the Dingus brothers overcame this by suspending the crushed ore in a 1912 South Africa became the first state to pointed by new geological developments introduce compensation for silicosis as an cyanide solution. Separation of up to 96% occupational disease 1948 Apartheid legislated pure gold was achieved which led to an 1913 Mineworkers went on a strike to get 1960 Coalbrook mining disaster in which investment boom as larger gold mines 435 people died management to recognise union rights. were opened up The strike changed the nature of politics 1960 Racial turmoil led to the Sharpeville massacre 1894 Three gold mines established the Rand in South Africa and the state deemed it Mutual Assurance Company, a world necessary to ensure that mining production 1964 Establishment of Chamber of Mines’ pioneer in workmen’s compensation continued at all costs Research Organisation PAGE 26
SECTION G4 BRIEF HISTORY OF GOLD MINING IN SOUTH AFRICA (CONTINUED) INCLUDING MAJOR EVENTS 1968 Free gold market came into being 1994 South Africa held first democratic 1998 The Minerals and Mining Green Paper elections called for the mining industry to be Boom period for South African gold 1970s deracialised mining with production peaking at over 1994 A tailings dam at Harmony’s Merriespruit 1,000 tonnes mine overflowed killing 17 people and 2001 Solidarity established out of the old Durban strikes saw the resurgence of the damaging houses whites-only mineworkers’ union 1973 trade union activity that would culminate 1994 The Leon Commission of Inquiry set up to 2001 The Association of Mineworkers and in the formation of trade union federations examine occupational health and safety Construction Union (AMCU) officially that eventually helped dismantle apartheid registered as a union Discontent arising from new wage 1995 104 miners died at Anglo American’s 1973 Vaal Reefs mine when an underground 2002 The Mineral and Petroleum Resources scales and changed differential rates locomotive carriage fell into a lift shaft, Development Act provides for equitable of remuneration led to an outbreak of landing on the cage carrying the workers access to and sustainable development violence at Anglo American’s Western back to surface of South Africa’s mineral and petroleum Deep Levels and 11 miners were shot dead resources by police, and 27 injured 1996 The Mine Health And Safety Act introduced Federation of South African Trade Unions to address the issue of worker safety 2003 Milestones agreed upon for safety and 1979 health performance, elimination of silicosis (Fosatu) formed and noise-induced hearing loss (NIHL) The National Union Of Mineworkers (NUM) 1982 2003 First women employed in mining positions formed – the first black union in mining in 40 years 2004 Mining Charter came into effect NUM won collective bargaining rights from 1983 2005 Gold miners downed tools after wage the Chamber of Mines negotiations failed and over 100,000 Congress of South African Trade Unions 1985 miners went on strike (COSATU) formed 1986 COSATU recognised as the most 2011 South Africa’s mining industry is largest significant internal anti-apartheid force contributor to economic transformation The Kinross disaster saw 178 miners killed through widespread black economic 1986 empowerment transactions and 235 injured after an underground fire 1987 NUM organised a three-week strike 2016 Fatalities in the industry fall to lowest demanding increased wages, improved level ever hostels and the abolition of the migrant labour system of 360,000 mine workers 2017 1990 Nelson Mandela freed from prison 2018 Deterioration in safety trend industry-wide recommitment to safety PAGE 27
MINING FOR SCHOOLS SECTION G5 Harmony Gold Mining Company Limited PAGE 28
SECTION G5 WHY GOLD MINING MATTERS The gold mining industry However, the gold mining industry still benefits the economy and South Africa’s people in many ways: has played a significant role in the historical development of South Africa and continues to play an important It exported gold worth It produced some 132.2 tonnes of gold Gold sales amounted to some R69.9 billion role today, not only R35 billion in 2018 in 2018 in 2018 on a macro-economic level but on local and It currently employs Employment is provided community levels too. some 101,000 people, with The industry currently for workers from rural each employee supporting pays its employees some communities which in turn This is despite the country’s between five and 10 R26.5 billion in salaries results in the transfer of gold mining production having dependants and wages per annum funds back to these areas declined in recent years. PAGE 29
SECTION G5 WHY GOLD MINING MATTERS (CONTINUED) In the tax year 2017-2018, about R22 billion was paid in corporate taxes by the mining industry as a whole Dividends are paid to with some R590 million paid shareholders, between 25% in royalties by gold and 45% of whom are in and uranium producers South Africa The industry purchases goods and services which stimulates industrial production and the provision of services. Gold is used in other For example, gold mines South African industries The industry creates consume some 15% of such as refined gold and employment in other electricity generated in jewellery making industries South Africa Gold export earnings Gold mining has a role to have a positive impact on play in the development of the balance of payments, human resources (training) foreign reserves, monetary and infrastructure such as policy and on the level of Gold mining attracts foreign schools, colleges, clinics, business activity in the capital to the country, via DRDGOLD Limited roads and housing country the JSE or direct investment PAGE 30
SECTION G5 FACTORS THAT FAVOUR AND HINDER GOLD MINING IN SOUTH AFRICA FACTORS FAVOURING GOLD MINING IN SOUTH AFRICA • The industry has its own local refinery, the globally-recognised • South Africa’s gold region is well known Rand Refinery. Rand Refinery and well explored – knowledge of the area is the largest integrated single- is extensive site precious metals refining • Gold mining in South Africa is a well- and smelting complex in the established industry with technical skills world. Since 1920, it has refined nearly 50 000 tons of gold - • South Africa has large gold reserves and almost one third of all gold resources but accessing these will involve mined worldwide going even deeper underground. Mining companies invest heavily in innovation and skills training to build an even greater understanding of the resource base and how to mine it • South Africa has a well-developed infrastructure (roads and railway lines) which Sibanye Gold Limited assists mines to do business PAGE 31
SECTION G5 FACTORS THAT FAVOUR AND HINDER GOLD MINING IN SOUTH AFRICA (CONTINUED) FACTORS HINDERING GOLD • Lack of investment in mining and MINING IN SOUTH AFRICA emerging markets • Depth and temperature. South Africa’s gold • Skills shortages. The gold mining sector sector is a world leader in deep-level gold experiences a skills shortage, particularly of mining. Deep-level underground mining, mechanised mining skills. Skilled employees however, brings with it risks and hazards are essential to the sustainability of the gold which require constant commitment and mining industry. Training and development adherence to safety and health standards in the industry focuses on developing and procedures. High temperatures and high the scarce skills needed at mines and on humidity levels in some underground mines improving the employability of local residents create difficult working conditions and can decrease productivity • Costs in general are rising steadily, in particular the cost of mining at depth; salaries and wages; and electricity • Electricity and water supply. The industry has experienced costly electricity supply Harmony Gold Mining Company Limited constraints and water shortages PAGE 32
SECTION G5 SAFETY AND HEALTH SAFETY Falls of ground and accidents relating to transport and machinery are responsible Deep-level underground mining for most mine injuries. Fatalities due to falls requires unremitting commitment of ground (sudden and often unexpected and adherence to safety and movements of the underground rock mass health standards and procedures. accompanied by uncontrolled releases of debris and rock) have reduced by 93% over the past Much has been achieved in recent 20 years, due to improvements in rock years, with employers, labour and engineering techniques and other factors. government working together to Reasons for falls of ground remain the subject protect those at work underground. of further research as they are still a major cause AngloGold Ashanti Limited The industry is committed to a vision of zero harm, of fatalities. Money is invested in technological where every miner returns from work each day in developments, including initiatives such as good health. Policies, programmes and campaigns seismic monitoring and improved roof support Smoke inhalation may occur when an are in place at all mining companies to increase using bolting and netting. underground fire occurs. All employees have safety awareness and provide safety training. at their disposal self-contained self-rescue Transportation incidents tend to be associated equipment – essentially a breathing apparatus Sophisticated cooling methods and equipment with trackless mobile machines and rail-bound which provides at least 30 minutes of oxygen, reduce ambient temperatures to reasonable equipment, as well as collisions with people in while the individual makes his/her way to a working temperatures. To address the stresses confined areas or close to moving equipment. place of refuge. All underground working places to which rock faces are inevitably subject Progress has been made in the area of vehicle are equipped with refuge bays, which are at depth, a vast infrastructure of support avoidance systems. Initiatives are continuing to protected chambers located within 30 minutes mechanisms is in place, backed by world- look at best practice across the industry in an of all working places, and which are equipped leading seismic monitoring and research. attempt to reduce these accidents. with fresh air, water and communication devices. PAGE 33
SECTION G5 SAFETY AND HEALTH (CONTINUED) HEALTH sneezing or talking. It is particularly serious in South Africa, including in the mining industry. Tuberculosis (TB), HIV and People with silicosis are prone to contracting silicosis are all important health TB. Gold mining companies in South Africa issues in the gold mining industry. provide comprehensive detection and treatment Silicosis is an incurable lung disease suffered by services for employees. Increasingly, in joint underground gold miners due to exposure to efforts with government and unions, they silica dust which is found in gold ore bodies. The have been working together to address TB in industry, over the decades, has been seeking to mining towns. improve the effectiveness of underground dust Gold mining companies began providing management as knowledge and technology have improved. As a consequence, the incidence preventative services for HIV/Aids in the mid- of silicosis has reduced significantly. It is hoped 1980s when the disease first came to public that the time is not far off when new miners will attention. In South Africa, as TB is the main no longer become diagnosed with the disease. opportunistic disease experienced by people The industry is also working with government who are HIV-positive, the mines’ health facilities’ and organised labour to improve compensation TB work has been central to countering the for workers with silicosis. effects of HIV. Mining companies were, from TB is a major public health issue caused by 2002, the first in South Africa – some years poor socio-economic conditions such as areas before government – to offer comprehensive, Sibanye Gold Limited of poor ventilation and overcrowding which mass-based anti-retroviral therapy to HIV- causes it to be passed on through coughing, positive employees. PAGE 34
SECTION G5 ENVIRONMENT By its very nature, mining has AIR QUALITY MANAGEMENT an impact on the environment Several activities associated with the gold and so the industry faces many mining process can impact the air quality in and around operations, potentially also affecting environmental challenges. communities and habitats. These include mining A partnership between government, labour and ore processing activities, power generation representatives and mining companies with the as well as transportation. There are two types support of the Minerals Council South Africa, is of air quality impacts: airborne particulates or committed to constantly seeking new ways to gases from sources such as smelthouse and avoid, minimise or mitigate the negative impacts power generation stacks; or from sources of mining on the environment, and address such as unsealed access roads and tailings legacy issues, such as acid mine drainage. storage facilities. WATER USE Air quality control measures range from bag South Africa is a water scarce country and a filters to gas scrubbers for fixed point stacks, large volume of water is used for the mining to water irrigation or biodegradable chemical and processing of gold. Therefore, for many sealants for dirt roads and tailings facility years the gold mining industry has been using surfaces, to the vegetation of mine dumps. this scarce resource responsibly, lessening consumption by reusing and recycling water WASTE MANAGEMENT and aiming for zero discharge with the help of Effective waste management is a priority. DRDGOLD Limited water treatment plants. The gold mining industry endeavours to PAGE 35
SECTION G5 ENVIRONMENT (CONTINUED) reduce, reuse and recycle in an effort to move To mitigate this risk, biodiversity management MINE REHABILITATION towards zero waste and curtail our total mining plans are implemented at mining sites, through South African gold mining companies environmental footprint. Guidelines on mineral, mine closure plans, environmental management acknowledge that some aspects of their non-mineral and hazardous waste materials are plans or through specific biodiversity action operations alter the physical landscape included in environmental management systems plans. Plans can include anything from permanently. Once mining has come to an implemented at operations. establishing nurseries to cultivate species to end, land must be rehabilitated to assist its revegetate affected or remediated land, to ENERGY CONSUMPTION appropriate and productive use post-mining. Rehabilitation and closure are incorporated into working in partnership with conservation and AND CLIMATE CHANGE wildlife organisations to set aside and protect overall planning from initial concept stage and The gold mining industry has for many years areas of land which are rich in biodiversity or are during the life of mine. This includes ensuring been committed to becoming more energy home to species of flora or fauna of importance. that the necessary funding mechanisms efficient. The industry mostly consumes indirect for rehabilitation are in place. It is often the energy in the form of electricity purchased case that only a small proportion of the land from the national power utility, Eskom, which covered by a company’s mining rights has been is generated by coal-fired power stations. disturbed by mining. The industry invests time and expertise in formulating energy saving projects, not just LAND MANAGEMENT for cost reasons but also because of its desire AND BIODIVERSITY to reduce greenhouse gas emissions which When vegetation is removed during the contribute to climate change. Diversifying establishment of mining operations, it the energy mix is also part of the industry’s can destroy natural habitats and damage energy efficiency and climate change policy ecosystems, which can lead to the extinction of and strategy. plants and animals in the area. PAGE 36
SECTION G5 ENVIRONMENT AND LEGACY ISSUES Gold mining has released • Mine waste, known as tailings, can produce AMD when it comes into contact with contaminants into the environment water. Rain and surface water runoff from of the West and Central Rand for tailings dumps and ore stockpiles can also more than a century, creating a generate AMD. challenging legacy issue for South Community members may indirectly ingest Africa, the government and the AMD, by eating vegetables irrigated with the industry today. polluted water, meat from cattle that have drunk from local waterways, and fish from ACID MINE DRAINAGE contaminated bodies of water. Heavy metals Acid mine drainage (AMD) forms when water and radiation can contribute to immediate and oxygen combine with sulfide minerals to and long-term medical problems ranging produce highly acidic water. This water contains from asthma and skin rashes to damage to elevated concentrations of heavy metals, which the kidneys and the nervous system and an are in some cases radioactive. AMD comes from increased risk of cancer. two main sources: • Abandoned mine voids fill with groundwater AMD from flooded mines as well as runoff and or rainwater that reacts with unmined, seepage from waste dumps has contaminated underground ore to form AMD and may lakes and rivers in parts of the Witwatersrand. eventually decant at the surface. (When The polluted water decanted – reached the mines are active, water is continually pumped surface – for several years in the West Rand, out which helps prevent the accumulation beginning in 2002, and it has threatened to do DRDGOLD Limited and decanting of contaminated water.) the same in the Central Rand. PAGE 37
SECTION G5 ENVIRONMENT AND LEGACY ISSUES (CONTINUED) Much research has been undertaken in recent Dust from mine dumps can become a nuisance DRDGOLD Limited years to understand how this enormous water to communities, particularly during dry, windy resource can be turned to account in a country weather. Some communities have complained where water is such a scarce resource. Two of asthma and other breathing difficulties. This new government-led treatment plants have remains a challenge, particularly as communities largely stemmed the flow of decant, although have typically been developed around ‘dams’, technical limitations have prevented the existing without observing regulations that prohibit facilities from treating the water sufficiently for construction within 500m of ‘dams’. discharge into the natural environment. In 2016, the government initiated a project to improve Dust control measures are used, such as the treatment process, and this is expected to irrigation and vegetation of the dams and dust be operational by 2020. fall-out is measured and monitored. Particularly problematic are the ‘dams’ that were deposited There is no doubt that more needs to be done many decades ago, before modern deposition and industry and community involvement are and rehabilitation methods were put in place, essential to address the situation. and whose owners have long since disappeared. DUST Fortunately, a number of mining companies are The gold mining industry has resulted in more re-processing dumps, with many iconic dumps than 200 waste dumps – or tailings dams – in having disappeared from the Johannesburg the Johannesburg area, being deposited over skyline in recent years. Once the heavy metals more than 100 years of mining. In some cases, have been extracted from these dams, the these ‘dams’ contain elevated concentrations remaining material is redeposited in modern, of heavy metals. mega dumps. PAGE 38
SECTION G5 GOLD MINING TECHNOLOGY The application of mining New water-based emulsions can be loaded than R150 million on research, resulting in a quickly and safely into blast holes, to be greater understanding of seismicity, which has technology in South African detonated electronically from surface. led to better ways of mitigating and avoiding gold mining has two main aims: incidents. Many mines now have comprehensive Trains that haul broken rock are operated by an to assist the industry and its monitoring networks in place. electronic control system which incorporates employees to work safely and to remote sensing. ICE PLANTS UNDERGROUND work efficiently. SEISMIC MONITORING Virgin rock temperatures can reach up to A great deal of attention is currently being AND RESEARCH 60oC at the depths mined in the South focused by gold mining companies on the Seismicity occurs in the natural environment African gold mining industry. Sophisticated development of processes and technologies as the earth’s continental plates continually cooling methods and equipment, involving that will remove – as far as possible – individuals move but is intensified by deep-level mining. some of the largest refrigeration plants in from the rockface, in order to minimise the A seismic event in the mining context is known the world, use ice and chilled water to threat of injury. This technology includes as a rockburst. As the depth of mining increases, reduce ambient temperatures to reasonable remotely-controlled machines to mine narrow the stresses from the overhead rock mass working temperatures. veins. Such equipment is currently being tested. intensify. Mining also causes stresses in these DRILLING, BLASTING rock masses leading to a build-up of energy and SHAFT TECHNOLOGY then drastic release. AND HAULING Eight of the 10 deepest mines in the world are Hydro-powered rock drills are faster and quieter All seismic activity in South Africa is monitored gold mines in South Africa. AngloGold Ashanti’s than conventional drills powered by compressed and recorded by the Council for Geoscience, Mponeng gold mine, located south-west of air. Drillers spend less time at the rock face. In which is part of a global seismic monitoring Johannesburg, is currently the deepest mine in development ends, wholly-mechanised drills can network. In the past 20 years, the South the world. It extends over four kilometres below do the hard work. African gold mining industry has spent more the surface. PAGE 39
SECTION G5 GOLD MINING TECHNOLOGY (CONTINUED) Sinking shafts – or excavating a vertical or near-vertical tunnel from the top down – to such depths to access orebodies requires SELF-CONTAINED extraordinary expertise and knowledge. SELF-RESCUERS Shaft sinking is one of the most difficult of all Smoke inhalation may occur when development methods: restricted space, gravity, there is an underground fire and the groundwater and specialised procedures make ventilation infrastructure is unable to the task quite formidable. clear the working areas. All employees have at their disposal self-contained Where the shaft is to be used for hoisting it is self-rescue equipment – essentially frequently split into multiple compartments. a breathing apparatus that can be The largest compartment is typically used for donned and which provides at least the mine cage, a conveyance used for moving 30 minutes of oxygen, while the workers and supplies below the surface, which is individual makes his/her way to a suspended from the hoist on steel wire rope. place of refuge. All underground working places are also equipped Steel wire rope is a type of cable that gets its with refuge bays, which are protected strength and durability from its helix design, chambers located within 30 minutes which is achieved by twisting several strands of all working places, and which are of metal wire together. While a metal strand equipped with fresh air, water and may deteriorate, the load will still be supported communication devices. by the other strands in the cable. Wire ropes therefore provide greater peace of mind and Harmony Gold Mining Company Limited additional safety when handling a heavy load. PAGE 40
SECTION G5 MODERNISATION Most of South Africa’s deep- level underground gold mines are aging with travel times to the workface sometimes reaching an hour or more. With this increasing depth and distance from the shaft, time spent at the workface has reduced, resulting in shrinking production and mounting costs. Modernisation could save around Without a move to modernisation, the industry will fail to mine the country’s deep-level complex 200,000 jobs in orebodies safely and profitably. This could, in turn, the gold sector by result in premature mine closures and job losses. 2030, affecting Modernisation in the South African gold mining industry will also help to improve safety and 2,000,000 health, and achieve zero harm. It will also dependants. contribute to increased skills development. In prolonging the lives of mines, it will also contribute to employment, and exports AngloGold Ashanti Limited and revenue, and aid the socio-economic development of local communities. PAGE 41
SECTION G5 MODERNISATION (CONTINUED) Advanced orebody knowledge. The aim • RESEARCH AND DEVELOPMENT of this research area is to find ways of “seeing through the rock”, creating an THE WAY In part, modernisation will be driven by technological innovation, which in turn will accurate three-dimensional real-time model that can be used for real-time planning and FORWARD be driven by research and development design work. Detailed plans have been developed (R&D). To be successful, all elements of for modernising mining through a Real time information systems. This includes • mining need to be modernised. partnership between the public and digitisation, where technologies and systems private sector. The Minerals Council are developed to improve underground South Africa will participate actively in communication and data management. MODERNISATION INCLUDES the implementation of these plans. RESEARCH INTO: Mechanised and 24/7 mechanised mining • Mining companies have spent over • The human factor. This encompasses areas systems. The Minerals Council South Africa R500 million annually over the past such as accelerated skills development has identified the products, technologies, couple of years on innovation. The of local community employees and other people and infrastructure required to government has also allocated increased community-related issues. mechanise the stoping and development cycle funds in the national budget for R&D with remotely operated equipment by 2020. in the mining industry. To facilitate the Modernisation of mining operations • Similar requirements have been developed process of mining modernisation, the that cannot be mechanised. Systems to for a 24/7 mechanised mining system that Mandela Mining Precinct – a private- modernise current conventional mining operates without explosives by 2025. public partnership – has been set up operations, to make them safer, healthier, to coordinate R&D, mining equipment more productive and sustainable have been identified. manufacture and skills development. PAGE 42
SECTION G5 QUOTES ABOUT GOLD Anyone can find the dirt in True gold fears no fire. Let the efforts of us all, prove someone. Be the one that finds Chinese proverb that he [Martin Luther King] the gold. Everything has its limit – iron was not a mere dreamer Proverbs 11:27 ore cannot be educated into when he spoke of the beauty Praise, like gold and diamonds, owes its gold. of genuine brotherhood and value only to its scarcity. Mark Twain peace being more precious than Samuel Johnson diamonds or silver or gold. The desire of gold is not for gold. It is Nelson Mandela All that glisters is not gold. for the means of freedom and benefit. Ralph Waldo Emerson William Shakespeare Make new friends, but keep the old; It is health that is real wealth Those are silver, these are gold. and not pieces of gold and Joseph Parry silver. Mahatma Gandhi When taken for granted, gold in one’s hand is sometimes All that is gold does not glitter; not all considered like cheap copper – those who wander are lost; the old that is strong does not wither; deep roots so are people. are not reached by the frost. Ethiopian proverb John Ronald Reuel Tolkien PAGE 43
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