MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA

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MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
MINING
FOR SCHOOLS

ECONOMIC
GEOGRAPHY:
GOLD MINING IN
SOUTH AFRICA
MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
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

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MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
MINING
                                 FOR SCHOOLS

                                 SECTION   G1

Rand Refinery Limited

                        PAGE 2
MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
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
MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
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
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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
MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
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
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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
MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
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
MINING FOR SCHOOLS ECONOMIC GEOGRAPHY: GOLD MINING IN SOUTH AFRICA
MINING
                                             FOR SCHOOLS

                                             SECTION   G2

Harmony Gold Ming Company Limited

                                    PAGE 9
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
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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

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                                 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

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                                                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
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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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