Creamer Media’s Real Economy Year Book has been divided into separate reports under the banner Real Economy Insight, and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, manufacturing, pumps, coal, gold, iron-ore and platinum sectors. This five-page brief is a synopsis of key developments in the platinum sector over the past 12 months in South Africa, including the country’s major producers and mergers, as well as the outlook for the sector.

Creamer Media’s Real Economy Year Book has been divided into separate reports under the banner Real Economy Insight, and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, manufacturing, pumps, coal, gold, iron-ore and platinum sectors. This six-page brief is a synopsis of key developments in the coal sector over the past 12 months. It provides an overview of the global and South African coal markets, corporate activity in the sector and the role of coal in South Africa’s electricity generation.

It has been a difficult time to be a South African over the past few years and doubly so if you happen to be a South African businessperson. ​​​​​​​ Social cohesion has weakened, government has underperformed across all three spheres, unemployment and poverty remain at extreme levels, crime and violence are constant threats, the nation’s finances have become increasingly fragile, business confidence has all but flatlined and load-shedding has remained a real and present danger. What has worried business people the most, however, has been the poor performance of the economy, which, at best, has put a squeeze on profits and, at worst, resulted in confidence sapping business failures. This weakness was epitomised by South Africa’s alarming 3.2% economic contraction in the first quarter of this year and is also reflected in this year’s edition of the Real Economy Yearbook. Nevertheless, there are a few weak signals that reforms are under way, which, if strengthened, could improve the outlook materially and lift the mood.

It is no secret that South Africa’s construction sector is in an extremely perilous state. The decline in workflow and the squeeze on margins have left large and small construction companies struggling for survival. Some of the country’s biggest firms have applied for business rescue while others have sold or are planning to sell their South African general construction divisions to focus on global niche markets, such as mining, or infrastructure opportunities abroad. This unsupportive environment has been made all the more hostile, as several construction sites have become targets for criminality and violence. These difficulties are partially reflected in this Projects in Progress supplement, with very few new projects being featured. Amid the gloom, however, there are a few behind-the-scenes developments that, if successful, could offer hope.

The decision by number one iron-ore miner Vale, of Brazil, to halt 40‑million tonnes of production – equivalent to about one-tenth of its output – so that it can decommission tailings dams similar to the one that failed in January 2019, killing an estimated 300 people, will have major implications for the world’s iron-ore mining and steelmaking industries in the near term. Creamer Media’s Iron-Ore 2019 report provides an overview of the global iron-ore market currently, with particular emphasis on supply and demand, as well as trade and pricing. It also provides information on South Africa’s iron-ore market and its major producers, as well as an overview of the major global iron-ore producing companies and other significant producers.

Africa’s potential is immeasurable. While Africa initially gained a reputation for its gold and diamond resources, the African mining industry is now also being recognised for its copper, graphite, lithium, platinum group metals and potash resources. However, the continent is faced with a ‘resource curse’ – a term referring to an enduring theme of mining in Africa – the paradox of plenty, and how to manage it. This edition of Creamer Media’s Africa Mining Projects in Progress highlights some of the prospective projects on the continent that have been announced in some of these sectors, focusing on recent preliminary economic assessments, scoping, prefeasibility and definitive/bankable feasibility studies, as well as some of the projects that are already under way.

Canada is one of the leading mining countries and one of the largest producers of minerals and metals in the world. It produces about 60 different minerals and metals, and ranked in the top five countries in the global production of 13 major minerals and metals in 2017. Metals mines – such as those mining gold, copper, nickel and zinc – account for two-thirds of the value of major mining-related projects. In this inaugural edition of Creamer Media’s Canada Mining Projects in Progress, we present a selection of these mining projects announced over the past few months, including those in the preliminary economic assessment/scoping study phase, prefeasibility and bankable/definitive feasibility study phase.

Most of the high-economic diamond deposits in the world have been put into production or have even been depleted. Therefore, mining companies will either choose to expand their existing mines, which will impact on their economics, or acquire greenfield projects to maintain production. However, large-scale greenfield diamond projects have become a rare find and, as a result, miners are finding it difficult to replenish their depleting diamond resources. The potential impact of synthetic, or lab-grown, diamonds has attracted much interest, as they are almost indistinguishable from mined diamonds and are becoming cheaper to manufacture. Further, as a result of effective marketing by the lab-grown diamond industry, some consumers are willing to buy these diamonds, as many also consider them to be more environment-friendly and carry assurances that they are not conflict minerals. However, even though technology now allows for more gem-quality lab-grown diamonds to be produced, this still totals less than five‑million carats a year, compared with about 60‑million carats of gem-quality diamonds mined a year. Creamer Media’s Diamond 2018 report provides an overview of the world diamond market, including rough diamond production, supply and demand, imports and exports, and synthetic diamonds. The report emphasises diamond mining activities in South Africa over the past 12 months, and provides information on the country’s major and midtier diamond producers, junior diamond mining companies, explorers and developers.

Despite concerns about greenhouse-gas emissions, coal – which is used to generate about 37% of the world’s electricity and plays a crucial role in industries such as iron and steel manufacture – will continue to be a significant energy source for decades to come. South African coal producers are also benefiting, as strong demand from State-owned power utility Eskom and other local industrial customers competes against surging global demand. The commodity is the largest revenue generator in the country’s mining industry, earning about R131.40‑billion in 2017. It also contributes immensely to the fiscus in taxes and royalties and employs tens of thousands of people directly, with many more employed indirectly outside the sector. Despite its importance, South Africa’s coal mining sector faces several constraints that might impact on its sustainability and growth. In its Coal Strategy 2018, Minerals Council South Africa – formally the Chamber of Mines of South Africa – identifies the policy and regulatory environment, inadequate infrastructure, difficulties in accessing capital and land, and the challenges posed by technological advances as potential constraints to the sector. Creamer Media’s Coal 2018 report examines South Africa’s coal industry with regard to the business environment, the main participants, local demand, coal exports and coal logistics, projects being undertaken by the large and smaller participants, as well as various issues affecting the sector, including labour issues and environmental considerations.

South Africa’s gold production has plummeted 85% over the past four decades, with the country now ranked as the world’s eighth-biggest gold producer, according to information services firm Thomson Reuters’ GFMS Gold Survey 2018. The country’s gold mines are the deepest in the world and their depleting orebodies are becoming increasingly difficult to extract. Coupled with deteriorating safety standards, owing to the depth and complexity of these mines, and compounded by regulatory issues, the volatile rand is creating significant headwinds for all the country’s gold producers. To face some of these headwinds, local gold producers have been restrategising through the implementation of new technologies, while others downsize, cut lossmaking operations and/or strategise through acquisitions to cut costs and improve productivity. Creamer Media’s Gold 2018 report reviews the South African gold market in this context, with a particular focus on supply, labour challenges, the class law suits that some of the country’s major gold miners are facing, safety issues and prospects for the market. It also reviews the major and smaller mining companies with operations in South Africa.