The Sekhukhune District cuts across the north-eastern part of the Bushveld Complex, an immense geological structure that contains the largest reserves of platinum group metals (PGM) in the world. PGMs are a family of 6 metals – platinum, palladium, rhodium, iridium, osmium and ruthenium. The first three of these are the main metals used in catalysts. Nickel, chrome, vanadium, titanium, iron, copper, cobalt, granite and asbestos are some of the other deposits found in that belt.
Although statistics may vary, most would agree that mining is a key contributor to Sekhukhune’s GGP - and a sector with enormous potential for the immediate future. Modern mining has been practiced in Sekhukhune land for well over a century, and typically involved the exploitation of andalusite, asbestos, chromite and platinum deposits. What is striking about previous bouts of mining activity in the area, however, is how changing commodity prices affected the opening, closing and, occasionally, re-opening of mines. When prices rose, new exploration and development took place in the Sekhukhune mining sector. Conversely, when prices fell, mines in the area were forced to close.

(a) Current mining activities
Mining’s contribution to GGP in Sekhukhune is estimated at between 15 – 20%, depending on the source of the statistics. Within the District itself, the sector contributes most to the GGPs of Makhuduthamaga (22,8% in 2000), Fetakgomo (32,6% in 2000) and Tubatse (36,6% in 2000) (Goode, 2006). These figures are likely to have changed in recent years, however.
The major mining activity in the District occurs within the Dilokong Corridor, which stretches largely across Tubatse and Fetakgomo. Elias Motsoaledi, Makhuduthamaga and Marble Hall have relatively low levels of mining activities (GSDM, 2007a).
t is estimated that mining grew at an annual rate of 5, 4% from 1996 – 2001 (Goode, 2006), a comparatively high growth rate which bodes well for the future. According to the Department of Minerals and Energy, there were 17 operating mines in the Sekhukhune District area in 2006 (Goode, 2006). These include a significant number of platinum mines in the area.
The table below sets out the main existing (operating) and planned platinum mines in the District. Operating and projected platinum mines in/near Sekhukhune

In addition to the list above, there are also a number of other PGM prospects in or around the Sekhukhune District area.

(b) Prospects for the future
Much attention has been given recently to the anticipated platinum mining explosion in Sekhukhune. There are 3 areas where the new platinum mines will be concentrated:
√ The Lebowakgomo District (South).
√ Groblersdal – Cluff mining.
√ The Dilokong or Burgersfort/Steelpoort corridor (Techso, undated).
The Sekhukhune District recently commissioned an investigation into potential global demand for the key minerals found in its jurisdiction. The results are presented in the table below.

There are, in summary, a number of factors that could affect Sekhukhune’s mining industry negatively in the future. These include drops in global demands for the minerals produced in the area, continued water scarcity in Sekhukhune and the increasing mechanization of platinum mining in the future. The latter will affect the potential employment opportunities generated by the mining industry in Sekhukhune. All these externalities may impact on the viability of the mining sector in Sekhukhune, regardless of whether the area contains significant mineral deposits or not.

(c) Beneficiation opportunities and value chain analysis
It is important to note that PGM ores are low in value (possibly around 30 cents/kg). It is also difficult to extract the valuable metals from them without suitable and expensive equipment. Some estimates place the value of the ordinary (just mined) platinum ore atonly 13% of the refined material (Goode and Granville, 2006).
At present, there is no base-metal or platinum smelter in the Sekhukhune area. The nearest smelter is Amplats’ Polokwane Smelter. Recent research done for the District’s 2025 Strategy included interviews with key mining companies on the possibility of them building a smelter within the District. This was based on research projections that the total PGM production in Sekhukhune in 2015 would be 2,900,000 oz per annum – a figure that would justify the installation of a new smelter in the area (Goode and Granville, 2006). It would appear, however, that most mining companies were not planning to build a new smelter in the Sekhukhune area. The one possible expectation was Ridge Mining, which is currently considering building a new smelter at Sheba’s Ridge (within Elias Motsoaledi Municipality) (Goode and Granville, 2006). None of this has been decisively concluded, however.

(d) Job creation
Since the mid-1980s, the mining labour market has changed significantly as the sector has become more knowledge-intensive. As a result, overall mining employment has been decreasing gradually. Goode and Granville (2006) estimate that platinum mining in the SekhukhuneDistrict will generate the following jobs until 2015:

Goode and Granville (2006, op cit) also predict that employment in the mining and metallurgical industry in Sekhukhune will double by 2015. Their forecasting is captured below.

An eye on 2015
Production of Platinum Group Metals (PGMs) in Sekhukhune will probably increase from 652,000 oz (2005) to 2,900,00 oz (2015)
By 2015, the Sekhukhune District area will be producing 22% of South Africa’s PGMs The capacity of chromite mines in Sekhukhune will probably increase by 150% by 2015 Vanadium mining in Sekhukhune will increase by 50% by 2015
Some opportunities, if carefully nurtured, exist for beneficiation within the Sekhukhune District itself Employment in the minerals industry in Sekhukhune may increase by 180% by 2015 (an additional 30,000 workers) Goode and Granville (2006)

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