Platinum production to treble in 2015 - report

EMPLOYMENT in Greater Sekhukhune’s mining and metallurgical industry is expected to increase by 180 % in 2015.

The Greater Sekhukhune 2025 Growth and Development Strategy report indicates that extraction of minerals such as platinum and vanadium was set to spiral out in the district in the next seven years.

Greater Sekhukhune is situated in the Eastern Limb of the Bushveld Complex, which is rich in platinum deposits.

The report forecasts that the district will be producing 22% of Platinum Group Minerals (PGMs) by 2015, a 7% increase from 2005.

Employment in the mining and metallurgical industry stood at 17 050 in 2005, and is expected to increase to 40 300 in 2010 and reach a peak of 47 500 in 2015.

Platinum accounts for 80% of the total mining employment in Greater Sekhukhune.

Vanadium demand, according to the report, will increase as a result of growth in the steel industry. Vanadium supply from Greater Sekhukhune is expected to increase by 50%.

The Greater Sekhukhune 2025 Growth and Development Strategy report however points out that there are challenges that stymie mining development and have to be overcome.

Those impediments are:

• Shortage of bulk water supply.

• Limited housing stock for mine employees and associated infrastructure in development nodes. Slow delivery of both is identified as a major risk to mines’ ability to recruit and retain skilled technical as well as managerial staff.

• Exploration work on the southern parts of the Eastern Limb tends to be carried out by small and medium companies who apply an outsourcing business model and lack the capacity to train staff or self-provide infrastructure. There is a risk that such companies will be less involved with Greater Sekhukhune District Municipality (GSDM) and local municipalities, have a limited impact on Integrated Development Programmes (IDPs) and consequently fail to specify their infrastructure requirements to public authorities.

Water shortage is however not a permanent problem. The completion of the R9-billion De Hoop dam in 2010 will unlock many opportunities for industrial development especially mining.