Stone Quarrying Clay Sandpits Mining Phosphates South Africa

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Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019

Alex Conradie | South Africa | 13 December 2019

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017

Alex Conradie | South Africa | 19 September 2017

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015

Glynis Harrison | South Africa | 12 May 2015

Introduction

During 2018, 87.7 million tons (Mt) of locally produced quarry products, with a value of R9.5bn, were sold in South Africa, according to the Department of Mineral Resources and Energy (DMRE). In addition, the country exported 425.1 kilotons (kt) of quarry products worth US$60.3m, as per figures obtained from the International Trade Centre’s Trade Map. South Africa produced 2.1Mt of phosphate rock in 2018, making the country the 14th largest producer, according to the United States Geological Survey (USGS), while Trade Map data shows that 606.1kt of phosphate rock worth US$88.9m were exported in 2018. The most important challenges facing the quarrying sector are low activity levels in the construction sector, as well as rapidly rising input costs, which is also an issue negatively affecting the phosphate rock mining sector.

Strengths

• Adequate reserves of aggregate and sand are generally available in most areas of the country.
• Large, well-established companies are operating in the quarrying and phosphate rock mining sectors.
• South Africa was the world’s 14th largest producer of phosphate rock in 2018.
• South Africa’s phosphate rock reserves are the sixth largest in the world.

Weaknesses

• Demand for quarry products is heavily reliant on the construction industry, whose health is determined by the state of the economy, and investment in major infrastructure developments.
• Shortage of skills in certain disciplines.

Opportunities

• Government’s plan to speed up on-budget infrastructure projects should lead to higher demand for quarry products.
• Increasing demand for fertilisers to boost crop production in order to feed a growing world population should boost demand for phosphate rock.
• South Africa’s output and exports of phosphate rock will increase once the Elandsfontein mine comes into production.

Threats

• Continuing uncertainty regarding South Africa’s mining regulatory framework.
• Possible delays in government’s infrastructure spending.
• Rapidly increasing production costs, in particular electricity, water and labour costs.
• Weak economic growth.

Outlook

Quarrying\r\nInfrastructure developer and construction materials supplier Raubex Group stated in its latest annual report that it expected the challenging conditions in the construction sector to persist, while cement, aggregate and limestone producer PPC observed an increase in residential developments. Andries van Heerden, CEO of construction materials producer Afrimat, is of the opinion there are still “pockets of opportunity”, and that aggregate producers need to find and make use of these opportunities.\r\n\r\nPhosphate rock\r\nThe World Bank expects phosphate rock prices to increase to US$92/t in 2020, and US$98/t in 2022, from the level of US$77.5/t in October 2019. According to Kropz, global demand for phosphate rock is forecast to rise to 297Mt in 2035 from 213Mt in 2017.

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019

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Industry Landscape

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Industry Organogram

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Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017-09-19

R 1 900.00(ZAR) estimated $104.50 (USD)*

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Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015-05-12

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		PAGE
1.	INTRODUCTION	4
2.	DESCRIPTION OF THE INDUSTRY	4
2.1.	Industry Value Chain	4
2.2.	Geographic Position	6
3.	SIZE OF THE INDUSTRY	8
4.	STATE OF THE INDUSTRY	10
4.1.	Local	10
4.1.1.	Trade	12
4.1.2.	Corporate Actions	15
4.1.3.	Regulations	16
4.1.4.	Enterprise Development and Social Economic Development	19
4.2.	Continental	20
4.3.	International	21
5.	INFLUENCING FACTORS	25
5.1.	Economic Environment	25
5.2.	Environmental Concerns	26
5.3.	Labour	27
5.4.	Technology, Research and Development (R&D) and Innovation	29
6.	COMPETITION	30
6.1.	Barriers to Entry	31
7.	SWOT ANALYSIS	31
8.	OUTLOOK	32
9.	INDUSTRY ASSOCIATIONS	32
10.	REFERENCES	33
10.1.	Publications	33
10.2.	Websites	33
	APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS	35
	Stone Quarrying, Clay & Sandpits	35
	Mining of Phosphates	38
	COMPANY PROFILES – STONE QUARRYING, CLAY & SANDPITS	39
	AFRIMAT LTD	39
	AFRISAM (SOUTH AFRICA) (PTY) LTD	45
	ATTACLAY (PTY) LTD	50
	BRIKOR LTD	52
	COROBRIK (PTY) LTD	56
	DANGOTE CEMENT SOUTH AFRICA (PTY) LTD	60
	DENRON QUARRIES (PTY) LTD	62
	DRIFT SUPERSAND (PTY) LTD	64
	EAGLE GRANITE (PTY) LTD	66
	G AND W BASE AND INDUSTRIAL MINERALS (PTY) LTD	67
	LAFARGE MINING SOUTH AFRICA (PTY) LTD	69
	MARLIN HOLDINGS (PTY) LTD	72
	MAXIMA SILICA (PTY) LTD	75
	PPC LTD	77
	R E D GRANITI SA (PTY) LTD	82
	RAUBEX GROUP LTD	84
	SILICA QUARTZ (PTY) LTD	89
	SOUTH COAST STONE CRUSHERS (PTY) LTD	91
	THABA CHUEU MINING (PTY) LTD	93
	W G WEARNE LTD	95
	COMPANY PROFILES - MINING OF PHOSPHATES	98
	FOSKOR (PTY) LTD	98
	GECKO FERT (PTY) LTD	102
	KROPZ PLC	103

Report coverage

The report on Stone Quarrying, Clay and Sandpits examines current conditions, developments and investments as well as factors that influence the success of the sector. The report profiles 20 companies ranging from major players to smaller role players such as Attaclay (Pty) Ltd, which has one clay mine in Gauteng, and Silica Quartz (Pty) Ltd which mines one silica sand quarry in Mpumalanga. Also profiled is Brikor Ltd which went into provisional liquidation in 2103 and is currently selling off a number of assets.

Report coverage

Introduction

This report focuses on the quarrying sector in South Africa, which covers the mining of aggregate, clay, natural sand, dimension stone and limestone. 92.2 million tonnes (Mt) of products, to the value of R9.4bn, was sold locally during 2016 according to the Department of Mineral Resources (DMR), while information on the International Trade Centre’s Trade Map website shows that exports of quarry products in 2016 amounted to 386,332t, earning US$61.5m. The DMR lists 881 quarrying operations and the Mining Qualifications Authority (MQA) reported that 13,162 people were employed by the sector in 2016. The most important challenges facing the quarrying sector are policy and regulatory uncertainty, low activity levels in the construction sector, and rapidly rising input costs.

Strengths

• South Africa contains large reserves of the minerals produced by the local quarrying sector.
• While there are many small quarry operations, the few large companies operating in the sector are well-established.

Weaknesses

• Dependent on the construction and building sectors, whose health is determined by the state of the economy, and investment in major infrastructure developments.

Opportunities

• Government’s plan to spend R987.4bn on infrastructure between 2016 and 2019.
• The adoption of more cost- and environmentally efficient technologies.

Threats

• A weak economy.
• Possible delays in government’s infrastructure spending.
• Rapidly increasing production costs.
• South Africa’s mining regulatory framework is complex and contains many uncertainties.

Outlook

According to the South African Forum of Civil Engineering Contractors the outlook for the construction sector in 2017 remains negative since higher investment levels are currently inhibited by weak economic growth, low investor confidence, political and policy uncertainty, and a decrease in infrastructure spending by the government and State-owned enterprises. The outlook for 2018 and 2019 is largely dependent on increased government expenditure and an improvement in private sector spending. However, Andries van Heerden, Afrimat’s CEO, said in June 2017, “If companies position themselves correctly on product quality, price and service delivery, they should be able to make a decent return for shareholders.”

Full Report

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Industry Landscape

R 1 330.00(ZAR) estimated $ 73.15 (USD)*

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Historical Reports

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019-12-13

R 1 900.00(ZAR) estimated $104.50 (USD)*

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Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015-05-12

R 1 900.00(ZAR) estimated $104.50 (USD)*

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[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	2
2.2.	Geographic Position	3
3.	SIZE OF THE INDUSTRY	3
4.	STATE OF THE INDUSTRY	7
4.1.	Local	7
4.1.1.	Corporate Actions	12
4.1.2.	Regulations	13
4.1.3.	Enterprise Development and Social Economic Development	17
4.2.	Continental	18
4.3.	International	18
5.	INFLUENCING FACTORS	20
5.1.	State of the Construction Industry	20
5.2.	Economic Environment	21
5.3.	Environmental Concerns	21
5.4.	Labour	22
5.5.	Technology, Research and Development (R&D) and Innovation	24
6.	COMPETITION	25
6.1.	Barriers to Entry	26
7.	SWOT ANALYSIS	26
8.	OUTLOOK	27
9.	INDUSTRY ASSOCIATIONS	27
10.	REFERENCES	28
10.1.	Publications	28
10.2.	Websites	28
	APPENDIX 1 - THE SILICA ROCK SECTOR	30
	I. SILICA ROCK, SILICA SAND AND SILICA CHIP	30
	II. SILICON METAL	33
	III. FERROSILICON	36
	IV. SILICA FUME (MICROSILICA)	39
	V. SILICON CARBIDE	41
	VI. GLASS	44
	VII. ELECTRODE PASTE	44
	COMPANY PROFILES	47
	AFRIMAT LTD	47
	AFRISAM (SOUTH AFRICA) (PTY) LTD	54
	ATTACLAY (PTY) LTD	59
	BRIKOR LTD	61
	COROBRIK (PTY) LTD	64
	DANGOTE CEMENT SOUTH AFRICA (PTY) LTD	68
	DENRON QUARRIES (PTY) LTD	70
	DRIFT SUPERSAND (PTY) LTD	72
	EAGLE GRANITE (PTY) LTD	74
	G AND W BASE AND INDUSTRIAL MINERALS (PTY) LTD	75
	LAFARGE MINING SOUTH AFRICA (PTY) LTD	77
	MARLIN HOLDINGS (PTY) LTD	80
	MAXIMA SILICA (PTY) LTD	82
	PPC LTD	84
	R E D GRANITI SA (PTY) LTD	89
	RAUBEX GROUP LTD	91
	SILICA QUARTZ (PTY) LTD	95
	SOUTH COAST STONE CRUSHERS (PTY) LTD	97
	THABA CHUEU MINING (PTY) LTD	99
	W G WEARNE LTD	101

Report Coverage

The report on the Quarrying sector describes the current market, outlines developments within the sector and focuses on factors influencing the success of the local industry. The report also profiles 14 South African-based companies, ranging from Denron Quarries (Pty) Ltd in the Western Cape, which employs 34 people at its three aggregates quarries, to major player Afrisam (South Africa) (Pty) Ltd, which operates six cement production facilities, nine cement depots, 16 quarries and aggregate operations, 40 readymix concrete plants and one slagment plant.\r\n

Introduction

This report focuses on the quarrying sector which includes stone, clay and sandpit quarrying and the quarrying of dimension stone and limestone. The Department of Mineral Resources (DMR) lists 701 quarrying operations, 580 of which are operations involved in the quarrying of aggregates and natural sand. The aggregate and sand sector employs approximately 7,500 people and the most recent figures available from the DMR and the Chamber of Mines set the 2012 value of aggregate and sand production of 53 million tons (mt) at R4.5bn.

Strengths

• There are large and varied supplies of mineral resources available.
• While there are many small-scale quarry operations, the few large companies invested in the sector are mature and well-capitalised.

Weaknesses

• Dependent on the construction and building sectors, which in turn are dependent on the economy, and investment in major infrastructure developments.
• In the residential market, the industry does not have sufficient influence over the efficiency with which approvals are managed by local authorities.

Opportunities

• Expansion into sub-Saharan Africa where growth of 4.5% is expected for 2015.
• The adoption of more cost- and environmentally efficient technologies.
• The excess capacity in the cement and aggregate sector places the industry in a good position as spending on infrastructure increases and the economy improves.
• The inclusion of building and construction materials in the Dti’s set of product designations for local procurement by the public sector.

Threats

• Electricity supply constraints.
• Further delays in Government’s infrastructure spend and a slowing economy.
• Possibility of strikes.
• Unfavourable conditions introduced by new and amended legislation with concerns focusing on new B-BBEE targets, the relationship of non-compliance to the cancellation of mining rights and the re-classification of quarries as manufacturing operations.

Outlook

Despite locally manufactured building and construction materials being designated as items to be procured by the public sector in the 2015 Ipap, there is still concern that Government’s R847bn infrastructure spend will not happen as quickly as is needed to stimulate economic growth. Stakeholders emphasised that because demand for aggregates and sand is linked to demand from the civil construction industry, expected slow domestic economic growth will have a negative effect on the sector. This will be compounded by the inconsistent, unreliable electricity supply, which according to a presentation to Parliament, costs the economy between R20bn and R80bn per month. Uncertainty with regards to legislation and particularly the SARS draft interpretation note where quarries are classified as manufacturing rather than mining operations have serious implications for the sector. \r\n\r\nDespite the IMF’s forecast for economic growth in sub-Saharan Africa having been trimmed to 4.5% in 2015 and 5.1% in 2016 due to lower oil and commodity prices, local companies are turning their attention to this region. Here there is “massive construction activity in cities and emerging urban areas. A growing population, increased income levels and economic growth have created more demand for residential and commercial property” and is creating opportunities for South African quarry operators.

Full Report

R 1 900.00(ZAR) estimated $104.50 (USD)*

Buy Now +

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.15 (USD)*

Buy Now +

Industry Organogram

R 450.00(ZAR) estimated $ 24.75 (USD)*

Buy Now Add to Cart

Historical Reports

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019-12-13

R 1 900.00(ZAR) estimated $104.50 (USD)*

View Report Add to Cart

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017-09-19

R 1 900.00(ZAR) estimated $104.50 (USD)*

View Report Add to Cart

[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	3
2.2.	Geographic Position	5
3.	SIZE OF THE INDUSTRY	6
4.	STATE OF THE INDUSTRY	9
4.1.	Local	9
4.1.1.	Corporate Actions	11
4.1.2.	Regulations	12
4.2.	Enterprise Development and Social Economic Development	14
4.3.	Continental	15
4.4.	International	16
5.	INFLUENCING FACTORS	17
5.1.	Government Intervention	17
5.2.	Economic Environment	18
5.3.	Rising Input Costs	19
5.4.	Labour	20
5.5.	Technology and Environmental Concerns	21
6.	COMPETITION	22
6.1.	Barriers to Entry	22
6.2.	Research and Development (R&D) and Innovation	23
7.	SWOT ANALYSIS	23
8.	OUTLOOK	24
9.	INDUSTRY ASSOCIATIONS	25
10.	REFERENCES	25
10.1.	Publications	25
10.2.	Websites	26
	ORGANOGRAM	27
	COMPANY PROFILES	29
	AFRICAN SLATE QUARRIES (PTY) LTD	29
	AFRIMAT LTD	31
	AFRISAM (SOUTH AFRICA) (PTY) LTD	37
	DENRON QUARRIES (PTY) LTD	42
	KEELEY GRANITE (PTY) LTD	44
	LAFARGE MINING SOUTH AFRICA (PTY) LTD	46
	MARLIN HOLDINGS (PTY) LTD	49
	PPC LIME LTD	51
	PPC LTD	53
	RAUBEX GROUP LTD	60
	RED GRANITI SA (PTY) LTD	65
	SOUTH COAST STONE CRUSHERS (PTY) LTD	67
	WEST END CLAYBRICK (PTY) LTD	69
	WG WEARNE LTD	71

Stone Quarrying Clay Sandpits Mining Phosphates South Africa

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015

Report Info

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Industry Organogram Industry organograms are a graphic presentation of ownership of both listed and unlisted significant players in each industry with focus of those industries where more than one company has common shareholders.

Historical Reports

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017-09-19

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015-05-12

Table of Contents

Report coverage

Report coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019-12-13

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2015-05-12

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Industry Organogram Industry organograms are a graphic presentation of ownership of both listed and unlisted significant players in each industry with focus of those industries where more than one company has common shareholders.

Historical Reports

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2019-12-13

Stone Quarrying, Clay, Sandpits, and Mining of Phosphates in South Africa 2017-09-19

Table of Contents

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