REPORT R49/2005

DOLOMITE AND LIMESTONE IN SOUTH AFRICA: SUPPLY AND DEMAND 2005

DIRECTORATE: MINERAL ECONOMICS

REPORT R49/2005

DOLOMITE AND LIMESTONE

IN SOUTH AFRICA: SUPPLY AND DEMAND

2005

DIRECTORATE: MINERAL ECONOMICS

Compiled by: VN Agnello

Issued by and obtainable from The Director: Mineral Economics, Mineralia Centre,

234 Visagie Street, Pretoria 0001, Private Bag X59, Pretoria 0001 Telephone (012) 317-8538, Telefax (012) 320-4327

Website: http://www.dme.gov.za

DEPARTMENT OF MINERALS AND ENERGY

Director-General Adv. S Nogxina

MINERAL POLICY AND PROMOTION BRANCH Deputy Director-General Mr. MA Mngomezulu

MINERAL PROMOTION CHIEF DIRECTORATE

Chief Director Vacant

DIRECTORATE MINERAL ECONOMICS

Director: Ms N. Van Averbeke

Deputy Director: Industrial Minerals Mr. JAG Duval

THIS IS THE FIRST EDITION, PUBLISHED IN OCTOBER 2005

WHEREAS THE GREATEST CARE HAS BEEN TAKEN IN THE COMPILATION OF THE

CONTENTS OF THIS PUBLICATION, THE DEPARTMENT OF MINERALS AND ENERGY DOES

NOT HOLD ITSELF RESPONSIBLE FOR ANY ERRORS OR OMISSIONS.

ISBN: 1-919927-20-4 COPYRIGHT RESERVED

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LIMESTONE & DOLOMITE Executive Summary

Share of industrial minerals sector ‘04

Production 27.5% Revenue 22.1%

Export Value 1.4%

Employment 7.1%

Remuneration 10.9%

Importance

Key Indicators ‘04 Market Cap. (R Bil.) 5.7 Reserve Base (Bt) 2.2

Production (Mt) 22.0

Total Sales (Mt) 17.7

Total Sales (R Bil.) 1.24 Exports (kt) < 17

Average LOM > 70

Average mine age 39

Growth (y-o-y), 2007 4.0%

Growth (y-o-y), 2010 5.0%

Markets ‘04

Fundamentals

R.S.A. – Limestone & dolomite (19.5 Mt)

1 Cement 58.3% 2 Aggregate 12.9%

3 Metallurgy 11.3% 4 Agriculture 6.1%

5 Lime manuf. 5.9%

6 Other 5.5%

R.S.A. – Lime (1.39 Mt)* 1 Iron & steel 50.5%2 Gold & uranium 15.0%3 Water treatment 11.3%

4 Ferro-alloys 7.9%

5 Construction 4.0%

6 Ca. carbide 3.9%

7 Pulp & paper 2.6%

8 Other 4.8%

Note: * Excludes imports & 2ndry lime manufacturers

Limestone is defined as a calcareous rock with a calcium carbonate content (CaCO3) of at least 70 percent. Pure dolomite contains 40-45 percent magnesium carbonate and 54-58 percent calcium carbonate. Limestone and dolomite products are used in five principal industries in South Africa: Cement manufacturing, metallurgy (steel refining), agriculture (fertilizers, fungicides, animal feed), aggregate and lime manufacture. Other uses include: construction (mortar, whitewash, building stone) and manufacturing (glass, water treatment, food and rayon processing, papermaking, leather, explosives, coal dusting, flue gas desulphu-risation, adhesives, insulation and pH control). As with most industrial minerals, carbonate value is dependent on the degree to which it may be purified, which determines the market it may serve. Colour, purity, hardness, sizing, uniformity and degree of calcining are some of the important properties to be considered when evaluating carbonate products and deposits. Good recovery rates, extensive mineral reserves and LOM plans, remotely located deposits, short-range selective mining, campaign mining, minimal overburden, good to excellent product specs, low effluent discharge, low to moderate rehabilitation costs and large-scale plant upgrades and retrofitting, epitomise the mine and plant aspects of local carbonate mining. The South African limestone and dolomite industry comprises 24 groups or controlling companies and 41 quarries – 27 limestone and 10 dolomite quarries, 4 operations mining limestone and dolomite, 4 major lime and 2 dolime manufacturers. Seven dolomite traders, 2 calcite traders and 3 operators extract calcitic material from up to 7 slimes dams, industrial waste dumps and by-product streams. South Africa’s share of the world lime and cement output is about 0,8% and 0,7% respectively. Unique characteristics of the South African limestone and lime market include the following: 1) Isolated large high-grade deposits of limestone; 2) cement production being the largest limestone consumer; 3) large changes in lime consumption patterns (shrinking gold, uranium and calcium carbide uses and an increase in the ferro-alloy and water treatment sectors); 4) the dominance of foreign companies in the local cement industry; and 5) the superior grade of local ground calcium carbonate (GCC) products. The latest technological developments have been

planned around rotary kilns fitted with preheaters, the further evolution of 4 and 5 stage precalciners, emission control systems, water effluent treatment, improvement of overall efficiency and the limitation of freight and energy costs. Strong competition exists in markets such as agricultural products (animal feed and soil remediants), aggregate and some filler and coating applications. Imports of high-grade dolomitic material are increasing (though off a low-base). The use of pozzolanic materials (fly ash and slag) in CEM II, III and V cement products has increased greatly in the last 4 years. Expected growth in the industry has been forecast at 4,0 % (in line with macro-economic growth), based on strong growth in the construction sector, aggregates and specific non-ferrous uses. Further contraction in lime consumption; and more strategic acquisitions (both locally and abroad) are expected in the carbonate industry. Several new growth markets include special cements, fire-retardants, admixtures, sealants, new concrete products, new water and effluent treatment recipes, coal dusting uses, glass manufacture and functional fillers. Through the investment of global cement companies in South Africa, there has been a strong improvement in quality control and safety implementation. Most of South Africa’s cement producers have attained ISO 9 000 and 14 000 compliancy. OHSAS 18001 and ISO 17 205 certification will be the next step for most producers. All smaller operations (< 200 kt p.a. production) view ISO compliancy as too expensive. Recycling, re-use, regenerating, substitutes (particularly fly-ash and other spent materials) and a greater efficiency regarding carbonate material consumption may dampen local demand in pelletising, water treatment, chemical manufacture and some non-ferrous uses. However, the overall industry risk, in terms of production factors, policy, strategy and positioning, remains low. Several empowerment companies and partnerships have been created in the last 2 years, particularly through employee shareholder benefits, buy-ins by large and small BEE companies and the separation of business units in some companies. Sustainable growth in the local carbonate industry is dependent on the development of niche markets and growth in both the national economy and end-consumer markets. External factors such as toll fees and high transport and energy costs remain a real concern to all producers.

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Aglime Agri Lime Ash Resources Cape Lime CNCI Consol FSSA G & W Base & Industrials H Pistorius & Co. Holcim Idwala Carbonates Idwala Lime Inca Mining Kalkor Lafarge Latilla Mineral Marketing

Lime-Chem Lime Sales Lyttelton Dolomite Marine Lime Micronized Products Natal Portland Cement P & B Limeworks PFG PPC Cement PPC Lime Omega Chemicals Oos Transvaal Kalkverskaffers Plaaslike Boeredienste SABS Slagment Syferfontein Calcite

ACKNOWLEDGEMENTS

A special thanks to all industry specialists, technical staff and mine, plant and marketing managers at the following companies and associations:

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TABLE OF CONTENTS Page

EXECUTIVE SUMMARY i

ACKNOWLEDGEMENTS ii

TABLE OF CONTENTS iii

NOMENCLATURE & ABBREVIATIONS v

DEFINITIONS vii

NOTES viii

1. INTRODUCTION 1

2. INDUSTRY FLOWCHART 2

3. INDUSTRY & COMPANY STRUCTURE 3

4. RAW MATERIAL 4

4.1 CARBONATE NOMENCLATURE / CLASSIFICATION 4

4.2 LIMESTONE DEPOSIT PREREQUISITES 5

4.3 GEOLOGICAL SETTING AND OCCURRENCES 6

4.4 RESERVES & RESOURCES 7

5. QUARRYING AND PROCESSING 9

5.1 QUARRY OPERATIONS 9

5.2 PROCESSING 9

6. PRODUCT OVERVIEW & APPLICATIONS 12

6.1 QUICKLIME 13

6.2 SLAKED LIME AND DOLIME 13

6.3 CEMENT 13

6.4 CONSTRUCTION 14

6.5 METALLURGY 15

6.6 REFRACTORIES 16

6.7 AGRICULTURE 16

6.8 CHEMICAL PRODUCTS 17

6.9 PAPER 18

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TABLE OF CONTENTS (CONTINUED)

6.10 ENVIRONMENTAL USES 18

6.11 GLASS 19

6.12 SUGAR REFINING 20

6.13 CERAMICS 20

6.14 ROCK DUST FOR MINES 20

6.15 FILLERS AND EXTENDERS 21

6.16 WATER TREATMENT 21

6.17 NANO-PRODUCTS 21

6.18 NICHE AND GROWTH MARKETS 21

7. CEMENT MANUFACTURE IN SOUTH AFRICA 23

7.1 CEMENT PROCESSING AND LOCAL FACILITIES 23

7.2 CEMENT COMPANY AND OWNERSHIP STRUCTURE 30

8. SUPPLY & DEMAND 31

8.1 SUPPLY 31

8.2 DEMAND 34

8.3 PRICES & SPHERE OF INFLUENCE 45

8.4 SUBSTITUTES 49

8.5 ADDITIONAL INDUSTRY TRENDS 50

9. LOGISTICS & TRANSPORT 51

10. EMPLOYMENT & REMUNERATION 52

11. ENVIRONMENTAL, HEALTH & SAFETY COMPLIANCE 53

12. THREATS, PROBLEMS & RISK IN THE INDUSTRY 54

13. CONCLUSIONS/ SUMMARY 55

14. ADDENDUMS 1 – 8 57

15. REFERENCES 66

v

NOMENCLATURE AND ABRREVIATIONS

AAC Autoclaved aerated concrete

ADTs Articulated dump trucks

BEE Black Economic Empowerment

Bil. Billion

BOF Basic-oxygen-furnace

C2S Dicalcium silicate (CaO)2SiO2

C3S Tricalcium silicate (CaO)3SiO2

C3A Tricalcium aluminate (CaO)3Al2O3

Ca Calcium

CaCO3 Calcium carbonate (whiting agent)

CaO Quicklime / lime

CCE Calcium content equivalent

cm Centimetre

CO2 Carbon dioxide

DME Department of Minerals and Energy

EMP Environmental Management Programme

FEL(s) Front-end loader(s)

FGD Flue gas desulphurisation

FOB Free on board

FOR Free on rail

FSSA Fertilizer Society of South Africa

GCC(s) Ground calcium carbonate(s)

GDP Gross Domestic Product

GFCF Gross Fixed Capital Formation

GGBS Ground-granulated blast furnace slag

H2O Water

ISO International Organization for Standardization

Kg Kilogram

Kt Kiloton (1000 tons)

L Litre

LOI Loss on ignition

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LOM Life of Mine

m/m Molecular weight per mol equivalent

ME Mineral Economics

MgCO3 Magnesium Carbonate

MgO Magnesia

MJ Mega Joule (1 Million Joules)

MPRD Act Mineral &Petroleum Resources Development Act

Mt Megaton (1 000 000 tons)

m.tpa Million tons per annum

Na Not available

Nm Nanometre (1x 10-9 metres)

NOSA National Occupational Safety Association

NPK Nitrogen, phosphorous and potash

OHSAS Occupational health and safety assessment series

p.a. Per annum

PCC Precipitated calcium carbonate

PROD. Production

Q1, Q2 1st Quarter, 2nd Quarter

R/t Rand per ton

R&D Research and development

R.S.A. Republic of South Africa

SABS South African Bureau of Standards

SANS South African National Standard

SARB South African Reserve Bank

SARS South African Revenue Service

t Tons (1 000 kg)

UK United Kingdom

µm Micron (1 x 10-6 metres)

y-o-y Year-on-year

°C Degrees Celsius

# Mesh

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DEFINITIONS Beneficiation refers to the removal of gangue minerals from carbonates; this would include sand, clay, free quartz and other opaque minerals. Campaign mining/ seasonal mining refers to the extraction and stockpiling of at least 6 months to 4 year’s production over a short period of time, often 1 - 6 weeks. Selective mining is the mining of specific layers for a particular application or product. Selective processing entails the separation of extracted products in the plant for specific end-uses.

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NOTES Average price is calculated as: total sales ÷ total volumes. Aglime refers explicitly to agricultural limestone and dolomite. The intended application

being as fertiliser, animal feed and/or soil conditioner. All local prices are FOR and exports FOB. Limestone is a calcareous rock in which the CaCO3 content exceeds 70%. Mondi refers to the Mondi Group, including Mondi Paper, Mondi Cartonboard & Mondi Kraft. Pozzolans are materials that, in the presence of free lime, have hydraulic cementitious pro-

perties, these include volcanic ashes, slag, fly ash, silica fume and calcined kaolin. Reserve bases have been calculated from local mine estimations and drilling programmes. Sappi refers to the Sappi Group, including Sappi Fine Papers and Sappi Kraft. A producer can have more than 1 operation or quarry. In the cement and aggregate sub-divisions, local sales are defined as sales within South Africa’s provinces, regional sales include sales to Namibia, Botswana, Lesotho and Swaziland, whilst exports pertain to sales beyond these SADC countries, i.e. West Africa, Indian Ocean Islands and other neighbouring African countries. The South African Bureau of Standards (SABS) provides services relating to the standardising and compliance of certain materials such as road and building lime, cement and concrete mixtures, pozzolanic binders, fertilisers and animal feed. These include: Extenders

1491-1 Portland cement extenders Part 1: Ground granulated blast-furnace slag 1491-2 Part 2: Fly ash 1491-3 Part 3: Silica fume 50413-1 Masonry cement Part 1: Composition, specifications & conformity criteria 50197-1* Cement Part 1: Composition, specifications & conformity criteria for common cement Lime

523 – Lime for use in buildings 524 – Lime for soil stabilisation Ready-mixed concrete

878 – Ready mixed concrete * Compulsory testing monitored by SABS Regulatory

1

Note: * Aragonite is a less abundant crystalline (orthorhombic) form of calcium carbonate. It slowly recrystallises to calcite (hexagonal structure) in the presence of water.

1. INTRODUCTION The terms lime and lime products refer to quicklime (CaO) and slaked lime (Ca(OH)2). The term lime is often incorrectly used to describe limestone products, such as agricultural limestone. Carbonate products can be divided into 3 primary minerals: limestone, dolomite and magnesite (Figure 1).

Figure 1: Primary carbonate products (Ca and Mg derivatives)

Dolomite and limestone are used commercially in unprocessed, ground, air-separated, precipitated and calcined forms. Quality considerations for stone products include their purity, colour (reflectance) and sizing (see Chapter 6: Product overview and applications). The local limestone and dolomite industry comprises 24 groups or controlling companies and 41 quarries. There are 27 limestone quarries, 10 dolomite quarries, 4 operations mining both limestone and dolomite, 4 major lime manufacturers and 2 dolime manufacturers. The local carbonate industry also includes dolomite traders and calcite traders and 3 operators that extract calcitic material from slimes dams, industrial waste dumps and by-product streams. The average mine has been operating for 39,2 years, whilst 11 quarries have been operating for more than 50 years and 8 for less than 20 years. Good recovery rates, extensive mineral reserves and LOM plans, remotely located deposits, short-range selective mining, campaign mining, some hand-sorting, minimal overburden, dry processing, average to excellent product specs, low effluent discharge and moderate rehabilitation costs epitomise the mine and plant aspects of local carbonate mining. The cement industry is the largest consumer of carbonates in South Africa. Cementitious products are derived from a blend of limestone, aggregate, sand, shale and silica; these products are used as masonry cements, ready mix cements, mortars and plasters in the construction industry. Other important uses of limestone are metallurgical applications (as a fluxing agent in steel making), the manufacture of lime, aggregate in construction and agricultural uses.

CALCITE* CaCO3

MAGNESITE MgCO3

DOLOMITE CaMg(CO3)2

2

Notes: II Needed in caprock/ silcrete removal and ore extraction X Interchangeable steps, sequence may vary. Y Includes micronising & nano-sizing Z Optional steps # Material is sold directly from primary &/or secondary crushing

2. INDUSTRY FLOWCHART

Flow diagram of carbonate industry in South Africa, mining to applications

Opencast Methods /

Slimes Reclamation

Principal Applications

ProductsMining / Beneficiation

Primary Crushing

Secondary Crushing

Drilling & BlastingII

ADTs FELs

Excavators

BaggingZ

Micronising, classifying & screeningxyz

CalciningZ

Tertiary Crushing/ MillingX

Aggregate#

Agricultural Lime

Calcined Grade

Quicklime

Hydrated / Slaked Lime

Filler Grade

Slurries

Powders

Micronised: -10µm, -5µm, -2µm

Nano-products: <1µm

GCCs

PCCs

Cement (59%)

Metallurgical (11%)

Agriculture (6%)

• Absorption, Binders, • Causticization, • Chemicals, • Dehydration, • Flocculation, Flux, • Food supplement, • Functional fillers, • Hydrolization, • Lubricants, & • Neutralization

Niche markets [ 6% ]

Major markets [ 94% ]

Construction (13%)

1

2

3 1

2

3

Route followed by all small & medium-scale operators Paper mills & refractory producers source most of their limestone locally & convert it into PCC & lime products on-site for internal consumption GCC, cement & lime operations may require blending silos, preheaters, cooling towers, storage silos, additional screening & sizing

Lime Manufacture (6%)

3

Notes: * Includes cement and lime manufacture ** This includes the only local GCC producer, Idwala Carbonates

27 quarries

10 quarries

4 plants / producers

3 plants / producers

4 quarries

> 10 slimes dams & discard dumps

10 production units 11 milling/ blending

plants 8 distribution depots

4 on-site processing, milling, hydrating &

slaking plants

1 stand-alone hydrating & fine milling operation

in Vereeniging

Lime manufacture

Flow diagram of company structure in the local carbonate industry, supply to

sales

3. INDUSTRY AND COMPANY STRUCTURE

> 7 dolomite & calcite importers. High-grade material < 50 kt p.a.

Other imports (SARS)

Producers Primary Consumers*

Lime producers

Processing

Limestone producers

Imported material

On-site processing & milling. Only a few producers do fine

milling & micronising**

High-grade calcitic material used in welding rods, pool gunniting, fillers and animal feed. Manufactured imports include white cements & refractory products.

Dolomite producers

Dolime producers

Mining both lime-stone & dolomite

2ndry recovery

Cement

Average mining operation Metallurgical

10 Suppliers (3 limestone, 3 dolomite, 2 selling both materials & 2 lime producers)

Agriculture

Fertiliser & pH balance: 16 Suppliers (9 limestone, 3 dolomite & 4 selling

both materials)

Feed-lime: 10 suppliers (8 limestone, 1 dolomite & 1 selling

both materials)

Aggregate

7 Suppliers (3 limestone, 3 dolomite & 1 selling both materials)

4

4.1 Limestone and Dolomite Nomenclature / Classification The origin of the mineral name calcite is from the Latin, calx or calcis, meaning lime. The mineral dolomite is named after Deodat Dolomieu (1750-1801), the French engineer and mineralogist. Over the years several commercial terms have evolved for calcite and dolomite (Table 1). Limestone and dolomite form in similar geological environments, either by biological or chemical precipitation or by the deposition and compaction of coral, plant and animal remnants on ocean and sea floors around the world. Both minerals are often closely associated in the field and are either precipitates or sedimentary rock composed of the mineral dolomite (calcium-magnesium carbonate) and/or calcite (calcium carbonate) along with small amounts of other minerals or impurities. Limestone makes up about 10 percent of the total volume of all sedimentary rocks. Travertine is a banded, compact limestone type formed by deposition from calcium rich ground or surface waters. Tufa is a porous or cellular variety of travertine. Limestone, calcite and dolomite are categorised as “Anhydrous Carbonates” (Dana Class 14) in the Dana Classification System, to which the reader is referred for detail about carbonate rock chemistry and nomenclature (Barthelmy D., 2000). Table 1 below includes some of the commercial terms used to describe these carbonate minerals.

Table 1: Industry-accepted, commercial calcite and dolomite terms

Calcite’s crystal structure is rhombohedral, unlike that of aragonite which is orthorhombic. Calcite includes common limestone, chalk, and marble. Calc-sinter and calc-tufa are loose or porous calcite varieties formed in caverns or wet grounds from calcareous deposits. Other commercial terms for calcite include: calc-spar and calcareous spar, lime white, marl, pearl white, oystershell white, whiting, travertine, pigment white 18, white earth, English white, Paris white and drop chalk.

Iceland spar is a transparent calcite, exhibiting strong double refraction and is known as doubly refracting spar. The purest material is found in Iceland.

Stalactites and stalagmites are a very pure form of calcite formed through the slow precipitation of limestone in caverns.

Dogtooth spar is a calcite with acute, pointed rhombohedral or scalenohedral crystals.

Argentine is a pearly lamellar calcite. Aphrite is foliated or chalk-like calcite. Other commercial terms for dolomite include: pear spar, rhomb spar, bitter spar & marble.

Source: Acito, A. (2002)

4. RAW MATERIAL

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Limestone may be crystalline, clastic, dense or granular depending on the method of formation. Chert or flint nodules are common in limestone layers and crystals of calcite, dolomite, quartz or barite may line small cavities in the rock. Eleven major limestone depositional types occur in nature, these include biosparites, micrites, biomicrites, reefs, algal, dolomites, chalks, marble, travertine and tufa. Other limestone classifications are based on average grain size (micro-, fine-, medium and coarse-grained deposits); micro-structures (allochems, matrices and cements); textural components (mudstone, wakestone, packstone, grainstone and boundstone); texture (compact, crystalline, earthy, saccharoidal, cherty, pisolitic, conglomeratic and unconsolidated) and principal impurities (carbon, sand, iron, clay silica and phosphorous content). Of practical importance is the classification of limestone, as defined by its Ca and Mg content, is as follows:

• Ultra-high calcium (>97% CaCO3) • High calcium, or chemical grade limestone (>95% CaCO3) • High purity limestone (>95% CaCO3 + MgCO3) • Calcitic limestone (<5% MgCO3) • Magnesian limestone (5-20% MgCO3) • Dolomitic limestone (20-40% MgCO3) • High magnesium dolomite (40-60% MgCO3) • Magnesite consists of > 46 % MgCO3, < 54% CaCO3

4.2 Limestone deposit prerequisites Several geological and processing prerequisites must be adhered to when assessing the quality of a limestone deposit, particularly if it is to be used in quicklime manufacture. These include:

a) strength and abrasion resistance, b) lack of impurities (trace elements, volatile components and heavy metals), c) resistance to thermal degradation (decrepitation & thermal cycling), d) strength and abrasion resistance of the quicklime, e) content of the CaCO3, MgCO3, f) reactivity of product, and g) rate of calcination

Further, the selected grade of processed limestone should be assessed in terms of particle size distribution, shape, clay particle contamination, surface cleanliness and consistency. Once these prerequisites have been satisfied, additional modifying factors must be considered to determine the economic viability of the deposit.

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4.3 Geological setting and occurrences Sedimentary carbonates constitute South Africa’s major resource of limestone and dolomite (Table 2 and Figure 2). Deposits of economic significance are hosted in five sedimentary units: (1) the Campbell Rand Subgroup and the Malmani Subgroup, the former in the Northern Cape Province, and the latter in the Gauteng, Limpopo, Mpumalanga and North West provinces, (2) the Mapumulo Group, outcropping at Marble Delta in southern KwaZulu-Natal, (3) the Nama Group in the Vanrhynsdorp area of the Western Cape, (4) the Malmesbury Group in the Western and Eastern Cape, (5) and the Tertiary and Quaternary coastal limestones along the Cape coast. Calcrete and dolocrete deposits are located in the arid regions of the country and provide important resources of low-grade material for both the cement manufacturing and agriculture industries. Travertine deposits are generally small, the exception being the deposit at Ulco in the Northern Cape Province.

Table 2: South Africa’s most significant carbonate occurrences Province District / City / Town Western Cape Vredendal, Piketberg-Saldanha-Riebeeck West, Bredasdorp-Heidelberg- Robertson KwaZulu-Natal Marble Delta Mpumalanga Marble Hall, Groblersdal Northern Cape Danielskuil-Lime Acres-Christiana-Taung, Richtersveld Eastern Cape Port Elizabeth-East London Free State Kroonstad, Welkom, Warden North West Lichtenburg-Zeerust-Mafikeng Limpopo Mokopane (Potgietersrus), Thabazimbi Gauteng Pretoria-Lyttleton-Meyerton-Mooiplaas, Vereeniging

Adapted from Martini, J.E.J. and Wilson, M.G.C. (1998) The largest limestone resources in South Africa occur in a relatively narrow 150-km long belt along the Northern Cape boundary. Along this travertine belt, several quarries are proximally located to the Kimberley-Postmasburg railway line. Large resources of high-grade limestone and dolomite occur in the Richtersveld (Northern Cape Province), but have not been exploited because of their remote location. Economically viable dolomite deposits are concentrated in the following regions: Piketberg-Vredendal-Swellendam district (Western Cape), Pretoria-Lyttleton-Meyerton area (Gauteng). Table 3 is a summary of all operating quarries, companies, farm names and districts in which these orebodies are found.

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Limestone deposits

Dolomite deposits

Adapted from Martini, J.E.J. and Wilson, M.G.C. (1998) 4.4 Reserves and Resources In terms of reserves, local carbonate deposits are extremely large. A reserve base of 2,17 Bt has been calculated for active carbonate operations in South Africa – these reserves are sufficient for a minimum of 77 years. Eleven medium to large-scale mines have LOM plans of over 100 years each. Several medium/high grade deposits have been prospected in KwaZulu-Natal, Limpopo province and the Western Cape, although continuity and consistency have not been determined.

Figure 2: Main occurrences of limestone and dolomite in South Africa

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Table 3: Carbonate districts and active mines in South Africa

REGION DISTRICT FARM PRODUCERS IN 2004 PRODUCTS & USES

Bredasdorp Karsrivier, Langefontein Aglime, Bontebok Limeworks

Robertson Kruispad, Noree 11 Cape Lime Riversdale Schoongelegen, Klein Soutpan Aglime Heidelberg Westfield 483 A Moodie Broers

Malmesbury Vledermuisdrift 398 Ongegund 508

Lime Sales PPC – Riebeeck

Piketberg Langefontein, Rietfontein 184 PPC – De Hoek

Vredendal Karoovlakte 299, Nuwedrift 450 Vaderlansche Rietkuil 308 Cape Lime

Western Cape

Vredenburg Kliprug 282, Yzterfontein, Middelpos Lime Sales, Marine Lime

Products: Dolomite, limestone & lime Uses: Cement, meta-llurgical, glass, aglime, animal feed, water treatment, whitewash, building lime & any other white lime applications.

KwaZulu-Natal Port Shepstone

2 & 21 Oribi Flats Le Joncquet, The Glen Simuma 11486, Eedeswold 5120

Idwala Carbonates Cimpor (NPC)

Products: Limestone & GCCs Uses: Cement & high-grade fillers (paper, paint & plastic)

Groblersdal Elandsdrif 8 JS Scherp Arabie 743 KS Loskop Noord 12 JS

Lime-Chem Lyttelton Dolomite

Products: Dolomite & limestone Uses: Aggregate, metallurgical & aglime Mpumalanga

Belfast Hartebeestspruit 361 JT Belfast Jade Mining Product: Limestone Uses: Ca-supplements

Postmasburg Ouplaas 304, Adams, Bowden, Carter Block 458, Kolbe, Shone, Smuts

PPC – Lime Acres Idwala Lime

Products: Limestone, lime & dolomite Uses: Cement, water treatment, chemicals, metallurgy, building. Northern Cape

Barkly West Die Puts NW 72, Lime 1 & 2 Bergville 216, Harrison Groot Rietfontein

Holcim SA Product: Limestone for cement

Bathurst Lombard’s Post Keeton’s Limeworks Product & Use: Aglime Eastern Cape Uitenhage Grassridge 224 JQ PPC – Grassridge Product: Limestone for cement Free State Viljoenskroon Vaalbrug Dolomiet 577 Plaaslike Boeredienste Product: Dolomite for aglime

Mankwe Kraalhoek 399 KQ Latilla Mineral Marketing Product: Limestone for aglime, fillers & animal feed

Christiana Kareepan 298 & 301 Grasland Ondernm. Product: Limestone for aglime

Groot Marico

Klipplaat 108, Slurry 96 Olievendraai 107, Rietvallei 102 Rhenosterfontein 304 JP Benadeplaats 93 JO Wageandrift 100 JO

PPC – Slurry Grasland Ondernm. G & W Base

Product & Use: Limestone in cement, aglime & fillers

Brits Border 187, Rooinek 190, Kalklaagte 213, Vogelfontein 191 PPC – Beestekraal

Ditsobotla Driefontein 46, Polfontein 47 Rietschraal 58 IO Springbokpan 58 & 61

Lafarge SA

North West

Lichtenburg Lovedale Townlands 27 IP Elandsfontein 34, Dudfield 35 IP

Holcim SA, Lafarge SA Grasland Ondernm.

Product: Limestone for cement

Thabazimbi

Pony 395 KQ, Parys 226 KP Amsterdam 277 KP Bethanie 218, Gansvley 240 Jakhalskraal 239 KP Schoongezicht 238 KP Tussenkomst 241 KP

PPC – Dwaalboom Stony Lime

Product: Limestone for cement, animal feed & aglime Limpopo

Province

Mokopane Calais 563 KS, Malgas 154 Singapore 585 KS

H Pistorius & Co. Inca Mining

Product & Use: Limestone in aglime, animal feed, fillers

Pretoria

Drooggegrond 380 JR Doornkloof 391 JR Mooiplaas 355 JR Schurweplaats 353

Lyttelton Dolomite PPC – Mooiplaas

Product & Use: Dolomite in water treatment, aglime, metal-lurgy, chemical & as aggregate.

Vereeniging Witkoppie 58 IR Slangfontein 372 IR Kumba – Glen Douglas

Product: Dolomite for aglime, aggregate, metallurgical & water treatment

Gauteng

Benoni Modderfontein IR 76 Ekhureleni Dolomite Product: Dolomite for aggregate, metallurgy

Adapted from Agnello V.N. (2004)

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5.1 Quarry operations The shallow lying and extensive nature of local carbonate deposits, are ideal for large-scale open-cast mining. Some of the deepest carbonate pits (in excess of 120 metres) have been quarried for more than 80 years. Only 4 producers extract ore from 3 or more pits simultaneously. Escalating production costs, especially fuel expenses; have forced all producers to continuously optimise their pit operations – either by reducing pit travel distances, narrowing benches, applying double-benching methods, using selective mining techniques, implementing contract-mining initiatives and using better blasting materials. Three producers reclaim residual limestone ‘fines’ from slime dams at paper mills, steel mills and ferrochrome plants. This inexpensive and effective way of minimising waste and creating a saleable product has proved mutually beneficial to both parties concerned. Wet winters in the Western Cape (June - September) and wet summers in the Highveld (November - March) complicate mining. Lime and cement producers cannot afford to implement campaign mining, as these plants require constant, homogenous feed throughout the year. Seasonal mining or campaign mining is practised at 3 operations – this is a growing trend, particularly amongst agricultural limestone producers where 3 months intense, high-volume production can sustain the operation for up to 4 years. Contract mining is also on the increase due to campaign mining initiatives. Overburden should not exceed 10 metres, with stripping ratios of 4:1 or less. The industry ‘overburden norm’ is less than 3 metres. Yields vary between 70 and 100 percent for carbonate operations, although 2 lime producers and 1 high-grade calcite producer have recoveries of less than 40 percent – this is attributed to excessive fines being generated in the crushing and handling process and ore dilution (dolomite and poor-grade limestone are interspersed with the ore). Several producers have looked at ways to extract value from tailing dumps and overburden: practical steps include the formation of aglime ponds and using overburden material for brick making. Selective mining may include the isolating of good carbonate pockets for marble and decorative stone processing and/ or other high-value product manufacture (e.g. unique filler applications). 5.2 Processing Limestone and dolomite is processed on-site or within 50 km of the mine. The complexity of the treatment sequence primarily depends on 1) the nature of the deposit and 2) the desired end-product. Process technologies are constantly evolving, not only to yield a cleaner product, but also to modify particular functional properties. Processing steps include altering such parameters as particle size and shape, whiteness, brightness and moisture.

5. QUARRYING AND PROCESSING

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Stone size reduction is done through crushers, impact and/or compression crushers. Impact crushers 1) have a lower capital cost, 2) produce more cubical particles and fines, and 3) require more electrical energy to operate. Most local operators do crushing in two or three stages (very few of which use grizzlies), with large primary crushers that can handle lump sizes of up to 0,5 metre in diameter. Secondary crushers reduce the coarse fraction from the primary crusher into a saleable product(s). Tertiary crushers ‘balance’ demand between the various sizes by crushing surplus quantities of feedstock into the required smaller sizes. Locally, tertiary crushers are only used by large-scale operations (>150 kt p.a.) or where specific, tailored products are needed. Crushers used in South Africa, include jaw-, gyratory- and cone-crushers. Finer fractions are produced with ball-, hammer- and impact mills. Several types of screens and classifiers are used to improve sizing and sorting of processed material. Inclined vibrating screens and air classifiers are the most commonly used types in South Africa. Further processing may include micronising, blending, nano-milling and bagging. The preparation of high-grade carbonates requires costly wet processing methods. Idwala Carbonates in Port Shepstone is the only operation using wet processing, and incorporates a unique reverse flotation system (designed and installed in the early 1980’s). No other local carbonate producer uses scrubbing or washing processes – water is only used to minimise dust levels. De-flaking screens are also uncommon in South Africa. Since coal is the only economically available kiln fuel in South Africa, lime producers have been constrained to using rotary kilns. The conversion of coal-fired kilns to accept scrap tyres, waste-derived fuels and other spent materials as an energy source, will replace a significant portion of the 1,2 Mt of coal used for kiln-firing in cement and lime manufacture. Due to the hydrating nature of quicklime, lime producers generally focus on high instant capacities, low production capacities (50-80% of installed capacity) and keep storage capacities to a minimum. Some of the cement companies are up to 30% under utilized – this is attributed to 1) vast extensions done in the early 1980’s in anticipation of the great construction boom and 2) the controlled reduction in output at inefficient plants. It is important to note that operations running at 80-85% capacity are considered to be in the ‘full capacity’ range, as this would include shutdowns, maintenance schedules and unexpected delays. Over the last 15 years, the implementation of the dry mortar system has revolutionized cement making – it has improved fuel efficiencies and requires less coal than the standard wet mortar system. Regarding kiln fuel, cement and lime manufacturers are slowly moving away from high-quality coals to lower quality coal and other organic materials. Cement and operational upgrades include: advanced pre-heater kilns; pre-heater retrofits and additional precalciners; water injection systems and bag filters instead of electrostatic precipitators; the installation of grate cooler and kiln off-gas systems; the use of closed water systems; value-based management initiatives; outsourcing of distribution logistics; uniform procurement systems; supply-chain optimisation; increased automation through software and hardware upgrades; real-time statistical analysis; and smart fleet management. Rising energy costs have been the greatest driver for improving rotary kiln and preheater technologies.

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A new technique for calcining limestone is fluidised bed calcination, whereby limestone is suspended on upward-blowing jets of air during the combustion process – the result is a turbulent mixing of gas and solids. The use of finely pulverised limestone fed into a flash calciner with adjoining short rotary kiln is also being researched. In South Africa the following extraction and beneficiation methods are being researched: (1) electrostatic and/or electromagnetic techniques to improve physical properties of low-grade carbonates and/or oxides; (2) the production of precipitated calcium carbonate (PCC) from impure CaO using the Calcitech method; and (3) the production of PCC and magnesia from dolomite using the Magnepro method.

Through the investment of international cement companies in South Africa, there has been a notable improvement in quality control and safety implementation at all local operations. Most of South Africa’s cement producers are focusing on (or have attained) full ISO 9 000 and 14 000 certification for all their business units, which includes real, implemented environmental management plans, detailed management structures and objectives, the assigning of competent persons, further expenditure on water effluent treatment, upgrading of kilns and milling plants to reduce energy consumption and the reduction of dust emissions and toxic air particulates, which includes kiln dust, free silica particles, COx, SOx, and NOx emissions. ISO 17 205 (a guide to developing and maintaining calibration procedures) and OHSAS 18 001 certification (occupational health and safety assessment series) are some of the new accreditations that cement producers are implementing.

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Other**3%

Coal dusting 1%Glass manuf.

1% Water treatment1%

Lime Manuf.6%

Agriculture 6%

Metallurgy* 11%

Cement 58%

Aggregate (Construction)

13%

A host of optical, refractory, chemical and physical properties determine the markets to which carbonates are suited. The most important specifications pertain to quality and consistency. Table 4 includes other important properties sought after in carbonate products.

Table 4: Important carbonate product characteristics

►► Purity ►► Moisture & LOI ►► Oil & moisture absorption ►► Friability ►► Trace elements ►► Hardness & abrasiveness ►► Residue % ►► Specific surface area ►► Whiteness & brightness ►► Bulk density ►► Particle size distribution ►► Particle shape & rheology

Products are intrinsically related to the deposit from which they are extracted. Thus, several carbonate producers have developed individual products to cater for specific client and industry needs (Addendum 1). Continuous research and development has allowed producers to launch tailored products to address particular needs in the industry. Local producers sell their products in bulk, powder or slurry form. In South Africa, carbonates are used in five principal applications: cement, metallurgical, agriculture, lime manufacture and construction (Figure 3). Smaller niche markets (<5 percent of total) include: fillers, refractories, paper pulping, chemical manufacture, sugar processing, paint and glass applications.

Figure 3: Primary markets, by volume, for all primary carbonates products consumed

in South Africa, 2004I

6. PRODUCT OVERVIEW AND APPLICATIONS

Notes: I Excludes all imports of dolomite and limestone (<160 kt), year totals: 19,52 Mt * Includes steel (10,4%), platinum (0,1%) and ferrochrome (0,8%) and refractory industries (0,03%) ** Includes fillers (0,6%), chemical manufacture (0,4%), paper pulping (0,3%), rayon processing, decorative stone products, putties and sealants Source Personal communication with mines

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6.1 Quicklime Limestone is converted to quicklime through calcining in rotary kilns. In the lime process, for every ton of saleable quicklime produced, about 2 tons of ‘pure’ limestone is consumed. Limestone consumption depends on the type of product, limestone purity, degree of calcining, water temperature and the quantity of waste products. Further, for every part lime produced, two parts carbon dioxide are produced (see reaction below). ‘Brown lime’ and ‘white lime’ have an available lime content (CaO) of 68 percent and 72 percent respectively. Limestone undergoes the following endothermic, chemical reaction in a heated kiln: CaCO3 + HEAT ⇔ CaO + 2CO2 Limestone (> 850°C) Lime Carbon dioxide The bulk density of lime is 1,1 g/cm3 and the degree of burning is described as ‘soft burned’, ‘medium burned’ or ‘hard burned’. Soft burned lime is the most reactive, and is difficult to produce because of the delicate balance that must be achieved: sufficient heat to drive off the CO2 without overheating and closing of the pore structures. Depending on the kiln age and design, between 200 kg (new kilns) and 350 kg (old kilns) of coal is required to produce one ton of lime. The quality of lime is determined by its physical properties, reactivity of the water, and chemical composition. 6.2 Slaked Lime and Dolime Through the addition of water under controlled conditions, quicklime can be converted into slaked lime. The exothermic chemical reactions is as follows: CaO + H2O ⇔ Ca(OH)2 + HEAT Lime Water Hydrated / slaked lime The hydration of calcium oxide occurs readily at atmospheric pressure. Magnesium oxide, however, requires a longer reaction time and/or high-pressure levels to completely hydrate. Slaked lime includes hydrated lime (dry calcium hydroxide powder), milk-of-lime or lime putty (dispersions of calcium hydroxide particles in water). Dolomitic limestone undergoes the following chemical reaction in a heated kiln: CaMg(CO3)2 + HEAT ⇔ CaO·MgO + 2CO2 Dolomite Dolime Carbon dioxide CaO·MgO + H2O ⇔ (Ca(OH)2·MgO) Dolime Water dolomitic hydrate 6.3 Cement In South Africa, the most important use of limestone is in Portland cement manufacture. In the manufacturing of cement, limestone must adhere to the following conditions: a CaCO3 content of at least 78 percent, MgCO3 content of below 5 percent, less than 1 percent chloride, manganese, titanium and phosphorus, and less than 0,6 percent combined alkalis (PCM, 2005). High magnesium content causes expansion after setting and reduced strengths.

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Source: Manning, D.A.C. (1995)

About of 1,3-1,9 tons of limestone is required to make 1 ton of clinker. Sintering this particular limestone with a mixture of various compounds or rocks, containing alumina, silica and iron oxide, produces cement. Other cement types include composites (cement with inert or pozzolanic mineral additions); masonry (highly workable cements that may contain air-entrainment agents); and calcium aluminate cements (cements with a high resistance to chemical attack, a quick setting time and good abrasive resistance). Cement is exceptionally fine – one kilogram of cement contains about 70 billion grains and can pass through a sieve capable of holding water. In the ternary diagram below (Figure 4), one can crudely estimate the proportions of limestone and shale required to make cement. In this particular example, a blend of 66 percent lime and 34 percent shale will give the required composition. Assuming that the shale volatile content is 10 percent and the limestone is pure calcium carbonate (i.e. calcite), the proportions of limestone and shale are corrected to 76 percent and 24 percent respectively. Correction must be made for the loss of carbon dioxide, water and other volatile components from the shale, so as to deduce the correct amount of limestone required. It is important to note that the cement compositions lie within the C3S-C2S-C3A triangle on the ternary diagram.

Figure 4: Basic ternary diagram of primary components for cement manufacture 6.4 Construction In construction, important parameters that govern the use of limestone aggregates are particle shape, crushing strength and hardness, durability and cost. Qualitative assessments for aggregate in concrete manufacture, are based on the following criteria: abrasion and polished stone values, particle shape (cubical versus flaky or elongated particles), water absorption (<2,5 percent), alkali reactivity, frost susceptibility, sizing and particle distribution, purity and a lack of clay, silt and dust. Other aggregate parameters that can affect the performance of cement include bulk density, surface texture, particle density,

Notes: CaO – Lime Al2O3 – Alumina SiO2 – Silica C2S – Dicalcium silicate (CaO)2SiO2 C3S – Tricalcium silicate (CaO)3SiO2 C3A – Tricalcium aluminate (CaO)3Al2O3

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drying shrinkage, thermal movement and fire resistance. Limestone and dolomite are proving to be more functional in the aggregate industry, as they tend to enhance the hydration process in concretes and produce a good cement-paste aggregate bond. For every cubic metre of concrete, 1,9 tons of aggregate (including sand) is consumed. Hydrated lime is used for plastering, due to its exceptional bright white colour. Hydrated lime and quicklime are used in sub-grade stabilization to stabilize fine-grained soils. In road base stabilization, lime improves the strength and consistency of aggregates; whilst in road paving, hydrated lime is used in hot mix asphalt to act as an anti-stripping agent. In asphalt mixes, lime improves adhesion and binding properties, reduces brittleness at low temperatures, improves resistance to fatigue and acts as an anti-oxidant. Dolomitic hydrated lime can be used as a white finishing lime with gauging plasters, without the need for soaking or slaking. Good-quality finishing limes have excellent plasticity, tight bonding and allow for smooth troweling. Lime permits a thin finish coat; while the gauging plaster provides initial set and early hardness to minimize shrinkage of lime. Autoclaved aerated concrete (AAC) and sand-lime bricks are made from a mixture of sand and lime, which are moulded under high pressure of at least 11 atmospheres. Sand-lime bricks require high purity quicklime with a low MgO content, a combined silica and alumina content of less than 5 percent, and combined CO2 of less than 7 percent. Sand-lime bricks provide good sound insulation and have high compressive strength. AAC and cellular concrete are made in a similar manner, but the former requires the addition of an aerating agent, alumina powder, to the mixture. AAC is strong, lightweight and has good thermal insulation. 6.5 Metallurgy The second most important use of limestone and dolomite is as a flux in the production of pig iron and non-ferrous metals. Limestone must adhere to the following prerequisites: 1) it must be of superior grade, 2) with a silica and alumina content totalling less than 2 percent, 3) have low sulphur and phosphorus content, 4) lumpy in form, 5) finely crystallized and 6) resistant to decrepitation. Magnesium and ferrous components are not regarded as impurities in carbonate products used for steel making. In powder form, milled carbonates can be mixed with ore and pressed as self-fluxing pellets. As a flux, quicklime improves the transfer of impurities such as silica, phosphorus, sulphur and alumina from the molten metal to the slag. The use of dolomite instead of limestone depends on its availability and the ferrometallurgy, specifications and processes involved in the manufacture of iron. Dolomite is calcined to produce dolime before use as a flux in steel making. In the beneficiation of non-ferrous metals (including gold, platinum, copper, lead, zinc, antimony and ferrochrome), lime is used to control pH in the flotation process, to neutralize iron sulphides and to extract and recover metals through precipitation or leaching processes. Basic oxygen furnaces (BOFs) consume about 40-60kg of lime per ton of steel manufactured, whilst in electric arc steel-making works, 30-45kg of lime per ton of steel is used. The use of dolomite in these furnaces generally has a beneficial effect on the refractory birch linings. High-purity calcite is used in the flux coating of electric welding rods.

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In the gold and uranium industry, lime is required for pH adjustment after acid uranium leaching and for alkaline gold leaching; lime is also used as a flocculant and in some instances, limestone powder is added to the lime. Dolomite also finds application as a raw material used in the manufacture of magnesium metal and some of its compounds. Magnesia, MgO, and magnesium hydroxide, Mg (OH)2, can also be produced from dolomite. 6.6 Refractories

Dead-burned dolomite, also known as refractory lime or doloma, is an important component in tar-bonded refractory bricks. The dolomitic raw material must be of high grade, 36-42 percent MgO, 58-62 percent CaCO3, with less than 2 percent combined silica, alumina and iron. Hydrated lime is used to produce silica refractory bricks for the lining of industrial furnaces. Factors that determine the attractiveness of any refractory material to its target market are the energy requirements during production, the availability of raw materials and the distance from its market(s). One of doloma’s major drawbacks as a refractory is that it hydrates rapidly when exposed to free humidity because of its inherent free lime content. Thus, doloma is mostly used as a fettling material (patching up of furnace linings). The advent of pitch-, carbon- and resin-bonded brick was the principal event leading to the use of doloma as structural refractory material. Doloma, because of its low price relative to more advanced refractories, remains a popular choice when available locally. 6.7 Agriculture Industrial minerals serve many agricultural uses, from soil amendments (lime, potash, vermiculite), animal feed supplements (magnesia, salt), to micronutrients (calcium borates, sulphur, magnesia) in fertilisers. In agriculture, calcite and dolomite are the most widely used industrial minerals. Generally, these carbonates are consumed in an unburned, pulverised form. Limestone is primarily used to neutralize soil acidity. A soil is classified as acid when its pH, when measured in potassium chloride (KCl), is less than 4,5. Natural soil acidity is closely associated with high rainfall areas. However, selected human activities and practices exacerbate the soil acidification process, including air pollution and the use of ammonium containing fertilizers in crop production. Soil acidity is a problem in agriculture because it causes deficiencies in plant nutrients, such as N, P, K and Mg, and excessively high levels of Al and Mn, which can be toxic to plants. Soil acidity leads to a reduction in crop yield. Liming is the most viable way of addressing soil acidity. An estimated 4,7 Mt tons of lime are needed to restore the productivity of the cultivated soils in South Africa that are affected by soil acidity, and about 1 Mt of lime is needed annually to prevent renewed acidification. Both calcitic and dolomitic lime can be used to neutralize soil acidity. The amount, type and frequency of liming applications needed to achieve and maintain optimum soil pH, depends on many factors, including the initial soil pH or degree of acid saturation, the required pH or level of acid saturation, the rate of lime loss, the soil type, the calcium and magnesium levels present, and the effectiveness of the limestone. The effectiveness of agricultural limestone depends on its neutralising value, the hardness of the original rock, its fineness

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and the ease with which it can be spread (see Addendum 2). Calcitic lime is applied when exchangeable magnesium levels in the soil are adequate. Dolomitic lime is preferred when the soil is deficient in magnesium. In fertilizer applications, the most important minerals are phosphate and potash. Secondary minerals are agricultural limestone – calcitic and dolomitic limestone, elemental sulphur and magnesium compounds. Up to 10 percent of compound fertilisers is made up of coarsely pulverised dolomitic limestone. As a fertiliser additive, dolomitic limestone ‘conditions’ the fertiliser, 1) making it less prone to caking, 2) neutralising acidity arising from nitrogenous compounds and 3) it neutralises any free acid in the superphosphate component. In terms of plant growth, calcium aids root development and helps the formation of healthy root cell walls; the transportation of carbohydrates and water; the production of healthy seeds; and promotes biological activity in the soil. An interesting point to note is that when farmers are in financial difficulty, the first expense to be cut is agricultural limestone purchases. Many farmers can still produce crops in acidic soils, but cannot cut back on NPK fertilizer purchases which are an absolute necessity for plant growth. Limestone is used as a calcium supplement in the animal feed industry (which includes, sheep piggeries and cattle). Poultry require grit in their gizzard to help them grind food. Other sources of calcium include oyster shell, snail shell and dried eggshell, although these are often not readily available. Using any one of these calcium sources has no significant effect on feed intake, feed consumption or egg weight of layer chickens. Other studies have shown that limestone and oyster shell improve egg specific gravity over eggshell, although particle size appeared more important than calcium source. Recent surveys suggest that up to 14–21 percent of the total number of eggs laid is cracked, thus calcium intake is very important. Four important factors govern limestone use in animal feed: calcium content, heavy metal content (impurities), solubility and particle size. Carbonates must be low in silica and alumina, extremely low in fluorine and lead, and contain no arsenic. In cattle feed, about 0,5 percent amorphous limestone per volume is required. 6.8 Chemical products In the chemical industry, lime and limestone are used for absorption, hydrolisation, dehydration, neutralisation and the manufacture of alkalies. Inorganic calcium salts, calcium phosphates, calcium cyanamide and caustic soda are some of the products derived from lime and limestone. Lime is also used to make calcium hypochlorite, citric acid and petrochemicals. Quicklime is combined with coke to produce calcium carbide (and calcium cyanide). One ton of lime produces 1 ton of calcium carbide:

CaO + 3C → CaC2 + CO

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Calcium carbide (or calcium acetylide) and water are then reacted by any one of several industrial methods to produce calcium hydroxide and acetylene. One mol of calcium carbide produces 1 mol of acetylene:

CaC2 + 2H2O → Ca(OH)2 + C2H2 The waste material, Ca(OH)2, is an impure hydrated lime that has limited use, although some material is used in road lime and as cement clinker. Acetylene can also be manufactured by the partial combustion of methane with oxygen, or by the cracking of hydrocarbons. Acetylene is used for carburization (hardening of steel). Sasol produces an ethylene derivative that is now used to manufacture acetylene. 6.9 Paper Industry In the sulfite process for making paper pulp, lumps of high-calcium limestone are reacted with sulphur dioxide to produce Ca(HSO3)2 liquor. This liquor digests the pulp to remove components of the pulp other than the cellulose. Thus slaked lime is used 1) to bleach paper pulp, 2) to recausticize sodium sulphide and sodium carbonate for recycling and 3) in the treatment of plant process water. Other limestone products include precipitated calcium carbonate (PCC), a speciality filler used in premium-quality coated and uncoated papers, paints and plastics. PCC is formed by the bubbling of carbon dioxide through milk-of-lime, which forms a precipitate of CaCO3 and water. Ground calcium carbonate (GCC), in its finest and purest form, is used as a filler, whitening agent and topcoat in paper products. 6.10 Environmental Uses Lime is used for the softening and clarification of municipal water, the removal of harmful bacteria, as an odour reductant and is a neutralizing agent in acid-mine and industrial discharges. In water treatment processes, brown lime is used in the ‘prelime’ stage, whilst white lime may be used in the ‘postlime’ stage. Suitable limestones must have 85-95 percent CaCO3 and less than 5 percent MgO and insolubles. Flue gas desulphurisation (FGD) has become a necessity in the treatment of emissions in primary and secondary manufacturing. Stringent environmental compliance and best practice initiatives have accelerated the use of FGD systems, particularly in developed countries. Limestone reacts with the most common acidic gases, namely SO2, SO3, HCL and HF, and is noticeably cheaper than alternative alkaline materials such as lime, sodium bicarbonate and caustic soda. The choice of process, either wet or dry scrubbing systems, depends on several factors, including the acidic gases released, the proportions to be removed, the nature of the waste products and operating and capital costs. Specifications for limestone used in wet scrubbers are shown in Table 5. In the dry scrubbing system, pulverised limestone is injected into a boiler at temperatures in excess of 900°C. The quicklime produced reacts with 1) sulphur oxides to form calcium sulphate compounds and 2) hydrogen chloride to form calcium chloride. The dust is then collected in electrostatic precipitators or a bag filter. Limestone, as a sorbent, is also used in fluidised bed combustion and in hydrogen fluoride removal with ceramic and earthenware production.

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Table 5: Typical limestone specifications for FGD

Parameter Requirement CaCO3 (CaO) ≥ 53.2% CO2 ≥ 41.8% Total Mg (as MgO) ≤ 0.5% Insoluble Si (as SiO2) ≤ 0.65% Insoluble Fe (as Fe2O3) ≤ 0.25% Total insolubles ≤ 1.0% Hardness (Bond Work Index) ≤ 10 Organic constituents ≤ 0.2% Whiteness (% absolute) ≥ 80

Source: Oates, J.A.H. (1998)

6.11 Glass In the manufacture of glass, limestone or dolomite is combined with soda ash and silica sand, and heated to temperatures above 1 500°C in a refractory-lined bath. As the raw materials enter the bath (i.e furnace), the carbonates decompose and evolve carbon dioxide, which helps to agitate the bath and to disperse the solids in the melt. The solids react to produce a sodium/calcium/magnesium silicate that is the principal constituent of glass (Table 6).

Table 6: Typical composition of PFG flat glass

Compound Typical level % Silica (SiO2) 73 Disodium oxide (Na2O) 14 Lime (CaO) 9 Magnesia (MgO) 4 Alumina (Al2O3) <0,9 Iron oxide (Fe2O3) <0,15

Source: Van Schelt, B. (2005)

Carbonate prerequisites for glass manufacture include calcium values of at least 54 percent and 29 percent CaO for limestone and dolomite respectively; an iron content of less than 0,2 percent; alumina and carbon content of less than 0,4 percent and nickel, cobalt, chrome, manganese and titanium in less than traceable amounts. A fine balance between oversized and dust particles must be maintained in the feedstock to avoid the development of gaseous inclusions or overall imperfections in the glass. Since 1995, no dolomite is used in any container glass recipes.

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More than 95 percent of container glasses manufactured locally follow the recipe below (Table 7) for clear glass, or ‘flint’. The MgO content is less than a fifth of that found in flat glass, as container glass requires purer calcitic material. Strength attributes are improved by adding higher concentrations of Al2O3 or feldspar to the recipe. Thus, the alumina content of container glass is more than double that of flat glass (which can be as low as 0,3 percent). Potassium content is also increased through the addition of feldspar.

Table 7: Typical composition of a Consol clear container

Compound Typical level % Silica (SiO2) 72-73 Disodium oxide (Na2O) 13,7-14,5 Lime (CaO) 10,5 Magnesia (MgO) 0,5 Alumina (Al2O3) 1,8 Iron oxide (Fe2O3) <0,1 Sulphur (as SO3) 0,2

Source: Polasek, J. (2005)

6.12 Sugar Refining In the first stage of sugar refining, milk-of-lime is used to raise the pH of the product stream, so as to precipitate colloidal impurities. Residual lime is then precipitated out of the solution through a reaction with carbon dioxide. In the second stage of purification/ sugar refining, carbon dioxide is bubbled through brown sugar. The waste calcium carbonate can be burnt to produce CO2 and CaO. The latter product can again be used in the refining process. In South Africa, about 6,3 kg of lime is consumed for every ton of white sugar produced. 6.13 Ceramics Earthenware is comprised of three categories: clay, lime and feldspathic. Lime earthenware contains between 5 and 35 percent lime. Green earthenware is fired at temperatures above 1 150°C whereby the carbonate components decompose and react with the clay to produce diopside and anorthite. Whiting or pulverised limestone is required for colour and strength. 6.14 Rock dust for mines Pulverised limestone is used in mines primarily to dilute coal dust and thereby reduce explosion risk. Typical specifications would be a product 1) containing at least 95 percent incombustibles and 2) not having more than 5 percent free silica and 3) be of such fineness that, when dry, should pass through a 600µm sieve with at least 50 percent passing through a 75µm sieve. Further, the product should be light in colour and readily disperse into the air when blown upon. This ‘stone dust’ is piled in shelves in mine roadways and also sprayed, either as slurry or in dry form over the roof, walls, floor and open coal faces of the mine. An additional function of the dust spray is to inhibit airborne concentrations of silica and heavy metals in metallic mines. In the event of a methane explosion, the shelf collapses and

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dispels large amounts of dust into the air. The chemical reaction that takes place, releases carbon dioxide that extinguishes the fire:

CaCO3 + Heat → CaO + CO2 6.15 Fillers and extenders Whiting, ground calcium carbonate (GCC) and precipitated calcium (PCC) are used in an array of materials and products to improve performance, reduce cost and/ or increase density. These products are generally considered to be ‘high value-added products’ that are specifically tailored to match individual clients’ requirements. Uses would include: absorbents, mild abrasives, adhesives, adsorbers, antacids, baking, brewing, caulking compounds, ceramic glazes, cosmetics, dusting powders, digestive aids, emulsifiers, explosives, extenders, fireworks, flame retardants, floor coverings, French chalk, functional fillers, mastics, medicines, paint, pharmaceuticals, plastics, printing, putties, rubber, sealing materials textiles and toothpaste. Limestone powder of superior white quality, also known as ‘whiting’, is used as a white pigment filler to substitute more costly materials such as titanium dioxide and zinc oxide in paints. Whiting is also the most common filler used in the manufacture of plastic based putties. Superior putties do not show premature hardening, cracking and weathering. 6.16 Water treatment Limestone is used as graded, granular filter medium to neutralise, soften and purify acidic water. Similar applications include sewage treatment and acid neutralisation. However, pulverised limestone can only neutralise to a pH of 6.5, thereafter lime is needed to raise the pH higher. Lime and milk of lime is preferred in water treatment as 1) it has a faster reaction rate and larger surface area, 2) it acts as a flocculant in the removal of solids such as clay particles and organic matter, 3) the volume and weight of sludge is less, 4) it does not exhibit major frothing problems, 5) precipitated products do not inhibit neutralising reactions to take place. 6.17 Nano-products A potential new growth market is nano-carbonates. Nano-carbonates consist of nanometre-sized particles of either dolomite or calcite that can be chemically modified to make unique products that can be used as functional fillers or in combination with other organo-compounds. Nano-carbonate production requires an intense grinding or shearing to break the carbonate rhombohedra into smaller unit sizes. Much research is still being done to 1) unlock the properties of nano-carbonates, 2) improve compound combinations and efficiencies, and 3) reduce unit costs of the manufactured product. 6.18 Niche and Growth Markets Recent technological advancements include: advanced fire retardants, new concrete durability tests, high-strength cements, plasticisers with added workability, new reinforced concretes and stope-support packs, water-reducing admixtures, more efficient tilt-up methods, sealing gels for concrete waterproofing, textile concretes, high-tech concrete

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refractories, durable concrete inlays for asphalt road replacement, fibre-reinforced shotcrete and low viscosity self-compacting concrete. Future developments in the construction industry include plastic reinforcement for concrete (using polypropylene fibres) as well as corrosion-resistant steel in concrete structures. Table 8 is a summarised form of typical limestone and dolomite samples from active mines in South Africa. Numerical gaps denote data that is not available.

Table 8: Typical chemical analysis of local limestone & dolomite samples

LIMESTONE DOLOMITE

CH

EMIC

AL C

ON

STIT

UE

NTS

AGLI

ME

(PTY

) LTD

– K

ARSR

IVIE

R

BON

TEBO

K LI

MEW

OR

KS –

PG

*

CAP

E LI

ME

IDW

ALA

CA

RBO

NAT

ES –

KU

LUBR

ITE

2

IDW

ALA

LIM

E –

LIM

ESTO

NE

INC

A M

ININ

G -

LIM

ESTO

NE

LATI

LLA

MIN

ERAL

MAR

KET

ING

MAR

INE

LIM

E

PPC

– L

IME

ACR

ES

H P

ISTO

RIU

S –

DO

LOM

ITE

GR

ANU

LES

KUM

BA –

GLE

N D

OU

GLA

S D

OLO

MIT

E

LIM

E SA

LES

– D

OLO

MIT

E

LYTT

ELTO

N D

OLO

MIT

E - P

OW

DER

S

OO

S-TR

ANSV

AAL

KALK

– L

D^

CaCO3 80 >94 95 96 90 92 89 96 44 54.2 31.4 53.6 50MgCO3 1.5

94* < 4.2 4 1.5 4 2 1 2.2 39 41.7 44 42.7 30

SiO2 5.0< 1.5 0.2 0.7 3 4.5 0.8 2.5 0.6 2.5

Fe2O3 0.3 <0.2 <0.1 0.5 0.2 0.6 0.9Moisture 2 <0.2 <1 2 <10 <7 <5 <10

Notes: * PG – Poultry grit ^ Lovedale dolomite

23

7.1 Cement manufacture and local facilities The South African cement industry is characterized by cement plants that vary in age from recently commissioned plants (5 years ago) to plants built in the early 1930’s, all of which incorporate old and new technologies. PPC Cement’s seven pit operations are well spread geographically, whilst Holcim have 2 plants in close proximity to each other (Figure 5). Both Lafarge and Cimpor each have single operations. All South African cement plants produce Portland cement (CEM I) and blended cement such as CEM IIA, CEM IIB, CEM III and CEM V. There are some 30 cement products currently available in South Africa. Portland cement is a fine, typically grey powder comprised of gypsum and several silica and alumina-based compounds. Different types of Portland cements can be created depending on the application, as well as the chemical and physical properties desired. The exacting nature of Portland cement manufacture requires some 80 separate and continuous operations, the use of large-scale heavy machinery and equipment, and large amounts of heat and energy (between 20-25% of output costs are attributed to energy consumption). Large volumes of fossil fuels (in solid and liquid form) are required to maintain high combustion levels in kilns – for every 100 tons of clinker produced, approximately 15-16 tons of coal has to be burnt. Coal, hard coal, coke, pet coke and secondary fuels are used in this process. The capital investment per worker in the cement industry is among the highest in all industries. All local cement produces have to comply with European Norm Standards for cementitious products.

7. CEMENT MANUFACTURE IN SOUTH AFRICA

24

Figure 5: South Africa’s cement production, milling and blending facilities

Adapted from CNCI Market review (2004)

4

Production units Slurry – PPC Cement Lichtenburg – Lafarge SA Dudfield – Holcim Dwaalboom – PPC Cement Hercules – PPC Cement Ulco – Holcim Simuma – Natal Portland Cement Port Elizabeth – PPC Cement De Hoek – PPC Cement Riebeeck – PPC Cement

123456789

10

Milling / Blending Units Polokwane – Lafarge SA Potgietersrus – Holcim Roodepoort – Holcim Brakpan – Holcim Kaalfontein – Lafarge SA Jupiter – PPC Cement Middelburg – Holcim Nelspruit – Lafarge SA Newcastle – Natal Portland Cement Richards Bay – Lafarge SA Bloemfontein – Holcim Durban – Natal Portland Cement Matsapha (Swaziland) – Holcim Gaborone (Botswana) – PPC Cement

1 2 3 4 5 6 7 8 9

10 1112 13 14

12

3

45

6

7

8

910

12

3 56

78

9

1011

12

13

14

25

The 9 stages of cement production at a Portland cement plant, with reference to Figure 6, are listed below (adapted from Mantel, D.G., 1991): 7.1.1 Quarrying / Raw material acquisition The most common materials used are limestone, shells, and chalk or marl combined with shale, clay, slate or blast furnace slag, silica sand, iron ore and gypsum. In certain South African cement plants, low-grade limestone is the only raw material feedstock for clinker production. As calcium carbonate is the predominant raw material, most plants are situated near a limestone quarry or receive this material from a source via inexpensive transportation. Plants try to minimize transportation costs since almost half of the limestone is converted to CO2 during the calcining process. The rock, which is in the form of lumps up to 1 m³ in size, is crushed down to particles smaller than 19 mm. The crushed material is deposited on a blending bed that typically has a capacity of 1-2 weeks supply. Quarry operations consist of drilling, blasting, excavating, loading, hauling, crushing, screening, stockpiling, and storing. 7.1.2 Raw milling Raw milling involves grinding the extracted raw material into a fine powder so as to achieve the required particle-size for optimal fuel efficiency in the cement kiln and strength in the final concrete product. Three types of processes may be used: the dry, the wet, or the semi-dry technique. In South Africa all cement producers use the dry-process. The raw materials are dried using impact dryers; drum dryers, air separators and autogenous mills either before grinding, or in the grinding process itself. Once the ‘fines’ have been separated from the coarse particles, the fine material is transferred to a blending silo.

7.1.3 Blending The mill feed proportions are changed every few hours, such that definite compositions are laid down in the blending silo. By correctly controlling the operation, the meal in the blending silo will have the correct average composition by the time the silo is full. The fine powder is then well mixed to form a homogenous blend. This blended material is transferred to a storage silo, known as the kiln-feed silo.

7.1.4 Calcining and clinkering In calcining, the raw mix is heated to produce Portland cement clinkers. Clinkers are hard, grey, spherical nodules with diameters ranging from 0,32–5,0 cm created from the chemical reactions between the raw materials. The calcining system generally involves three steps: drying or preheating, calcining and burning (sintering). The clinkering process takes place in the burning/kiln section. The cylindrical steel rotary kiln is mounted with the axis inclined slightly from the horizontal and can be 3,5-4 metres wide, 110-120 metres long and rotates at 1 revolution per second. Short kilns are favoured over long kilns due to improved energy efficiencies and heat distribution – long kilns (over 130 metres in length) are normally on standby during shut downs and maintenance. Finely ground coal is burnt at one end of the kiln – the hot gases pass through the kiln and then upwards through a number of cyclones into an ‘induced draught fan’. The cold kiln-feed/raw mix is dropped into the top of the preheater. Centrifugal forces throw the meal against the walls of the cyclones and the meal slides down by gravity into ducts below. The

26

Primary, secondary & tertiary crushers

hot gases pick up the feed and sweep it into the next cyclone, once again exchanging heat. This semi-counter-current heat exchanger significantly reduces total heat consumption in the burning process.

Figure 6: Quarrying to manufacturing to despatching of cement

2

3

Raw mill

Blending silo

Kiln feed silo

1

Source: Mantel, D.G. (1991), PCM (2005)

Notes: Numbers 1-9 are based on subtitles in text (8.1.1-8.1.9)

Crushing plant

Limestone blending bed

Clay Hot gas Iron oxide

Ki

800 - 900°C

Kiln feed

± 30°C

4

Preheater

Kiln

Air

Coal

Gypsum

4 5

6

8 7

9

Clinker store

Cement silo

Cement mill

Packers & Bulk loaders

Cooler

Quarry

27

The temperature of the feed is between 900 – 1 000°C as it enters the kiln. At this point, the compounds have split up into their individual constituents (CaO, MgO, SiO2, Al2O3) and chemical reactions take place (Figure 7). About 20 percent of the mix forms a molten phase, which acts as a reaction medium, with the components dissolving and reacting, and reaction products being precipitated from the melt. New compounds (calcium aluminosilicate and alumino ferrite) form as the material approaches the lower end of the kiln. Aluminosilicate clinker is formed at temperatures of 1 450-1 500°C. The material leaving the burning zone is now called clinker. All South African clinker manufacturing processes use a rotary kiln and have a ‘burning’ stage and all or part of the precalcining and calcining stages. For a typical 4-stage preheater kiln the overall heat consumption is about 4 MJ per kilogram of clinker.

Figure 7: Reaction zones and temperature profiles for gas and clinker in a kiln

Source: Manning, D.A.C. (1995) 7.1.5 Clinker cooling The clinker cooling operation recovers 30-35% of kiln system heat, preserves the ideal product qualities, and enables the cooled clinker to be transported further by conveyors. Rapid cooling is necessary to quench any glassy phases that may form. The most common types of clinker coolers are the planetary and rotary cooler types. Air sent through the clinker to cool it, is directed to the rotary kiln where it nourishes fuel combustion. The fairly coarse dust collected from clinker coolers is comprised of cement minerals and is restored to the operation. Based on the cooling efficiency and desired cooled temperature, the amount of air used in this cooling process is approximately 1,5 m³ per kg of clinker. 7.1.6 Clinker storage Although clinker storage capacity is based on the state of the market, a plant can normally store up to 25% of its annual clinker production capacity. However, in South Africa, at most, two weeks production is kept on site. Conveyors and bucket elevators are used to transfer

Kiln

Electrostatic precipitators induced draught fan and stack

Zone: Drying Preheating Calcining Clinkering Inclination: 3° Rotation: 2.5 rev / minute

Primary air & ground coal Secondary air

Cooler grate

28

the clinker from coolers to storage areas and to the finish mill. Gravity drops and transfer points typically are vented to dust collectors. 7.1.7 Finish milling During the final stage of Portland cement production known as finish milling, the clinker is ground with other materials (which impart special characteristics to the finished product) into a fine powder. Up to 5% gypsum and/or natural anhydrite is added to regulate the setting time of the cement (Table 9). Other chemicals which regulate flow properties or air entrainment, are also added a this point. Several plants use a roll crusher to achieve a preliminary size reduction of the clinker and gypsum. These materials are then sent through ball mills that perform the final grinding. The grinding process occurs in a closed system with an air separator that divides the cement particles according to size. Material that has not been completely ground is sent through the system again.

Table 9: Typical chemical analyses of Portland cement, by (A) compounds and (B) elemental oxides

(A)

Compound Oxide composition Approximate content % m/m

Tricalcium silicate (CaO)3SiO2 52 Dicalcium silicate (CaO)2SiO2 26 Tricalcium aluminate (CaO)3Al2O3 4 Tetracalcium alumino-ferrite (CaO)4(Al2O3)(Fe2O3) 12.9

(B)

Oxide Approximate content % m/m

SiO2 22.9 Al2O3 4.2 Fe2O3 3.8 MnO2 0.4 CaO 65.0 MgO 3.3 LOI 0

Source: Oates, J.A.H. (1998)

29

7.1.8 Advanced blending

Clinker was initially blended with fly-ash and slagment in the ‘finish milling’ stage. However, due to the varying coarse grades and hardness of the different constituents, these additives (i.e. extenders or fillers) have been separately milled and added in the post-production phase of clinker manufacturing. These finished products (CEM I, CEM II, CEM III and CEM V) have a higher extender:clinker ratio, reduce kiln emissions and improve energy efficiency in the manufacturing process (Table 10).

Table 10: General breakdown of local cement types, according to EU & SABS standards

Cement type Extender content as percentage (%)

CEM I Normal Portland cement, no extenders CEM II A Cement with extender content of 5 – 20% CEM II B Extender content of 20 – 35% CEM III Extender content of 30 – 60%, mostly a slag-based extender CEM V Composite cement with several extenders, total not exceeding 65%

Source: Sheath, J. (2005)

7.1.9 Packing and loading Once the production of Portland cement is complete, the finished product is transferred using bucket elevators and conveyors to large, storage silos in the dispatching department. The most common packaging mediums in the industry are the 3-ply paper bag and the more popular polypropylene woven bags. Once the cement leaves the plant, distribution terminals are often used as an intermediary holding location prior to customer distribution. The same types of conveyor systems used at the plant, are used to load cement at distribution terminals. Depots, warehouses, traders and distributors are generally located within 100km of major customers and markets.

30

7.2 Company and Ownership Structure Four companies, PPC Cement, Holcim (Swiss-based company), Lafarge SA (French-based company) and Cimentos de Portugal (Cimpor), dominate the cement industry in South Africa (Table 11). The most significant change in the cement industry was the disbanding of the cement cartel in 1996. In 2002, Natal Portland Cement (NPC), formerly owned by Holcim (Alpha Ltd at the time), Lafarge and PPC Cement, was sold to Cimentos de Portugal (Cimpor).

Table 11: Ownership structure of cement companies and associations/ organizations

Company Holding company*

PPC Cement Ltd PPC Group, which is owned by Barloworld Limited (71,6%) Lafarge South Africa Lafarge Group, which is owned by Lafarge SA

Holcim South Africa Altur Investments (Pty) Ltd [ owned by Holcim Limited (54%), & Aveng Limited (46%) ]

Cimpor** 100% Cimentos de Portugal SGPS S.A. (Cimpor) Ash Resources (Pty) Ltd 75% Lafarge SA, 25% Roshcon (subsidiary of Eskom) Slagment (Pty) Ltd 100% Holcim Limited

Note: * As at 31 August 2005 ** Locally, Cimpor trades under the Natal Portland Cement (NPC) brand Recent developments include the takeover of all Blue Circle’s production-, blending and distribution facilities by Lafarge SA (end of 1998), as well as Holcim’s 54% acquisition of Alpha. Ash Resources and Slagment are two cement organizations that are wholly or part-owned by the major cement producers.

31

8.1 Supply The South African limestone and lime industry is uniquely different to other industrialised countries as 1) local deposits are massive, remotely located and of a very high-grade 2) the uranium and gold industries require a sizeable portion of locally available lime; and 3) the local cement industry governs limestone production. This has resulted in lime production being limited to a few plants, with a fairly large output. Some South African plants, by international standards, are considered large production plants (e.g. PPC Lime Acres has a production capacity of 2 Mt per annum). South Africa’s share of the world lime and cement output is about 1,4 and 0,6 percent respectively. In 2004, carbonate production and local sales showed moderate gains over the previous year (Figure 8 and Addendum 3). Domestic consumption of limestone is on an upward trend after a four-year slump (1997-2001) in demand. Similar upward cycles occurred after the slump in 1991-1993. Cement producers have been able to match this demand, although additional new facilities are being planned (and others demothballed) to accommodate future growth, e.g. World Cup 2010 and the Public Works programme. Several expansions have been initiated by Natal Portland Cement (additional 600 kt capacity, costing R700 million), Lafarge (additional 1 Mt, costing R1 billion), PPC’s multi-plant upgrade (1 Mt total, costing R1,36 billion) and Holcim (400 kt, costing R340 million and initiated in 2004). High demand and localised cement shortages have forced producers to demothball specific processing and distribution plants to reduce lead times. The average sales value of limestone has little significance, other than as an indication of cost of production, as the bulk of sales are in the form of inter-company transfers to the two principal users, namely cement or lime plants. In 2004, local sales of limestone (by mass) for the manufacture of cement decreased by 2,0 percent (Addendum 4), whilst sales of cement (by mass) increased by 15,0 percent. The large difference in sales is partly attributed to the increased use of pozzolanic materials and extenders in the final product. PPC Cement is the largest cement supplier with at least 40% market share; second Holcim (30%), third Lafarge SA (18%) and fourth Cimpor (7%). Cimpor holds greater than 65% of the market in KwaZulu-Natal (M. Jacks, 2005). Slagment, Cimpor and PPC Saldanha all produce or sell a milled slag, a product that has similar functionality to fly ash, as it improves strength and reduces water consumption in the cement manufacturing process.

8. SUPPLY AND DEMAND

32

Statistical source: Roux, E. (2005)

2 500

5 000

7 500

10 000

12 500

15 000

17 500

20 000

22 500

25 000

1982 1986 1990 1994 1998 2002 2006

Figure 8: Production and local sales of selected limestone products, 1982 – 2004

Total production

Limestone for cement

All local sales

Vol

ume

(in k

t)

Limestone for lime manufacture

Agricultural sales

Metallurgical grade limestone sales

33

8.1.2 Imports Imported carbonate products are generally application-specific and can command high prices. A limited amount of carbonate products were imported in 2004 (according to SARS records), the bulk of these being quicklime, white cement and clinker (Table 12). Total imports represent about 0,6% of local sales by volume. Crude limestone products commanded the highest prices, fetching R6 384 per ton. The largest volumes imported were for quicklime products from France. The bulk of these were used at lime manufacturing operations in the Western Cape. Total white cements and clinker imports amounted to 34 kt in 2004. Country-specific sources not mentioned by SARS include the following: Namibia, Zimbabwe and Israel. An unaccounted for 27 kt of dolomite and 14,4 kt of calcium carbonate is imported per annum from the aforementioned countries. The bulk of calcium carbonate imports are from non-African sources (> 83 percent), whilst dolomite is mostly sourced from Namibia. There are more than 7 importers, 5 of which are traders whilst the other 2 use the material themselves. Key markets for importers are as filler (paint, plastics, coatings, tile grouts, tiles and adhesives), welding rods and gunniting. These are markets that have not been penetrated by local GCC producers.

Table 12: Breakdown of limestone and dolomite imports, 2004

VALUE CARBONATE PRODUCT VOLUME

(in t) Rands (in ‘000) R / ton

COUNTRY OF ORIGIN*

All dolomite forms 820 2 137 906 2 607 Dolomite, uncalcined 164 230 459 1 401 Spain, Germany Calcined or sintered dolomite 535 1 485 265 2 774 Spain, China Dolomite ramming mix 120 422 182 3 511 Germany All limestone forms 163 1 037 704 6 384 China, Great Britain Quicklime, slaked & hydraulic lime 43 924 33 464 793 762 Quicklime 35 235 24 644 196 699 France

Slaked lime 8 607 8 635 467 1 003 Morocco, Malaysia, France

Hydraulic lime 82 185 130 2 257 Great Britain, Italy Portland Cement & similar cements 33 660 35 032 738 1041 Cement clinkers 12 291 18 177 041 1 479 France White cement 21 133 16 363 122 774 India, Spain, Denmark Other 236 492 575 2 086 China

Notes: * Only major source countries are noted – those which represent at least 40% (by volume) of total imports.

34

8.2 Demand The structure of the local carbonate market is determined by the following key factors: carbonate availability in relation to competitive hard rocks, labour and transport costs, availability of capital, market size in both geographical and tonnage terms and the quality of the infrastructure (communication and transport). The market split (Figure 9) highlights significant sectors (excluding cement) such as agriculture, metallurgy, water and effluent treatment and construction.

Figure 9: Market split for primary carbonate products (excl. limestone for cement), 2004I

8.2.1 Cement and aggregate The market for cementitious products in South Africa is divided into civil engineering and building sectors. In the civils sector, a 3,1 percent decrease in turnover for 2004 is indicative of consolidation and a temporary lull in large-scale infrastructural spending. The completion and/or near-completion of harbour and waterfront projects (Durban, Richards Bay and Ngqura port upgrades); building projects (Constitution Hill, Cape Town Convention Centre and Johannesburg International Airport extensions, various estate and mass-property developments) and tourist-related projects (especially in the Western Cape), highway projects (N4 Bakwena Platinum Project) and dam projects (Baviaanspoort Sewage Works, Mohale Dam), point to renewed short and medium-term investment in infrastructural activity within the country. This has augured well for the cement industry, in spite of the postponement of major capital projects, particularly in mining, petrochemicals and the

Notes: I Excludes all imports of dolomite and limestone (<160 kt), year totals: 8,13 Mt * Includes the steel (24,9%), platinum (0,3%) and ferrochrome (1,8%) and refractory industries (0,1%) ** Includes limestone as soil remediants and for pH balancing (12%) and feed-lime (3%) *** Chemical and rayon manufacture (1,6%), decorative stone products, putties & sealants Source: Personal communication with mines

Aggregate (Construction)

30%

Metallurgy* 27%

Agriculture** 15%

Lime Manuf.14%

Water treatment

3%Glass manuf.2%Coal dusting

2%

Fillers2%

Other*** 4%

Paper pulping1%

35

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

public sector. Limestone and dolomite are not as widely used in South Africa for aggregate or dimension stone as elsewhere in the World. In 2004, total cement sales (by mass, excluding exports) increased by 15,5 percent to 11,7 Mt – the highest volume sold in ten years (Figure 10). All of the nine provinces showed positive growth, particularly the Eastern and Western Cape (Figure 11 & 12). Regional sales of cement to Botswana (which accounts for almost half of regional consumption) decreased marginally, with Namibia the only SADC country showing moderate gains (Addendum 5). In 2004, exports of cement decreased by 40 percent to 280 kt, representing 2,4 percent of regional cement sales.

Figure 10: Regional sales (cementitious binders), 1995 – 2004

Source: CNCI Market Review (2004)

Figure 11: Cementitious demand by province, 2004 compared to 2003

Source: CNCI Market Review (2004)

Vol

ume

(in M

t)

0 5 10 15 20 25 30

LimpopoMpumalanga

GautengFree State

KwaZulu-NatalEastern Cape

North WestNorthern CapeWestern Cape

TOTAL DOMESTIC

Percentage (%)

36

100

200

300

400

500

600

700

800

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

0

1000

2000

3000

4000

5000

Limpo

po

Mpumala

nga

Gauten

g

Free S

tate

KwaZulu

-Nata

l

Easter

n Cap

e

North W

est

Northe

rn Cap

e

Wes

tern C

ape

Figure 12: Actual cement sales by province, 2004

Source: CNCI Market Review (2004) In 2004, exports comprised 2,4 percent or 280 kt of total sales, which is significantly less than the 6,2 percent (595,7 kt) achieved in 2002 (Figure 13). Some cement companies are actively seeking new export markets, although rand volatility has hurt export sales over the last 2 years.

Figure 13: Cement exports, by volume 1995 – 2004

Source: CNCI Market Review (2004) In the cement market, consumption trends include: a significant growth in “blender” sales and ready-mix production, at the expense of site-mix production; a move away from CEM II to CEM III and CEM V products (Figure 14 and Addendum 6); and a strong increase in pozzolanic fillers (particularly granulated slag, at the expense of fly ash).

Vol

ume

(in k

t)

Vol

ume

(in k

t)

37

CEM I

CEM II A

CEM II BCEM III & V

GGBS SlagOTHER

FLY ASH

Readymix Producers Resellers

Civil Construction

(Direct)Building Construction

(Direct)

Blenders Mining

Concrete Product

Manufacturers

Other

The blending of cements with fly ash, limestone and slag composites will further reduce clinker consumed per unit produced. CNCI statistics suggest that in the last 4 years, ground granulated blast furnace slag (GGBS) has distinctly been favoured over fly-ash for blending purposes (671 kt of slag as opposed to 160 kt of fly-ash). Fly ash and slag are exported primarily to the Middle East, however sales are based more on technical and structural properties than on price – exports comprise less than 10 percent of sales. Masonry cement is no longer produced by any of the South African cement producers, as it has been found to be unsuitable for road construction in the long-term.

Figure 14: Sales of cementitious binders by product type, 2004

Source: CNCI Market Review (2004) In 2004, primary consumers such as blenders, readymix producers and concrete product manufacturers showed the largest volume increase (Figure 15 and Addendum 6). The sustained increase in sales to readymix producers is attributed to this sector favouring tested, uniform mixtures as well as time efficiencies regarding ‘readymade products’. Locally, there are 6 SABS-approved cement blenders, 67 paving brick/ block producers and 42 cement/ concrete brick producers. Non-SABS approved blenders number at least 20 in Gauteng alone.

Figure 15: Buyers of cementitious products, 2004

Source: CNCI Market Review (2004)

38

Several mining projects in Angola, road, bridge and low-cost housing developments in Namibia, Botswana, Swaziland, Malawi and Mozambique will augment short-term forward books, although cross-border activity has tapered down over the last two years, primarily through rand volatility, language barriers and the default on contractual payments by several African countries. Further abroad, the Middle East, the Far East, Australasia and recently South America, have become regions of great importance offering potential for large contracts/ tenders for South African construction companies. Several large cement-manufacturing companies have acquired production facilities in other African countries to cut transport and export overheads and secure foreign marketshare (e.g. PPC Cement’s acquisition of Portland Holdings in Zimbabwe). Government’s proposed R165 billion investment programme, which includes improving transport infrastructure, services and the road network, the taxi redevelopment programme, community infrastructure, integrated settlements, prison and hospital upgrades, police station and court facilities, peri-urban, rural and municipal upgrades, the Dept. of Public Works’ planned building upgrades, educational colleges and revamps, water resource infrastructures and housing roll-out plans will be a tremendous boost to the construction industry in the immediate future. In the private sector, short and medium-term developments include the implementation of large investment programmes such as nuclear and ethanol projects, mine expansions within the platinum and ferrochrome industries, Sasol’s Project Turbo and localised up-market developments of residential dwellings, estates, hotels, casinos, shopping centres, convention centres and office parks (Table 13). Further, Eskom and Transnet’s proposed multi-billion roll-out plan will also auger well for the industry. In 2004, Government contributed 19,0 percent to total gross fixed capital formation (GFCF), public corporations 10,8 percent whilst private business contributed 70,2 percent (Table 14). In 2004, GFCF (in nominal terms) improved from R163,4 billion to R178,7 billion, attaining a growth of 9,4 percent compared to 9,0 percent in 2003 (Addendum 7). GFCF figures may prove misleading, as large structural and mechanical components are also included. Nevertheless, construction works has excelled with real annual growth of about 10 percent. Capacity constraints, underspending and incorrect budget allocations at government, provincial and municipal levels have slowed contract tendering, the awarding of contracts and real infrastructural spending by the public sector over the last decade. Transparency, clarity and expedient project delivery is needed in public sector infrastructural spending. The fast-tracking of regulated, government tenders through public-private partnerships (PPP) will address some of the country’s multi-billion rand infrastructure backlog. Given the positive index ratings of 2004, a strong growth of about 4% has been forecast for the industry as a whole for 2005 (Table 15). Further, rand stability, low interest rates and moderate inflation are key to sustained growth in the construction industry.

39

Table 13: Approved and possible construction projects of value greater or equal to R1 billion, 2004/ 2005

Current projects

• Hibberdene Harbour project, power stations (Richard’s Bay), Durban Port upgrade, King Shaka Airport, Riverhorse Valley and Simbithi Eco-estates, Ocean View Hotel (KwaZulu-Natal)

• Blue IQ projects, Motor Industry Development Plan, Alexandra Renewal Project, Innovation Hub, Melrose Development node, Cosmo City Housing Development (Gauteng)

• Berg Water Scheme (Western Cape)

• Coega International Development Zone and Port of Ngqura (Eastern Cape)

• Maputo Corridor project and Sasol Pipeline (Mozambique)

Possible future projects

• Mine & plant expansions (platinum, gold, nickel, new collieries, heavy mineral sands)

• New Limpopo Dam (Limpopo Province)

• Braamhoek pump-storage scheme (Free State border)

• Gautrain, Africa theme park, Tshwane International Convention centre, Tshwane Inner City Programme, Temba water scheme, provincial government precinct (Gauteng)

• Aluminium smelter and Coega stainless steel plant (Eastern Cape)

• Dube Tradeport, pulp mill upgrades (KwaZulu-Natal)

• Saldanha port expansion, N2 Gateway project (Western Cape)

• Demothballing and construction of new power stations (locations unspecified)

• Namibian, Swazi and Mozambican road upgrades

Table 14: Gross fixed capital formation (2000 = 100)

Source: SARB (2005)

Notes: * Includes structural, electrical and mechanical engineering

Type of Asset YoY % Change 6 months to

2004:Q4

YoY % Change 6 months to

2003:Q4

YoY % Change 12 months to

2004:Q4

Residential 28.64% 11.48% 22.48% Non Residential 10.68% 2.80% 9.48% Construction Works* 6.38% 15.38% 8.18% Total Construction 14.20% 10.59% 12.72%

40

Table 15: Macro-economic indicators, 2005 - 2010

% Annual change 2005 2006 2007 2008 2009 2010 Real GDP 4 3.5 4.1 3.4 3 3.1 R/$ Exchange rate 5.63 6.07 6.93 7.12 7.23 7.35 Headline CPI 3 3.6 5.6 4.7 3.5 4.6 CPI (X) 3.2 3.4 5.8 5.3 4.2 4.4 Interest rate 10.5 10.3 11.8 10.9 9.0 9.5

Source: SARB (2005)

Currently there is a change in product focus amongst most carbonate producers: products are tailored to suit the needs of consumers – this may force producers to steer away from certain markets, e.g. reducing metallurgical grade limestone stocks and moving towards products that are geared for the construction industry. Thus when demand falls in one particular market, producers counter this by stepping up production in their other product ranges and respective markets. 8.2.2 Lime Lime consumption has decreased over the last 20 years – hydrated lime has shown the largest volume loss of any lime product. In 1973, hydrated lime sales exceeded 400 kt, but shrunk to 82 kt in 2004. Lime consumption has decreased from 2,05 Mt in 1985 to 1,7 Mt in 2004. In 2004, local sales of hydrated lime for water purification increased, although sales for chemical and other applications decreased by 28,9 and 37,3 percent respectively – this was partly compensated for by year-on-year price increases of at least 6,5 percent (Table 16). In the quicklime sector, consumption in pyrometallurgical uses grew moderately, whilst sales (by volume) in chemical applications grew by an unanticipated 27,2 percent. Several lime producers have renegotiated long-term contract prices with major consumers, as rail tariffs, wage increases and energy prices continue their upward spiral. Cement producers face similar challenges. Iron and steel producers are major consumers of lime (51 percent) and have gained significant marketshare over the last 20 years. Gold and uranium, once the single largest consumer (39 percent of total sales in 1987) now represents only 15 percent of sales (Figure 16 and 17). Ferrochrome and platinum producers (non-ferrous sector) and water treatment applications have shown strong growth in the last 18 years, whilst the use of lime in calcium carbide manufacture has shrunk significantly over the same period. Sasol’s ethylene derivatives are now used in acetylene manufacture and have thus reduced lime consumption in this market by about 60 percent over the last 20 years. Cape Lime and P&B Limeworks are the only two producers of ‘white lime’ in South Africa. Before 2004, limited volumes of burnt limestone were imported from Spain and France. Demand for lime products from the Bredasdorp and Robertson region is generally limited to the Northern, Eastern and greater Western Cape, with water treatment and construction contracts being the largest income generators. Transport costs and location have been deterrents for further market penetration in the northern regions of the country. Several

41

municipal water treatment plants have resorted to soda ash, calcium hydrate and partial brown lime substitution to limit their exposure to white lime price hikes and scarcities.

Table 16: South Africa’s local sales of hydrated lime and quicklime, 2003–2004 LIME PRODUCT, 2003 2004#

BY SECTOR USE Mass Value (FOR) Mass Value (FOR) Kt R’000 R/t Kt R’000 R/t

Quicklime Pyrometallurgical 838,1 241 540 288 864,1 249 616 289 Chemical 625,8 249 288 398 795,7 259 650 326 Hydrated lime Water purification 21,9 19 744 900 24,6 20 130 819 Chemical 40,9 20 778 508 29,1 16 725 574 Other 44,0 30 702 698 24,6 18 315 745 TOTAL 1 570,9 562 051 358 1 738,1 564 437 325

Statistical source: Roux, E. (2005) Notes: Unit values calculated before rounding of mass and rand values

# Lime exports amounting to 9 487 tons valued at R4,8 million were recorded for 2004

Lime producers in the Postmasburg region have enjoyed a fair dominance over the local industry, representing about 98 percent of primary lime production in 2004. This region accounts for 71,5 percent of total lime production (including imports and secondary lime manufacture at paper and refractory producers). In 2004, about 151 kt of lime products were used in water treatment throughout South Africa – this is significantly higher than the 95 kt consumed in 1987. Rand Water accounts for about 31 percent of all lime consumed in water treatment plants. Rand Water is also the single largest consumer of limestone products in water treatment and neutralisation, as it produces its own burnt lime in vertical kilns. Within the next 2 years, Rand Water will phase out on-site lime manufacturing, and buy its burnt lime from lime producers. Over a two-year period, exports of lime and limestone products (by mass) have increased from a low of 13 kt in 2002 to 16 kt in 2004. Lime products represent 60% of exports by volume. These levels are still far off from the 62 kt exported in 1998. Low export sales (particularly of lime products) are attributed to low ferrochrome production at Zimbabwe Alloys. Other export markets, such as the water treatment, sugar, gold and copper industries, which require lime products, have been similarly negatively affected by the political instability in Zimbabwe. Dolime consumption of 275 kt was recorded for 2004. Sales were equally split between refractory producers and metallurgical uses (steel making). Marginal amounts were used in plastering and other construction applications. Refractory producers such as Vesuvius, generate their own dolime on-site. Capped lime markets include the gold industry, certain pyrometallurgical applications and acetylene and paper manufacture. Lime and limestone demand for use in platinum roasting is small, but declining – new extractive technologies have been developed which require

42

Kilo

tons

(kt)

0

100

200

300

400

500

600

700

800

Gold &

uran

ium

Iron &

stee

l

Calcium

Carb

ide

Wate

r trea

tmen

t

Ferro-a

lloys

Chemica

l

Pulp &

pape

r

Constr

uctio

n

Sugar

refini

ng

Agricu

lture

19872004

minimal amounts of lime. Growth is expected in the following applications: water and effluent treatment; ferrochrome processing, building, road and construction uses, flue gas desulphurisation (adsorbents in glass manufacture and oil refining).

Figure 16: Market split for lime products, 2004 Notes: Excludes by-products & lime generation by paper manufacturers, totalling 363 kt Excludes all imported material (100 kt, of which 50 kt is used in paper manufacture) Total lime sales for 2004 amounted to 1,36 Mt Excludes dolime consumption of 275 kt Source: Personal communication with mines

Figure 17: Market split for lime products, 1987 and 2004

Gold & uranium 15%

Iron & steel51%

Water treatment11%Ferro-alloys

8%Construction

4%

Calcium Carbide4%

Pulp & paper3%

Agriculture1%

Chemical 2%

Sugar refining1%

43

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

1982 1985 1988 1991 1994 1997 2000 2003

Statistical source: Roux, E. (2005)

8.2.3 Metallurgical Consumption of limestone and dolomite peaked in 1977 when 2,48 Mt were used; it declined steadily to 1,54 Mt in 1985, and then slowly rose to 2,39 Mt in 1995 (Figure 18). Since 1996, demand has declined although there was a small surge in consumption in 2004, when sales increased by 2,9 percent to 2,03 Mt. Recent increases have been attributed to strong growth in both steel production and demand over the last 18 months. Metallurgical grade dolomite is sold in an array of sizes although the most common are finer fractions (-4,75 mm) used in sinter/ dolomitic cake production and the larger fractions (20-40mm) used directly as a fluxing agent. When using a combined sinter cake and aggregate recipe, reactivity rates are higher and energy consumption significantly lower.

Figure 18: Local sales of metallurgical grade limestone products, 1982 - 2004

8.2.4 Agriculture Agricultural limestone and dolomite sales of 889 kt for 2004 were realised – a significant year-on-year decrease of 4,9 percent (Figure 19). Depressed grain prices and large import volumes have had a negative impact on fertilizer, soil remediants and other aglime products in 2004. However, the outlook for 2005 is much better, as grain prices are much higher. According to the Fertilizer Society of South Africa (FSSA), the agricultural aglime market, much like the fertiliser business, showed a slump of 13,7% in sale volumes, to reach 1,27 Mt million tons, which is 5,7 percent higher than the 10-year average of 1,20 Mt. It is important to note that the FSSA statistics include 2 distributors that reclaim limestone from slimes dams, neither of which submit production returns to the DME. In the aglime industry, more than 80 percent of sales are conducted over a 4-month period, from June to September. This requires an intricate distribution network, whereby a client base of some 3 000 farmers are serviced, using at least 60 transport contractors. There are currently 16 aglime producers in the industry. Fertiliser products are sourced from a supplier

Vol

ume

(in k

t)

Superimposed iron ore local sales

Metallurgical limestone

Superimposed crude steel local sales

44

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

1980 1983 1986 1989 1992 1995 1998 2001 2004

closest to the farmer, whilst marketing is done either through fertiliser producers directly or through marketers employed by Omnia, Kynoch and Sasol.

Figure 19: Local sales of agricultural grade carbonate products, 1980 - 2004

Statistical sources: Roux, E. (2005) Strauss, L. (2005)

One producer has noted a complete switchover in his product mix over the last 10 years: where up to 80 percent of sales were dolomitic material, this has changed to 40 percent dolomite and 60 percent calcitic material. The high magnesium build-up in certain soils has necessitated farmers to use calcite to gradually lower soil Mg-levels. The animal feed market, though small in nature, consists of 10 primary suppliers, with a total market size of 260 kt per annum. Price-undercutting still continues on a large-scale. Excellent research in recent years has led to a better understanding of specifications for feed lime, particularly around sizing, purity, available Ca and optimal daily feed rates. 8.2.5 Other markets In 1987, an estimated 85 kt of limestone and dolomite was used as flux in the glass industry – this has grown to 163 kt in 2004. Four carbonate producers supply the glass manufacturing industry, of which one accounts for almost half of carbonate sales. Strong to moderate growth is expected in the short to medium-term for limestone and dolomite in glass manufacture, ferrochrome production, construction, iron and steel making and soil stabilisation. Niche markets, such as coal-dusting and cladding, putties, rayon and chemical manufacture are expected to grow in line with GDP. Strong growth is expected in industries such as pharmaceuticals, decorative stone and specific white fillers.

Vol

ume

(in k

t)

ME, dolomite & limestone FSSA, dolomite & limestone

FSSA, limestone FSSA, dolomite

45

8.2.6 GCC products Local GCC products have existed since the 1950’s but it was only in the early 1980’s that reverse flotation processing was used in GCC production. Product brightness improved from an initial 90-92% to 98-99%. The fine fractions produced, have added to the appeal of such high-purity products. Current GCC volumes exceed 416 kt per annum, with all fine-grade products (particle size <10µm), comprising about 25% of total GCC sales. Ultra-fine grades (particle size <2µm) comprise about 13% of total GCC sales. Demand remains strong for high-grade calcite and dolomite from SADC countries such as Namibia and Zimbabwe, which are able to supply local niche markets and low-volume consumers.

8.3 Price and sphere of influence As with most industrial minerals, carbonate value is dependent on the degree to which it may be purified, calcined and sized, which determines the market it may serve. The variation in price between the different uses can be ascribed to the fact that different grades of carbonates are used for different applications. Certain mines use internal transfers, although the majority have long-standing ‘gentleman agreements’ with specific consumers and manufactures. A large proportion of producers have moved away from inflation-related pricing agreements to Producer Price Index (PPI) agreements with 6-month and annual reviews. Even within this group, some producers are using pricing methods that are more flexible (e.g. contracts that include fuel surcharges) and which reflect the true state of mine operating costs. Energy and transport costs are significant, accounting for up to 70 percent of final product price. Labour costs can represent up to 30 percent of the final product price. With regard to hydrated lime, between 20 and 36 percent of unit costs are energy-related. On a consumer level, the price range for local, micronised carbonates varies from R1 000 to R2 500 per ton for pharmaceutical grades. Export-grade material may fetch much higher prices. Local carbonate and GCC prices are kept relatively low/ competitive through increased competition from other white fillers. Cement prices have increased by 15,5 percent since July 2003 (Cement Index, 2005). Retail, index prices for cement (base 100 = January 2000) increased from 138,5 (July 2003) to 146,9 (June 2004) to 159,9 (June 2005). Increases were related to sharp increases in energy and transport costs. Carbonates are purchased for their physical and/ or chemical properties and these vary greatly between sources; thus one cannot easily compare local and imported products purely on price. Some international formulations require source-specific carbonates that are then appropriately priced. In this case, the price consumers are prepared to pay is not determined by supply/ demand as such, but rather functionality and value-enhancement that such raw materials offer. Nano-product pricing depends on the fineness, particle distribution and surface structure of the nano-particles. Price structures (ex-mine) for carbonates are as follows: R30-100 for raw limestone; R600-1 100 for products greater than 10µm; R1 300–2 000 for micronised products; and > R2 000 for calcined GCC products with an average 1µm particle size (Figure 20). Prices increase exponentially with transport fees, distances travelled, volumes required, insurance costs, provincial location, etc. Prices have remained fairly flat year-on-year with inflation and

46

Quicklime (Chemical)

Hydrated lime (Chemical)

Hydrated lime (Water purification)

Micronised (min. price)

Calcined GCC (min. price)

Metallurgical Raw material (cement) Agricultural

Quicklime (Pyrometallurgical)

500

1 000

1 500

2 000

energy costs being the primary determinant in price increases (Figure 21). Transport and toll fees are additional price inflators that have to be factored into the final product price.

Figure 20: Value-addition and associated price increase (ex-mine)

Increasing value-add

Pric

e (R

/ton)

Statistical source: Roux, E. (2005) & Communication with individual companies

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0

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300

350

400

450

500

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600

650

700

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800

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950

1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

Figure 21: Prices for local products, 1983 - 2004

Limestone exports

Pric

e (R

/ton)

Hydrated lime

Metallurgical grade

Limestone for cement

Agriculturalproducts

Lime (average price, all products )

Limestone (other uses)

Statistical source: Roux, E. (2005)

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The average cost of agricultural limestone and -dolomite in South Africa is dependant on four factors:

1) Frequency of deposits, 2) Ore grade (purity, sizing), 3) Transport (logistics, road conditions, terrain), and 4) Grain prices.

Grain prices, although an indirect factor, may determine if a farmer will buy any carbonate products at all for a particular season. As is the case over the last 2 years, limestone producers have had to lower their sales price to accommodate cost-saving farmers and low grain prices. It is important to note that, over long distances, cost efficiencies improve for beneficiated, lime products (Table 17). In 2004, limestone, for agricultural purposes, was sold at an average price of R59 per ton (ex-mine) throughout South Africa. FSSA stats suggest that aglime prices fetched R77/ton in 2004, whilst transport costs were marginally higher at R83/ton (Figure 22). Impure carbonates sold for less than R59/ton, with a sphere of influence of less than 200 km. Animal feed markets are extensive, with a sphere of influence of up to 800 km for high-grade amorphous limestone.

Table 17: Sphere of influence (agricultural limestone and -dolomite)*

Metallurgical-grade carbonates are normally sold within a 100 km radius from the producer, although there are exceptions. Brown lime, white lime and high-grade carbonaceous products are readily available in all major cities throughout South Africa and the SADC region, including Windhoek (Namibia) and Gabarone (Botswana), up to a range of about 1 900 kilometres. High-purity, micronised dolomite from Karibib (Namibia) travels a minimum of 2 000km (excluding toll fees) to reach Gauteng markets.

Province Sphere of influence** (in km)

Average range (in km)

Gauteng 250 – 350 100 – 200 Western Cape 140 – 160 80 – 120 Mpumalanga 220 – 250 100 – 150 Limpopo 350 – 600 120 – 200

Notes: * Tabled results based on interviews with select group of aglime producers ** Maximum distance material will travel from mine to client.

49

30

40

50

60

70

80

90

100

2001Q1 2001Q3 2002Q1 2002Q3 2003Q1 2003Q3 2004Q1 2004Q3

Figure 22: Aglime prices (ex-mine) and associated transport costs, 2001 – 2004

Statistical source: Strauss, L. (2005) Quality-grade dolomite is a scarce commodity in South Africa, as most dolomites are too calcitic. High-purity dolomite-producing quarries, which are restricted to the Gauteng, southern Cape and the travertine belt (Northern Cape) are relatively far from some of their end-user markets in South Africa; however, consumers are prepared to have these products transported over vast distances (up to 1 700 kilometres). White lime is also a rare commodity locally, with both producers being located in the Western Cape. Where agricultural dolomite is not available, limestone is often used as a substitute soil-conditioner. Limpopo aglime producers have the largest sphere of influence, transporting material as far as the sugar plantations in KwaZulu-Natal. The Western Cape region has the smallest sphere of influence – this is attributed to limited water resources, the lack of fertile land and the high concentration of farmers in particular districts. Mpumalanga has of the lowest tariff charges, partly because of the many trucks available on this route that service the coal and steel industries. 8.4 Substitutes All four materials, limestone, dolomite, magnesite and lime compete/ substitute each other in specific markets and applications. As a filler, barite, feldspar, pyrophyllite, talc and flour silica are feasible replacements for limestone and dolomite. In the aggregate industry, chert, gneiss, granite, slag and gravel are likely substitutes. In water treatment and binder applications, current research seems to suggest that fly ash may be a viable, low-cost substitute. New technologies that promote the recycling of glass, paper, PVC, asphalt and plastics may affect the demand for GCC products and other carbonates. Potential future threats for lime and limestone producers include recycling/regenerating of lime by paper mills, as well as municipal water treatment plants, which can rework lime from softening sludge. Paper producers are looking at replacing limestone with alternative alkalis such as magnesia, ammonia or soda ash, which can be recycled more easily.

Pric

e (R

/ton)

Aglime prices

Transport costs

50

Quicklime produced by the recycling of waste hydrated lime (a waste product of the carbide industry) may also prove threatening to the industry. In Europe, burnt gypsum and gypsum substitutes have caused a decline in demand for lime in the construction market. The increased use of pozzolanic materials (slag, fly-ash, glass, aluminium, steel, fibreglass and other industrial waste products) means that less limestone is required per ton of cement manufactured. Substitution of cement structures for steel in the local construction industry is advancing quickly. Although only about 5 percent of buildings in South Africa have been built using steel structures, proactive marketing by steel producers and merchants are improving steel sales at the expense of cement’s market share. Recent steel price hikes have put a dampener on some of these steel projects. 8.5 Additional industry trends Few local companies actively do research and development (R&D). A limited number of producers do in-house R&D, whilst still fewer contract out their research initiatives. The CSIR is the one of the main research groups in carbonate technologies, particularly in water and effluent treatment. Less than 10 producers have hired soil scientists and process engineers on a private basis to improve and modify their products and uses. Mintek, an associated institution specialising in mining technologies, is re-investigating the possibilities of carbonate and magnesium extraction, as well as further value-addition. Most carbonate producers have 3 to 7 major clients, although in the agricultural sector 200 to 3 000 clients is not unusual. Several producers mentioned that branding or familiarity with a recognised brand was important in the launching of new products as well as attracting new clients.

51

Turnaround times have improved significantly from 10 years ago, although this is not necessary with established customers where 2-, 4- or 8-week stockpiles are kept on-site at the consumer’s premises. Most carbonate plants keep 2 - 4 weeks of finished product and raw material on-site for any unforeseen emergencies. Due to the hydrating nature of lime, minimal amounts of lime are stored on-site. The rapid change from rail to road transport (73,2 percent by road in 2004 compared to <40 percent 10 years ago) and the need to address logistics problems effectively and quickly, has led to the creation of marketing and logistics divisions by various companies to deal specifically with the placement of orders, order tracking, client problems and logistical/ transport arrangements – most companies have contracted out all transport. In the aglime and farming industry, the brief window for sowing (<3 months), necessitates carbonate producers to use between 10 and 100 private transport contractors to ensure the timely delivery of aglime to clients. Rail transporters cannot guarantee reliable, expedient delivery with this narrow window of sales. Some transport is contracted out to sister companies or BEE initiatives. Bulk is the dominant mode of transport (89,7 percent); bulkbags (1 ton and 0,5 ton bags) representing 4,7 percent and bags (< 50kg bags) about 5,6 percent of volumes sold. Bagged volumes are generally associated with high-value, low volume, product-specific niche markets. Transport costs have become an important factor in price determination, comprising 40 - 70% of the final landed price. Location and transport costs have barred several producers from specific aglime, metallurgical and lime markets. In the cement industry, cement distribution is dominated by road transport (98,8 percent), whilst rail transport has lost more than 18% market share over the last 10 years. Cement is generally transported in bagged form, which comprises 56,2 percent of total cement transported. Some producers have reduced unit costs by importing bulkbags from India, with prices fetching as little as R45 per bulkbag compared to costs of R80 in South Africa. Due to the hydroscopic nature of many high-value calcitic products (particularly amorphous products and lime compounds), plastic liners are the preferred packaging medium.

9. LOGISTICS AND TRANSPORT

52

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

1982 1985 1988 1991 1994 1997 2000 2003

50 000

100 000

150 000

200 000

250 000

In 2004, limestone and dolomite quarries employed 2 289 people, which represents a 31,2 percent reduction from 1990 (Figure 23 and Addendum 8). This trend is in line with production increases and improved labour productivity over the same period. Mechanisation and cost-cutting exercises have also reduced employee numbers. In 2004, total remuneration exceeded R229 million. Employee remuneration in the carbonate sector is in the medium to high echelons of the industrial sector – revenue generation is 22,1% of industrial mineral totals, whilst employee numbers and remuneration are about 7,1% and 10,9% respectively. The industry employs mainly lower-skilled and semi-skilled workers. On-the-job training is the norm.

Figure 23: Employment and remuneration, 1982 - 2004

Statistical source: Roux, E. (2005)

10. EMPLOYMENT AND REMUNERATION

No. of employees Total Remuneration

Num

ber o

f Em

ploy

ees

Total Rem

uneration (in R ‘000)

53

The Mine, Health and Safety Act (1996) has ushered in a new approach to ‘total mine, health and safety’ for all stakeholders. Limestone is an environmentally safe material with no adverse health problems, as long as the fine particle dust is controlled and crystalline or free silica content is less than 1 percent. Quicklime and slaked lime are classified as irritant and can cause chemical burns when subjected to abrasion in the presence of moisture or perspiration. Most local companies have regular health checks, which includes annual physicals and chest X-rays. In the quarrying process, drilling is the largest source of dust. The use of bag-filters is the preferred control method for de-dusting in drilling programmes. Dust emissions, blasting noise and vibration associated with primary blasting is controlled by sealing the drill holes with stemming (4-6mm fines compacted into the top-section of the drill hole). Quarry roads are wetted regularly to minimise dust clouds. Back-filling is the waste-disposal method of choice at most large-scale mines, as this is an extremely effective long-term solution. All operations require employees to wear hard hats, masks and eye protection in mining and processing areas. The use of dust hoods, dust collectors, closed systems and other dust suppression methods (e.g. containment, extraction or arrestment) have minimized dust pollution significantly in production plants. Quicklime and cement production exhaust gases (NOx, COx, SO2) and dust is collected by a host of cyclones, fabric filters, electrostatic precipitators and wet scrubbers. Generally speaking, a combination of cyclones with fabric filters or electrostatic precipitators is used in local operations. Aqueous discharges from carbonate quarrying and processing do not, in general, present a significant environmental hazard. Suspended matter is removed by settling in sumps, slurry ponds and slime dams. Voluntary HIV status testing is conducted – this is an absolute necessity, as some companies have reported a greater than 25 percent infection rate amongst employees. NOSA accreditation, ISO 9 000, ISO 14 000 and OHSAS 18001 has assisted major role players in overall health and safety and proper environmental management. However, medium and long-term environmental and compliance costs are a major concern for several small producers. All mining companies have been involved in community developments and social upliftment projects to some degree, these include upgrading workers’ accommodation, supporting HIV projects and provision of Adult Basic Education Training and Basic Management Programmes, converting contract workers to full-time employees and extensive medical aid and pension plans. Several mining companies are offering careers in the carbonate industry, either through accelerated learning initiatives, bursaries or management courses. The sponsoring of marathons, bridge building competitions, concrete sculptor awards, Aids awareness family days as well as the building of classrooms and tertiary education funding, are but some of the financial contributions carbonate, cement and concrete producers have made in recent years. An exemplary example of what can be done after pit closure includes diving courses, and up until recently bass-fishing, offered at Bass Lake (Kumba’s Glen Douglas mine).

11. ENVIRONMENTAL, HEALTH & SAFETY COMPLIANCE

54

Industry risk is low for large-scale producers, although aglime producers are facing the toughest trading conditions in 15 years. High-end carbonate products, through several successful R & D initiatives have replaced many other white fillers. As excellent, relatively low-cost filler, carbonates have a firm position in the market place and are not threatened in the short and medium-term. Further, producers’ good reputation regarding service and quality have been an added boon to the industry. Barriers for new entrants to the carbonate industry are:

Finding receptive markets, Good orebody characterisation, High start-up and production costs, Technical know-how regarding processing, Continued capital expenditure from day one, Acquiring acute product- and industry knowledge, Locating new orebodies with a LOM of > 20 years, A need for continuous R&D programs and funding, High-quality, favourably located, consistent deposit(s), Pioneering technologies & material processing facilities, and Strong competition from both local producers and imports.

New entrants would need a strong technological advantage to capture some markets from established producers. Generally it would probably be easier to purchase an existing operation, or acquire an interest in one, than to start a new operation – compliance costs for first-time producers are excessive, particularly in industrial minerals. Using an established company’s brand name to promote new products or materials, instead of promoting it oneself are another alternative.

12. THREATS, PROBLEMS AND RISK IN THE INDUSTRY

55

The capital-intensive nature of the cement industry, as well as high transport costs, bar many from entering this market. No new entrants are expected in the foreseeable future (barring take-overs). Most major cement producers of South Africa are geared towards attaining full ISO 9 000, ISO 14 000 compliancy as well as other compliancy, such as ISO 17 205 and OHSAS 18001. The net result would mean the upgrading of kilns and milling plants; improved water effluent treatment; reduction of dust emissions and energy consumption and improving occupational health, safety, management and laboratory qualitative systems and structures. Demand for non-blended pozzolanic cements (CEM II, III and V) and other cement types should increase through 2006. Sales of these products will be stimulated by the cost, environmental and performance benefits they offer. One of the medium- to long-term objectives of the industry is the gradual replacement/ phasing out of long kilns and ‘old generation’ plants (pre-1950’s). Future South African technologies will focus around the retrofitting of kilns, the addition of more precalciners and improved ‘intelligent’ software programmes. The cement market shows great potential in the short and medium terms as the value and quantity of contracts increases – greater infrastructural spending by Government and the booming residential sector augur well for the construction industry. Further market penetration is to be expected regionally (including SADC territories) and in exports to Central Africa, the Middle East and the Indian Ocean Islands. The following factors will have an effect on dolomite, dolime, lime and limestone output: 1) the construction industry, which depends on short-term projects and is affected by interest rates and recessions; 2) the steel industry, which depends on total steel output, fluxing materials, refractory bricks and world growth in steel; and 3) environmental applications and ‘clean air’ legislation – the treatment of sewage sludge, animal waste neutralization and flue gas desulphurisation. Proposed plant expansions will push the cement industry’s current capacity up by 2,6 Mt to 15,6 Mt, although this may fall short of the forecast 16,7 Mt capacity needed in 2010. A growth rate of 5 percent per annum has been forecast for the domestic cement industry over the next 2 years, whilst regional growth is set to reach a maximum of 1,5 percent. Future cement plant upgrades will focus on improving production output, reducing heat consumption, lowering production unit costs and reducing stack emissions. Substantial growth is expected in cement and concrete additives, concrete rail sleepers and poles, modular textured masonry and plastic reinforced and corrosion-resistant steel. Demand for cement used in the manufacture of concrete products should climb at above-average rates, stimulated by the growing popularity of pre-cast concrete products among construction contractors, and the expected acceleration in non-building and non-residential construction activities, the latter of which are the largest markets for pre-cast concrete products.

13. CONCLUSIONS & SUMMARY

56

Agricultural consumption of dolomite and limestone is generally unpredictable, as is evidenced by erratic sales over the last 5 years. It is expected that sales in 2006 will increase marginally, provided that drought or floods do not occur. The steel sector has shown some improvement in recent times – this is expected to increase in the immediate short-term and then gradually decline over the next 5 years. Over the last 5 years, several non-cement producers have improved their processing and final product – this includes better packaging, moisture inhibitors, quality assurance, expedient delivery and customer support. Value addition such as fine sizing, drying, blending and narrower fractions are an absolute necessity. Unfortunately, local dolomite is of a relatively poor quality and is not suitable as high-grade filler and refractory. Imports from the SADC region and abroad will continue until such time that high-quality local deposits are found and exploited. Recycling, re-use, regenerating, substitution in water treatment and steel sectors and a greater efficiency regarding lime and limestone consumption may dampen sales in primary and filler markets. In terms of production factors, policy and strategy, the overall industry and product market risk is low. Several empowerment companies and partnerships have been created in the last 2 years, particularly through employee shareholder benefits, and buy-ins by some large and small BEE companies. Strategic international partnerships in R & D, product development, tougher environmental legislation and a strong economic upturn in southern Africa may increase demand for local products in international markets. Sustainable growth in the carbonate industry is dependent on the development of niche markets and a strong increase in local manufacturing. External factors such as transport and energy costs; toll fees and new substitutes are a real concern for all carbonate producers. Further contraction in lime consumption; and more strategic acquisitions (both locally and abroad) are expected in the carbonate industry.

57

Addendum 1: SECONDARY APPLICATIONS FOR LIMESTONE, DOLOMITE & LIME

ABSORPTION Apple Storage LUBRICANTS Drilling Muds Adsorber Degreaser Wire Drawing Bleaches Casen Paints NEUTRALIZATION Acid Mine Drainage Oil & Chemical Absorbents Agricultural Soils Sludge & Mud Drying Agent Calcium Phosphates SO2 Removal Chrome Specials Strawboard Citric Acid Sulphite Pulp Dyestuffs Surfactants Explosives Wastes Metal Pickling WastesBONDING AGENT Asphalt Paving Radioactive Wastes Briquetting of Fuels Sewage Treatment Calcium Silicate Products Uranium Wastes Hydraulic Road Binders Water Treatment Insulation Materials Mortars & Plasters SOLVENTS Gelatin & Leather Road Soil Stabilization Sealing Mastic & Materials OTHER Abrasives Silica Brick Agriculture Stuccos Animal Feed & Carriers Calcium CarbideCAUSTICIZATION Caustic Soda Calcium Cyanamid Dual Alkali Scrubbing Calcium Zirconate Semi-dry Scrubbing Carpet Backing Soda & Sulphate Pulp Caulking Compounds Wet Scrubbing Cement & Concrete Ceramics & CosmeticsDEHYDRATION Air Drying Dairy Products Alcohols Digestion Aids Organic Solvents Extenders & Fillers Petroleum Fertilizers Fireworks FLOCCULATION Ore Flotation Flame Retardants Dust Suppressant French Chalk Paint Pigments & Coatings Glass Sewage Treatment Insecticides Sugar Refining Mineral Wool Water Purification Paper & Pulp Waste Treatment Plastics PharmaceuticalsFLUX Alumina & BOF Steel Printing Inks Electric Furnace Steel Rubber Non-Ferrous Metals Silica production Open Hearth Steel Sodium Dichromate HYDROLIZATION Ammonia Lubricating Grease Organic Chemicals Pulp Cloth

14. ADDENDUMS

58

Addendum 2:

AGRICULTURAL LIMESTONE PREREQUISITES

An extract from Act 36 of 1983:

REQUIREMENTS FOR AGRICULTURAL LIME MATERIAL (OVEN DRY BASIS)

Liming material Calcium Magnesium SiO2 CaCO3 MgCO3 Ca and Mg CCE*

Min g/kg

Max g/kg

Min g/kg

Max g/kg Min

g/kg Max g/kg

Min g/kg

Max g/kg

Oxides Min. g/kg

OH** Min. g/kg

Min %

Calcitic Aglime 43 70 Dolomitic Aglime 43 70 Magnesite 10 275 25 970 70 Calcite 380 9 950 35 70 Unslaked Cal. Aglime 43 700 70 Slaked Cal. Aglime 43 700 70 Unslaked Dol. Aglime 43 700 70 Slaked Dol. Aglime 43 700 70 Shell Lime 43 70 Slags & Silicates 300 Magnesitic Aglime 190 70

Notes: * CCE in strong acid

** Hydroxides Cal. Aglime = Calcitic Aglime Dol. Aglime = Dolomitic Aglime Liming materials 1. A liming material may only be registered and sold as a fertilizer if:

(1) It meets the requirements set out in the aforemtnioned table. (2) The fineness thereof with the exception of shell lime is as follows:

(a) That at least 50 % thereof passes through a 250 micron sieve (0,25 mm); and (b) That at least 100 % thereof passes through a 1700 micron sieve (1,7 mm):

on the understanding that a finer grade may be registered.

(3) The fineness of shell lime is as follows:

(a) That at least 60 % thereof passes through a 500 micron sieve (0,5 mm); and (b) That at least 100 % thereof passes through a 1700 micron sieve (1,7 mm):

on the understanding that a finer grade may be registered. (4) The maximum moisture content thereof on an oven dry basis is 150 g/kg and the

maximum moisture content of a liming material referred to in (2) does not exceed 200g/kg.

2. A liming material may be registered as microfine if at least 95 % thereof passes through a 250 micron sieve and at least 80 % thereof passes through a 106 micron sieve.

59

3. The details in columns 1,2,3,4,5 and 6 of the aforementioned table hereof must be given

in terms of Regulation 22 in respect of the liming materials, as well as the following information:

- CCE values, according to the strong acid and relative resin suspension methods, - Moisture content - Sieve test

Investigational allowances 4. A liming material is not considered to have a deficiency of one of its registered

components as long as it does not deviate by more than 7 percent on a dry mass basis.

Samples of liming materials When a sample of liming material is taken at a plant or elsewhere than a plant in terms of Article 15(1) of the Act the person in charge of the undertaking or an officer as intended and authorized in terms of Article 2(2)(a) of the Act shall take such sample of liming material knowing the methods described in part III hereof: on the understanding that should the holder of the registration, his employee, agent or any other witness sign the certificate relating to the sample taken, the method of sampling cannot become the subject of dispute.

Source: Act 36 (1983)

60

Addendum 3:

R.S.A.’s CARBONATE PRODUCTION, LOCAL SALES & EXPORTS, 1981-2004

PROD. LOCAL SALES EXPORT SALES YEAR Mass Value (FOR) Mas Value (FOB)

Kt Kt R’000 R/t Kt R’000 R/t

1981 24 687 19 247 143 515 7 162 2 770 17 1982 24 106 19 185 155 630 8 55 2 336 43 1983 22 256 17 593 166 112 9 61 3 155 51 1984 23 053 17 748 190 900 11 64 3 820 59 1985 20 520 15 772 201 904 13 79 5 173 65 1986 20 898 15 793 234 824 15 76 5 669 74 1987 21 372 15 861 270 161 17 74 6 240 84 1988 20 857 17 063 317 655 19 81 7 577 94 1989 20 678 17 619 370 022 21 73 7 773 106 1990 21 797 18 327 426 242 23 76 9 324 122 1991 21 494 17 813 478 487 27 63 8 585 135 1992 19 782 15 868 493 433 31 68 9 165 134 1993 18 222 16 031 529 401 33 41 6 928 170 1994 19 641 18 216 597 237 33 59 10 889 183 1995 19 981 20 564 694 598 34 62 13 156 211 1996 19 496 18 369 707 611 39 51 11 432 224 1997 21 212 18 242 705 124 39 54 15 873 297 1998 19 742 17 037 708 318 42 62 17 222 278 1999 19 030 15 205 738 386 49 54 15 498 287 2000 19 279 14 898 778 917 52 43 13 528 311 2001 18 946 15 110 901 551 60 17 8 257 484 2002 20 738 16 901 1 055 733 62 13 6 225 494 2003 21 246 17 429 1 195 064 69 15 8 888 586 2004 21 961 17 705 1 230 367 69 16 9 673 602

Source: Roux, E. (2005)

61

Addendum 4:

S.A.’s LOCAL SALES OF LIMESTONE & DOLOMITE BY APPLICATION, 1997–2004

YEAR CEMENT METALLURGICAL AGRICULTURAL OTHER Mass Value (FOR) Mass Value (FOR) Mass Value (FOR) Mass Value (FOR)

Kt R’000 R/t Kt R’000 R/t Kt R’000 R/t kt R’000 R/t

1997 11 533 130 185 11 2 324 91 750 39 710 23 055 32 2 151 151 982 71

1998 10 541 118 456 11 2 067 84 871 41 865 29 801 34 2 100 169 625 81

1999 10 074 132 375 13 1 998 85 247 43 836 29 055 35 927 156 396 169

2000 9 794 136 004 14 2 131 96 379 45 653 26 205 40 969 170 403 176

2001 9 700 156 639 16 2 038 90 442 44 799 36 497 46 974 185 487 190

2002 11 218 188 653 17 2 088 98 690 47 993 49 281 50 1 017 230 879 227

2003 11 893 216 148 18 1 972 104 861 53 935 53 732 57 1 110 260 981 235

2004 11 655 226 517 19 2 029 106 120 52 889 52 740 59 1 155 277 015 240

Source: Roux, E. (2005)

62

Addendum 5: SALES HISTORY BY END DESTINATION, DOMESTIC AND REGIONAL, 2000 – 2004

(Volume in tons)

Province 2000 2001 2002 2003 2004 % Change 04 vs 03

Limpopo 767 067 793 375 768 894 770 469 857 500 11.3

Mpumalanga 508 600 592 216 596 656 626 461 748 324 19.5

Gauteng 2 714 905 2 878 111 3 089 956 3 209 474 3 809 759 18.7

Free State 389 161 377 508 351 565 388 718 459 791 18.3

KwaZulu-Natal 1 214 147 1 192 871 1 270 449 1 440 235 1 617 193 12.3

Eastern Cape 492 280 470 223 507 500 731 008 938 651 28.4

North West 594 419 615 908 714 472 695 760 723 388 4.0

Northern Cape 122 738 156 113 160 754 156 854 179 512 14.4

Western Cape 1 093 664 963 006 1 051 605 1 086 487 1 356 147 24.8

TOTAL DOMESTIC 7 896 981 8 039 331 8 511 851 9 105 466 10 690 265 17.4

Lesotho 199 355 170 740 148 999 126 094 111 427 -11.6

Botswana 452 715 498 195 530 176 539 239 531 285 -1.5

Namibia 267 829 290 265 272 796 254 251 267 275 5.1

Swaziland 174 550 166 656 159 867 138 120 135 748 -1.7

TOTAL REGIONAL 8 991 430 9 165 187 9 623 689 10 163 170 11 736 000 15.5

Source: CNCI Market Review (2004)

63

Addendum 6:

TABLE 1: SALES HISTORY BY PRODUCT TYPE, 2000 – 2004 (Volume in tons)

PRODUCT TYPE 2000 2001 2002 2003 2004 % Change 04 vs 03

CEM I 3 155 490 2 977 067 2 146 527 2 198 581 2 695 651 22.6

CEM II A 2 522 163 2 714 994 3 605 715 4 341 624 5 315 878 22.4

CEM II B 1 759 790 1 839 139 2 278 044 1 735 430 1 071 178 -38.3

CEM III 483 261 488 212 494 416 697 796 1 214 726 74.1

GGBS Slag 372 652 495 645 501 777 585 760 670 535 14.5

FLY ASH 130 604 105 541 118 808 136 726 159 532 16.7

MASONRY MC 12.5 49 211 16 418 456 0 0 0

OTHER 518 259 528 168 478 419 467 253 608 500 30.2

TOTALS 8 991 430 9 165 184 9 624 270 10 163 170 11 736 000 15.5

Source: CNCI Market Review (2004)

TABLE 2: SALES BY END USE SECTOR, 2001 – 2004 (Volume in tons)

End Use Sector 2001 2002 2003 2004 % Change 04 vs 03

Concrete Prod. Manuf. 1 513 676 1 621 599 1 664 447 1 968 461 18.3 Readymix Producers 1 036 998 1 190 036 1 274 538 1 547 340 21.4

Resellers 4 564 945 4 776 806 5 067 927 5 889 771 16.2

Civil Constr. (Direct) 444 611 409 222 428 944 366 949 -14.5

Building Constr. (Direct) 715 514 665 579 648 150 704 425 8.7

Mining 221 988 232 785 252 490 241 840 -4.2

Blenders 450 041 508 294 606 380 780 609 28.7

Other 217 411 219 367 220 294 236 605 7.4

TOTAL SALES 9 165 184 9 623 688 10 163 170 11 736 000 15.5

Source: CNCI Market Review (2004)

64

Addendum 7:

GROSS FIXED CAPITAL FORMATION (GFCF), 1968 - 2004

Public corporations

General government

Private business enterprises GFCF Total

1968 6 239.40 26 517.00 34 283.96 65 925.13 1969 6 468.78 29 230.69 39 623.65 74 188.42 1970 7 703.67 32 052.71 46 275.89 84 776.03 1971 7 757.19 38 865.34 49 557.26 93 940.77 1972 8 502.71 45 035.71 49 297.31 99 429.01 1973 12 723.47 40 628.66 53 145.46 104 621.18 1974 14 145.69 41 822.94 57 027.71 111 452.75 1975 17 846.51 47 098.79 58 970.96 122 327.59 1976 17 445.07 50 004.35 55 987.90 120 816.34 1977 19 203.73 42 062.33 53 367.06 113 613.58 1978 21 719.37 36 221.17 52 011.90 110 462.93 1979 24 150.89 36 518.46 53 652.59 115 067.39 1980 29 537.72 36 780.48 66 398.80 134 718.11 1981 24 812.30 41 183.00 79 635.09 146 781.63 1982 21 849.35 41 403.41 79 379.41 143 626.55 1983 21 524.38 36 434.85 78 198.96 138 540.44 1984 22 090.21 33 524.21 78 578.23 136 476.81 1985 22 709.56 33 429.17 68 708.55 126 887.87 1986 16 241.99 29 584.11 57 287.66 103 318.41 1987 13 436.46 27 158.84 59 512.18 98 031.89 1988 12 578.03 27 956.58 70 060.93 110 367.81 1989 16 922.88 29 370.73 71 551.16 117 546.63 1990 17 426.24 25 632.54 71 828.55 114 795.17 1991 15 621.57 22 992.54 67 853.94 106 313.83 1992 14 620.71 20 519.50 66 242.23 100 721.82 1993 12 425.14 19 163.70 69 059.82 100 163.00 1994 11 939.26 19 094.47 77 836.50 108 423.51 1995 13 824.20 19 681.39 86 331.91 120 015.25 1996 15 291.15 22 644.08 92 973.87 130 826.58 1997 16 698.20 24 176.99 97 463.44 138 338.39 1998 25 243.00 24 102.00 95 586.00 144 931.00 1999 18 325.00 23 039.00 92 559.00 133 923.00 2000 14 642.00 24 908.00 100 097.00 139 647.00 2001 13 989.00 24 077.00 106 482.00 144 548.00 2002 15 564.00 25 210.00 109 118.00 149 892.00 2003 18 236.00 31 845.00 113 285.00 163 366.00 2004 19 361.00 33 907.00 125 396.00 178 664.00

Statistical source: SARB (2005)

65

Addendum 8:

SOUTH AFRICA’S LIMESTONE AND DOLOMITE QUARRIES: EMPLOYMENT, REMUNERATION AND PRODUCTIVITY, 1982–2004

YEAR EMPLOYEES TOTAL REMUNERATION

LABOUR PRODUCTIVITY

R’000 t/employee

1982 4 372 27 191 622 1983 3 617 27 456 759 1984 3 535 30 368 859 1985 3 494 33 551 960 1986 3 381 36 042 1 066 1987 3 290 40 573 1 233 1988 3 242 52 583 1 622 1989 3 275 60 254 1 840 1990 3 325 72 644 2 185 1991 3 261 78 037 2 393 1992 2 995 81 313 2 715 1993 2 788 86 417 3 100 1994 2 859 94 763 3 315 1995 2 785 105 389 3 784 1996 2 735 115 774 4 233 1997 2 736 124 297 4 543 1998 2 648 135 531 5 118 1999 2 754 163 726 6 910 2000 2 668 173 138 7 227 2001 2 557 179 388 7 410 2002 2 518 190 668 8 236 2003 2 166 185 540 9 819 2004 2 289 229 923 9 594

Statistical source: Roux, E. (2005)

66

Acito, A. (2002), Calcite synonyms, Plaster terms, http://www.plasterarc.net/essay/essay/,

Cited 15 August 2005 Act 36 (1983), An extract from The requirements for agricultural lime material, published by

the Government printers, 1983. Agnello, V.N. (2004), Producers of Industrial Mineral Commodities in South Africa

(Directory D11), DME publication, published 2004. Agnello, V.N. (2003), A review of the dolomite and limestone industry in South Africa

(Report R43/2003), DME publication, published 2003. Badenhorst, J.J. (1988), The supply and demand for limestone and lime in the Republic of

South Africa (Report R7/ 1988), Minerals Bureau publication, published March 1988. Barthelmy, D. (2000), Calcite and dolomite Dana Classification, INTERNET.

www.webmineral.com/data/. Cited 1 August 2005. Beukes, D.J. 1997. Perspective on the soil acidity problem in South Africa. In: Proceedings of the

Soil Acidity Committee Symposium. Pretoria: Soil Acidity Initiative (ARC-ISCW), 8-10. Blaauw, P. (2005). State of the Civil Industry, 2nd Quarter, 2005, SAFCEC publication,

Published May 2005, p.14 Cement Index (2005), CPI and CPIX Indexes, INTERNET. http://www.statssa.gov.za, Cited

2 July 2005. Chrystal, P. (2002), Animal feed in South Africa, INTERNET. http://www.spesfeed.co.za,

Cited 2 August 2005 CNCI Market Review 2005, Published by CNCI, March 2005, p. 16. CNCI Market Review 2004, Published by CNCI, March 2004, p. 16. Him Lok, P. (2003), Manufacture of Fertiliser and Nitrogen Compounds, Published by

WhoOwnsWhom (Pty) Ltd, 2003. Jacks, M. (2005), Next object of state scrutiny? INTERNET. http://www.netassets.co.za/equities/,

Cited 30 September 2005. Klein, R. (2005), Spesfeed CC (aglime products: manager), Personal communication. Loubscher, D. (2005), Civils section, SABS Head office, Personal communication. Lourens, C. (2003), Cement makers consider R3 billion expansion, Business Day, 15 June

2003. Manning, D.A.C. (1995), Industrial Minerals, Cement and plaster, University Press, Cambridge,

UK, pp.141-158. Mantel, D.G. (1991), The manufacture properties and applications of Portland Cements, Cement

Additives and Blended Cements, Copyright PPC 1991, p. 62.

15. REFERENCES

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Martini, J.E.J. and Wilson, M.G.C (1998), Limestone and dolomite In Mineral Resources of South Africa, Handbook, Council for Geoscience, 16, pp. 433-440.

Oates, J.A.H. (1998), Lime and Limestone, chemistry and technology, production and uses,

Copyright Wiley-VCH, 1998, p. 455. PCM (2005), Portland cement manufacture, INTERNET. http://www.cement.org, Cited

25 July 2005. Polasek, J. (2005) Consol glass technical specialist, Personal communication. PPC Lime, 2004, Lime manufacture, INTERNET. http://www.ppclime.co.za, Cited

4 August 2005 (author unknown). Roux, E. (2005), Production, local sales & export statistics, (unpublished) for the Minerals Bureau

division of the DME. SARB (2005), Quarterly Bulletin, March 2005 [PDF], compiled by South African Reserve Bank,

INTERNET. http://www.reservebank.co.za, Cited 5 July 2005 Sheath, J. (2005), Cement & Concrete Institute, Personal communication. Strauss, L. (2005), FSSA President’s report, published by FSSA, 2005. Thomson, C. O. (1994), Dolomite in South Africa: Applications, supply and demand (Report R20/

1994), Minerals Bureau publication, published March 1988. Van Der Merwe, A.J., De Villiers, M.C., Barnard, R.O., Beukes, D.J., Laker, M.C. & Berry, W.A.J.

2000. Technical report on the management & rehabilitation of acid & fertility declined soils in South Africa. In: Proceedings of the FAO-ISCW Expert Consultation on Management of Degraded Soils in Southern and East Africa. Pretoria: Agricultural Research Council, 141-171.

Van Schelt, B. (2005), Manager, technical division, PFG, Personal communication. AUTHOR

V N AGNELLO Mineral Economist: Industrial Minerals Tel: +27 (0)12 317 8579 Fax: +27 (012) 320 4327 Email: Vince.Agnello@dme.gov.za