Economy of Rustenburg
Mining and energy
The economic, social and physical characteristics of Rustenburg are largely determined by the presence of mining activities within its Municipal Area.
Mining activity is concentrated along a geological belt, known as the Bushveld Complex, which stretches across the Rustenburg Municipal Area
in a north-south and east-west direction. Large platinum and chrome reserves are concentrated along this belt.Three mining companies dominate operations within
the Rustenburg Municipal Area. These are Impala Platinum, largely operating on Bafokeng tribal land through concessions, Anglo Platinum, operating northeast
of Rustenburg and Lonmin Platinum, operating west of Thekwane. There are nine municipal wards within RPM-R lease area consisting of formal towns
and townships inclusive of communities that belong to the Royal Bafokeng Administration, and informal settlements. There are nine municipal wards within
RPM-R lease area consisting of formal towns and townships inclusive of communities that belong to the Royal Bafokeng Administration, and informal settlements.
It is reported that many of the mines in the Rustenburg area has a life expectancy in excess of 70 years.
The price trends and prospects of the platinum group of metals point to the possible longer-term economic growth of the Municipal Area.
Demand for platinum has been buoyant by the sharp growth in platinum jewelry sales, the running down of Russia's stockpile and the entry
into the market of China, which now consumes about a sixth of the world's platinum production. Analysts also expect the platinum fuel cell,
which will drive electric-powered vehicles, to be in widespread use by 2015. The economic, social and physical characteristics of Rustenburg are
largely determined by the presence of these mining activities within its Municipal Area. Mining activity is concentrated along a geological belt,
known as the Bushveld Complex, which stretches across the Rustenburg Municipal Area in a north-south and east-west direction. Large platinum
and chrome reserves are concentrated along this belt.
Impala Platinum
Impala Platinum (Implats) has its primary operations concentrated on the Impala lease area on the western limb of the Bushveld Complex, near Rustenburg.
The mine’s smelting operations (Minpro) are also located on the lease area, while the refineries are located in Springs, east of Johannesburg.Mining at Impala focuses primarily on two reefs,
the Merensky Reef and the UG2 chromitite layer. The majority of mining operations extend to a depth of around 1000m below surface. Mining operations consist of 13
operational shafts. Impala currently mines around 15 million tons of ore annually, yielding 1.9 million ounces of PGMs, including over 1 million ounces of platinum.
Impala is able to maintain production levels at a minimum of 1 million ounces of platinum for the next 30 years. Some 28000 people are employed by Impala Platinum.
Impala holds mining leases covering more than 27000 hectares. Mineral rights within the lease area are owned by the Royal Bafokeng Nation, to whom royalties are paid.
An agreement, which secures Impala’s access to these mineral rights for the next 40 years, was signed with the Royal Bafokeng Nation in 1999. In terms of the agreement,
the Royal Bafokeng Nation not only receives royalties for the mineral rights, but has also become a major shareholder in the company with board membership by a representative of the Royal Bafokeng Nation.
Anglo Platinum
The Rustenburg section of Anglo Platinum is split into three separate mining units: the West Mine comprising Frank, Townlands, and Paardekraal shafts;
the East Mine comprising Turffontein, Bleskop, and Brakspruit shafts; and the Waterval Mine. Anglo Platinum is expanding UG2 mining at Frank, Townlands, Paardekraal,
Bleskop, and Brakspruit shafts, as well as the Waterval Mine. Anglo has employed a workforce of 30 000 people within the Rustenburg section.
Strategy
Black economic empowerment
Mining giant Anglo Platinum has unveiled a multi-billion rand black economic empowerment deal that will benefit communities near where the company mines, as well as communities from where it sources its labour.
The beneficiary communities will include qualifying communities around the Twickenham, Mogalakwena, Rustenburg and the Amandelbult operations.Long-term equity ownership
The aim of the deal is to provide the beneficiary communities with long-term equity ownership in Anglo Platinum Limited and to give the beneficiary communities the ability to obtain
meaningful cashflow benefits over the life of the transaction.
Their operations have provided jobs, procurement and supply chain opportunities, infrastructure development, enterprise development, support
of the education and health sectors and many other community development initiatives over many years.According to Anglo Platinum, the initiative heralds
a new approach that emphasises broad-based economic empowerment and engagement with the beneficiary communities, as well as taking the company beyond legislative compliance.
It adds that it has been exploring ways of enhancing and optimising the benefits that accrue to host communities and extending such benefits to include key labour sending areas.
This next phase of empowerment underlines our ongoing commitment to the beneficiary communities and we believe that it will add the much needed impetus to social upliftment
and meaningful economic empowerment," said Anglo Platinum CEO Neville Nicolau. "Its significance comes in that it enables us to partner with the beneficiary communities
and begin the process of creating sustainable legacies that will outlast the lives of our mines. Exploratory discussions with certain community leaders indicate
a willingness and desire to address long term development.
Invest North West
Invest North West helps investors identify opportunities to encourage economic development and
employment opportunities in the North West Province. They are linked to the Platinum Project, which aims to promote social and ecenomic development in the surrounding communities.
