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The article reports on the growth of mid-tier and junior mining companies carrying out platinum mining projects in South Africa. Among the companies include Aquarius Platinum Ltd., African Rainbow Minerals Ltd., and Xstrata which result to the development of Platinum Group Metal (PGM) producers in the country. According to a study conducted, the realization of the platinum mining projects by mid-tier and junior groups will help the country increase platinum production by 3 million ounce (oz) by 2014. The projects include Anglo Platinum Ltd.'s Amandwlbult East Upper platinum project, Impala Platinum Ltd.'s facility expansion which aims to produce 2.8 million oz of the metal by 2012, and the mining operations carried out by Impala and African Rainbow at the Two Rivers mine.

There are concerns in the mining industry, as goldminers, coalminers and others address three related pressures: new laws, a strong currency, and lawsuits. Are South African mining firms under unbearable strain? Platinum prices have boomed for years and are likely stay high, partly because only two countries, South Africa and Russia, supply almost all the metal. New regulations for miners (and other firms) aim to create greater black ownership in a white-dominated business, and more revenue for the government's coffers. A mining charter requires that a minimum stake of 15% in all mining firms must be owned by black investors within five years, rising to 26% within a decade. Harmony Gold Mining and black-owned African Rainbow Minerals said that they would merge to form the world's fifth-largest producer, HARMony, a company worth 20 billion rand. Mining firms, in particular, face several lawsuits, which South Africa's president, Thabo Mbeki, says he does not support. The firms are accused of doing business with, and supporting, the white-minority South African government even after a United Nations ruling that apartheid was a crime against humanity.

The article focuses on Lazarus Zim, an executive at Anglo American mining company with headquarters in Johannesburg, South Africa. Mr Zim has just become the first black boss of Anglo American's South African operations. He reports only to the global boss of Anglo American, his compatriot Tony Trahar. The parent firm, listed both in London and Johannesburg, recently reported a rise in earnings of 59%, or $2.7 billion. Mr Zim sits atop a collection of South African firms--Anglo Gold Ashanti, Anglo Platinum, Anglo Coal and others--that last year contributed over a quarter of Anglo American's worldwide revenue. He is exactly what the company needs--especially in its efforts to patch up ragged relations with the government. Surveys indicate that mining firms believe other African countries have more welcoming laws. Miners also grumble that they are unsure what royalties the South African government will collect in exchange for licences (previously none were charged). Smoother relations will also probably depend on Anglo American making faster progress with "black economic empowerment". This means, in effect, shifting more wealth and power into black hands, something the government is desperate to speed up. Anglo American wants recognition for unbundling itself a decade ago, when it helped to set up black mining firms such as African Rainbow Minerals and Mvelaphanda Resources.

These are trying times for South Africa's mining companies. No longer. For months firms have given warning that higher costs, due to the now strong rand, are hitting profits. Two years ago a weak currency and high world prices boosted gold and other mineral exporters. This week the country's fourth-largest goldmining firm, Durban Roodepoort Deep, said it might have to close two mines and cut perhaps 13,000 jobs. The rest of the mining industry is also in talks, the toughest for many years. The last general strike, in 1987, came under the apartheid government. The protests had political as well as economic goals. The political heat is absent now, though miners do want better housing, welfare and medical help. This week the talks broke down and the union was set to serve legal notice that at least three goldmining companies, AngloGold, Harmony and Gold Fields, face a strike. The mining houses are also waiting to hear details of the government's new mining royalties bill, under which the state will claim an extra 2-8% of revenues on various minerals.

South Africa's cricket team was officially named the world's best this week, to great fury in Australia whose team had just suffered an embarrassing loss to England. Rugby matches, surfing competitions and the world barbecue (or braai) championships are always hot-headed affairs. But nothing gets southern-hemisphere blood boiling more than gold, diamonds and other minerals. A year ago, South Africa's AngloGold fought and lost a long battle to control Normandy, an Australian gold-mining company. In July 2002, Brian Gilbertson, a cocky former rocket scientist, and a South African, took the helm at BHP Billiton, a multinational mining firm based in Australia. At Billiton, a firm created by Gencor as a vehicle for international expansion which he ran from 1997, he first oversaw what was viewed as a daring expansion into aluminium smelting.

The article reports on the competition between mining companies Xstrata Coal and Rio Tinto PLC in buying 12.5 million metric ton a year Optimum South African coal mine from BHP Billiton. BHP Billiton has declined to name the parties with which it is in talks with. Xstrata offered to take Optimum in exchange for its 16% of Douglas Colliery Services Ltd. On the other hand Rio Tinto has also offered BHP Billiton a deal involving asset swaps, to exchange equity in U.S. or Australian coal operations for Optimum.

The article reports on the corporate development planned by mining company Anglo Platinum. The company will be adding 100,000 oz/y of production capacity at its Amandelbult platinum operations near Rustenburg, South Africa. The expansion will increase its capacity to 700,000 oz/y of equivalent refined platinum. In addition, the expansion project will focus on an additional mine production from the UG2 reef and an increase in milling capacity. Furthermore, the expansion project will begin in 2007.

The article reports on the development of the plan of mining company Alcan for aluminum smelter projects in South Africa and Canada. The plans for aluminum smelter projects outlined by the company during November and December 2006 will absorb investments totaling $4.5 billion. The company has secured a long-term power sup- ply agreement for the proposed $2.7 billion, 720,000 mt/y Coega aluminum smelter in South Africa. On the other hand, the company will build a $550 million, 60,000 mt/y pilot smelter in Canada.

The article presents a discussion on the plan of the De Beers to establish a new diamond mine in South Africa. The cost is estimated to be approximately $172 million, the cost covers the expenses in building the mine and the recovery plant. The mine was acquired by Da Beers from Voorspoed Diamond Mining Co. (VDMC) in 1912 from which 4.2 million metric tons of diamond were recovered. The establishment of the new mine will generate 700 new jobs during development and an additional 400 jobs will be available when the mine reaches full production.

The article reports on the Xstrata-Merafe Chrome Venture, a joint venture of the mining companies Xstrata PLC and Merafe Resources Ltd. that will construct a new chrome ore agglomeration facility in South Africa. The chrome venture is the world's largest ferrochrome producer, with six mines and four metallurgical complexes, and incorporating 18 furnaces. The venture includes two parallel sintering and pelletizing lines that will produce of about 1.2 million metric tons per year. The project is budgeted at about 125 million dollars. Construction of the agglomeration plant is expected to begin in the second quarter of 2006. The plant is projected to reach full capacity by the end of 2007.