Mining

Mining Sector Overview in Capricorn District Municipality (CDM)

Mining is currently the smallest contributor to the Capricorn District Municipality’s economy, accounting for only 0.6% of the district’s Gross Value Added (GVA). It is the only sector to have experienced negative growth over the past decade, declining by 6.7%, with a total contribution of R154 million in 2006.

However, while mining may appear less significant at the district level, it remains a critical economic driver for the Lepelle-Nkumpi Municipality, where it contributes over 20% to the local GVA. Between 1999 and 2004, the mining sector in Lepelle-Nkumpi recorded an average annual growth rate of 10%, and it currently accounts for 40% of the district’s total mining output.

Key Mining Activities and Developments

The district—via Lepelle-Nkumpi—forms part of the Platinum Mining Cluster along the Dilokong Corridor. The region supports three types of mining operations: surface mining, open-cast mining, and underground mining.

A major boost for the district’s mining sector is the Mussina Platinum Mine located in Lebowakgomo. Initially projected to generate R230 million in revenue in 2002, the mine’s annual revenue is now estimated at R610 million, marking significant growth and potential for further development.

Other Major Mining Operations

  • LONMIN Mine (Ga-Mphahlele):

    • Employment: 1,800 people, of which 60% are local residents

    • Production: 120,000 tons of platinum annually

    • By-products: Chrome, platinum, and granite

  • Zebediela Area:
    Includes operations such as Roibosch, Granite, and Diepsloot mines, contributing to the region’s diversified mineral resource base.

Future Prospects and Exploration

The mining sector presents significant future potential, particularly in Lepelle-Nkumpi. Corridor Mining Resources is planning an ambitious exploration project in Ga-Mphahlele, aiming to drill 22,000 meters for Platinum Group Metals (PGMs). The project is valued at R100 billion and is expected to:

  • Produce 360,000 ounces of PGMs annually

  • Operate over a 22-year lifespan

  • Create 1,500 permanent jobs

Additional prospecting opportunities in the district include minerals such as granite, chrome, coal, gold, silica, and platinum.

Linkages and Economic Opportunities

The mining sector offers numerous backward and forward linkage opportunities, particularly for the Lepelle-Nkumpi and Polokwane Municipalities, due to their strategic location and existing industrial infrastructure. Currently, most mining inputs are sourced from outside the district, highlighting a gap that could be filled by local suppliers and manufacturers.

If properly developed, the tourism and manufacturing sectors could benefit significantly from enhanced mining linkages—through services, product beneficiation, and value-added activities.