LIST OF TABLES:

Table 1 Recent Hike In Excise And Import DutiesTable 2 Gold jewelry consumption by country in tonesTable 3 legal and administration law of mining in south africaTable 4 PESTLE analysis

LIST OF FIGURES:Fig 1 A Swiss-cast 1 kggold barFig 2 a map of South Africa where gold industry locatedFig 3 a gold pieceFig 4 Gold is commonly formed into bars for use in monetary exchangeFig 5 Mochegold necklace depicting feline heads.Larco MuseumCollection. Lima-PeruFig 6 TheTurin Papyrus MapFig 7 Funerary maskof TutankhamenFig 8 Jasonreturns with the golden fleece on anApulianred-figurecalyx kraterFig 9 Ancient Greek golden decorated crown, funerary or marriage materialFig 10 The entrance to an underground gold mine inVictoria,Australiafig 11 The Witwatersrand BasinFig 12 The Layout of a Gold Mine

Fig 13 system analysis in miningFig 14 mining sub-sector view

ABBREVIATIONSAAC Anglo-American CorporationAECI African Explosives and Chemical IndustriesAGRS African Gold Recovery SydicateAMM Association of Mine ManagersAS & TS Associated Scientific and Technical Societies of South AfricaBIC Bushveld Igneous ComplexBSAEC British South African Explosives CompanyC-P Continuous and PureC-R Continuous and RivalCMMSSA Chemical, Metallurgical and Mining Society of South AfricaCOMRO Chamber of Mines Research OrganisationCOMSA Chamber of Mines of South AfricaCORDIS Community Research and Development Information ServiceCOST Co-operation in the field of Scientific and Technical ResearchCPC Coal Producers CommitteeCSF Collective Supply FunctionCT Cape TechnikonD-P Discrete and PureD-R Discrete and RivalDASA Dental Association of South AfricaDBMC DeBeers Mining CompanyEMMC Empire Mining and Metallurgical CongressERPM East Rand Proprietary MinesESCOM Electricity Supply CommissionESS Evolutionary Stable StrategyEU European UnionEUREKA Pan-European network for market-oriented, industrial research and developmentFER Far East RandFRI Fuel Research InstituteFWR Far West RandGFSA Gold Fields South AfricaGPC Gold Producers CommitteeGS of SA Geological Survey of South AfricaGSSA Geological Society of South AfricaHSRC Human Sciences Research CouncilICT Information and Communication TechnologyINUS Insufficeint, but Necessary part of a complex of conditions which together are Unnecessary but Sufficient for the effectIRC Research CommitteeISCOR Iron and Steel CorporationIMSSA Institute of Mine Surveyors of South AfricaJCI Johannesburg Consolidated Investment CorporationJCMMSA Journal of the Chemical, Metallurgical and Mining Society of South AfricaJSAIE Journal of the South African Institution of EngineersJSB Johannesburg Sanitary BoardMASA Medical Association of South AfricaMIM Mining and Industrial MagazineMLST Malukmahomed Lappa Sultan TechnikonMMOA Mine Medical Officers AssociationMTC Mine Trials CommitteeMWU Mine Workers UnionNCOS Natal Coal Owners SocietyNRC Native Recruiting CorporationOFS Orange Free StatePET Port Elizabeth TechnikonPGSSA Proceedings of the Geological Society of South AfricaPT Pretoria TechnikonPUK Potchefstroom UniversityRCORC Rand Central Ore Reduction CompanyRDIC Rock Drill Investigations CommitteeRGB Research Grant BoardRMAC Rand Mutual Assurance CompanySA South Africa / South AfricanSAAA South African Association of AssayersSAAAS South African Association for the Advancement of ScienceSABBSI South African Branch of the British Standards InstituteSABS South African Bureau of StandardsSACI South African Chemical InstituteSAICE South African Institute of Civil EngineersSAIE South African Institution of EngineersSAIEE South African Institution of Electrical EngineersSAIME South African Institution of Mechanical EngineersSAIMM South African Institute of Mining and MetallurgySAIMR South African Institute of Medical ResearchSAMEJ South African Mining and Engineering JournalSAMJ South African Medical JournalSTCIR Scientific and Technology Committee on Industrial ResearchTAC Technical Advisory CommitteeTCOA Transvaal Coal Owners AssociationTB TuberculosisTEBA The Employment Bureau of AfricaTIME Transvaal Institution of Mechanical EngineersTNU Transvaal National UnionTWR Technikon WitwatersrandUCT University of Cape TownUFH University of Fort HareUFS University of the Free StateUNISA University of South AfricaUoN University of NatalUoP University of PretoriaUoS University of StellenboschUSA United States of AmericaVFP Victoria Falls Power CompanyWits University of the Witwatersrand Introduction of South Africa

South Africa, officially theRepublic of South Africa, is a country located at the southern tip ofAfrica. It has 2,798 kilometers (1,739mi) of coastline that stretches along the South Atlantic and Indian oceans.To the north lie the neighboring countries ofNamibia,Botswanaand Zimbabwe; to the east areMozambiqueandSwaziland; and within it liesLesotho, anenclavesurrounded by South African territory. South Africa is the25th-largest countryin the world by land area, and with close to53 million people, is the world's24th-most populous nation. South Africa is amultiethnic societyencompassing a wide variety of cultures, languages, and religions. Its pluralistic makeup is reflected in the constitutions recognition of 11 official languages, which is among the highest number of any country in the world.Two of these languages are of European origin:EnglishandAfrikaans, the latter originating fromDutchand serving as the first language of mostwhiteandcolouredSouth Africans. Though English is commonly used in public and commercial life, it is only the fourth most-spoken first language. About 80 percent of South Africans are ofblack Africanancestry,divided among a variety of ethnic groups speaking differentBantu languages, nine of which have official status.The remaining population consists ofAfrica's largest communities ofEuropean,Asian, andmultiracialancestry. All ethnic and linguistic groups have political representation in the country'sconstitutional democracy, which comprises arepublican nine provinces. Since the end ofapartheid, South Africa's unique multicultural character has become integral to its national identity, as signified by theRainbow Nationconcept. South Africa is ranked as an upper-middle income economy by theWorld Bank, and is considered to be anewly industrialized country. Its economy is the largest and most developed in Africa and the 28th-largest in the world.In terms ofpurchasing power parity, South Africa has theseventh-highest per capita incomein Africa, although poverty and inequality remain widespread, with about a quarter of the population unemployed and living on less than US$1.25 a day.Nevertheless, South Africa has been identified as amiddle powerin international affairs, and maintains significant regional influence.

President: Jacob Zuma (Since 2009)

Total Area: 1,219,912 sq. Km (471008 sq. mi)Land: 1,214,470 sq km Water: 4,620 sq km

Population: 48,810,427 (in 2012)

Capitals: Pretoria (Administartive Capital) Cape Town (Legislative Capital) Bloemfontein (Judiciary Capital)

Government: Republic

Dialing Code: 27

Currency: South African rand

Languages: Afrikaans language, English language, Zulu language, Sotho language, Tsonga language, Venda language, Swati language etc. The nation of SA is ranked as an upper-middle income nation by the World Bank, which makes the countryside one of the only four countries in Africa stood in this category (the others being Botswana, Gabon and Mauritius). About a quarter of the population is unemployed and about the equal proportion lives on less than US $1.25 a day. Advanced development is localized around four areas: Cape Town, Port Elizabeth, Durban, and PretoriaJohannesburg. Ahead of these four economic centers, development is minor and poverty is still widespread.. Consequently, majority of the South Africans are poor, however, recently the key marginal areas are having rapid growth. Those areas include Rustenburg area, Nelspruit area, Bloemfontein, Mossel Bay Plettenberg Bay, Cape West Coast, and the KwaZula-Natal North Coast.

POPULATION GROWTH RATE: (-0.38% (2011 EST)

BIRTH RATE: (19.48 Births/1000 Population (2011 EST)

DEATH RATE: (17.09 deaths/1000 population (July 2011 EST)

MEDIAN AGE: Total: 25 years Male: 24.7 years Female: 25.3 years

GEOGRAPHY OF SA Continent Africa Region Southern Africa Coordinates 2900 S 2400 E Area Ranked 25th 1,221,037 km2 (471,445 sq mi) Indias GDP growth rate (2011-2012): 8.2% Growth of Mining Industry in GDP (2011-2012)YearYear on year rates of growth(%) in Mining

2010-20115.8

2011-20126.0

MINERAL & RESOURCES SAs mining industry has been and remains a foundation of Africas economic powerhouse.

Policy & Initiatives Mining and minerals policy is based on the principles of Freedom Charter, as per which the mineral wealth below the layer of the soil will be transferred to the ownership of the people as s whole.

African Mining Partnership (Amp) The African Mining Partnership initiated in 2004 to further the New Partnership for Africas Development (Nepad) objectives through mining and mineral initiatives in the hunt of economic development in the continent.

Mining Industry The discovery of world-class diamond and gold deposits in the latter half of the nineteenth century laid the base for the upcoming of South Africa, an essential agricultural land to the modern industrial era.

Industrial Minerals There are some 674 producers of industrial minerals in SA, of which about half are in the sand and aggregate sector.

Transportation Electronic National Traffic Information System (Enatis) Enatis is the official and legal register for all vehicle, drivers license, and contravention and accident data.

Non-Motorized Transport (NMT) The promotion of NMT primarily aims to increase transport movability and convenience, mainly in rural part.

New Partnership for Africas Development (Nepad) From a transports point of view, key issues in forming an effectively co-ordinated African response to global market challenges are market access, mobility and systems integration.

Public Entities And Other Agencies The Department of Transport has established various different bodies to take over certain elements of governments operational activities.

Toll Roads The current toll road network comprises about 19% (3 120 km) of the current natural road grid. Some 1 832 km of these toll roads are managed by Sanral.

SA Maritime Safety Authority SAMSA is a statutory body which reports to the Minister of Transports.

INVESTMENT OPPORTUNITIES IN SA

Automobile industry SA's automotive industry is a global, turbo-charged for the making and export of vehicles and components.

Power Frost & Sullivan analyst Ross Bruton said that investment in renewable power in Africa, which totaled a mere $3.6-billion by 2010, "is expected to grow to $57.72-billion by 2020.

Wind, solar, geothermal This noteworthy challenge does, however, have a huge caliber upside. The need to give electrification to remote communities is one of the key drivers of renewable energy development on the continent.

New technologies New investments in the continents electricity infra are also likely to incorporate new, smart technologies and standards, which will see information and communication technology (ICT) development going on alongside electrification.

SA Trade: Exports SAs primary export commodities include gold, diamonds, platinum, other metals and minerals, machinery and equipment. SAs exports were worth $67.93 billion in 2009, down from $86.12 billion in 2008. 12

SA: Imports SAs primary import commodities include machinery and equipment, chemicals, petroleum products, scientific instruments, and food materials.

BALANCE OF PAYMENT SITUATION The SAn Reserve Bank released its September 2010 Quarterly Bulletin on September 22, with details on the balance of payments and the demand side of the nation.

IMPORT TAXES Value added tax (VAT) the valuation of imported goods for VAT based on the f.o.b value plus 14 percent of that value, plus any non rebated customs duty (Tariff plus Surcharge).

SA RESTRICTIONS The following is a list of common products restricted for import into the Republic of SA: Bank Notes Firearms and Explosives Cheese Endangered Wildlife Medicine 13 General Import Restrictions LICENSING All companies that are registered with SAs department of trade and industry can participate in import tread without a need to apply for unique trading rights. Licensing are required for certain product these include shoes, waste products, petroleum and certain agriculture products. NATION OF SA SA is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; a stock exchange that is the 18th largest in the world; and modern infrastructure supporting a relatively efficient distribution of goods to major urban centers throughout the region.

INTRODUCTION TO SCIENCE AND TECHNOLOGY IN SA Several important scientific and technological developments have originated in SA Cardiac surgeon Christian Barnard performed the first human-to-human heart transplant at Groote Schuur Hospital in December 1967. SAASTA The South African for science and Technology Advancement aims to advance public awareness appreciation and engagement in science, engineering and technology in South Africa SAASTA is a business unit of the National Research Foundation.

OVERVIEW OF SAS S&T RESEARCHThe abolition of the apartheid system in 199091, followed by the first free elections in 1994, caused a change of emphasis and diminished activity in SAs S&T sector. In recent years, SA has begun to rebuild its research program. In recent years, SA has begun to rebuild its research program. During the apartheid era, the government emphasized military research, including nuclear weapons programs and energy self-sufficiency, especially coal-to-liquid fuel conversion.

CURRENT TECHNOLOGY AVAILABLE IN SA

Innovation An innovation chasm between basic and applied research prevents SA from converting basic research into consumer products and services.

Biotechnology In biotechnology, most of SAs successes have been in first-generation applications, namely the use of selected biological organisms for agricultural production.

Advanced Manufacturing Technology/ICT SAs strategy for research in advanced manufacturing technology focuses on applying innovative methods to a number of industry sectors.

Nanotechnology In 2006 the Ministry of Science and Technology announced SAs new National Nanotechnology Strategy. According to this strategy, SA is dedicated to using nanotechnology to stimulate not only industrial growth, but also social development.

PERCENTAGE OF GNP INVESTED IN RESEARCH AND DEVELOPMENT Science and Technology Minister, Mr. Naledi Pandor showed his concern about the decline in the percentage of the Gross Domestic Product (GDP) spent by SA on Research and Development (R&D) in the 2007/8 financial year. Despite this increase, investment in R7D as a percentage of GDP, declined slighlty to 0.93%, compared with 0.95% in the previous year.

Marriage in South Africa Marriage in South Africaexists in a number of different forms, as a result of the diversity of religions and cultures in the country. Historically the legal definition of marriage, derived from the Roman-Dutch law, was limited to monogamous marriages between opposite-sex couples. Since 1998 the law has recognized marriages, includingpolygynousmarriages, conducted under African customary law,and in 2006 South Africa became the fifth country in the world to allowsame-sex marriage. According to the 2011 census, 36.7% of South Africans aged 20 or older was married. During the year 2011 a total of 173,215 new marriages were recorded.

Gender Distribution in South Africa

Cuisines of South Africa Indigenous cookery Figure literally translated "small pot food", is astewprepared outdoors in a traditional round,cast iron, three-legged pot. This one is being cooked on a barbecueIn the pre-colonial period, indigenous cuisine was characterized by the use of a very wide range of foods including fruits, nuts, bulbs, leaves and other products gathered from wild plants and by the hunting of wild game. The introduction of domestic cattle and grain crops by Bantu speakers who arrived in the southern regions from central Africa since 10,000 BC and the spread of cattle keeping toKhoisangroups enabled products and the availability of fresh meat on demand. The pre-colonial diet consisted primarily of cooked grains, especially sorghum, fermented milk (somewhat like yogurt) and roasted or stewed meat. At some point, maize replaced sorghum as the primary grain, and there is some dispute as to whether maize, a Central American crop, arrived with European settlers or spread through Africa before white settlement via Africans returning from the Americas during the era of the slave trade. People also kept sheep and goats, and communities often organized vast hunts for the abundant game; but beef was considered the absolutely most important and high status meat. The ribs of any cattle that were slaughtered in many communities were so prized that they were offered to the chief of the village The vegetable is often some sort of pumpkin, varieties of which are indigenous to South Africa, although now many people eat pumpkins that originated in other countries.Riceandbeansare also very popular even though they are not indigenous. Another common vegetable dish, which arrived in South Africa with its many Irish immigrants, but which has been adopted by South Africans, is shredded cabbage and white potatoes cooked with butter. For many South Africans have meat as the center of any meal. The Khoisan ate roasted meat, and they also dried meat for later use. The influence of their diet is reflected in the common Southern African love of barbecue (generally called in South Africa by its Afrikaans name, a "braai") and biltong (dried preserved meat). As in the past, when men kept cattle as their prized possession in the rural areas, South Africans have a preference for beef. Today, South Africans enjoy not only beef, but mutton, goat, chicken and other meats as a centerpiece of a meal. On weekends, many South African families, like white South Africans, have a "braai," and the meal usually consists of "pap and vleis," which is maize meal and grilled meat. Eating meat even has a ritual significance in both traditional and modern South African culture. For weddings, initiations, the arrival of family members after a long trip and other special occasions, families will buy a live animal and slaughter it at home, and then prepare a large meal for the community or neighborhood. Participants often say that spilling the blood of the animal on the ground pleases deceased ancestors who invisibly gather around the carcass. On holiday weekends, entrepreneurs will set up pens of live animals along the main roads of townshipsmostly sheep and goatsfor families to purchase, slaughter, cook and eat. Beef being the most prized meat, for weddings, affluent families often purchase a live steer for slaughter at home.Vegetarianismis generally met with puzzlement among Black South Africans, although most meals are served with vegetables such as pumpkin, beans and cabbage.

Decline of indigenous cookery Urbanisationfrom the nineteenth century onward, coupled with close control over agricultural production, led Black South Africans to rely more and more on comparatively expensive, industrially-processed foodstuffs like wheat flour, white rice, mealie-meal (maize) and sugar. Before the arrival of crops from the Americas,papwas mostly made from sorghum, but maize is much more prevalent today. Often these foods were imported or processed bywhitewholesalers, mills and factories. The consequence was to drastically restrict the range of ingredients and cooking styles used by indigenous cooks. Settler cookeryA piece ofdrowors, a dried sausageSouth Africa was settled from the seventeenth century onwards by colonists fromPortugal, theNetherlands,Germany,France, and the United Kingdom. These colonists brought European cookery styles with them. TheAfrikanershave their succulentpotjiekos, tamatiebredie(tomato bredie), or stews of lamb and mutton withtomatoandonionsauce, with or withoutrice. There are many European contributions likeDutchfried crueler orkoeksister,Malva Puddingandmelktert(milk tart). FrenchHugenotsbrought wines as well as their traditional recipes.During the pioneering days of the 17th century, new foods such asbiltong,drowors(dried sausage) andrusksevolved locally out of necessity.

Cape DutchA very distinctive regional style of South African cooking is often referred to as "Cape Dutch". This cuisine is characterized by the use of spices such asnutmeg,allspiceandchili peppers. The Cape Dutch cookery style owes at least as much to the cookery of theslaves brought by theDutch East India Companyto the Cape fromBengal,JavaandMalaysiaas it does to the European styles of cookery imported by settlers, and this is reflected in the use of eastern spices and the names given to many of these dishes. The Cape Malay influence has brought spicycurries,sambals, pickled fish, and variety of fishstews.Bobotieis aSouth Africandish that has Cape Malay origins. It consists of spicedminced meatbaked with an egg-based topping. Of the many dishes common to South Africa, bobotie is perhaps closest to being the national dish, because it isn't made in any other country. The recipe originates from theDutch East India Companycolonies inBatavia, with the name derived from the Indonesianbobotok. It is also made with curry powder leaving it with a slight "tang". It is often served withsambal, a hint of its origins from theMalay Archipelago.

Indian cookeryAn example ofbunny chow, served in Durban,KwaZulu-Natal.Currieddishes are popular with lemon juice in South Africa among people of all ethnic origins; many dishes came to the country with the thousands of Indianlaborers brought to South Africa in the nineteenth century. The Indians have introduced a different line of culinary practices, including a variety of sweets,chutneys, fried snacks such assamosa, and other savory foods.Bunny chowis a dish fromDurban, where there is a large Indian community that has adapted into mainstream South African cuisine and has become quite popular.

Beverages Beerhas been an important beverage in South Africa for hundreds of years among indigenous people long before colonization and the arrival of Europeans with their own beer drinking traditions. Traditional beer was brewed from local grains, especially sorghum. Beer was so prized that it became central to many ceremonies, like betrothals and weddings, in which one family ceremoniously offered beer to the other family. Unlike European beer, South African traditional beer was unfiltered and cloudy and had a low alcohol content. Around the turn of the centuries, when white owned industry began studying malnutrition among urban workers, it was discovered that traditional beer provided crucial vitamins sometimes not available in the grain heavy traditional diet and even less available in urban industrial slums. Compared to an American, Korean or western European diet, milk and milk products are very prominent in the traditional Black South African diet. As cows were considered extremely desirable domestic animals in precolonial times, milk was abundant. In the absence of refrigeration, various kinds of soured milk, somewhat like yogurt, were a dietary mainstay. A visitor to any African village in the 1800s would have been offered a large calabash of cool fermented milk as a greeting. Because milk cows allowed women to wean their children early and become fertile more quickly, local cultures had a number of sayings connecting cattle, milk and population growth, such as the Sotho-Tswana saying, "cattle beget children." Today, in the dairy section of South Africa's supermarkets, one will find a variety of kinds of milk, sour milk, sour cream, and other modern versions of traditional milk products.

Restaurants and fast food outletsSouth Africa can be said to have a significant "eating out" culture. While there are somerestaurantsthat specialise in traditional South African dishes or modern interpretations thereof, restaurants featuring other cuisines such asMoroccan,Chinese,West African,Congolese, andJapanesecan be found in all of the major cities and many of the larger towns. In addition, there are also a large number of home-grown chain restaurants, such asSpurandDulce Cafe.There is also a proliferation offast foodrestaurants in South Africa. While some international players such asKentucky Fried Chicken andWimpy are active in the country, they face stiff competition from local chains such asNando's,Steers, Chicken Licken, Barcelos, and King Pie. Many of the restaurant chains originating from South Africa have also expanded successfully outside the borders of the country.

Typical South African foods and dishes Mageuis a traditional South African non-alcoholic drink, popular among many of theNguni people, made fromfermented mealiepap. Home production is still widely practiced, but the drink is also available at many supermarkets.Amasi, sour milkBiltong, a salty dried meat (similar tojerky), although the meat used is often from different types of Antelope or other venison.BiryaniBobotie, a dish ofMalaydescent, is likemeatloafwithraisinsand with bakedeggon top, and is often served with yellowrice,sambals,coconut,bananaslices, andchutney.Boerewors, asausagethat is traditionallybraaied(barbecued).Bunny chow,currystuffed into a hollowed-out loaf of bread. A bunny chow is called Kota by the locals.Chakalaka, a spicy South African vegetable relish.Chutney, orBlatjang, a sweet sauce made from fruit that is usually poured on meat.Frikkadelle-meatballsGatsby, food mainly popular in Cape Town, comes in the form of a long roll with fillings of anything ranging from polony to chicken or steak and hot chips.Gesmoorde vis, saltedcodwithpotatoesandtomatoesand sometimes served withapricotjam.Koeksisterscome in two forms and are a sweet delicacy. Afrikaans koeksisters are twistedpastries, deep-fried and heavily sweetened. Koeksisters found on theCape Flatsare sweet and spicy, shaped like large eggs, and deep-fried.Mageu, a drink made from fermented mealie pap.Mala Mogodu, a local dish equivalent of tripe. The locals usually enjoy mala mogodu with hotpapandspinachMalva Pudding, a sweet spongyapricotpuddingofDutchorigin.Mashonzha, made from themopane worm.Melktert(milk tart), a milk-based tart or dessert.Melkkos(milk food), another milk-based dessert.Mealie-bread, sweet bread baked withsweet corn.Mielie-meal, one of the staple foods, often used in baking but predominantly cooked intopaporphutu.Ostrichis an increasingly popularproteinsource as it has a low cholesterolcontent; it is either used in a stew or filleted and grilled.Pampoenkoekies(pumpkin fritters), flour has been supplemented with or replaced bypumpkinorsweet potato.Potbrood(pot bread or boerbrood), savoury bread baked over coals in cast-iron pots.Potjiekos, a traditionalAfrikaans stew, made with meat and vegetables and cooked over coals incast-ironpots.Rusks, a rectangular, hard, drybiscuiteaten after being dunked inteaorcoffee; they are either home-baked or shop-bought (with the most popular brand beingOuma Rusks).Samosa, orsamoosa, is a savoury stuffedIndianpastrythat is fried.Skilpadjies, lamb's liver wrapped in netvet and braaied over hot coals.Smagwinya, fat cakesSmokedorbraai'edsnoek, a regional gamefish.Sosatie, kebab, grilled marinated meat on askewer.Tomato bredie, alambandtomato stew.

INTRODUCTION OF GOLD INDUSTRY

HISTORYThe price of gold is determined through trading in the gold andderivativesmarkets, but a procedure known as theGold Fixing in London, originating in September 1919, provides a daily benchmark price to the industry. The afternoon fixing was introduced in 1968 to provide a price when US markets are open. Historically goldcoin agewas widely used as currency, whenpaper moneywas introduced; it typically was areceiptredeemable for gold coin orbullion. In amonetarysystem known as thegold standard, a certainweightof gold was given the name of a unit of currency. For a long period, the United States government set the value of the US dollar so that onetroy ouncewas equal to $20.67 ($664.56/kg), but in 1934 the dollar was devalued to $35.00 per troy ounce ($1125.27/kg). By 1961, it was becoming hard to maintain this price, and a pool of US and European banks agreed to manipulate the market to prevent furthercurrency devaluationagainst increased gold demand.

Fig 1.1 A Swiss-cast 1 kggold barOn 17 March 1968, economic circumstances caused the collapse of the gold pool, and a two-tiered pricing scheme was established whereby gold was still used to settle international accounts at the old $35.00 per troy ounce ($1.13/g) but the price of gold on the private market was allowed to fluctuate; this two-tiered pricing system was abandoned in 1975 when the price of gold was left to find its free-market level.Central banksstill hold historicalgold reservesas astore of valuealthough the level has generally been declining. The largest gold depository in the world is that of theU.S. Federal Reserve BankinNew York, which holds about 3%of the gold ever mined, as does the similarly ladenU.S. Bullion DepositoryatFort Knox. In 2005 theWorld Gold Councilestimated total global gold supply to be 3,859 tonnes and demand to be 3,754 tonnes, giving a surplus of 105 tonnes. Sometime around 1970 the price began in trend to greatly increase, and since 1968 the price of gold has ranged widely, from a high of $850/oz ($27,300/kg) on 21 January 1980, to a low of $252.90/oz ($8,131/kg) on 21 June 1999 (London Gold Fixing).The period from 1999 to 2001 marked the "Brown Bottom" after a 20-yearbear market.Prices increased rapidly from 2001, but the 1980 high was not exceeded until 3 January 2008 when a new maximum of $865.35 pertroy ouncewas set.Another record price was set on 17 March 2008 at $1023.50/oz ($32,900/kg). In late 2009, gold markets experienced renewed momentum upwards due to increased demand and a weakening US dollar. On 2 December 2009, Gold reached a new high closing at $1,217.23. Gold further rallied hitting new highs in May 2010 after the European Union debt crisis prompted further purchase of gold as a safe asset. On 1 March 2011, gold hit a new all-time high of $1432.57, based oninvestorconcerns regarding ongoingunrestinNorth Africaas well as in theMiddle East. Since April 2001 the gold price has more than quintupled in value against the US dollar, hitting a new all-time high of $1,913.50 on 23 August 2011,prompting speculation that this longsecular bear markethas ended and abull markethas returned.

Minning in south AfricaMining inSouth Africahas been the main driving force behind the history and development ofAfrica'smost advanced and richest economy. Large scale and profitable mining started with the discovery of diamondon the banks of theOrange Riverin 1867 by Erasmus Jacobs and the subsequent discovery and exploitation of the Kimberleypipes a few years later.Goldrushes toPilgrim's RestandBarbertonwere precursors to the biggest discovery of all, the Main Reef/Main Reef Leader on Gerhardus Oosthuizen's farm Langlaagte, Portion C, in 1886, theWitwatersrand Gold Rushand the subsequent rapid development of the gold field there, the biggest of them all. gold production may now be well down from their peaks, though South Africa is still no. 5 in goldbut South Africa remains a cornucopia of mineral riches. Its the world's largest producerofchrome,manganese,platinum,vanadiumandvermiculite. The second largest producer ofilmenite,palladium,rutileandzirconium. And also the world's third largest coal exporter.South Africa also a huge producer of iron ore in 2012, it overtook India to become the world third biggest iron ore supplier to China, who are the worlds largest consumers of iron ore. Due to a history of corruption and maladministration in the South African mining sector, ANC secretary-generalGwede Mantasheannounced at the beginning of 2013 that mining companies misrepresenting their intentions could have their licenses revoked.Gold Mining in South AfricaThe known history ofgold mininggoes back as far as the 4th millennium BC. During the Bronze Age, the use ofgoldsteadily increased as it was found to have very malleable and manipulative properties mainly used for its aesthetic qualities. Its not until 2600 BC thatgoldbecame associated with wealth, as the ancient king Tushratta boasted of Egypt that goldwas more plentiful than dirt.In more recent years,goldrushes around the world saw the establishment of regions such as California, Victoria in Australia and the Transvaal inSouth Africaby luring thousands of wealth seekers into built-over-night shanty towns. Mostgoldrushes werent sustained and many areas became abandoned as the disillusion of quick money wore off. This paved the way for the formalizedgoldmining sector to take control and regulate thegold mining in South Africa. Today, companies like Anglo American, Harmony Gold and BHP Billiton, etc. are established as industry managers ofgold mining in South Africa.Gold mining in South Africatypically involves methods such as panning, sluicing, dredging, hard rock mining, and by-product mining. For most effectivegold mining in South Africa, the method used is hard rock mining, since reserves are typically fully encased in rock deep underground. The invention of industrial air cooling and air quality control systems sawgoldmines reach unprecedented depths the deepest being 3 900 meters.This method is accompanied by chemical beneficiation, where chemicals, such as cyanide, or activated carbon are added to rough ore and processed sometimes with heat, water, agitation, electro-winning etc. Modern gold beneficiation methods can produce gold of 99.9999% purity.Making the refining process more thorough and economically viable,gold mining in South Africaprojects, such as the ERGO Mines Joint Venture in Brakpan, will facilitate the re-processing of 1.7 billion tones of gold tailings to refine a further 15 million ounces ofgold.Over 50% of allgoldreserves are found inSouth Africa, where the Witwatersrand holds the worlds largest gold reef deposit. In 2007,gold mining in South Africa employed over 240 000 people and accounted for R49 billion in foreign currency earnings.Gold mining in South Africahad, by 1975, produced 40% of gold ever mined. However, by 2009, China affirmed its status as the worlds largest gold producer with a production of 324 tones, followed by Australia at 222.8, andSouth Africawith 219.8 tones (a decrease of 6%).

Gold mining in South Africacontinues to be a major contributor to the economy and the establishment of the nations infrastructure. New mines, such as the Burrstone Mine, 80km south-east of Johannesburg with an estimated value of ZAR 3, 5 billion, continue to open. Typical ofgold mining inSouth Africa, the project is estimated to have a lifespan of 25 years. The opening of othergoldmining projects, such as the R1 billion Doorknob South Reef Mine expected to deliver 82.8 tones of gold within a 20-year period ads to the idea thatgold mining inSouth Africais still a viable and lucrative industry.Goldis achemical elementwith the symbolAuandatomic number79. It is a dense, soft, malleable, andductilemetalwith an attractive, bright yellow color and luster that is maintained without tarnishing in air or water. Chemically, gold is atransition metaland agroup 11 element. It is one of the least reactive chemical elements, solid under standard conditions. The metal therefore occurs often in free elemental (native) form, asnuggetsor grains in rocks, inveinsand inalluvial deposits. Less commonly, it occurs in minerals as gold compounds, such as withtelluriumascalaverite, sylvaniteandkrennerite.Gold resists attacks by individual acids, but it can be dissolved byaqua regia(nitro-hydrochloric acid), so named because it dissolves gold. Gold also dissolves in alkaline solutions ofcyanide, which have been used in mining. It dissolves inmercury, formingamalgamalloys; is insoluble innitric acid, which dissolvessilverandbase metals, a property that has long been used to confirm the presence of gold in items, giving rise to the termacid test.This metal has been a valuable and highly sought-afterprecious metalforcoinage, jewelry, and other arts since long before the beginning ofrecorded history.Gold standardshave sometimes beenmonetary policies, but were widely supplanted byfiat currencystarting in the 1930s. The lastgold certificateandgold coincurrencies were issued in the U.S. in 1932. In Europe, most countries left the gold standard with the start ofWorld War Iin 1914 and, with huge war debts, did not return to gold as a medium of exchange.A total of 174,100tonnesof gold have been mined in human history, according toGFMSas of 2012.This is roughly equivalent to 5.6 billiontroy ouncesor, in terms of volume, about 9261 m3, or acube21.0 m on a side. The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry. Besides its widespread monetary and symbolic functions, gold has many practical uses indentistry,electronics, and other fields. Its highmalleability,ductility, resistance to corrosion and most other chemical reactions, and conductivity of electricity has led to many uses, includingelectric wiring, colored-glass production, andgold leafing.Most of the Earth's gold probably lies at its core, the metal's high density having made it sink there in the planet's youth. Virtually all discovered gold is considered to have been deposited later bymeteoritesthat contained the element, with the asteroid that formedVredefort craterhaving been implicated in the formation of the largest gold mining region on earth,Witwatersrand basin

Minning industry in indiaIndians have a huge fascination for gold. This is evident in the fact that India is the largest consumer as well as importer of gold in the world. Gold plays a very important role in the social, religious and cultural life of Indians. India Gold Market looks poised to achieve greater heights given the fascination for gold in the country. India consumes about 800 MT of gold which accounts to about 20% consumption of gold globally. More than 50% of this is used for making gold jewelry. Size of India Gold MarketThe domestic India gold market is estimated to be more than US$15 billion and is expected to rise significantly in the coming years. During April 2008 to February 2009, gems and jewelry worth US$ 17.79 billion was exported from the country. United Arab Emirates imported more than 30% of gems and jewelry from India, making it the largest importer from the country. Hong Kong was the second largest importer with 25% followed by United States with 20%. The gem and jewelry industry accounts for more than 10% of India's total commodities exports.Gold certification in India

The government has taken steps to protect the public from buying adulterated gold; Hallmarking of gold jewelry is one such step. Hallmarking of gold jewelry indicates the accurate finding out and official recording of the proportionate content of precious metals present in gold. The marking is done either by laser marking machine or by punches. Hallmark is the official mark used in several countries across the world as an assurance of purity or fineness of gold jewelry. The Bureau of Indian Standard or BIS was named by the Government as the lone agency in the country for providing hallmarking of gold jewelry under the provisions of the BIS Act, 1986.

Indian Standard on Gold and Gold alloysIS 1417 Grades of gold and gold alloys, Jewelry/Artefacts-Fineness and MarkingIS 1418 Assaying of Gold in Gold Bullion, Gold alloys and Gold Jewelry/ Artefacts - Cupellation (Fire Assay Method)IS 2790 Guidelines for manufacture of 23, 22,21,18,14 and 9 carat gold alloysIS 3095 Gold Solders for use in manufacture of Jewelry

Features of India Gold Market

Though India is the leading consumer of gold in the world, the gold market in India is largely fragmented and unorganized. Due to the non availability of a benchmark price, the gold prices in India vary very much from region to region. The festive and the wedding season in the country witnesses a heavy demand for gold. Despite the global economic recession, the gold consumption in the country during these times has not abetted.Factors affecting India Gold Market

The monsoons and the harvest of the country have a significant affect on the sale and purchase of gold in the country. Both these factors determine the amount of purchasing power that people will have, which in turn decides on the amount of gold consumption and other consumptions as well. Purchasing gold and other precious metals on occasions like Akshaya Tritiya is considered.Recent Hike in Excise and Import Duty

India is the largest importer of gold in the world. India has imported $45.5 billion worth of gold and silver in first three quarters of FY12 itself, which is 53.8% over the year-ago period. A government notification said customs and excise duties would be levied on the value of gold and silver instead of a fixed amount in January 2012. The move is aimed at reducing the negative balance of payments position as gold and silver imports have grown tremendously in-spite of rise.

Import DutyExcise Duty

StatusGoldSilverGoldSilver

Current2% of the value6% of the value1.5% of the value4% of the value

EarlierRs 300/10 gm.Rs. 1500/kg.Rs 200/10 gm.Rs 1,000/kg.

At a 2% rate, the import duty on gold will double to over Rs 540 per 10 grams at current pricesEtymology"Gold" iscognatewith similar words in manyGermanic languages, deriving viaProto-Germanic. The symbolAuis from theLatin:aurum, according to some sources meaning "shining dawn",from Sabineausum"glowing dawn"although according to definitions within Latin dictionaries the meaning of the wordaurumis the same as today's use ofgoldin reference to the metal. The disagreement between definitions is possibly due to the accumulation of evidence from archaeology of the original anciency of the metal in civilization; in reference to "the dawn of civilization",and in this respect has become the adopted modern meaning, disassociated from the original etymological Latin.

Characteristics Gold is the most valuableof all metals; a single gram can be beaten into a sheet of 1 square meter, or anounceinto 300 square feet. Gold leaf can be beaten thin enough to become transparent. The transmitted light appears greenish blue, because gold strongly reflects yellow and red. Such semi-transparent sheets also strongly reflect infrared light, making them useful as infrared (radiant heat) shields in visors of heat-resistant suits, and in sun-visors forspacesuits. Gold readily dissolves inmercuryat room temperature to form anamalgam, and formsalloyswith many other metals at higher temperatures. These alloys can be produced to modify the hardness and other metallurgical properties, to controlmelting pointor to create exotic colors.Gold is a goodconductor of heatandelectricityand reflectsinfrared radiationstrongly. Chemically, it is unaffected byair,moistureand mostcorrosive reagents, and is therefore well suited for use incoinsandjewelryand as a protective coating on other, more reactive metals. However, it is not chemically inert. Gold is almost insoluble, but can be dissolved inaqua regainor solutions of sodium orpotassium cyanide, for example.Commonoxidation statesof gold include +1 (gold(I) or aurous compounds) and +3 (gold(III) or auric compounds). Gold ions in solution are readily reducedandprecipitatedas metal by adding any other metal as thereducing agent. The added metal isoxidizedand dissolves, allowing the gold to be displaced from solution and be recovered as a solid precipitate.Applications

Monetary exchange

Fig 1.2 Gold is commonly formed into bars for use in monetary exchange.Gold has beenwidely usedthroughout the world asmoney, its efficient to indirect exchange (versusbarter), and to store wealth inhoards. For exchange purposes,mintsproduce standardizedgold bullioncoins,barsandother unitsof fixed weight and purity.The first coins containing gold were struck in Lydia, Asia Minor, around 600 BC.Thetalentcoin of gold in use during the periods of Grecian history both before and during the time of the life of Homer weighed between 8.42 and 8.75grams.From an earlier preference in using silver, European economies re-established the minting of gold as coinage during the thirteenth and fourteenth centuries. Bills(that mature into gold coin) andgold certificates(convertible into gold coin at the issuing bank) added to the circulating stock ofgold standard money in most 19th century industrial economies. In preparation forWorld War Ithe warring nations moved to fractional gold standards, inflating their currencies to finance the war effort. Post-war, the victorious countries, most notably Britain, gradually restored gold-convertibility, but international flows of gold via bills of exchange remained embargoed; international shipments were made exclusively for bilateral trades or to pay war reparations.AfterWorld War IIgold was replaced by a system of nominallyconvertible currenciesrelated by fixed exchange rates following theBretons Woods system.Gold standardsand the direct convertibility of currencies to gold have been abandoned by world governments, led in 1971 by the United States' refusal to redeem its dollars in gold.Fiat currencynow fills most monetary roles.Switzerlandwas the last country to tie its currency to gold; it backed 40% of its value until the Swiss joined theInternational Monetary Fundin 1999. Central banks continue to keep a portion of their liquid reserves as gold in some form, and metals exchanges such as theLondon Bullion Market Associationstill clear transactions denominated in gold, including future delivery contracts. Today,gold miningoutput is declining.With the sharp growth of economies in the 20th century, and increasing foreign exchange, the world'sgold reservesand their trading market have become a small fraction of all markets and fixed exchange rates of currencies to gold have been replaced by floating prices for gold and goldfuture contract. Though the gold stock grows by only 1 or 2% per year, very little metal is irretrievably consumed. Inventory above ground would satisfy many decades of industrial and even artisan uses at current prices.The gold content of alloys is measured incarats(k). Pure gold is designated as 24k. English gold coins intended for circulation from 1526 into the 1930s were typically a standard 22k alloy called crown gold, for hardness (American gold coins for circulation after 1837 contained the slightly lower amount of 0.900 fine gold, or 21.6 kt). Although the prices of someplatinumgroup metals can be much higher, gold has long been considered the most desirable ofprecious metals, and its value has been used as the standard for manycurrencies. Gold has been used as a symbol for purity, value, royalty, and particularly roles that combine these properties. Gold as a sign of wealth and prestige was ridiculed byThomas Morein his treatiseUtopia. On that imaginary island, gold is so abundant that it is used to make chains for slaves, tableware, and lavatory seats. When ambassadors from other countries arrive, dressed in ostentatious gold jewels and badges, the Utopians mistake them for menial servants, paying homage instead to the most modestly dressed of their party.

Investment

Fig 1.3 Gold prices (US$ per troy ounce), in nominal US$ and inflation adjusted US$.Main article:Gold as an investmentMany holders of gold store it in form ofbullioncoins orbarsas a hedge againstinflationor other economic disruptions. However, economistMartin Feldsteindoes not believe gold serves as a hedge against inflation or currency depreciation. TheISO 4217currency code of gold is XAU.Modernbullion coinsfor investment or collector purposes do not require good mechanical wear properties; they are typically fine gold at 24k, although theAmerican Gold Eagleand the Britishgold sovereigncontinue to be minted in 22k metal in historical tradition, and the South AfricanKrugerand, first released in 1967, is also 22k.[36]Thespecial issueCanadian Gold Maple Leafcoin contains the highest purity gold of anybullion coin, at 99.999% or 0.99999, while thepopular issueCanadian Gold Maple Leaf coin has a purity of 99.99%.Several other 99.99% pure gold coins are available. In 2006, theUnited States Mintbegan producing theAmerican Buffalogold bullion coin with a purity of 99.99%. TheAustralianGold Kangaroos were first coined in 1986 as theAustralian Gold Nuggetbut changed the reverse design in 1989. Other modern coins include theAustrianVienna Philharmonic bullion coinand theChinese Gold Panda.JewelryMain article:Jewelry

Fig 1.4 Mochegold necklace depicting feline heads.Larco MuseumCollection. Lima-PeruBecause of the softness of pure (24k) gold, it is usuallyalloyedwith base metals for use in jewelry, altering its hardness and ductility, melting point, color and other properties. Alloys with lower carat rating, typically 22k, 18k, 14k or 10k, contain higher percentages of copper or other base metals or silver or palladium in the alloy.Copperis the most commonly used base metal, yielding a redder color.[37]Eighteen-carat gold containing 25% copper is found in antique and Russian jewelry and has a distinct, though not dominant, copper cast, creatingrose gold. Fourteen-carat gold-copper alloy is nearly identical in color to certainbronzealloys, and both may be used to produce police and otherbadges. Blue gold can be made by alloying withironand purple gold can be made by alloying withaluminium, although rarely done except in specialized jewelry. Blue gold is more brittle and therefore more difficult to work with when making jewelry.[37]Fourteen- and eighteen-carat gold alloys with silver alone appear greenish-yellow and are referred to asgreen gold. White gold alloys can be made withpalladiumornickel. White 18-carat gold containing 17.3% nickel, 5.5% zinc and 2.2% copper is silvery in appearance. Nickel is toxic, however, and its release from nickel white gold is controlled by legislation in Europe. Alternativewhite goldalloys are available based on palladium, silver and other white metals,but the palladium alloys are more expensive than those using nickel. High-carat white gold alloys are far more resistant to corrosion than are either pure silver orsterling silver. The Japanese craft ofMokume-ganeexploits the color contrasts between laminated colored gold alloys to produce decorative wood-grain effects.Cultural history

Fig 1.5 TheTurin Papyrus Map

Fig 1.6 Funerary maskof Tutankhamen

Fig 1.7 Jasonreturns with the golden fleece on anApulianred-figurecalyx krater

Fig 1.8 Ancient Greek golden decorated crown, funerary or marriage material, Gold artifacts found at theNahal Kanacave cemetery dated during the 1980s, showed these to be from within theChalcolithic, and considered the earliest find from the Levant (Gopheret al.1990).[60]Gold artifacts in theBalkansalso appear from the 4th millennium BC, such as those found in theVarna Necropolisnear Lake Varna inBulgaria, thought by one source (La Niece 2009) to be the earliest "well-dated" find of gold artifacts.Gold artifacts such as thegolden hatsand theNebra diskappeared in Central Europe from the 2nd millennium BCBronze Age.Egyptian hieroglyphsfrom as early as 2600 BC describe gold, which kingTushrattaof theMitanniclaimed was "more plentiful than dirt" in Egypt. Egypt and especiallyNubiahad the resources to make them major gold-producing areas for much of history. The earliest known map is known as theTurin Papyrus Mapand shows the plan of agold minein Nubia together with indications of the localgeology. The primitive working methods are described by bothStraboandDiodorus Siculus, and includedfire-setting. Large mines were also present across theRed Seain what is nowSaudi Arabia.The legend of thegolden fleecemay refer to the use of fleeces to trap gold dust fromplacer depositsin the ancient world. Gold is mentioned frequently in theOld Testament, starting withGenesis2:11 (atHavilah), the story ofThe Golden Calfand many parts of the temple including theMenorahand the golden altar. In theNew Testament, it is included with the gifts of themagiin the first chapters of Matthew. TheBook of Revelation21:21 describes the city ofNew Jerusalemas having streets "made of pure gold, clear as crystal". Exploitation of gold in the south-east corner of theBlack Seais said to date from the time ofMidas, and this gold was important in the establishment of what is probably the world's earliest coinage inLydiaaround 610 BC.From the 6th or 5th century BC, theChu (state)circulated theYing Yuan, one kind of square gold coin.InRoman metallurgy, new methods for extracting gold on a large scale were developed by introducinghydraulic miningmethods, especially inHispaniafrom 25 BC onwards and inDaciafrom 106 AD onwards. One of their largest mines was atLas MedulasinLen (Spain), where seven longaqueductsenabled them to sluice most of a large alluvial deposit. The mines atRoia MontaninTransylvaniawere also very large, and until very recently, still mined by opencast methods. They also exploited smaller deposits inBritain, such as placer and hard-rock deposits atDolaucothi. The various methods they used are well described byPliny the Elderin hisencyclopediaNaturalis Historiawritten towards the end of the first century AD.DuringMansa Musa's (ruler of theMali Empirefrom 1312 to 1337)hajjtoMeccain 1324, he passed throughCairoin July 1324, and was reportedly accompanied by acamel trainthat included thousands of people and nearly a hundred camels where he gave away so much gold that it depressed the price in Egypt for over a decade. A contemporary Arab historian remarked:Gold was at a high price in Egypt until they came in that year. The mithqal did not go below 25 dirhams and was generally above, but from that time its value fell and it cheapened in price and has remained cheap till now. The mithqal does not exceed 22 dirhams or less. This has been the state of affairs for about twelve years until this day by reason of the large amount of gold which they brought into Egypt and spent there .Chihab Al-Umari, The Portuguese overseas expansion started in 1415 with the taking ofCeuta, to control the gold trade coming across the desert. Although the caravan trade routes were then diverted, the Portuguese continued expansing southwards along the coast and eventually buying the gold directly (or less indirectly) from the Africans in theGulf of Guinea. The European exploration of the Americas was fueled in no small part by reports of the gold ornaments displayed in great profusion byNative Americanpeoples, especially inCentral America,Peru,EcuadorandColombia. TheAztecsregarded gold as literally the product of the gods, calling it "god excrement" (teocuitlatlinNahuatl), and afterMontezumawas killed, most of this gold was shipped to Spain. However, for theindigenous peoplesofNorth Americagold was considered useless and they saw much greater value in othermineralswhich were directly related to their utility, such asobsidian,flint, andslate. Gold played a role in western culture, as a cause for desire and of corruption, as told in children'sfableslikeRumplestiltskin, where the peasant's daughter turns hay into gold, in return for giving up her child when she becomes a princess, and stealing the hen that lays golden eggs inJack and the beanstalk.

The top prize at theOlympic gamesis thegold medal.There is an age-old tradition of biting gold to test its authenticity. Although this is certainly not a professional way of examining gold, thebite testwas not to check if the coin was gold (90% gold coins are fairly strong) but to see if the coin was gold plated lead. A lead coin would be very soft and thus teeth marks would result. Fake gold coins were a common problem before 1932 so weighing a coin and also sliding a coin through a "counterfeit detector" slot was common (making a lead coin thicker would add weight thus why slide it through a measured slot). Most establishments (especially US Western saloons) would never accept a gold (or silver) coin of high value before weighing such an item. 75% of all gold ever produced has been extracted since 1910.It has been estimated that all gold ever refined would form a single cube 20m (66ft) on a side (equivalent to 8,000 m3). One main goal of thealchemistswas to produce gold from other substances, such aslead presumably by the interaction with a mythical substance called thephilosopher's stone. Although they never succeeded in this attempt, the alchemists promoted an interest in what can be done with substances, and this laid a foundation for today'schemistry. Their symbol for gold was thecircle with a point at its center(), which was also theastrologicalsymbol and the ancientChinese characterfor theSun.Golden treasures have been rumored to be found at various locations, following tragedies such as the Jewish temple treasures in the Vatican, following the temple's destruction in 70 AD, a gold stash on theTitanic, theNazi goldtrain followingWorld War II.The Dome of the Rockon the Jerusalem temple site is covered with an ultra-thin golden glasure. TheSikhGolden temple, theHarmandir Sahib, is a building covered with gold. Similarly theWat Phra Kaewemerald Budha temple inThailandhas ornamental gold statues walls and roofs. Some European king and queen'scrownswere made of gold, and gold was used for the bridal crown since antiquity. An ancient Talmudic text circa 100 AD describes Rachel,Rabbi Akiba's wife asking for a "Jerusalem of Gold" (crown). A Greek burial crown made of gold was found in a grave circa 370 BCProduction

Fig 1.8 The entrance to an underground gold mine inVictoria,Australia

Fig 1.9 Pure gold precipitate produced by theaqua regiarefining process

Time trend of gold productionAt the end of 2009, it was estimated that all the gold ever mined totaled 165,000 tonnes.This can be represented by a cube with an edge length of about 20.28 meters. At $1,600 pertroy ounce, 165,000 metric tonnes of gold would have a value of $8.5 trillion.World production for 2011 was at 2,700tonnes, compared to 2,260 tonnes for 2008.Since the 1880s, South Africa has been the source for a large proportion of the world's gold supply, with about 50% of all gold ever produced having come fromSouth Africa. Production in 1970 accounted for 79% of the world supply, producing about 1,480 tonnes. In 2007China(with 276 tonnes) overtook South Africa as the world's largest gold producer, the first time since 1905 that South Africa has not been the largest. Minning Main article:Gold miningThe city ofJohannesburglocated inSouth Africawas founded as a result of theWitwatersrand Gold Rushwhich resulted in the discovery of some of the largest gold deposits the world has ever seen. Gold fields located within the basin in theFree StateandGautengprovinces are extensive instrike and diprequiring some of the world's deepest mines, with the Savuka andTauTonamines being currently the world's deepest gold mine at 3,777 m. TheSecond Boer Warof 18991901 between theBritish Empireand theAfrikanerBoerswas at least partly over the rights of miners and possession of the gold wealth in South Africa.Other major producers are the United States, Australia, Russia, andPeru, as well as,Ghana,Burkina Faso,Mali, Indonesia and Uzbekistan. Mines inSouth DakotaandNevadasupply two-thirds of gold used in the United States. In South America, the controversial projectPascua Lamaaims at exploitation of rich fields in the high mountains ofAtacama Desert, at the border betweenChileandArgentina. Today about one-quarter of the world gold output is estimated to originate from artisanal or small scale mining.consumptionThe consumption of gold produced in the world is about 50% in jewelry, 40% in investments, and 10% in industry. India is the world's largest single consumer of gold, as Indians buy about 25% of the world's gold, purchasing approximately 800 tonnes of gold every year, mostly for jewelry. India is also the largest importer of gold; in 2008, India imported around 400 tonnes of gold.Indian households hold 18,000 tones of gold which represents 11% of the global stock and worth more than $950 billion.

Table 1.1 Gold jewelry consumption by country in tones

Country2009201020112012

India442.37745.70986.3864

Greater China376.96428.00921.5817.5

United States150.28128.61199.5161

South Africa 75.1674.07143118

Saudi Arabia77.7572.9569.158.5

Russia60.1267.5076.781.9

United Arab Emirates67.6063.3760.958.1

Egypt56.6853.433647.8

Indonesia41.0032.755552.3

United Kingdom31.7527.3522.621.1

Other Persian Gulf Countries24.1021.972219.9

Japan21.8518.5030.17.6

South Korea18.8315.8715.512.1

Vietnam15.0814.36100.877

Thailand7.336.28107.480.9

Total1508.701805.60

Other Countries251.6254.0390.4393.5

World Total1760.32059.63487.53163.6

CHAPTER 3 STEEPLED ANALYSISThis section summarises the PESTLE+ED (Political, Economic, Social, Technological, Legal , Environmental Ethical and Demographical) factors that impact on the mining and minerals sector.Social analysis of gold industry:Social Conditions in south Africa:

Social conditions in South africa have improved in tandem with improved economic performance. For instance, there are has been significant reductions in the male and female labour force participation rates, From 81% and 39% respectively in 1993 to about 81% and 61%, respectively in 2010.Additionally, South africa has a literacy rate of 98% for females and 99.1% for males. The country ranks highly on the Education Index of the United Nations Human Developmen Report. South africa is ranked at number 37 which is behind only Cuba and Barbados in the Caribbean and Argentinan nearer in South America.Unfortunately in South africa there are no training institutions providing skills development related to Jewellery manufacturing thus jewelers rely on the apprenticeship system where young goldsmiths/jewelers are trained by senior goldsmiths/jewelers.

Ease of Doing Business (Institutional Conditions)South africas institutions need to improve in order to allow for greater impact on business development. Institutions as considered in this context include tax, labour education and other agencies that have an impact on industry growth and development. These can be assessed by examining the World Banks doing business index. 31 South africas rank in the World Bank ease of doing business index was 114 out of 184 Countries. This was below the average rank of 97 for the Latin American and Caribbean region and, when compared to CARICOM states, was higher than only Suriname and Haiti. the variables measured for the ease of doing business index and gives an indication of the institutions in South africa where the greatest need for improvements exist. South africas ranks are better for dealing with construction permits and enforcing contracts and worse for getting credit and electricity, resolving insolvency and paying taxes. South africas ranking on the ease of paying taxes (118) are even lower than its overall ranking (114) and is lower than the average (114) for the Latin American and Caribbean region and higher than only Haiti (123) and Jamaica (163). Therefore the institutions with the greatest need for reform in how they perform administratively are; financial, tax and electricity agencies.

Corporate tax regulations:One of the challenges to the competitiveness of businesses operating in South africa is the level of corporate taxes firms are required to pay. Generally, there are about 9 taxes or mandatory contributions firms must pay in South africa. For example corporate income tax at a rate of 35%; employer paid- social security contributions at the rate of 8%; property tax (to central and local authorities) at a rate of 0.5%; capital gains tax at a rate of 20% and value-added tax at a rate of 16%. These tax payments amount to about 36% of the profits of firms. These taxes are not only an economic burden to firms but also an administrative burden as about 263 hours of time that could have otherwise been used productively must be spent filing taxes.

Available infrastructure:Infrastructure is one of the basic requirements for improving competitiveness. On the global competitiveness index South africa has a rank of 109 for infrastructure with a score of 2.91 which is lower than its overall score is 107 signalling that infrastructure is not of sufficient quality to support effective business development

Effective policies that support the development of SMEs:South africa has in recent times embarked on the formulation of a number of policies to support the development of SMEs. These policies recognize the importance of SMEs to business development in South africa, which was estimated at about 30% of GDP. In the Latin American region SMEs are said to account for nearly 99% of business and 67% of employment32. The key challenge facing SMEs in South africa is access to finance. In the doing business Index South africa receives its lowest rank (167) for ease of accessing credit which is almost two times worse than the average for the Latin America and Caribbean region (87) and is in fact the worse in the region.

The following are some of the policy initiatives that are in place or that being pursued:1. Passing of the Small Business Act (March 2004) from which will be established a Small Business Council, Small Business Bureau and Development Fund to provide financial and other forms of support to improve the productivity and competitiveness of small businesses.2. Small Business Development Finance Trust3. South africa Small Business Association (GSBA),4. Linden Economic Advancement Programme,5. the Institute of Private Enterprise Development,6. Women of worth7. National Competitiveness Council, the small business representative Apart from these initiatives, other wider development initiatives being pursued will also support the development of SMEs. These include:

1. The National Development Strategy2. The National Competitiveness Strategy333. The Low Carbon Development Strategy (LCDS) will support business development on a low-carbon model and allow for improved access to financing through the following mechanisms:32 National Competitiveness Strategy. http://www.competitiveness.org.gy/index.php?start=133 Ibid IDS/UG 50th Anniversary Working Paper Series- Working Paper 6/1257a. A Credit Guarantee Fund (CGF) to meet shortfalls in the collateral requirements of small businesses seeking loans through the commercial banking system as long as these are for ventures that are in low carbon sectors.b. An Interest Payment Support Facility will help the MSE pay off a percentage of its interest obligations on the loanc. A Grant Scheme- to assist vulnerable persons to access financing for their existing or potential business venture.d. A Skills Voucher Scheme for technical training in business management, marketing, accounting and financial management.4. The South africa Youth Business Trust (GYBT) is an NGO that provides financing opportunities for young people (aged 18-35yrs) interested in becoming entrepreneurs but who cannot access conventional financing.5. Recently, the government has announced plans to launch a Credit bureau34 bythe end of 2013

social factor affecting in indiaThe first factor is rather basic and depends on the simple economics of supply and demand.This is true of any commodity. If the demand for gold increases (particularly in the Asian markets of India & China) suddenly and the supply cannot meet the demand, the prices will increase. Similarly, if production of gold is hit because of a miners' strike and the supply falls, this will also lead to an increase in prices.Although there are many hidden factors that are said to influence price of gold, broadly speaking, there are only a few factors that certainly do. The remaining factors are generally speculative and not mutually agreed upon.The second factor is the gold and other policies of central banks.The banks often invest in gold as a hedge against inflation. Moreover, their other policies on interest offered on savings also affect the prices. A higher interest rate will lead to people investing in currency, whereas a low interest will increase gold purchase.The third factor is the social conditions prevalent. In times of war, emergencies,the price of gold shoots up as the value of the prevalent currency is in doubt. Since one can be sure of the value of gold, people try to acquire as much gold as they can, pushing up the price of gold.--The fourth factor is the state of the economy.If the economy is in the doldrums with the markets performing in a shabby manner like now, prices of gold will increase due to more people choosing to invest in gold.--The fifth factor is the value of the US Dollar.Since the dollar is the currency that most people incest in any fall in its value will lead to the prices of gold shooting up. The gold rate has always had this relationship with the Dollar ever since the dollar became the global trading currency.The mining industry experiences skills shortages in areas such as professionals, technicians and trades workers, directors and corporate managers, machine operators and drivers. In addition,a recent study found that the average age of mining professionals in india is between 50 and 55 years.The sector has among the highest number of illiterate employees, high levels of HIV/AIDS infections and a high incident of respiratory health conditions.There is also increased emphasis on social licence to mine, which includes commitment to the development and implementation of social and labour plan

Technological Analysis of Gold Industry

Technological factor affecting in South Africa

Overview of the Gold Mining Production Process in technological factor affecting:Before turning to specifics on cyanide technologies below and the subsequent case on changing stoping practices in Part Three, this section introduces the process of gold mining on the Witwatersrand. Three groups of procedures encompass a mines life: project, production, and decommissioning. Project procedures include the exploration and identification of the mineral deposit, feasibility studies, design, construction, and commissioning of the operations.Production procedures are day-to-day operations. Because mining involves adjusting proceduresslightly as different geological characteristics of the ore body are encountered, this might betterbe described as continuous adjustments in the operating procedures to extract the mineral resource. Lastly, decommissioning is the closure of the mine site after completing the warranteddegree of mineral extraction. The case studies are on aspects of the first two phases.Exploration is a fundamental activity in mining. It ensures that the mining firm has future deposit to extract, which given the nonrenewable nature of mineral deposits, is their raison dtre. Exploration is also critical to identifying the specific structure of the mineral deposit and is thereby a critical input in the design and operation of a mine. 20 See Chapter One in Worger (1987) for details.fig 3.1 The Witwatersrand Basin

Mineral rights, infrastructure support, market evaluation, estimated extraction costs, processingcosts, and the potential variability of all these must be considered to determine whether miningthe deposit is economical. Three distinct stages comprise the project phase:1. Preliminary investigations - initial cost estimates, research and development (R& D) to derivescope, and front end engineering.2. Preliminary evaluations/feasibility studies - initial engineering completed, final scopedevelopment, detailed estimating.3. Project scope and cost defined/preliminary project execution - detailed design, drafting, and project management. Financial resources are brought together for development.Based on analysis of the deposit and its location during this phase many crucial estimates are made whose accuracy will strongly influence realization of project viability. Detailed plans and revisions occur during the early stages of this phase, but the large scale of capital expenditures typically means that the mining method and mine plan are locked in. With viability established, the first stage of development involves building headgear and sinking a shaft to access the gold bearing rock or reef. Tunnels are excavated at various levels from the shaft to intersect the sloping shores of the gold bearing rock; these tunnels are called cross-cuts. Once the reef has been intersected, it is extracted through a series of additional tunnels across, up, and down the gold bearing deposits. The removal of gold bearing rock is a process referred to as stoping. The stopes connect upward and downward to access tunnels (See Figure 6.1). This stoping process is somewhat analogous to the removal of a layer of icing in a multi-layered cake. In this case the layer of icing being about a meter or two thick with thousands of meters of rock above and between subsequent layers, all of which slope to greater depths and are fractured from tectonic action. Klerksdorp Mining the reef involves a process of drilling and blasting similar to that used to extract the tunnels. Several holes at various angles are drilled into the rock, filled with explosives, and then the rock is blasted out. The rock blasted on the stopes is transported to tipping stations, sent down a rock chute, and then hauled to the surface via a shaft. On the surface, the gold bearing rock is separated from surrounding rock before being sent for processing to extract the gold.Resource-basedindustries, such as mining, are a major source of wealth, employment, skills upgrading and export earnings. A resource base also provides a mechanism for successful diversification of the economy through industrialisation. Internationally, there are numerous examples of countries using their natural resources to secure sustainable industrial development.The development potential of natural resources can be exploited in four main ways:-BeneficiationDownstream processingThe development of internationally competitive input industries supplying the natural resources sector.The diversification of upstream or side stream industries into other unrelated sectors, also described as lateral migrationIn South Africa, substantial innovation and scientificknow-howhas been generated for the purpose of dealing with specific challenges in the mining industry. There are global and South African examples ofresource-basedcompanies that have enabled the migration of technologies fromresource-linkedapplications to those in higher growth, globally traded sectors. This offers an important opportunity forresource-basedeconomies seeking to shift to highervalue-addedproduction.2.1.10 Input SectorsUsing its mining activities as a base, South Africa has nurtured strongly competitive sectors providing sophisticated inputs and services to the global mining industry. Some South African companies are at the centre of global mining operations, services and technology. South African companies have become globally prominent in three areas, namely:technology providers to the global mining industry;providers ofknowledge-basedmining services; andspecialist mining contractors.The country has producedworld-leadingcompanies in mining explosives, drilling equipment and abrasives, metallurgical processes and plants, and deliveringknowledge-basedservices to mines everywhere.

FIGURE 3.2 The Layout of a Gold Mine

CYANIDER TECHNOLOGY DEVELOPMENT

Previous PracticesOnce the gold bearing host rock reaches the surface of the mine, it is processed to acquire a high purity gold metal, a stage in the production process referred to as metallurgy. Initially, metallurgy on the Witwatersrand involved three stages: milling, concentration, and pyrometallurgy. In the milling phase, the ore was first sent to crushers to break-up large pieces. It was then brought to stamp-mills where water was added and the ore ground to a small size, producing a pulp,21 with a ratio of one part gold bearing ore to five parts water (King, 1949, p. 141). Pulp was then passed over amalgam plates (large copper plates covered in mercury). This process of concentration worked because of the higher specific gravity of gold. Lighter minerals in the pulp cannot sink through the mercury and become waste tailings. After concentration through amalgamation, the gold amalgam enters a pyrometallurgical stage to separate the mercury and gold. This process, called retorting, heats the gold laden mercury to 800C for several hours boiling and vaporizing the mercury,22 and leaving a sponge gold. This extraction process removed between 75 to 80% of the gold from the host rock (Adamson, 1972, p. 88).21 Pulp is perhaps best thought of as a gold bearing muddy substance. 22 The vaporized mercury being captured and water-cooled in a condenser for re-use on the amalgam plates.

Technological ChallengeOnce mining of the Witwatersrand commenced in 1886, the miners followed the gold bearing layer deeper and deeper into the ground. Eventually they reached depths where the gold bearinghost rock was not oxidized and the amalgamation method lost its effectiveness. At that time metallurgy in general, but gold metallurgy in particular was in its infancy. Only with the California rush of 1849, when amalgamated copper plates were introduced, had any systematicindustrial gold metallurgy been attempted (CMMSSA, 1934, p. 298). By the mid-1880s, the onlyalternative extraction technology to amalgamation was a process called chlorination. Inventedaround 1840, the chlorination process was so expensive in its fixed and variable costs that onlyrelative rich ores could be treated economically. The Witwatersrand in that era was abundant inrelatively low-grade ores. Thus, in the latter half of 1889, a dark cloud emerged on the industrysfuture as the sulfide layer was intercepted and recovery with amalgamation only extracted 50percent of the gold from the host rock. The speculative bubble burst; by early 1890, the marketvalue of the mines plummeted 70 percent, and a third of Johannesburg population departed(Edwards, 1994, p. 251). The first era of the Witwatersrands development was over and another,built around the cyanide process, began (Webb, 1903, p. 23).Chlorination and cyanidation methods are similar in that they introduce two additional stages tothe extraction process: dissolution and precipitation. Therefore, both were radical departures from previous methods of extraction through concentration alone. Where cyanidation held a huge advantage over chlorination was in economies of operation, making the difference between profit and loss for many of the Witwatersrand mines (Gray and McLachlan, 1933, p. 383). Thecyanide process had been experimented with in laboratories previously, but it was only throughthe efforts of John S. MacArthur and his work with the Forrest Brothers in Glasgow during themid-1880s that an industrial process of cyanide extraction was developed. It is telling then that in1896 COMSA was able to successfully contest and get the MacArthur-Forrest patents

When the cyanide process was introduced on the Witwatersrand in 1890, it was met with greatskepticism as many competing methods were being floated as saviors of the beleaguered goldfield. MacArthurs Cassel Company operated the first pilot plant on the Witwatersrand in June1890 at the Salisbury Mine (MacArthur, 1908, p. 205). After favorable results at the SalisburyMine, a local company, the African Gold Recovery Syndicate (AGRS), was granted license overthe process patents. At the Robinson mine in December 1890, the AGRS opened the first commercial plant using the cyanide process. With successful operation, the Robinson mine tookover the plant from AGRS when their lease expired in June 1891. The demonstrated efficiencyof the process at the Robinson Mine led to its subsequent diffusion across the Witwatersrand(Caldecott, 1908, p. 125). Looking back, the future of cyanide seemed assured, however, as a newindustrial process many refinements were needed before supremacy was realized. Thosechallenges led to an influx of metallurgical professionals from around the world and gave birth toone of the early professional societies in Johannesburg, the Chemical and Metallurgical Society orthe Cyanide Club as it was popularly known. This analysis focuses on a selection of thoserefinements and the role played by research collaboration.The first challenge was demonstrating cyanidations commercial superiority over alternativemethods i.e. chlorination. In the cyanide process, concentration through amalgamation isfollowed by dissolution and precipitation phases (see Figure 6.2). After separating the tailingsbetween relatively fine slime and coarse sand, the pulp was charged with cyanide. Central to theprocess is the chemical bond that cyanide forms with gold. The gold bearing cyanide solutioncan then be separated from tailings. The next stage is precipitation, where gold is separated fromthe cyanide solution before being sent on for pyrometallurgical processing. Two innovationsfrom dissolution and precipitation phases are investigated: slime treatment and precipitationtechniques. These three examples are representative of the various, primarily, incrementalinnovations made through research collaboration in this period.

Fig 3.3 system analysis in mining

Chlorination vs. CyanidationThe chlorination method was known among the miners as an alternative to amalgamation beforethe sulfide layer was intercepted on the Witwatersrand. Chlorination could recover 99 percent ofthe gold from the host rock, but was expensive and therefore only justified in treating richconcentrates. In 1889, when amalgamation began to falter, chlorination was introduced on theWitwatersrand, but met with little success (Williams, 1899, p. 726). The Corner House miningfinance-group subsequently hired an American metallurgist, Charles Butters, to establishchlorination plants at its mines and develop the method. In August 1891, Butters opened thefirst chlorination plant at the Robinson Mine.25 In 1893, the COMSA established a Concentratessub-committee to investigate the best concentration techniques. Improved concentrationtechnology favored chlorination over cyanide. However, in their report of 1894, no significantimprovements in concentration were found that could expand the application of the chlorinationprocess.26In 1892, chlorination accounted for 17 percent of the gold extracted from pulp afteramalgamation. By 1899, nearing the end of its days, chlorination only extracted four percent ofthe gold after amalgamation. The competition between chlorine and cyanide by the late 1890s isbest summarized by Mr. Butters own words: There has been a great deal of study given to theuse of chlorine as a dissolving agent, but its use is very limited in comparison with that veryeasily handled solvent, cyanide, so that I am prepared to state that cyanide is slowly but surelydisplacing chlorine on the Witwatersrand for all purposes. I have no doubt that upon these fieldsthe use of chlorine will be discontinued...I must admit now that [with current cyanide methods]as high a percentage of extraction can be obtained with cyanide as with chlorine (Butters, 1897,p. 83). While a few chlorination plants continued to operate after the Second Anglo-Boer War,by 1905 all chlorination on the Witwatersrand mines had ceased.

Extraction of Gold from SlimeInitially, the cyanide method was applied after amalgamation to relatively coarse sand. Becausethe cyanide solution would not penetrate the fine material, all the slime went untreated to dams,despite its gold content. Slime accounted for between 30 to 40 percent of the pulp from the millsafter amalgamation and represented an important shortfall in economies from the cyanideprocess. Slime dams accumulated across the Witwatersrand, building a stock of gold awaiting aninnovation for its liberation.The members of the Chemical and Metallurgical Society of South Africa (CMSSA) activelycontributed to development of such a process. By 1897, they succeeded in developing aneconomic means of treating slime. The series of advances leading to the emergence of thisprocess are chronicled in their Proceedings between 1894 and 1899.Early in 1894, John R. Williams, working at a Corner House mine, first experimented with aslime treatment process: decantation (Williams, 1897, p.93). 28 William Bettel, working first at aJohannesburg Consolidated Investment Company (JCI) group mine then at a Farrar group mine,made an important contribution to the process by developing sorting and leaching techniques. 29The zinc precipitation method, which did not work well on the dilute cyanide and lime solutionused in decantation, hindered further advances in the treatment of slimes. Thus, decantation as amethod to extract gold from the slimes depended on development of alternative precipitationmethods. In 1896, alternative precipitation methods facilitated construction and operation of thefirst decantation based slime treatment plant at the Crown Reef mine (Williams, 1897, p.93). 30This plant marked the first time in the ten-year history of the Witwatersrand that all the goldbearing ore was processed.27 These are percentages of gold bearing tailings after amalgamation.28 The slime decantation process involved several large vats in which through a gradual process of mixing the goldin the slime became attached to the cyanide in liquid solution and separated from the sediment.29 Bettel (1894; 1895)30 See Stent and Adamson (1949, p. 199) for a summary of the decantation method.84Charles Butters Rand Central Ore Reduction Company (RCOR) made further refinements inslime treatment.31 Another important source of innovation in slime treatment came from thesharing of experiences amongst the professional metallurgists of the CMSSA in various aspectsof slime treatment through presentations, publications, and discussions. Together these effortsby individuals, business organizations and collaborations made slime treatment a reality, therebyimproving the cyanide method and marking a major advance in the metallurgical history of theWitwatersrand (Thurlow and Prentice, 1928, p. 253).

Technological factor in indiaGold PrecipitationAfter the gold has formed a bond with cyanide and impurities filtered off to create a clearsolution, precipitation follows. Precipitation involves the separation of gold from cyanidesolution. When the MacArthur-Forrest process was first introduced on the Witwatersrand in1890, precipitation utilized zinc shavings. The gold bearing cyanide solution was discharged intoa box with zinc shavings, where gold precipitated on the shavings. This slimy precipitate thenwent on for pyrometallurgical roasting and smelting into bullion.32 With the introduction ofelectrolysis-based precipitation in 1894, a real threat to the zinc shaving method emerged. Thenin 1898, an improved lead-zinc process began to gain favor.Electrolysis precipitation, specifically the Siemens-Halske process, was developed in Germany in1887 and used at mines in Europe, Siberia, and the United States from 1888. Andries vonGernet, working for the RCORC, introduced the process to the Witwatersrand in 1894 at theWorcester mine. The process worked on low strength cyanide solutions, regardless of its acidity,which favored its use in the precipitation of slimes (Von Gernet, 1894). A period of intensedebate about the comparative superiority of the two processes followed.33 Electrolyticprecipitation is a reasonable simple process; electrodes are surrounded by the gold bearingcyanide solution and the gold precipitated upon the cathode covered in lead foil. Theseauriferous lead sheets are then sent for pyrometallurgical treatment.At the outset, the electrolitic process held several advantages over zinc. First, the electroliticprocess had lower royalty charges.34 Second, the electrolitic process was able to treat the acidicor