13.7.1 |
Dolomite Market Analysis
The performance in the dolomite market is highly linked to both the international and domestic steel cycle.
The steel producing plants of Mittal Steel, being Vanderbijlpark Steel Works and Newcastle Steel Works are
the largest consumers of metallurgical dolomite from Glen Douglas Mine. The growth rate in this market has
been fairly low due to the limited number of expansions of steel-making capacity in South Africa. Competition
in this market comes mainly from the PPC Mooiplaas Dolomite Mine in Pretoria, Lyttelton Quarries from
Pretoria and Holcim Olifantsfontein Quarry from Midrand.
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13.7.2 |
Aggregate Market Analysis
Aggregate materials constitute the major raw material in the road building and construction industries.
For reasonable construction and maintenance costs, aggregates should be available in large quantities and
at a reasonable cost in any major urban area. Glen Douglas Dolomite Mine is favourably positioned to exploit
current and future demand for aggregate materials due to its location in one of the major areas accounting
for a significant consumption of such materials – the Gauteng Province. The growth in the construction sector
in the past five years – in terms of residential, non-residential and infrastructure development – has led to
Glen Douglas increasing its market share in the aggregate industry in Gauteng from 8% in 2000 to 10%
currently. In this respect, the economic value of a dolomite deposit is a function of its proximity to its markets,
as well as its quality and size. In the latter context – Glen Douglas has a mine life estimated at 30 years
at the current production rate and is positioned to be a long-term player in the Gauteng aggregate market.
The increasing population densities in the Gauteng Province is likely to exert increasing pressure on the
existing physical infrastructure such as the road network, water treatment plants and sewage systems.
The maintenance of existing infrastructure and Government’s commitment to increase expenditure on
extending the capacity of infrastructure will be positive for Glen Douglas Dolomite Mine.
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