SOUTH AFRICA: CONTRIBUTION TO WORLD MINERAL SUPPLIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001900020078-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 9
• Document Creation Date: December 19, 2016
• Document Release Date: July 29, 2005
• Sequence Number: 78
• Publication Date: April 16, 1974
• Content Type: MF

 Approved For Release 2005/08/ ; lA-RD P85TOO875ROO11002 078-1
25X1
1?!EMORA*,'DUt1 FOR: Mr. Paul 11. Doeke
Policy Planning Staff
Department of State
16 April 1974
SUDJECT : South Africa: Contribution
mineral Supplies
25X1A
1. The attached brief memorandum on the dependence
of other countries on South African mineral exnorta Jr,
in re:,nonse to your request
2. Because of the possible interest c )f other
cormoncnt^ of the Washington economic community in this
subjec;i:, this office may send the attached material to
o't:ier interested officials.
1. If you have furtihcr questions. please ft.cl
Attachment:
As stated above
Distribution: (S-Project 6094)
Orig. & 1 - Addressee
? - U ER
25X1
25X1
25XV
(16 April 1974)
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Introduction
South Africa ranks among the top three world producers
of antimony, asbestos, chromite, diamonds, gold, manganese,
platinum, uranium, and vanadium. South Africa exports
important supplies of these minerals in raw and semi-
finished forms to the US, Japan, and Europe. (See Tables
1 and 2) Exports to Communist countries are negligible.
Pretoria's wastern political orientation, strong economic
ties to the UK, and eagerness to expand exports enhances
the reliability of South Africa as a source of metals,
dcspitr a potentially explosive domestic racial problem.
Leading Mineral Exports
Sc,uth African exports of chrome, manganese, and
ferro-alloys of these minerals are of major importance
to the US, Japan, and five European countries. (See
Table 3) South Africa provides almost all of the higher
chemical-grade chromite and up to half of all the antimony
and platinum imported by the US. Italy gets half of
its asbestos imports from South Africa, and Japan 60%
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C_l.'~I ~Iitirl..
of its vanadium imports. South Africa produces about
of international gold marketing. South African production
South African gold sales dominate the supply side
world's annual sales of diamonds.
Africa. The Organization handles about 80% of the
controlled by DeBeers Consolidated Mines, Ltd. of South
producers' association -- the Central Selling Organization
half of the diamonds supplied to the international
Motors, and Toyota of Japan. By 1976, South African
mines are expanding to fill contracts with Ford, General
platinum market. South Africa's two largest platinum
incrementally South Africa's important share of the US
catalytic agents in exhaust emission controls is increasing
The decision by US auto manufacturers to use platinum
of gold tor commercial purposes.
West Germany, Japan, and Spain are the major consumers
In. jewelry, electronics, and dentistry. The US, Italy,
currencies and as an important commercial metal used
scene both as a limited alternative to speculation in
as a reliable supplier. Gold serves on the international
sales fluctuations that would damage its reputation
the USSR -- and Pretoria is careful to avoid abrupt
is more than double that of the second ranked producer --
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annual output of platinum will equal about 2.4 million
troy ounces, placing South Africa first among world
processing and for the manufacture of electronic equipment
by Japan and western countries for chemical and petroleum
200 million ounces of high grade ore. Platinum consumption
producers. Reserves are plentiful, probably exceeding
and jewelry also is increasing.
supplier for Japanese and European nuclear power plants
South Africa undoubtedly will be a major uranium
planned for later this decade and for the 1980's. Ore
country. When market conditions warrant, current production
of uranium oxide) exceed those in any other non-Communist
reserves estimated it 300,000 tons (at $10 per pound
expanded quickly to 6,000 tons using existing facilities.
of about 4,000 tons per year of uranium. oxide can be
A reportedly unique enrichment process that is to be
operational in the early 1980's would make South Africa
the sixth rountry capable of producing enriched uranium
on a commercial basis.
In addition to its major mineral exports, South
Africa is expanding its production and exports of iron
ore, coal, and copper. Contracts have been signed for
multi-pillion ton exports of coal to the US, Japan,
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West Germany, and Belgium starting this year, and of
iron ore to Japan beginning in 1976. A new copper mine
opened in mid-1973 has nearly quadrupled exports of
copper concentrates to West Germany.
Stake in F.eliability
South Africa's economic and political interests
appear to be firmly on the side of strengthening trade
bonds with western countries. Pretoria has given top
priority to the expansion of non-gold exports in an
attempt to reduce South Africa's vulnerability to changes
in the volatile international gold price; gold sales
make up about one-third of annual foreign exchange
earnings. The government long has sought to strengthen
its mcrbership in the western economic and political
community. It hopes that reliability in trade and
opportunity in investment may in some measure offset
criticism of its Apartheid racial policy. Possible
labor or civil c:isorder as a consequence of Apartheid,
however, is a potential weakness of the economy.
CIA/OBR
16 April 1974
 World
Production
Asbestos
(thousand metric tons)
3,580
Chromite
(thousand metric tosis)
6,292
Diamonds
(thousand carats)
42,189
Gold (metric tons)
1,446
Manganese ore
(thousand metric tons)
20,677
Platinum group metals f
(thousand troy ounces)
4,077
Uranium oxide
(thousand metric tons)
22
Vanadium
(thousand metric tons a/)
19
7,031 f 17
976
3,237
1,253
4
8 b/ 42
a. Volume o ore content.
b. In addition, South African mines located in South-West Africa
diamonds and 590 tons of vanadium
.
c. Includes platinum, palladium, rhodium, iridium, osmium, and ruthenium.
CIA/OER
16 April 1974
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Approved For
South Africa: Ranking Among World Producers of Selected Minerals, 1971
C r -?: 71;1
South Africa First
produced 1,900 thousand carats of
Leading South African
Producer, Ranking
South Africa First
Canada Third
USSR Second
Zaire Third
South Africa First
USSR Second
USSR Second
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South. Africa: Major :'irchasers of Selected Mineral Exports, 1971 a/
Major
European Purchasers
Total
W
estern
Exports
US
Jaoan
UK
G
ermany
France
Italy
Netherlands
Other
Antimony
(thousand metric tons)
11
6
Neg'l
5
0
Neg'l
0
0
0
Asbestos
(thousand metric tons)
300
24
65
47
7
14
21
3
119
Chromite and ferro-
chromium
(thousand metric tons)
1,298
409
360
125
167
22
52
64
99
Diamonds
(thousand carats)
8,576
243
1
6,743
1
Neg'l
0
491
1,097
Manganese and ferro-
manganese
(thousand metric tons)
2,793
189
1,020
132
153
335
137
Platinum group metals b/
(thousand troy ounces)
NA
165
140
60
40
30
0
Neg'l
NA
Vanadium (metric tons)
9,380
0
1,660
500
6,030
0
70
45
1,075
a. Included are exports by Botswana, Lesotho, Swaziland, and South-West Africa.
b. Includes platinum, palladium, rhodium, iridium, and ruthenium. South Africa does not list platinumn
group metals in its official statistics. These estimates, which are based on figures listed in the import
statistics of recipient countries, probably are conservative.
CIA/OER
16 April 1974
----' --- -- - _ ease-2665iO8/ - -GI
 Table 3
South Africa: Ranking as a Mineral Supplier to Selected Countries
1971
US
Antimony
Asbestos
Chromite and ferro-
40
4
chromium
26
Diamonds
20
Manganese and ferro-
manganese
37
Platinum group metals
13 b/
Vanadium
0
Data are for 1972
South African Exports as
a per
Ja pan UK Germany
France a/
ItalZ
Netherlands
NA
0
NA
0
0
36
15
17
11
1
62
40
57
11
11
31
1
NA
IS
2
NA
1
35
30
23
64
35
22
10
40
6
NA
23
NA
b. The addition-of South African metal re-exported by the UK would raise South Africa's
of US platinum imports to about 50%.
s
CIA/OER
16 April 1974
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c
ent of Country Imports
western