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Definition

These are the minerals belonging to a mining company which can be extracted profitably. All mining companies try to extend their mineral reserves by drilling exploratory cores to establish exactly what minerals exist and at what depths. The problem in South Africa, especially in the gold industry, is that, while South Africa has approximately 30% of the world's known underground reserves of gold, much of it is at depths which make it unprofitable. The rise in the rand price of gold to levels above R36 400 per ounce in November 2023 has given the industry a new lease of life - but the preference remains for shallow reserves which can be exploited more easily. As of 30 June 2023, South Africa had approximately 68Moz of gold reserves declared as proven and probable from all operational mines. Approximately 84% of these declared reserves are concentrated in Gauteng, with the remaining declared reserves being in Mpumalanga, the Free State and North West.

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