The Krugerrand’s remarkable contribution to SA mining value-addition
The gold bullion Krugerrand represents a most remarkable story from a beneficiation perspective, with more than 60-million pieces sold over the past 50 years. This equates to more than 1 660 t of local gold used in the process, and about 25% of all South African gold sold currently is in the form of Krugerrands.
This is according to precious metals smelting and refining complex Rand Refinery CEO Praveen Baijnath, who spoke to Mining Weekly during a site visit to the company’s facility, on the East Rand, in August, to mark the coin’s fiftieth anniversary.
He highlights that most of the gold used to produce the Krugerrand is mined in South Africa, where it is also locally alloyed and blanks are produced, and other related services, including marketing and distribution, are undertaken.
The gold that is used to produce the Krugerrand is sourced, refined and then manufactured by Rand Refinery, where it produces blanks of the coin. About 9 000 blanks a day are then struck by the South African Mint – a subsidiary of the South African Reserve Bank (SARB) – and the coins are then returned to Rand Refinery for final packaging, following which they are marketed and sold worldwide.
Baijnath notes that, since the first 22 ct gold Krugerrand was manufactured, on July 3, 1967, the gold bullion coin has become a sought-after item for “discerning investors”. This demand has made the Krugerrand the world’s most traded gold bullion coin of all time, beating out its closest competitors, the Canadian Maple Leaf and the US Eagle.
Increased demand for gold has supported sales of Krugerrands, with this year predicted to yield the highest sales since the 1980s on the back of an expected 15% to 20% increase on the 1.1-million ounces in coins sold in 2016.
This is according to Rand Refinery marketing executive head Richard Collocott, who also addressed the media during the visit.
This story is from the October 06, 2017 edition of Mining Weekly.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 06, 2017 edition of Mining Weekly.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Supply Cliff?
Commodities supply shortfall looming following years of underinvestment
Strikes Threaten Coal Sector
If an agreement cannot be reached on the future structure and form of wage nego­tiations in the coal sector, unions have threatened to strike, says Solidarity mining industry deputy general secretary Connie Prinsloo.
Continued Focus On Downstream Development
Continued Focus On Downstream Development
Unrelenting Scourge
Mining fatalities in South Africa rise for first time in decade
Plea For Open Discussion
Diamonds body calls for ‘productive dialogue’ on Kimberley Process reform
Deep Potential
Stillwater deal seen positioning Sibanye as globally competitive mining champion.
Explosive Advantage
Explosives reloading system helping Gold One to reduce mining costs.
Critical Juncture
South Africa’s mining sector at a crossroads, collaborative effort required.
Consulting Engineering's Viability Proportional to Mining's Growth
The consulting engineer-ing industry’s sustain-ability and growth are largely dependent on and proportional to the mining industry’s sustainability and growth respectively, says industry body Consulting Engineers South Africa (Cesa).
Greater Emphasis On Ensuring Sustainability
Engineering expertise can be used to generate socio-economic gains for mining companies, particularly in jurisdictions that are dependent on the finite business of mineral extraction, states global engineering and infrastructure advisory firm Aurecon, an adviser to the African mining sector.
