Expect Higher Commodity Prices in 2010: Frost & Sullivan

CAPE TOWN, South Africa, January 18 - Although the speed and extent of the global economic recovery remain
uncertain, commodity prices are likely to put up strong performance in 2010.
This will boost the worldwide mining industry, although challenges particular
to South Africa may dampen local prospects.

(Logo: www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

"The global mining industry is likely to be buoyed by growing physical
demand for commodities, the strong possibility of speculative buying and
rising prices," says Frost & Sullivan metals & mining analyst Wonder
Nyanjowa. "This is likely to encourage miners to expand production capacity."

However, Nyanjowa warns that South Africa may not reap the full benefits
of this rebound.

"Many of the local challenges that adversely impacted on production in
2009, such as electricity supply shortages, a lack of skills and safety
concerns, are likely to continue affecting the performance of the mining
industry in 2010," he says. "In addition, the prospect of higher commodity
prices, particularly in the gold, platinum and coal sectors, is likely to
lead to tough wage demands from unions."

Nyanjowa believes that growing inflation fears in the developed world,
particularly the United States, an unstable US Dollar, threats of another
recession from expansionary fiscal and monetary policies and negative real
interest rates point towards strengthening investment demand for gold.

"A price range of US$1300 to US$1500 per ounce in 2010 looks likely,
supported by gold demand and supply fundamentals," he says. "Investors are
likely to continue turning to gold as a hedge against uncertainties in the
global economy."

However, South Africa's gold production is likely to slip further this
year, to around 200 tonnes. This will see it drop to fourth place amongst the
world's gold producers, behind China, the USA and Australia.

While platinum was one of the biggest casualties of the global recession,
Nyanjowa expects things to be much rosier in 2010.

"Frost & Sullivan anticipates that the platinum industry will recover
this year on the back of stronger prospects of recovery in the global
automotive sector, particularly in China and India. The launch of two new
platinum-based Exchange Traded Funds in the USA will also lead to strong
investment demand."

Local coal miners, who escaped from the global slowdown with relatively
minor bruises, should also remain robust.

"The bulk of the country's coal production is consumed in the electricity
generation and synthetic fuel manufacturing industries, with only a third
being exported to Europe and Asia," explains Nyanjowa. "The domestic demand
for coal is set to continue growing in 2010, following expansion programmes
at Eskom and Sasol that will require an additional 75 million tonnes of
coal."

However, South Africa's production is likely to remain stagnant at around
240 million tonnes this year as the industry waits for new coal fields to be
opened in the Waterberg basin.

If you are interested in more information on Frost & Sullivan's analysis
of the South African mining industry, then send an e-mail to Patrick Cairns,
Corporate Communications, at patrick.cairns@frost.com, with your full name,
company name, title, telephone number, company e-mail address, company
website and country.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best-practice models to
drive the generation, evaluation, and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 40 offices on six continents. To join our Growth Partnership,
please visit www.frost.com.

    Contact:
    Patrick Cairns
    Corporate Communications
    Frost & Sullivan
    P: +27-18-464-2402
    E: patrick.cairns@frost.com
    ---------------------------

www.frost.com

Patrick Cairns, Corporate Communications of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com