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South African Bullion

History of
the South African Mint

The South African Mint was established over a century ago and has undergone significant changes throughout its history. It began as a national mint, temporarily closed during British rule, and then reopened as a branch of the Royal Mint of the British Empire. Today, it operates as an independent and privatized mint.

Finding Gold in South Africa

Gold mining has been a significant contributor to South Africa's growth since gold was discovered in the country in the 1880s, generating substantial income and attracting considerable foreign investments.

Witwatersrand Basin and Major Goldfields

Prior to the 1880s the discoveries of gold in the country were small in comparison,  then 1884 and the subsequent 1886's discovery at Langlaagte that the Witwatersrand Basin's gold rush got underway in earnest. 

The Witwatersrand gold field was discovered where Johannesburg now stands. Following the discovery of gold in South Africa the country's President Paul Kruger decided to establish a national mint.

South Africa Mint opens
(1890 - 1900)

South African President Paul Kruger (In office May 9, 1883 – May 31, 1902)

When gold was discovered South African President Paul Kruger (1825-1904) realized that the country needed its own currency and needed a national mint to produce coins.

The mint was established in 1890 and opened on July 6th 1892, it was built on the northwest corner of Church Square in Pretoria, and Paul Kruger placed the cornerstone.  Pretoria is the Legislative Capital of South Africa.

After the Second Boer War ended in 1902, South Africa was annexed into the British Empire and became a Transvaal Colony and part of the British Commonwealth.  As a result, South Africa's mint was closed, and the pound sterling was established as the legal tender for the new colony.

Gold Conference of October 1919

The South African Reserve Bank established

Prior to the founding of the South African bank, commercial banks in South Africa could create their own banknotes that were backed by gold.

However, due to the debt that Great Britain had incurred during World War I (1914-1918), abnormal currency conditions created an imbalance, the price of gold was worth more in Britain than in South Africa.

The conversion of banknotes into gold in South Africa led to losses for South African banks, as these transactions were conducted under the British Empire. Each time the banks purchased gold from London and imported it back to South Africa, they incurred financial losses.

The financial losses prompted South African banks to seek government assistance, resulting in the Gold Conference of October 1919. This conference led to the establishment of the South African Reserve Bank, which officially opened on April 19, 1922.

The South African Reserve Bank directs the South African Mint to manufacture coins, including South African Bullion.

The Rand Refinery

During the early stages of South African gold mining, low-grade bullion was sent to London for refining.   The idea of a local refinery was initially considered for several years before the first positive step was taken in 1909, which marked the beginning of the Rand Refinery's founding when the Transvaal Chamber of Mines established the Witwatersrand Co-operative Smelting Works.

The Rand Refinery was established by the the Chamber of Mines to refine gold mined in South African mines to stop the practice of sending the gold to London.  

On 27 November 1920, Rand Refinery Ltd was registered as a private company, the capital raised from shares of gold mining companies that were members of the Chamber of Mines.

The building of the facilities commenced in August 1920. A site located 10 miles east of Johannesburg, in Germiston, South Africa, was selected for the Rand Refinery due to its rail facilities, and its location to the Witwatersrand gold fields.

By December 1921, construction on the Rand Refinery was complete. The refinery originally had a capacity of 12 million troy ounces of fine gold per annum; however, its capacity was met in ten years, and since then the Rand Refinery's facilities have increased considerably.

The refinery's principal functions are to refine bullion and recover precious metals from by-product materials received from member gold mines and to sell the refined precious metals to the South African Reserve Bank, which credits the mines accordingly.

The Rand Refinery also produces gold and silver blanks for the South African Mint to mint Krugerrands and its sub-denominated bullion coins.

The Pretoria Mint Act of 1919

Density of European Population South Africa 1911
(Pretoria - Blue Star) (Click to Enlarge)

Royal Mint Branch Opens in Pretoria

The Pretoria Mint Act of 1919 approved the British to established a branch of the Royal Mint in Pretoria.  The mint was built on the corner of Visagie and Bosman Street and opened on the 1st of January, 1923.

The South African Branch of the Royal Mint produced £83,114,575 worth of gold sovereigns during its lifetime. The Royal Mint in South Africa was the last branch established abroad.

South African Sovereign Gold Coins
1923-1932

The British Gold Sovereign bullion coin was first minted in 1489 and contains .2354 troy oz. of gold, making it roughly the same size as a U.S. nickel.  Since 1526, Gold Sovereigns have contained 22-karat gold, 91.667% gold, and 8.33% copper, which is also known as Crown gold.

South African Gold Sovereign coins were first minted in 1923 and are highly collectible because fewer than a thousand of them were struck. The official mintage for the 1923 South African Gold Sovereign number is in dispute; the following numbers have been given for this bullion coin: 719, 460, 423, and 406.

Gold Sovereigns struck at the Royal Mint's branch in South Africa had an "SA" mint mark; the mint marks can be found on the ground above the "year of issue." (click images to enlarge)

The Royal Mint branch in South Africa ceased issuing its Sovereign coins in 1932, but it wasn’t until South Africa severed ties with Great Britain in 1941 that The Royal Mint branch officially closed and the South African Mint reopened.

Royal Mint Branch closes
South African Mint opens

South Africa started to cut ties with the Britain in the early 1940s, the result of this was the closure of the Royal Mint's branch in Pretoria South Africa on June 30, 1941.

The next day, on July 1, 1941 the South African Mint opened its doors; however, British currency was still used in the country until South Africa became a Republic in 1961.

A New Republic

On October 5, 1960, South Africa, under apartheid, became a Republic after the narrow passage of the 1960 South African Republic Referendum, which led to their unilateral withdrawal from the British Commonwealth.

On May 31, 1961, the Republic of South Africa was proclaimed.  The British decimal coin system was discontinued in South Africa that same year, and a new monetary system comprising denominations ranging from a half-cent to R2 was introduced.

The half-pound became the R1 (1-Rand) coin replaced the half sovereign, and the R2 (2-Rand) coin replaced the Sovereign.

The design of the 1-Rand and 2-Rand gold bullion coins are the precursor to the Gold Krugerrand and their designs are extremely similar. 

The difference is seen in the obverse side the 1 & 2 Rand gold bullion coins feature Jan van Riebeeck, whereas the Krugerrand features President Paul Kruger. 

The reverse of the Rand gold coins features the well-known springbok illustration designed by Coert Steynberg.  The last R1 and R2 gold coins were minted in 1983. 

The rand gold coins matched the specifications of the British half-sovereign and sovereign, including the gold alloy with a fineness of 22 carat (91.67% - known as "Crown gold").         (click images to enlarge)

1969 - 1-Rand
obverse

1969 - 1-Rand
reverse

1980 - 2-Rand
obverse

1980 - 2-Rand
reverse

Privatizing the South African Mint

In the late 1980s, the South African Government began to deregulate state activities, leading to the privatization of the South African Mint.

In 1989, the South African Reserve Bank Act 90 of 1989 was signed into law, and the following year, the South African Reserve Bank (SARB) adopted its first formal mission statement. The statement outlined the organization's goal of preserving both the internal and external value of the rand, an objective that was later incorporated into the country's Constitution.

Furthermore, under the act, the South African Mint Company Ltd. became a wholly-owned subsidiary of the South African Reserve Bank (SARB).

The South African Mint's New Location

Due to the privatization of the South African Mint, its previous location in Pretoria was considered inadequate for future demand, prompting the need to relocate it.

The new Mint was built south of Pretoria in Centurion, Gauteng Province, it was completed in 1990 and officially opened in October of 1992.

The South African Mint produces all of South Africa's circulated, collector, and bullion coins. It uses state-of-the-art technologies to mint all its coins and for its international customers.

The Mint's primary bullion brand is the Krugerrand, which is recognized as the world’s first and most widely traded bullion coin.

Gold Krugerrand
South African Bullion Coins

Krugerrand Gold Bullion Coin - 1oz. & Fractional Bullion Coins

Silver Krugerrand
South African Bullion Coin

1oz. Krugerrand Silver Bullion Coin

Sources:

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