Segmented labour markets which are traditionally divided along race, ethnic, gender, and sometimes age formations. In 1886, on the farm of langlaagte, the rapidly growing diamond industry was eclipsed by the discovery of gold. The impact of hivaids on the south african mining community izak fourie the lbma precious metals conference 2005, johannesburg page 41 the picture and the methodology are exactly the same in the platinum industry. Mining is the extraction of valuable minerals or other geological materials from the earth, usually from an ore body, lode, vein, seam, reef or placer deposit. The authors personal experience and involvement in the. South africa would be the nationalising of certain geological terrains or formations. Mining contributes about 8% of south africas gdp, and 5% of the.
The mining industry is an important part of the south african economy, contributing 8. In our study of south african producer services, the recurring difficulty of aggregation and disaggregation of economic sectors has further. Socioeconomic attributes article pdf available in mediterranean journal of social sciences 414. In this years edition of state of mining in africa in the spotlight, we take a further look at, and reflect back on, our observations to see how the broad industry is progressing. Challenges facing the south african mining industry by prof cyril oconnor. South african gold mining industry due to their level of market capitalization. The research has included literature on transformation in south africa, in particular the mining sector charter evaluation. Africa has long been a continent plagued by underdevelopment, but relative. The mining industry still adds significant value to the south african economy with regards to gdp contribution, employment, tax and export revenues. Transformation in the south african mining industry scielo. The future of mining in africa the second domain are the regulatory shifts in african mining, and the actions that this regulation incentivises. In south africa this includes the recent mining charter, whereas the rest of africa is working through issues from nationalisation through taxation amendments.
To order copies of minerals and africas development. With mining being one of the most important industries in south africa, it is faced with challenging and complex landscape. Mining causes substantial environmental and social harm in south africa. South africa s mining industry remains a critical component of the economy. Opportunities and challenges facing the south african mining. Given its history and mineral wealth and as the gateway to africa s mining industry, it is no surprise that south africa s mining companies are key players in the global industry. If we are to address the problems of youth unemployment, poverty and inequality, due attention must be paid to reviving the mining industry. As major global industry, mining companies in south africa boast a high level of technical and production expertise, as well as wideranging research and. Recovery is unevenly distributed, with advanced economies sluggish and. These deposits form a mineralized package that is of economic interest to the miner. The terms and conditions applicable to a prospecting right and mining right are those agreed between the minister and the holder of the right in a notarially executed prospecting right and mining right. Introduction this publication presents estimates in respect of the 2015 mining census. Aug 16, 2012 with south africas economy built on gold and diamond mining, the sector is an important foreign exchange earner, with gold accounting for more than onethird of exports.
South africa 2009, south africa still had about 30 years of production in the gold sector, a forecast that fluctuates based on the days modifying factors. The mineral revolution was largely driven by the need to create a permanent workforce to work in the mining industry, and saw south africa transformed from a patchwork of agrarian states to a unified, industrial nation. In 2009 it looked as though coal would be able to dislodge pgms as the biggest revenue generator. In addition to global challenges, the south african. In 2009, the countrys diamond industry was the fourth largest in the world. The social and environmental consequences of coal mining. Kpmgs mining team in south africa is at the forefront of providing assistance to clients in the mining sector.
Corporate social responsibility in south africa s mining industry. For example, we have recently provided tax assistance on one of the largest transactions in the coal industry. Breakdown of projects in south africa by mining type. Basic ergonomics is currently applied to a limited extent in the mining industry.
Prof cyril oconnors presented the 2016 academy lecture, challenges facing the south african mining industry, in october 2016 in cape town and in march 2017 in gauteng. This is the 11th edition of our annual publication highlighting trends in the south african mining industry, as represented by the top 26 mining companies by market capitalisation. Every year, kpmg asks mining executives about the state of their industry, key trends, and their expectations for their organizations. The mineral revolution is a term used by historians to refer to the rapid industrialisation and economic changes which occurred in south africa from the 1870s onwards. The country produces and shares a significant amount of the worlds minerals. South african mining equipment and related services. Sep 14, 2010 south africa has launched a new charter to facilitate the sustainable transformation and development of its mining industry, with emphasis on a target of 26% black ownership of the countrys mining assets by 2014. Opportunities and challenges facing the south african mining industry presentation to the sacea agm by roger baxter, senior executive, chamber of mines of south africa, 17 february 2011 presentation outline mining and minerals, integral to modern society the south african mining industry the future the global mining industry back to the. Initiatives introduced by the south african mining industry to improve safety in the countrys mines, have resulted in a more than 50% reduction in fatalities. It is the worlds fifth largest mining sector in terms of gross domestic product gdp, contributing eight percent to south africa s gdp. Pdf in june 2016, the southern african institute of mining and metallurgy saimm held. Ores recovered by mining include metals, coal, oil shale, gemstones, limestone, chalk, dimension. The future of mining in south africa innovation imperative deloitte. The census covers all mines that were registered for mineral rights with the department of mineral resources dmr in 2015 that are mainly engaged in the mining industry.
Contributing to the upward surge in 1980 was a relatively high gold price. Published by the south african institute of race relations irr. Why mining still matters institute of race relations. Local mining companies and internationals with significant local assets manage unique south african operational complexities while still operating in the context. The south african mining industry is frequently criticized for its poor safety record and high number of fatalities but conditions are improving. The socioeconomic attributes of coal mining industry in south africa can be chronicled from domestic to industrial applications. Leadership will be required from all stakeholders to ensure longterm optimisation of the industry as opposed to the threat of instant gratification claims by stakeholders. South africas mining industry employment by commodity 2019. Contract mining in south africa are current models supporting business sustainability. Governs the formation and regulation of companies in sa. Now, more than ever, south africa needs a competitive mining industry.
The development of south africa s mining industry, and how it laid the foundations for apartheid although some mining had taken place in what is now south africa centuries before europeans arrived, 1 the modern mining industry emerged as the major shaper of south africa s economy and race relations in the latter half of the 19 th century. Africa mining iq also lists direct contact details for individuals working with, and for, mining companies in south africa. A competitive analysis of the south african mining industry. Statistics south africa 5 mining industry, 2015 mining industry, 2015 1. Corporate social responsibility in south africas mining. Outlook for the south african mining industry saiia. However, trends in productivity in the south african gold mining industry by p.
The findings of this report are based on publiclyavailable information. South africa mining production 19812020 data 20212022. Activity in south africa often impacts and influences the rest of the region. An overview of producer services in the mining industry in. At current prices and costs, more than 60% of south africa s pgms mining industry is lossmaking, necessitating shortterm solutions, such as cutting back investments and increasing restructuring.
The research found that the mining industry is not competitive at present and will not be able to provide an environment conducive to beneficiation in south africa. The top risks facing the south african mining industry. Different countries identify different strategic industries and even different strategic minerals. However, pgms retained the top spot on the back of a stronger price recovery. Long the bedrock of south africas economy, concerns about the industrys future role indeed, its future existence is in deep doubt. Mining in south africa was once the main driving force behind the history and development of africa s most advanced and richest economy. Although south africa has a comparative advantage in terms of minerals endowment, there are challenges faced by the mining industry that hinder translation of the comparative advantage into. We also follow case studies that, in our view, provide good examples that support our previous observations and suggest the potential for a. The mining industry has adopted a zero harm policy and wellness of employees as a top priority.
Platinum seen contributing as much to south africas. Indeed, the south african mining industry is the industry with the highest union density. Apr, 2000 the south african mining industry has been in continuous decline for 2 decades. South africa s coal reserves lie in 18 coal fields. Investigation further revealed that, as a result of the importance placed on the elements of the model, the diamond model is viable in a developing and dynamic environment. It was the biggest increase in mining output since november 2017, as production rebounded for coal 2. Mining in south africa began with chance discovery of a diamond on the banks of the orange river in 1867. Prof oconnor is the ceo south african minerals to metals research institute. South africa is a treasure trove of mineral resources. The latest aggregated prevalence rate of the three major producers is somewhere between 16 and 19%. This information is intended to help mining companies in south africa with tendering, project management, and a range of other functions within the south african mining industry. South africa in particular has a massive mining industry it is a major source of diamonds, gold, platinum and coal, and is home to most of the deepest mines in the world. Challenges facing the south african mining industry saae.
The level of production was 1,3% lower in 2019 than 2018, which in turn was 2,1% lower than 2017. Recommendations are made to promote practices in the mining industry that should lead to the desired results. Teba limited is a service organization primarily responsible for the recruitment of mineworkers for the south african mining industry. Preliminary study on artisanal and smallscale mining in. Increased in the current year to r884bn up 84% total revenue went up with r46bn 12% dividends paid to shareholders increased with r11bn 69%.
This year, we expanded the survey to capture key global market trends, backed by responses from over executives and industry highlights from canada, australia, brazil and south africa. We take a look at a few highlightslow lights of south africa s mining industry as published by statistics south africa exactly a week after delegates closed the 26 th investing in african mining indaba, stats sa released data on the performance of the mining industry in 2019. For a community of 5 million south africans, mining remains a principal ally against poverty the latest population census shows that one in seven african men with a formal sector job in 1996 was employed in the mining industry. Figure 1 shows that south africas riches comprises just under 90% of the platinum metals on earth, 80% of the manganese, 73% of the chrome, 45% of the vanadium and 41% of the gold. Through this, the mining industry remains a conduit of money and opportunity to some of the poorest areas in south africa. Although there is a growing awareness of the need for ergonomics, very little has been done about its application. The present paper considers two of the major consequences of poor ergonomics, namely workrelated.
The service industry most heavily dependent on mining is rail freight, in south africa a monopoly in the form of transnet freight rail tfr, a division of the stateowned company transnet previously south african transport services and before that south african railways and harbours. Tholana 6171 mining companies globally are currently facing severe economic and financial challenges. The development of the south african goldmining industry. Deloitte has taken a snapshot view of several mining regions across africa and reflect on what is happening through our framework of key success factors for mining investment, which we established in the first edition last year. It depletes water supplies, pollutes the air, soil and water, and destroys ecosystems. Study of sand mining and related environmental problems along. Review of trends in the south african mining industry in 2005, coal and platinum group metals pgms overtook gold as the biggest revenuegenerating commodities. I, samson gwede mantashe, minister of mineral resources, hereby in terms of section 100 2 of the mineral and petroleum resources development 2002 act, act 28 no. The countrys stock exchange in johannesburg was established in 1887, a decade after the first diamonds were discovered on the banks of the orange river, and almost simultaneously with the gold rush on the worldfamous witwatersrand. Transforming the mining industry the mining charter is the policy instrument to effect transformation of the south african mining sector department of mineral resources, 2009. Mar 08, 2017 how south africas mining industry can change its ways. In other words, for every r100 that the south african economy produced that year, r21 was due to mining. South african mining sector and the countrys economy in general. Pdf innovation and modernization of the south african mining.
Mining is one of south africa s biggest industries. Mining specific solutions from electrical to digital solutions as one of the major suppliers of the global mining industry, we offer a comprehensive solutions portfolio that enables you to effectively meet your challenges at each process stage, from extraction to transportation and beneficiation. The mining industry is a crucial source of employment, tax and export revenues. Largescale and profitable mining started with the discovery of a diamond on the banks of the orange river in 1867 by erasmus jacobs and the subsequent discovery and exploitation of the kimberley pipes a few years later. The mining industries employing basotho miners are mainly in the free state, mpumalanga, north west, limpopo and the gauteng provinces, south africa iom, 2007. South africa on the other hand, is a water scarce country with mining activities often located in areas with limited water resources. South africa, being the economic hub of the continent at present, sets the stage for the industry at large in many respects. An overview of producer services in the mining industry in south. A perspective on the south african mining industry in the. The social impacts range from home to institutional energy use. Pdf coal has been an important commodity in south africa for many years and it is one of the oldest mining enterprises in the country. South africa s mining industry ebitda by commodity 2018. The country is one of the worlds biggest coal producers,1 2and a leading producer of a wide range of metals. Mining weekly covers realtime news on mining projects across a range of minerals including gold, platinum, diamonds, copper and ferrous metals.
Mining s contribution to total economic production climbed in the 1970s to peak at 21% in 1980 1. Nationalisation in the reasons to nationalise south. By the 1880s, the mines around kimberley produced around 95% of the world diamonds. The south african industry considers mechanization, automation and. We also follow case studies that, in our view, provide good examples that support. The future of mining in africa navigating a revolution. Mining companies in particular have a strong interest in the building of industries that use new platinum applications.
A global view on mining is provided in our annual global mining industry publication, mine2. This will only be possible if science and technology plays the quintessential role of changing the cost and exploitation horizons of the sector. South africa is also a major producer of coal, manganese and chrome. This kind of employment, particularly the use of contractors, has historically been. Mining plays a significant role in the economy of our nation. The launch of the new charter comes after an assessment of the former charter showed that certain targets had not been met. Over 50% of all gold reserves are found in south africa, where the.
Minings contribution to total economic production climbed in the 1970s to peak at 21% in 1980 1. Mining 2020 laws and regulations south africa iclg. The main challenges faced by the mining industry include proper water and electricity management among others. It is therefore important for data on our industry to be freely available so that stakeholders can understand how our industry is performing. The impact of hivaids on the south african mining industry. According to to industry focused assurance, advisory and tax services provider pwc south africa s mine report 2017, the industry has not seen a significant change in the risks identified by mining companies, being broadly. Strategic industries tend to be regular enough targets.
The state of mining in south africa and beyond south africas historic mining industry has been taking it on the chin for the past five years with economic recession, political interference and rand fluctuation playing havoc, but its showing signs of recovery of late, with specific commodity rallies, giving hope ahead of the 2017 mining indaba in cape town. South africas mining industry south african market insights. Sustainable development in the south african mining industry. Deloitte joined over 7,000 mining professionals from 100 countries at the 21 st investing in african mining indaba this week the message from stakeholders such as the minister of mineral resources and ceo of anglo platinum is clear the mining industry needs a stepchange in order to survive, and innovation is the answer. With a vast supply of highly soughtafter raw materials and a relatively low population density considering the space, south africa has a thriving mining industry. Today, the mining industry remains one of the biggest contributors to the countrys economy with an estimated worth of r20. South africa s mining industry net profit by commodity 2018. Factors driving the mining industry in south africa. Although the jse resource index increased by over 250% from 2000 to 2008, employment in the mining industry increased by less than 25% while the contribution of the industry towards the nations gdp decreased steadily. Mining industry marketspecific solutions siemens global. Despite being considered a priority by government and industry, the evidence on the extent of transformation in the mining industry is, at best, unreliable mitchell. Consequently, the mining industry, through deploying key dti incentives, is playing a leading role in the development of new applications and markets for fuel cells in south africa. In 1987, employment in the industry peaked at just over 760 000. Economic activity in modernday south africa has been centred on mining activities, their ancillary services and supplies.
Making the refining process more thorough and economically viable, gold mining in south africa projects, such as the ergo mines joint venture in brakpan, will facilitate the reprocessing of 1. The south african mining industry the future the global mining industry back to the boom rsa coal mining sector back to the boom global economy is recovering from first global recession in 61 years. Opportunities and challenges facing the south african. Total fatalities were 533 in 1995 and had fallen to 199 in 2006. The mining industry in south africa is also affected by the law of contract. Mining conditions in south africa mining in africa. In that year, south africa s platinum mining industry employed some 164,5 people.
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