However, both the industrys platinum production and gdp contribution have been in decline for a number of years, and as the country struggles with depleting mineral reserves, trade union unrest and legal confusion, the south african mining industry has been dubbed a sunset industry, one in a perpetual decline. The south african mining sector is in a predicament as contradictions rooted in its. However, trends in productivity in the south african gold mining industry by p. South africas mining revenue by commodity 2019 statista. Boubacar bocoum, lead mining specialist, world bank groups sustainable energy, oil, gas and mining unit segom, washington, d. South africa is also a major producer of coal, manganese and chrome. According to the report, a falloff in diamond, iron ore and coal production pulled the industry down by 10,8%. A facts and figures pocketbook mine sa 2017 was published just before.
The mining industry is currently regulated under the mineral and petroleum resources development. The mining industry in south africa is also affected by the law of contract. The south african mining industry has been in continuous decline for 2 decades. Stats sa library cataloguinginpublication cip data. The fact that manual lodgement of applications is still possible despite the introduction of samrad, is. Mining is the biggest contributor to namibias economy in terms of revenue. Economic activity in modernday south africa has been centred on mining activities, their ancillary services and supplies. The future of mining in south africa mining technology. The outlook for the south african mining sector fti consulting. Socioeconomic attributes article pdf available in mediterranean journal of social sciences 414.
Specifically, the oil and gas subsector grew by 80. 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. This is according to q1 2019 gdp figures released today by statistics south africa stats sa. 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. Trends in productivity in the south african gold mining industry article pdf available in journal of the southern african institute of mining and metallurgy 1163. The university of witwatersrand, johannesburg, south africa. 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. The mining industry has adopted a zero harm policy and wellness of employees as a top priority. In a 2016 survey of attractiveness to mining investors, the fraser institute, a freemarket thinktank, ranked south africa 74th of 104 mining jurisdictions. Creamer medias construction 2017 report examines south africas construction industry over the past 12 months. Mining companies have begun to enjoy some welcome relief in 2019, as gains in commodity prices, aided by a weaker rand, began to bring the industry back into. Furthermore, the health of the mining industry in south africa has a considerable impact on other countries across the continent where the extractive.
Why mining still matters institute of race relations. Investors in aggregate saw a decrease in dividends and market capitalisation after a cautiously optimistic view on a recovery last. South africas mining industry south african market insights. 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. Innovation will be the key for mining companies and should be implemented in every area of their operations.
Mining in south africa was once the main driving force behind the history and development of africa s most advanced and richest economy. This week cape town will be playing host to thousands of additional. Mining for sustainable development corruption watch. Opportunities for enhancing resilience 2016 edited by raffaello cervigni and michael morris reaping richer returns. Charter for the south african mining and minerals industry, 2017. The top risks facing the south african mining industry.
Mining in africa the african continent is home to an abundance of natural resources including diamonds, cobalt, oil, natural gas, copper, and gold among others. As i committed last year, government will do its part by ensuring an enabling environment for investment in south africa. South africa has an abundance of mineral resources, which is a direct source of foreign investment. Journal of the southern african institute of mining and. 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. Through this, the mining industry remains a conduit of money and opportunity to some of the poorest areas in south africa. The mining industry has been a driving force of the south african economy for the last 150 years. In 2009, the countrys diamond industry was the fourth largest in the world. In june 2017 the minister of mineral resources released a new version of the mining charter that is to apply to the south african mining industry going forward.
The incose proceedings are drawn from the annual international symposium. 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. Africas leading mining companies based on market capitalization 2019. Pdf trends in productivity in the south african gold. Years of gridlock face south africa as rules paralyze mining. Analysis of the 1996 population census identifies 56 magisterial districts in which a sixth or more of the aggregate earnings of african men derives from mining. Mining indaba conference 2017 the outlook for the south. Public disclosure authorized in mining with a focus on africa.
Distribution of mining exploration budgets in africa 2017. The level of production was 1,3% lower in 2019 than 2018, which in. The development of south africas 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 africas economy and race relations in the latter half of the 19 th century. Creamer medias coal 2017 report examines south africas coal industry with regard to the business environment, the main participants, local demand, coal exports and coal logistics, projects being undertaken by the large and smaller participants, as well as various issues affecting the sector, including labour issues and environmental considerations. Oct 11, 2019 south africa s mining industry net profit by commodity 2018. Despite the countrys attempts at diversifying energy, coal is expected to play a major role in the foreseeable future and it is the leading mining commodity revenue generator in south africa. It is therefore important for data on our industry to be freely available so that stakeholders can understand how our industry is performing. 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. Jun 04, 2019 the mining sector in south africa registered its third consecutive quarter of negative growth. A downturn in the global coal industry has also affected investment in south african coal mines, as many of the large producers and exporters have. We also follow case studies that, in our view, provide good examples that support our previous observations and suggest the potential for a. The report provides insight into the business environment, key participants, local demand, international expansion, competition and industry settlement activities, corporate activity of the countrys major construction companies, and issues such as the shortage of skills and. The mining industry continues to add value to all its stakeholders.
The mining sector in south africa is in recession following. June 2017 resulted in market capitalisation dropping to june 2015 levels. These high quality papers provide usable information or insight to enable systems engineering researchers and professionals to improve their application of systems engineering. Workforce by industry, 20162017 chemicals the summary of key findings. To understand the extent of the bee obligations for south africas mining industry, regard must also be had to the implementation guidelines for the broadbased socioeconomic empowerment charter for the mining and minerals industry, 2018 guidelines, which the minister of mineral resources and energy minister published on 19 december 2018. In addition to global challenges, the south african. This section will detail the vast array of natural resources and the manner in which they are mined, processed and utilized. Although risks have remained relatively consistent, pwc south africas mine report 2017 highlights the importance of risk identification and the management thereof. The future of mining in south africa mining deloitte. We are said to have the worlds fifthlargest mining sector, employing 5% of the south african workforce.
The mining sector in south africa registered its third consecutive quarter of negative growth. Mining 2020 laws and regulations south africa iclg. In particular, section 100 2 a of the mprda provides for development of the broadbased black economic empowerment charter for the south african mining and minerals industry as an instrument to effect transformation with specific targets. Public spending priorities for african agriculture productivity growth 2017 by aparajita goyal and john nash mining in africa. The voices of south africas mining affected communities. A perspective on the south african mining industry in the. The level of production was 1,3% lower in 2019 than 2018, which in turn was 2,1% lower than 2017. 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 charter is thus an instrument to effect transformation with specific targets, in this case the mining industry in south africa as a whole.
However, both the industrys platinum production and gdp contribution have been in decline for a number of years, and as the country struggles with depleting mineral reserves, trade union unrest and legal confusion, the south african mining industry has been dubbed a sunset industry. Mining accounts for 5% of nonagricultural formal sector employment in south africa, with each direct job in the sector leading to two additional indirect jobs being created in the wider economy. Anik michaud, group director, corporate relations as part of an ongoing series of dialogues with key stakeholders, i recently hosted a dinner in south africa to discuss the challenges and opportunities associated with the fourth industrial revolution and the role of the mining industry. 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. Mining companies in south africa need to begin to to realize the iportnace of innovation in order to be able to compete at a global level. The mining sector in south africa is heavily politicised and political. The report provides insight into the business environment, key participants, local demand, international expansion, competition and industry settlement activities, corporate activity of the countrys major construction companies, and issues such as the shortage of. The south african mining industry has had a tough 2017 a year of uncertainty and questions about the sustainability of the sector, as policy and regulatory concerns are stalling new investment. While south africas mining industry is a shadow of its former self it peaked in the 1970s it still represents 21 percent of exports and employs 457,000 people, about 7. Mar 06, 2019 president cyril ramaphosa in january 2019.
Mining plays a significant role in the economy of our nation. It may be the foundation upon which the economic and industrial revolution carried south africa onto the world stage, but the south african mining industry requires. Nov 21, 2017 according to to industryfocused assurance, advisory and tax services provider pwc south africas mine report 2017, the industry has not seen a significant change in the risks identified by mining companies, being broadly. South africas mining industry net profit by commodity 2018. South african gold mining industry due to their level of market capitalization. Following its release, the chamber of mines applied to court to have the 2017. Tholana 6171 mining companies globally are currently facing severe economic and financial challenges. Pdf mining redesigned innovation and technology needs for the. We take a look at a few highlightslow lights of south africas 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. National library of south africa, pretoria division national library of south africa, cape town division. Gdp from mining in south africa increased to 227400.