• Abstract and Figures
• Public Full-text

South African Mining South Africa sits at a turning point. Many decisions concerning socio-economic policies, energy infrastructure and safety will determine its future. TABLE OF CONTENTS A REPORT BY GBR FOR E&MJ South Africa: Africa’s Superpower ............... 2 This report was researched and compiled by A Mining Nation Evolves ............................ 4 Global Business Reports (www.gbreports.com) for South Africa is Open for Business ................ 8 Engineering & Mining Journal. Beyond Gold ............................................ 10 Editorial researched and written by Sharon Saylor ([email protected]), and Sarah Fraikue Industry addresses Complications ([email protected]). Created by MPRDA .................................. 16 Cover photo: Impala Platinum’s shaft at Rustenburg Making Strides ........................................ 18 (with courtesy of Implats) JUNE 2011 SOUTH AFRIcan MINING SOUTH AFRIcan MINING vestment to meet the increasing demands sector to emerge, stating that mining of the mining industry through developing rights not used in an allotted timeframe South Africa: Africa’s Superpower infrastructure, including transport systems by mining companies to exploit minerals and energy projects. would revert back to the state. South Africa boasts Africa’s largest economy and strongest political As South Africa has become the Afri- Since its inception, a number of short- influence, but does South Africa have what it takes to prosper from the can continents springboard for majors, comings pertaining to ownership, procure- juniors and service providers, South Africa ment, employment equity, beneficiation, current commodity boom? will now offer improved access for BRIC human resource development, mine com- members to Africa, as well as enhanced munity development, housing and living investor confidence. “South Africa has the conditions have been identified and are be- financial muscle and, with its recent invita- ing relooked at. In the course of 2011 the decisions concerning the nationalization tion to join BRICS, the opportunities within entire act is to be reviewed in order to ad- of the mineral industry, security of ten- the industry are likely to improve,” said Dr. dress these shortcomings and will be ap- ure, underdeveloped transport and ener- Fred Sutherland, managing director Africa, proved by cabinet at the end of the year. gy infrastructure, skills shortages, safety Golder Associates. issues and affirmative action policies to Remodeling boost black ownership in the mining in- dustry challenge South Africa’s ability to Sharing the Wealth In the wake of the global financial crisis, remain at the forefront of the international The Mineral and Petroleum Resources De- a tripartite group consisting of the gov- mining industry. South Africa needs a velopment Act (MPRDA) was enacted to ernment, the Chamber of Mines and la- collaborative effort from government, in- address the inequalities resultant from the bor unions worked together, through the dustry and labor to improve its competi- Apartheid regime which came to an end Mining Industry Growth Development and tive edge on the global mining arena and in 1994, and which prevented Historically Employment Task Team (MIGDETT), to min- enhance its image as a preferred invest- Disadvantaged South Africans (HDSAs) imize mining job losses and to find sustain- ment destination. from owning the means of production and able solutions for the mining industry. The from any meaningful participation in the interventions in the MIGDETT process also Mainstay of South Africa mainstream economy. The MPRDA was de- aim at creating an enabling environment signed to facilitate the participation of HD- for investment as well as reducing the From the discovery of alluvial diamonds SAs in the mining and minerals industry. cost of doing business in South Africa. An- in the late 1860s and the Witwatersrand Within the MPRDA, section 100(2)(a) glo American’s Executive Director Godfrey goldfields in 1886, the mining industry lies the mining charter, also known as Gomwe believes the task team is making has been and remains one of the country’s the Broad Based Socio Economic Em- positive strides. “MIGDETT is a process to most important economic drivers, contrib- powerment Charter for the South Afri- identify what a “globally competitive South uting 19% of GDP (8.8% directly), approxi- can Industry, which was designed by the Africa” could look like, there is recognition mately 1 million jobs (about 500,000 jobs government to effect sustainable growth that we missed the last commodity boom directly); 18% of gross investment (10% and transformation in the mining industry and there is a clear effort to try to take ad- directly); about 10% to 20% of direct cor- through specific targets. In an attempt to vantage of the next cycle,” Gomwe said. Aluminium smelter in Richards Bay. (Photo courtesy of BHP Billiton) porate tax receipts (R10.5 billion in 2009) disperse national wealth, South Africa has In essence, the task team was mandat- and accounting for 35% of the value of the set a target of 26% black ownership of its ed to identify bottlenecks and to come up More richly endowed than either Russia have been acknowledged by the Minister Johannesburg Stock Exchange (Chamber mines by 2014, but preliminary targets to with possible solutions intended to make or Australia, with an estimated $2.5 tril- and we, as industry, need to be more sup- of Mines, 2009-2010). But in the 2001 reach 15% in 2009 have disappointingly the industry competitive. The MIGDETT lion (the equivalent of R18 trillion) worth portive and work closer with the govern- to 2008 commodities boom, the world’s not been met. It also requires that mining process had already identified a number of metals and minerals in the ground at ment. If you look at the cultural change top 20 mining countries achieved an aver- companies substantially and materially in- of weak areas in the industry, including today’s prices, South Africa has by far the South Africa has navigated in the 15 years age mining GDP growth rate of 5% a year, crease the economic participation of HD- regulatory uncertainty and underdevel- most well endowed mineral wealth of any of democracy and if you think of the way while South Africa’s mining sector GDP SAs within the industry, from employment oped infrastructure, both of which led to country in the world (American Citibank in which the country has dealt with this, it shrank by 1% a year. to procurement. The new legislation paved the country’s downgrading in the Fraser Group, Metals and Mining Strategy, April is incredible. The country has great poten- South Africa is home to a population of the way for South Africa’s junior mining Institute report. A 13-pronged strategy to 2010). Containing 52 commodities in the tial and it has 100 years of mining culture. 50 million people, occupies a landmass of address these has been put in place. ground and home to the world’s largest re- People understand the industry and both 1.2 million sq km (equal to the combined President Zuma has called on South serves of platinum group metals (almost the union and government are support- landmass of Germany, Italy and France) Africa, with strong support from indus- 90%), manganese (80%), chrome (73%), ive.” and a coast line stretching almost 3,000 try, to embark on a bold New Economic vanadium (45%) and gold (41%), and a South Africa hosts the largest mineral km. It is now strategically aligned with its Growth Path to create 5 million jobs and major reserve holder of vermiculite, zirco- reserves, ranks as the fifth largest mining Asian counterparts, India and China as the reduce unemployment from 25% to 15% nium minerals, titanium minerals, coal and economy by GDP value, leads the world’s most recent addition to the BRICS partner- by 2020. The new growth plan aims to iron ore, South Africa’s mineral potential is platinum production and is the fourth larg- ship as of December 2010. Some argue enhance economic growth, employment second to none (Chamber of Mines, 2009- est gold producer, yet the country lags South Africa, whose economy is about creation and equality in South Africa and 2010). far behind in foreign direct investment one-quarter the size of India’s, is simply has identified both mining and mineral “South Africa has the largest resource and mineral production. A recent report too small to join the group of the world’s beneficiation as one of the key contribu- base as measured by financial value and (March 2011) by the Toronto-based Fras- top-four major emerging markets and fu- tors. is the fifth largest mining jurisdiction,” said er Institute ranked South Africa 67 out of ture economic powerhouses. But South If South Africa can address investor CEO of AngloGold Ashanti, Mark Cutifani. 79 mining jurisdictions around the world, African officials disagree, stating it is the concerns and, in some cases mispercep- “It has a legislative framework that is gen- just four places ahead of Zimbabwe. The country’s strategic importance both re- tions, its top financial institutions, corpo- erally clear and built on perceived best survey was launched to examine which gionally and globally that matters. As one rate footprint and knowledge of all of the practice. South Africa has a legal system jurisdictions provide the most favorable of China’s largest trading partners, reach- African continent position the ‘rainbow na- that works. There are issues within the business climates for the mining industry. ing two-way trade revenues of R119.7 Godfrey Gomwe, tion’ well to lead the continent into a cen- Department of Mineral Resources, which South Africa is at a critical turning point; billion, South Africa looks to China for in- Executive Director of Anglo American South Africa tury of economic prosperity. 2 E&MJ • JUNE 2011 www.e-mj.com www.e-mj.com JUNE 2011 • E&MJ 3 SOUTH AFRIcan MINING SOUTH AFRIcan MINING vestment to meet the increasing demands sector to emerge, stating that mining of the mining industry through developing rights not used in an allotted timeframe South Africa: Africa’s Superpower infrastructure, including transport systems by mining companies to exploit minerals and energy projects.

Load more

  28

Copy Link