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South Africa has enormous reserves of Chrome, Gold, Vanadium, Manganese, and Precious Gems and Metals. The majority of Africa’s metals and minerals are produced here. This has allowed South Africa to establish itself as a world leader in mining and exploration.

The mining industry in South Africa has seen significant restructuring and changes since the early 1990s. Mining now employs well over 500,000 people in nearly 700 mines. Mergers, acquisitions, foreign listings, and unbundling have been the focus of the restructuring changes. These changes were a direct result of political policy changes with the advent of the democratic constitution, the rising of traditional mining costs affecting marketing shares globally, and the need to correct the inherent economic disparity between blacks and whites promoted under Apartheid.

In 1999, the Public Finance Management Act provided that all mineral resources belong to all South Africans and that the state is the custodian of these resources. This meant that prospecting and royalty fees would be payable whenever a potential resource is to be prospected, or a proven resource is mined regardless of previous state or private ownership. This was a governmental effort to ensure black participation in an industry dominated by white companies. Under this law, 30-year leases would be awarded and companies must include black partners. Controversy continues over the benefits gained by black workers versus the potential loss in confidence from international investors, possible violation of corporate property rights, security of tenure, excessive ministerial discretion, and nationalization.

The Minerals Development Bill was released for public comment in 2000. It continued to recognize that mineral resources are owned by all South Africans collectively. It also ensured that all mining companies implement a proactive social plan. The bill aims to attract foreign direct investment. There are provisions to support communities and rural development surrounding mining areas. It also continues to ensure that those historically deprived due to racism are capable to participate fairly in the mining industry. There are also provisions to guarantee the security of tenure to existing prospecting and mining operations.

Other improvements in the mining industry are being promoted though government incentives. The phasing out of mining houses has created openings for consulting engineers to be involved in projects which formerly were the sole preserve of mining owners. There is also government support to accommodate small mining companies, creating opportunities for junior operations to start up. Emphasis has also placed upon black empowerment within the industry and has resulted in several black or union owned firms beginning to becoming major players.

Research and advances in technology are greatly needed to promote lower production costs, a more stable economy and greater confidence levels from foreign investors. Foreign investment into South Africa has declined since the first democratic elections in 1994. This has been attributed to a high crime rate, inefficiency in mining extraction methods, an unstable employee pool due to the AIDS epidemic, and heavy reliance on migrant workers. Fluctuating rates of the Rand vs. the dollar have also reduced the confidence of investors.

Read more about South Africa's major metals and minerals:

Diamonds

Coal

Gold

For more general information about the mining industry in South Africa, visit the following links:

South African Mines and Mining Companies

A List of South African Mines and Mining Companies.

South African Mines and the Mining Industry

Another list of the various mines found in South Africa including Gold Mines.

Raw Materials Data – Mining In South Africa

A big list of Mines all over the World including many of the Gold Mining operations in South Africa.

African Gem Resources

AFGEM is a focused coloured gemstone business, vertically integrated through exploration, mining, trading, beneficiation and wholesale marketing of high value coloured stones found within sub-Saharan Africa

Afrikander Lease Limited

Holds mineral rights in the Klerksdorp districts. Mining using the heap leach process, with an objective of being South Africa's lowest cash cost gold producer.

Anglogold

Formerly Vaal Reefs, is now the vehicle for the merger of all Anglo American gold interests to create a firm with a resource base of 418 million ounces.

AV Gold

Formerly Vaal Reefs, is now the vehicle for the merger of all Anglo American gold interests to create a firm with a resource base of 418 million ounces.

Gold Fields Limited

Annual attributable gold production of over 4.4 million ounces and attributable Mineral Resources of 187 million ounces and Mineral Reserves of 79 million ounces. It has operations in South Africa, Australia and Ghana (West Africa) and gold and platinum group metals exploration projects throughout the world.


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