South Africa mining industry primarily covers the area of activities from extraction of minerals like gold, platinum, chromium, diamonds, vanadium, manganese, uranium, iron ore to trading with foreign countries. The rich abundance of mineral resources enable South Africa as one of the leading mineral exporters in the world. South Africa mining industry basically depend on gold and diamonds. Lots of companies are engaged with the production and supply of raw minerals and their finished products.
Business status of South Africa mining industry
South Africa is rich in minerals and is the leading mineral products exporters in the world. Almost sixty percent of the entire export is based on this mining industry. For the last few years, South Africa mining industry, specifically gold mining industry is falling continuously because of reduced demand of gold in the world market.
Essential components of South Africa mining industry
Some essential components of South Africa mining industry are water resources, mine workers, electricity and facility of transportation. For example, an average of 3 tons of gold ore, approx. 5000 litres of water and 600 KWH of electricity is required to produce one ounce of gold.
Over the last few years, the price of gold has dropped continuously. The main reason is the reduced demand for gold on the world market, because fewer currencies are being backed up by gold reserves. Also, competition from Russia and Australia puts pressure on the gold price, because their gold mining is easier and cheaper.
Position of South Africa mining industry
From the year 1990s, South Africa mining industry is reconstituting rapidly. The employment potentiality in the mining industry is also growing. Statistics reveal that more than 5000,000 workers are engaged with South Africa mining industry.
Government policies
South African Government is trying to promote this mining industry through several incentive programmes. The government is also supporting the small mining companies and creating employment opportunities. Use of modern technologies and research work are also taking a major role in promoting South Africa mining industry.