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GEOGRAPHICAL FOCUS: AFRICA


South Africa’s mining industry contributes greatly to its economy. Although concerns about over-reliance and safety remain, as Geoff Harper reveals, they are currently being addressed


Südafrikas Bergbauindustrie leistet einen wesentlichen Beitrag zur wirtschaftlichen Entwicklung des Landes. Obwohl Zweifel hinsichtlich einer übermäßigen Abhängigkeit sowie Sicherheitsbedenken bleiben, wie Geoff Harper berichtet, werden diese Probleme aktuell in Angriff genommen


La industria minera de Sudáfrica contribuye en gran medida a su economía. Aunque el exceso de confi anza y la seguridad siguen siendo preocupantes, como revela Geoff Harper, actualmente se están resolviendo


A


pproximately the fi fth largest mining sector in the world and with a long history of mining, South Africa’s total reserves are


worth an estimated US$2.5 trillion. T e country has the largest reserves of manganese and platinum group metals in the world and among the largest reserves of gold, diamonds, chromite ore and vanadium. South Africa is also a leader in new technology, such as the conversion of low-grade superfi ne iron ore into high-quality iron units. Mining creates over one million jobs for South Africans (direct and indirect) and accounts for about 18% of GDP. About 94% of South Africa’s energy needs are answered by its coal production, the mining of which employs about 90,000 people. South Africa’s Chamber of Mining says that coal is also used as a liquid fuel to power low-income households. Coal mining in South Africa provides jobs and energy while contributing to the country’s GDP. Diamond reserves, exploited from 1868 and gold from the 1880s, have contributed positively to both the economic development of the embryonic South Africa and two of the confl icts that divided it, the so- called First and Second Boer Wars. However, although divided by confl ict the eventual and inevitable result was a unifi ed South Africa.


Recent troubles Whereas mining is entirely dependent on a global market, which is volatile


at the best of times, the South African economy is probably over-reliant on mining. Recent falls in commodity prices from markets such as China have resulted in reductions in output and thousands of job losses in the sector this year, together with rising prices, demands for wage increases, and industrial unrest. As a result, the government under


President Jacob Zuma has been looking at ways of protecting both industry and the jobs associated with it by bringing mine owners and unions together to agree strategies. Consequently, an agreement has been signed recently, which urges that redundant workers should be given alternative employment and mines in trouble sold rather than their operations suspended entirely.


Safe option


Another enduring concern of the South African mining industry has been safety, although its record has improved radically over the past few years. Over 54,000 mine workers have lost their lives in accidents in South African mines since 1904. However, improvements are ongoing: a target reduction in mining fatalities was introduced by the sector in 2003 to reach fi gures comparable to Australia, Canada and the USA. From 270 deaths in that year improvement was steady. So in 2007, the total fi gure was 221, 168 in 2008, 269 in 2009, and 128 in 2010, which was the safest year in South African mining since 2003.


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