Mining

Question 1

Contributions of mining to the economy:

Answer 1

• Contributes 9.5% to GDP
• Provides many jobs
• Harbours expanded (Richards Bay and Saldanha Bay)
• Mines supply raw material to industries
• About 50% of SA foreign exchange is earned by mining
• Stimulates other sectors of economy (farming and trade)
• New towns and infrastructure developed around mines

Question 2

Significance of Mining in South Africa

Answer 2

• Discovery of diamonds and gold developed infrastructure of SA Main driving force behind development of SA
• Mining led to the opening of universities and educational institutes
• Variety of minerals
• Mining resulted in huge investment in SA
• Attracted immigrants

Question 3

Factors that favour mining

Answer 3

• SA has wide range minerals
• Large mineral reserves
• Lots of unskilled labour
• Benefits from foreign skilled miners
• Many countries invested money in our mines
• Well-developed infrastructure Low production cost as minerals are close to surface
• High quality of minerals
• Huge coal resources used to make electricity

Question 4

Factors that hinder / restrict mining

Answer 4

• High underground temperatures
• High costs in training of miners
• Mine worker strikes
• Large distances between mines and
harbours
• Water shortages
• Mining is a dangerous activity
• Fluctuating prices of mineral
• Labour unrest and protests
• Uses large amounts of water
• Minerals are non-renewable resources
• Accidents in mines

Question 5

Mined Minerals

Answer 5

• Platinum - WPR 1 - WR 79%
• Manganese - WPR 1 - WR 78%
• Chrome - WPR 1 - WR 76%
• Diamonds - WPR 2 - WR 24%
• Gold - WPR 5 - WR 12,7%
• Coal - WPR 7 - WR 7,4%
• Iron ore - WPR 6 - WR 0,8%

WPR = World production rank
WR = World reserve %

Question 6

South African Mineral resources

Answer 6

• The largest reserves of manganese and platinum group metals (PGMs)
• Among the largest reserves in the world of gold, diamonds, coal, chromite ore and vanadium
• All the categories of minerals, that is precious metals, precious minerals, energy minerals, non-ferrous metals and industrial minerals

Question 7

Mining contributions to GDP

Answer 7

South Africa is considered the fifth largest mining sector in the world. mining was the foundation of the economy of South Africa in the 20th century. The contribution has decreased due to the decline in production and growth of secondary and tertiary sectors. Mining is a significant earner of foreign exchange, with gold making up a third of exports, and other minerals like diamonds, coal, manganese, and chrome also contributing. The mining sector provides jobs, indirectly increasing buying power.
Mining also benefits related industries like iron and steel through earnings. Minings direct and indirect contribution to GDP is about 18%, and investments and taxes paid by mining also contribute to the economy.