This note pack is a complete summary with diagrams. It summarises all the content for Topic 5 : Economic of South Africa Introduction. Chapter 3 : Mining in the Focus Geography Grade 12 Learners Book.
Contribution of Mining to SA Economy
NB : discovery of diamonds & later gold in late 1800s changed SA from poor country where main
economic activity was subsistence farming to Africa’s biggest economy.
Today SA mines platinum, coal, iron ore, manganese, copper, uranium & chrome in addition to gold,
diamonds.
Many minerals exported, either in raw state or after they been processed, bringing large amount
foreign exchange. Mining industry & shares in mining companies also attracted huge foreign
investment.
Since 1980 percentage contribution mining and rest primary sector to GDP decreased due to increase
percentage contribution from secondary & tertiary activities.
However, mining still cornerstone economy. Snakes significant contribution to economic activity & job
creation.
Mining contributed almost R100 billion directly to GDP in 2011, which was more than double that rest
of primary sector. Chamber of Mines (2011) indicate how important mining still is:
- Creates about 1 mil jobs ( 500 000 direct & 500 000 indirect).
- Accounts for GDP (8.6% direct, indirect).
- Earns more than 50% SA’s foreign exchange.
- Attracts significant foreign investment .
- Accounts corporate tax received in SA.
, - Made R441 billion expenditure, of which R407 billion spent locally.
- Spent R78 billion wages & salaries.
- Accounts 50% of volume of cargo handled in Transnet’s rail & port infrastructure.
- Coal supplied by SA collieries provides around 90% of electricity generation via coal power plants.
- 37% of country’s liquid fuels made local coal.
* Mining huge indirect contributions both GDP & employment *
Mineral wealth
SA currently world’s largest producer chrome, platinum, group metals, manganese, vanadium & host
other metal used in steel production.
SA world’s 4th largest producer of diamonds & accounts for 10% world’s gold production.
World’s 5th largest coal producer, extracting producer over 200 mil tonnes of coal each year - major
coalfields located Mpumalanga around Witbank & Ermelo. Prodive of SA’s coal-fired power stations with
energy needs.
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