Summary Economics of South Africa

Geography economic geo of South Africa:
Mining
 Mining contributes to the South African economy in many ways:
 Mining contributed 9.8% to the GDP in 2011.
 Many manufacturing industries, transport links and service
occupations have been started to supply the mining industry.
With multiplier effects. About 18% to the GDP.
 40% of South Africa’s exports are mineral products.
 Mines and quarries are a major source of employment.
The significate of mining to the development of South Africa.
 The discovery of diamonds and gold was followed by the
construction of railways. Railway buildings made export
possible.
 Mining led to a rise for training in mining, engineering and other
fields. Technikons and universities opened.
 Money from mining was used to develop infrastructure.
 Export of minerals brings in foreign exchange.
 Employment.
Factors that favour mining in South Africa:
 Huge reserves: estimated largest in the world.
 Wide range of mineral wealth.
 Mineral seams are thick and near the surface.
 Low thermal gradient reduces the cost of cooling the air.
 Capital was available to develop mines.
 Coal is available for energy.
 Low-paid labour: skilled and unskilled workforce.
 Government-aid is available to help small-scale independent
miners.
 Technology helps to advance mines.
Factors that hinder mining in South Africa:
 Many mines are far inland-transport costs
 Fluctuations in rand exchange rates.
 Underground water is dangerous.
 Acid-mine drainage affects the environment and health.
 Environmental concerns restoring the land after mining.
 Labour costs have risen steeply

,  HIV/Aids
 Lung diseases- compensate families of employees
Problems faced by platinum mining:
 A platinum mine and processing plant cost billions to construct.
 Mining companies face the following problems:
 Soaring costs of labour, minerals, materials and transport.
 High tax on profits
 Stoppage for safety repairs
 Fluctuating demand
 Trade union and political pressure to keep open less-profitable
mines and employing workers.
Manganese (Mn) in South Africa and the link to PE:
 South Africa has about 75% of the world’s manganese resources.
 Country has ranked second in the world’s manganese ore production.
Contributing less than 20% per year attributed by the lack of capacity
developments in the country’s manganese industry.
 Found in the manganese rich Kalahari Basin in the Northern
Cape.
 60 km north west of Kuruman.
 It is a 425 km2 deposit of manganese.
 Home to 80% of the world’s manganese ore body.
 Hotazel manganese mines (HMM), consortium and the Anglo-
American plc.
 Mined in open pit mines.
 3000 people on manganese mines/projects.
 Although Northern Cape is rich in resources it has the highest
rate of poverty and unemployment in SA.
 Mining industry contributes 8.3% to GDP represents 25% of
SA’s total exports.
Water, pollution and illness:
 Mining uses a lot of water, and the Northern Cape already has a very
low rainfall.
 Mining contaminates water.
 Manganese mining can contaminate water, soil and air, leading to
numerous health issues.
 Mining generates a vast amount of dust, which may be contaminated
with several toxic metals. Can use TB.