South Africa has the worlds biggest stock of manganese platinum group metals, as per the US Geological Survey, and among the highest reserves of gold, diamonds, chromite ore as well as vanadium.
South Africa's economy built on diamond mining and gold. This zone is an key foreign exchange earner, with gold accounting for more than one-third to its exports. In 2009, the country's diamond manufacturing was the fourth biggest in the world.
South Africa's prolific mineral reserves include precious metals & minerals, energy minerals, non-ferrous metals & minerals, ferrous minerals, as well as industrial minerals.
South Africa has high level of technical as well as production expertise, and broad research & development activities in this field.
Political Stability
As an emerging financial system, South Africa has not remained totally unaffected by the turmoil in other emerging economies world-wide, especially in Asia, as well as recently also in Russia. These negatively affect investor believed in these countries.
South Africa's peaceful and stable transition to democracy, recognized as one of the major achievement of the 20th Century across the world , is not a fluke or a mere short-term achievement: the realities in South Africa, which made this amazing transition possible, are still in place and assurance to future stability.
International Dimension
Besides large-scale foreign investment in South Africa like,
Large and longstanding investments by leading European companies
BMW invested in it.
Coupled with this are the large & well-established overseas communities in South Africa, especially from Europe which includes Greece, Portugal, the UK and Germany which represent a further guarantee for continued global interest and association with South Africa.
The level of corruption is low:
South Africa is the second least corrupt country on the continent of Africa, with a slightly better rating in the 2006 Corruption Perception Index by global watchdog Transparency International.
The country scored 4.6 in the annual survey, up from the 2005 score of 4. (South Africa Info)
Inflation is well under control;
The inflation rate in South Africa was noted at 5.60 percent in month of October of 2012. Historically, from 1981 until 2012, South Africa Inflation Rate averaged 9.7 Percent reaching an all time high of 20.8 Percent in January of 1986 and a record low of 0.1 Percent in January of 2004 (Tradding Economics)
Strategic Location
South Africa's seven business ports form by far the largest, one of the best equipped and most efficient network on the African continent, managing yearly approx 500 million tons of cargo. They work as strategic transshipment hubs for traffic connecting Europe, Asia, the Americas & Africa. The extraordinary growth in airline traffic since 1994, through the major international airports in Johannesburg, Durban & Cape Town, is due to the rapid.
Modern Infrastructure
Due to modern infrastructure currently the most satisfying surprise which many first-time visitors get on coming in South Africa is the outstanding physical infrastructure which includes modern rail, road, air as well as other transportation services. The harbour & road systems are well maintain & hold immense potential for public-private joint venture.
Government Commitment to Investment Facilitation
The South African government invites more and more foreign investors. All exchange controls on non-residents have been lifted so that investors are free to take their money out of the country at any time.
WEAKNESSES
Coastal Area
South Africa have 3000 Km coastal line which is connected with both the Atlantic ocean and Indian Ocean. Due to this, if any natural calamities arise in an ocean, its direct impact seems over the South African economy. South Africa's major five cities are located at a coastal area which are Cape Town, Durban, Johannesburg, so there may be chances of breakdown of economy due to this reason.
Inadequate Technology
Due to lack of technology South Africa fail to utilize their natural resources effectively. South Africa holds not only minerals but also agricultural resources so that their agriculture can also grow at a effective margin but due to lack of advance technology indirectly south Africa lose the opportunity of gaining the employment and welfare as well from the natural resources and they exports such resources which will not generate good amount for the south Africa.
HIV-AIDs
The South African health sector has a main problem of HIV-AIDs. The impact of the AIDS epidemic is seen in the dramatic change in South Africa's general mortality rates. The overall annual number of deaths increased sharply between 1997, when 316,559 people died, and 2006 when 607,184 people died. (Avert)
High Taxation Level
In a South Africa, there is found a high taxation level, because of this reason people generally avoid to pay a tax and also small player never ever pay a income tax, foreign company think that whatever we earn here, its major portion we have to give to the government so why we do the business here.
A South African taxpayer under the age of 65 with taxable income of R500 000 would have to pay PIT of R127 095 at an effective tax rate of 25.4% and a marginal rate of 38%. (The South African Institute of Tax Practitioners)
High Unemployment
South Africa's rate of unemployment is one of the highest in the globe. It is known as one of the major critical socio-political troubles faced by the Government of the South Africa. It is estimated that approx 40% of the South African labor force is unemployed, and more than half of the unemployed populace has never been occupied in some kind of employment. Nearly 25-30% of people look for jobs are without a job. (Economy Watch)
Electricity Problem
There is trouble of distribution of the power in South Africa. About 85% of the country's power is used by big company, that is, most of the power is used to make profits. Big company paid about 8 cents per kilowatt-hour while home consumers pay about 26 cents. The abuse of the country's power by the capitalist can be seen in the long-term deals Eskom makes with aluminium smelter bosses that get them huge amounts of power for as little as 3 cents per unit.
Personal Safety
Crime continues to be a most common issue in South Africa. Most tourists who visit South Africa leave after their vacation without any unpleasant occurrences. Certain places witness violent crime as a routine activity but this tends to be in places like downtown Johannesburg & certain townships which are the poorer areas.
Lack of Capital Management
Public sector employees in South Africa feel entitled to large annual pay increases, because they hold much power in South Africa's political elections. Unfortunately, as the governments pays off this large block of workers, they fail to increase programs that help the country to operate better. Government programs to help the poor will see less money due to the pay increase to public sector workers.
Crime in Big Cities
In South Africa there found the crime in the big cities as well. There is always a crime in rural area but in urban area as well found as highest level of crime so that people are afraid to do a business in a south Africa because there are not a safety measure and government also fail to prevent those crime.
High Education Cost
In South Africa, the cost of the higher education is high, so that poor student cannot afford the high cost of education. While the student who belong to rich class also many a time not want to spend money for the education. Education is a fundamental for the future of the nation.
OPPORTUNITIES
Online selling
There is a large scope for the south African retailers and other retailer to develop a online store for selling Their products to retail customer. In number of people aware of internet in south Africa has gone up by many times. People now do know how to us internet and how to purchase products online. The no of internet users in south Africa in 2009 where 4.42 million which is 54 in country comparison to the world. (Countries of the World) Due to the change in the psychology people now are ready to buy products from the internet and are becoming regular user of it. Online selling would help the manufacture to cut the price of products as there is no middle man involved her and ultimately help the consumer.
Large young labour force
South Africa has a large number of people who are young and are able to do any type of task. According to one statistics the 65% of total population of South Africa is aged between 15 to 65 years of age i.e. 65 % of people of South Africa can do work easily (Department, 2008). A large number of people who can do work both physical and mental is an asset or the country and would help country to develop at a much faster rate. Young labour force would help to develop industry which is labour intensive like cloth industry, paper, handicraft etc.
Transhipment point
The location of the South Africa gives it an opportunity to become a largest transshipment point in the world. South Africa is between the Asian and American continents so any ship that wants to go from Asian continents to African has to move from South Africa. South Africa is situated in such a way that its between Indian and Atlantic ocean. South Africa thus has the opportunity to develop a transshipment point for both American and Asian continents. Transshipment point would help South Africa to fetch large revenue as all the ship would be using the port and the machinery of South Africa. Developing South Africa as transshipment point anther ancillary industries would also develop in South Africa and would create revenue from voyagers. Another advantage would be the people of south Africa would get exposure of new products that are been used by developed countries.
Renewable source of energy
South Africa is situated in the southern hemisphere subtropical zone so it's a clear dry hot weather there most of the time. South Africa can build the cheapest source of energy i.e. solar energy on a large extent. A cheap source of energy is very useful for the country to develop an industrial economy. A cheap electricity supply would help the industries to produce goods at lower price and with economy of scale. South Africa UN till now produces its electricity with help of coal but as the weather is hot and sunny a solar power plant can be installed in major parts of South Africa to get a cheap and renewable source of energy. A solar power plant would also help to reduce carbon emission preserving the natural beauty of South Africa for tourism industry to develop.
Act as an test field for technology
South Africa has the 4th largest telecommunication sector in the world. South Africa has also the diverse market for testing of new technology in the market. South Africa is also the one of the highest media concentrated country thus South Africa can become the one of the major player in the field of testing and piloting of systems and application due to its growing number of users everyday and a diverse group of people living.
Tourism
South Africa can become one of the best tourist destinations for people how like to have some adventure along with the fun and the beautiful landscapes. South Africa has some of the most adventures sites that can be developed as a tourist attraction with a safety system installed. The banks of sabie river landscapes of Mpumalanga and many others have the potential to become a great tourist attrition place. Along with these south Africa has a both the land and the ocean so people how likes to go for desert safari can go on long with the interior of south Africa. The people who love to see the marine life can live near the coast of Africa and enjoy the beauty of marine life. And scuba diving facility can also be developed for the tourist to watch the imagistic life under water.
Huge infrastructure opportunities
President Jacob Zuma has urged South African business to take benefit of the opportunities that will be formed by the massive new infrastructure build agenda announced in the 2012 State of the Nation address.
THREATS
Racism
It is clear to most South Africans that discrimination remains a key challenge to their democracy there is more discrimination between white and black people. As such, as a society they owe it to their selves to connect with this problem with honesty and openness. Inequality shaped and institutionalized by apartheid are still rampant 14 years into the new dispensation. Coupled with attitudinal shift, fighting these inequalities in all their manifestation would be one way of handling this challenge rather than coming up till we are stunned by a humiliating act such as the University of the Free State and Riverlea Secondary School sagas.
Terrorist Threat
http://www.criticalthreats.org/sites/default/files/imagecache/530width/main_images/analysis/Militants_Truck_Mog_main.jpg
Two massive bombs exploded on august, 7 1998 outside of the U.S. embassies in Dar es Salaam, Tanzania, and Nairobi, Kenya, killing 224 people -- including 12 Americans -- and injuring 5,000
There are many terrorist group are activated in South Africa like :
Al Qaeda
Al Shabaab
Somalian Group
Etc.
Health care
Top of Form
South Africa had cases of health-care staff being attacked who were not targeted, but who got in the way of conflict among persons or groups. Once, an Emergency Medical Services (EMS) coworker was nearly petrol-bombed during gang cruelty in Cape Town. In another insistence, a patient was bashed through the window of an ambulance.
Healthcare sector is not protected by the government of South Africa for example when an ambulance goes into a place; it is not always seen as an ambulance, menace that no one will touch it. Furthermore, the ambulance team might be pick up somebody that the neighbourhood, or a exacting group, doesn't want to be treated.
Ethics is one of the issue that needs to be explore further in a provincial conference for the reason that, even in times of disaster, the issues can be very same.
South African miner threats pressure
Prominent South African platinum miners delivered much high pay demands and threatened to extend trade action further, deepen a crisis that is fitting the major threat to the ruling party ANC from the time when the end of apartheid.
More than 100 chanting strikers groups , many "knobkerry" clubs as well as waving sticks, accompany protest leaders as they deliver a printed memorandum laying out their demands to Amplats administration offices near the Bleskop stadium. Police hard-edged vehicles kept the larger mass of miners in the stadium, within view of a white clubhouse painted with Amplats crowd slogans such as we value and care about each other and we are one team.
South Africa mine: Lonmin drops threat to fire workers
Striking platinum miners gather on 20 August 2012 at Lonmin's Marikana platinum mine
Climate 'threat to African food security
The food security threat posed by climate change is one of the most important challenges facing by the African continent.
Africa has the liability to feed the world and its own African people, the Africa faced with enormous weather change constraint such as severe drought, floods dreadful diseases.
Global warming as well as the rise of sea levels could also threaten fisheries & reduce the agricultural production in African.
South African Cell phone Banking Faces Threat from New Law
The tuition of Interception of Communications and Provision of Communication Related Information (Rica) Amendment Bill was due to have been implemented this month. However, completion was delayed awaiting amendments to the act.
As it stands, the bill will require cell phone operators to recognize and record more than 30-million consumers within 12 months of execution of the act. Those who cannot be identified will have their services suspended. The amendment bill is aimed at improving transparency in communications by monitoring cellular & fixed-line customers in an attempt to fight fraud and other crimes.
CHAPTER - 4
OVERVIEW
OF
NATURAL
RESOURCES
The South African natural resources mining industry is long recognized as the most important sector and in spite of the fact that it is the sixth largest provider to total Gross Domestic Product (GDP) at currently; and is still regarded as a foundation stone of the economy and the chief employer.
The mining industry is a well-established and resourceful sector of South Africa's economy and has a high degree of technical expertise as well as the ability to assemble capital for new development.
The immensity of the known mineral resources and reserves were revealed by means of conservative exploration methods, still significant potential is expected for the unearthing of other top-notch deposits in areas still to be thoroughly explored with contemporary exploration technology.
South Africa is a leading producer and supplier of a range of minerals and produces approximately 53 different minerals from 1548 mines and quarries as well as exports to approximately 80 countries.
As a chief mining country, South Africa's strengths comprise a soaring level of technical expertise and research and development activities.
South Africa's Mineral Resources can be classified into:
Precious Metals and Minerals
Energy Minerals
Non- Ferrous Metals and Minerals
Ferrous Metals and Minerals
Industrial Minerals
PRECIOUS METALS & MINERALS
INTRODUCTION
South Africa is the world's largest producer of platinum-group metals (PGMs) and the fifth largest producer of gold. The country is also a major producer of diamonds, while silver is produced as a by-product from gold, lead-zinc, copper and PGM mines.
DIAMOND
South Africa's 2009 diamond production was less than half of 2008 production, falling by 52.3 percent to 6.1 Mat. Diamonds sourced from kimberlitic contributed 91.8 percent to the country's total production, while alluvial and marine diamonds contributed 4.8 and 3.4 percent, respectively.
Production from De Beers Consolidated Mines dominated the country's total output with a contribution of approximately 85 percent, despite a 49 percent reduction in carats recovered in 2009.
GOLD
South Africa's gold industry has been the principal focus of black economic empowerment, resulting in a changing ownership structure.
With the increase in the price of gold and the worldwide economic slowdown, investment in gold has increased, with investors seeking safe haven investments. Demand for gold also increased in 2009, particularly from India and China.
PLATINUM GROUP METALS
The PGM's include platinum, palladium, gold, rhodium, osmium, rhenium, iridium and ruthenium. Platinum, palladium and rhodium are produced in substantial quantities. South Africa is the largest producer of platinum in the world and holds a large percentage of global reserves.
SILVER
Silver is produced in South Africa as a by-product of gold, lead-zinc, copper and PGM mines. South Africa does not have a primary silver mine and the metal is only produced as a by-product of other minerals, most notably gold.
ENERGY MINERALS
INTRODUCTION
South Africa is well endowed with both coal and uranium reserves and is ranked amongst the top ten in the world, but has relatively small known reserves of oil and gas.
South Africa is the 7th and 11th largest world producer of coal and uranium, respectively.
COAL
According to the 2010 BP Statistical Energy Survey, South Africa had end 2009 coal reserves of 30408 million tones, 3.68% of the world total. South Africa has Africa's only significant coal reserves.
OIL & NATURAL GAS
According to the 2012 BP Statistical Energy Survey, South Africa consumed an average of 547.25 thousand barrels a day of oil in 2011, 0.64% of the world total.
South Africa is the leading economic power in Africa as well as a key player in the African oil industry.
URANIUM
The AngloGold Ashanti mine is the major producer of uranium as a by-product of gold in South Africa from three mines, namely, Great Noligwa, Moab Khotsong and Kopanang. Nuclear Fuel Corporation (Nucor) exports all uranium oxide (U3O8), which is processed through calcinations of uranium slurry.
NON-FERROUS METALS AND MINERALS
INTRODUCTION
South Africa's non-ferrous minerals resources are rated amongst the top 10 countries in the world. The country is well endowed with titanium and zirconium resources, which is economically mineralized in heavy mineral sands in Kwan-Zulu Natal as well as the Eastern and Western Cape.
BAUXITE
South Africa does not mine any bauxite. It does, however, have an active aluminum smelting industry.
The Hillside aluminum smelter sited in Richards Bay is one of the world's most superior and efficient AP30 smelters and produces T-bars and primary aluminum ingots.
ANTIMONY
South Africa is a major global antimony producer, producing 3 000 t in 2009. The largest antimony producer in South Africa is Consolidated Murchison, a subsidiary of Metorex Limited.
NICKEL & COBALT
Most of South Africa's nickel and cobalt are produced as by product of platinum mining activities on the Bushed Igneous Complex.
Nickel mining is done by means of an underground shaft and also by open-pit mining. Oxidized chromatist is also mined as division of the pre-strip of the future open pits.
COPPER
Parabola, South Africa's leading copper producer, is located 360km north east of Pretoria, close to the Kruger National Park. Parabola is also a major source of vermiculite and baddeleyite (zirconium oxide).
The majority shareholders in Parabola Mining Co. are Rio Tinto plc (57.7%) and Anglo-American.
ZINC & LEAD
Exira owns Zinced, an electrolytic zinc refinery with the capacity to produce 110ktpa of zinc and 170 kappa of sulphuric acid.
The refinery, located 50 km east of Johannesburg in Springs, processes some 240ktpa of zinc concentrate.
TITANIUM & ZIRCONIUM
South Africa is Africa's main producer, with 30% of world production, second after Australia. Limonite, retiled and leucoxene are the primary ore minerals of titanium and are usually found in localized beach placer deposits, hence the term Heavy Mineral Sands.
Anglo American and BHP Billiton are the main producers from their operation on both coasts of South Africa.
FERROUS METALS AND MINERALS
INTRODUCTION
South Africa is the world's largest producer of chromium and vanadium ores and a leading supplier of their alloys. It is also a major producer of iron and manganese ores, an important supplier of manganese alloys and a small producer of ferrosilicon and silicon metal.
CHROMIUM
African chrome is produced from the Bushed Complex in South Africa, which has 80% of global reserves and produces approximately 50% of global chromate. Nearly all of Zimbabwe's chrome production is sourced from the Great Dyke and consumed for local ferrochrome plants.
IRON ORE
According to the United States Geological Survey, South Africa mined 53 million metric tons of iron ore in 2009, resulting into its position as world's 7th largest producer. It also anticipated, in 2009, that South Africa has 1000 million tons of crude ore reserves and 650 million metric tons of iron content reserves.
MANGANESE
South Africa currently accounts for about 75% of the world's identified manganese resources. These mostly occur near Hoatzin in the Northern Cape Province. According to the USGS, reserves were estimated at 15 billion tons in 2011. South Africa was the world's largest producer of manganese in 2011, producing 3.4 million tons.
VANADIUM
Pure vanadium (V) is a bright white metal, and is soft and ductile. It is has a good corrosion resistance to a variety of alkalis and acids, but oxidizes readily above 660 C. About 85% of vanadium is used as ferrovanadium or as a steel additive.
INDUSTRIAL MINERALS
INTRODUCTION
Industrial minerals are generally high volume, low value commodities that will usually bear minimum costs of underground exploitation since most occur near surface. As a result, most industrial minerals require less complicated mining techniques and, therefore, present opportunities for small-scale mining development.
