Mining is one of the key sectors of the South African economy, contributing almost 10% to the country’s GDP. South Africa has rich mineral reserves in gold, iron ore and coal and is the leading producer of copper, platinum, vanadium and uranium.
At the ‘MiningIndaba’ held in Cape Town, the stakeholders of the largest industry in the primary sector met this week to discuss the situation and opportunities of investment in this sector in Africa. Discussions and forums provided information to all roleplayers and prospective investors.
Concurrently the Alternative Mining Indaba took place calling onto the heads of mining companies to remind them of their responsibilities and social commitment to the communities affected by the mines and to be more transparent in their operations.
South Africa has more mineral resources than most other countries and investment opportunities abound especially in the mining and quarrying sector. As South Africa is one of the most sophisticated and promising emerging markets, with a fast growing middle class population, the country compares positively with many other emerging market countries. However, South Africa also faces many challenges, such as calls for ‘indigenization’ of the major business sectors, labour unrest, aging plants and the current electricity crisis.
In October 2014 a resolution was passed by the provincial government of Gauteng, which calls for 49% of the key industries in the province, among them mining operations, to be owned by black South Africans by 2030. Foreign investors however eye such moves understandably with caution.
Eskom, South Africa’s energy parastatal, has confirmed that the electricity supply will be highly affected by power blackouts for the coming years due to inevitable maintenance work to get the ailing electricity grid to keep up with the growing demand.
The ‘Investing in African Mining’ Indaba, or commonly referred to as ‘Mining Indaba’ is the world’s largest mining investment conference and Africa’s largest mining event. This major event is highly anticipated by more than 2,300 international companies.
Africa’s largest gathering of stakeholders in the industry takes place annually for over two decades and attracts more than 7,000 delegates from over 110 countries. The vast majority of delegates comes from Africa. European, Australian and North American visitors make up together for one third of the delegates.
The next African indaba for the sector will take place in February 2016.
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Resources for this Article on mining in South Africa: miningindaba.com, chamberofmines.org.za, TheAfricaReport
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