economic impact of gold mining in south africa

the gold mining industry in south africa essay - 1011 words | bartleby

the gold mining industry in south africa essay - 1011 words | bartleby

Project Topic 1: What is the Impact of Mining on South Africa and its people? GOLD Authors: Michelle Dandara, Kirsten Collins, Robyn Blench, Yumna Badrooien and Sonia Mataramvura Date of Completion: 17 February 2012 Teacher: Mr Altern Abstract Mining plays a very important role in South Africa: it is one of the driving forces behind South Africas booming economy and provides employment for millions of South Africans. South Africa boasts world-scale primary mining processing facilities and is a world

headed north taking land from indigenous inhabitants and founding their own republics. With the discovery of diamonds and gold, immigration intensified and indigenous inhabitants were expelled from the country now known as South Africa. After the Second South African War (1899-1902), the British and the Afrikaners ruled together starting in 1910 under the Union of South Africa which then became a republic in 1961. In 1948, the Afrikaners- dominated National Party was voted into power which favored

dedicated to reveal main economic development features, characterized Southern Africa during the 20th century. This region of Africa, consisting of 5 countries (Botswana, Lesotho, Namibia, South Africa, and Swaziland) (United Nations, 1998) experienced diverse economic history during the 20th century. It is linked to the fact that at this time countries were ruled by different European colonizers. While most of Southern Africa was in the hands of the British Empire, some regions were in hands of other

Benoni Executive Summary The Benoni Mine Incident is a situation that encompasses an episodic case of illegal mining that took place in South Africa. A rescue operation was set in motion in February of 2014 at an abandoned mine shaft near Johannesburg in attempt to rescue a number of illegal mine workers. It was first thought they were trapped due to a rockslide, but was later revealed that a rival crew of illegal miners had trapped them in there. In the beginning reports first suggested that

Part 1 Mining is a process used to extract minerals that cannot be gotten through farming or agricultural techniques. It is the removal of elements found in the earth through several techniques. Some of these elements include Iron ore, copper, gold, silver, oil (crude oil), coal, tin, uranium, etc. Mining is described as the beginning of industrial and technological advancement. Mining started hundreds of years ago. The oldest known cave is the Lion Cave in Swaziland. Swaziland is one of the

Corporate Social Responsibility in South Africa and Ghana: a comparison of successes, failures and futures in a developed and an undeveloped African country Few industries affect the social, economic and environmental sectors to the extent that the mining industry does. As minerals development expanded, so the international awareness of its impacts grew. Mining-related legislation, both internationally and nationally, has evolved significantly in the past two decades, actively aimed at ensuring

Mines bring benefits but they are not equally spread South Africa is world leading in mining. The discovery of minerals in this country has attractive many investors and has been the backbone of the countrys economy leading to many benefits that the people of South Africa could take advantage of. However, not all the benefits are shared equally, and there is a lot of exploitation surrounding the mining sector. This essay will be discussing the issues surrounding the labour exploitation in the

Mineral revolution in South Africa refers to a period where rapid changes in the economy and industry took place in. As an outgrowth of the discovery of minerals especially diamonds and gold in the late 19th and early 20th century. South Africa went through this revolution with the help of American engineers which played a role in developing new technologies associated with South Africas mineral revolution


Diamond Mines in South Africa TEAM D Eugene Patton, James Pruitt, John Morawa, Kenneth Miller, Nicholas Nauroth, and Shemika McWilliams DeVry University Online April 13, 2011 Diamond Mines in South Africa South Africas Culture, Government, Economy, and religion of South Africa (Shemika McWilliams) Diamond mining in South Africa is the main force behind the countrys economy but this has not always been the case. South Africas large diamond mining industry started with the discovery of

gold mining contributes to socio-economic development

gold mining contributes to socio-economic development

The gold mining industry has often been criticised for not making a significant socioeconomic contribution to countries in which it operates. Similarly governments have increased their fiscal and regulatory burden on the industry in the false belief that the sector focusses mostly on distributing profits and dividends to its shareholders.

In late 2013 the World Gold Council (WGC), which represents over 20 of the worlds largest gold mining companies, including Gold Fields, released two landmark research reports highlighting both the direct economic impact of the gold sector as well as its wider socio-economic contributions.

The research and reports were released under the auspices of the WGCs Gold for Development Steering Committee, chaired by Gold Fields CEO Nick Holland and headed by Terry Heymann, the WGCs Managing Director, Gold for Development.

The WGC earlier this year asked PwC (formerly PriceWaterhouseCoopers) to conduct research into the direct economic impact that gold has on the world economy. The research, which was released in October, revealed striking insights into the direct economic contribution of gold in the worlds major gold producing and consuming countries. It covered the entire value chain of the gold industry, from mining and refining to end-user consumption.

The research reveals that supply and demand for gold makes a consistently positive contribution to global economic growth. Overall, in 2012, at least US$210 billion of value was created by the gold industry and added to global Gross Domestic Product (GDP). Consumer demand for physical gold products jewellery and small bars and coins is estimated to have directly contributed around US$110 billion in 2012 to the world economy, of which over US$70 billion related to the jewellery industry.

When looking at gold investment products, PwC did not attempt to measure the economic impact of holding gold in investment portfolios. It is estimated that gold accounts for around 1% of global funds under management; while this is a small percentage it would still amount to hundreds of billions of dollars in investments.

Another key finding of the research is the significance of gold mining to the economies of developing nations. PwC estimates that gold mining made an economic contribution of over US$78 billion to the economies of the top 15 mining countries in 2012. This lists includes all the countries in which Gold Fields operates, namely Ghana, South Africa, Australia and Pery. Proportionally, however, gold mining has the most substantial impact on growth and wealth creation in developing countries; greatest in Papua New Guinea (15% of GDP), followed by Ghana (8% of GDP) and Tanzania (6% of GDP). For these nations gold is also a major source of exports and, therefore, foreign exchange earnings. In 2012, gold provided 36% of all Tanzanian exports and 26% of the exports of Ghana and Papua New Guinea.

The economic impact of the mining sector is also critical for employment in these 15 countries, which PwC estimates at 523,000 in 2012 and includes only formal sector jobs. Three countries stand out in this list: China with 98,000 employees, Russia with 134,000 and South Africa with 146,000. The job impact is even more pronounced when indirect employment and dependency ratios are taken into account. The South Africa Chamber of Mines has calculated that in the country each direct job creates a further two indirect jobs, while each worker in the sector also supports, on average, around nine dependents.

The scope of the PwC research only extended to examining direct economic impacts; it excludes consideration of indirect contributions to national economies from additional taxes, secondary employment and social and infrastructural development.

This is where the second piece of work from the WGC comes in. In November the WGC released a study entitled, Responsible gold mining and value distribution, which sought to illustrate the significant role gold mining plays in supporting sustainable socio-economic development, particularly in host nations. Fifteen WGC member companies operating in 28 countries collaborated to combine data which provides a comprehensive, country-by-country view on how value generated by the formal gold mining sector is distributed and how much of that value remains with host nations.

This data covers expenditure in 2012 and includes payments to suppliers, employees and governments. The research shows that out of a total spend of US$56 billion, US$35 billion (63%) went to suppliers and US$8 billion (15%) on wages. An additional US$8 billion (15%) was paid to governments in taxes and US$3 billion in payments to providers of capital (including dividends and interest). The study also found that more than 80% of that total spend (US$45 billion) was made in the country of operation.

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