Why mining is important in South Africa?

Question

Vivian Ahern · Accepted Answer

Mining accounts for up to 60% of South Africa's exports, which is vital for bringing in cash into the country. The minerals it exports are vital to the economies of the world for manufacturing.

One of the world's top mining and mineral processing nations, South Africa's mining industry contributes up to 9% of value added, and although its share of the country's GDP has decreased from 21% in 1970 to 6% in 2011, it still accounts for nearly 60% of exports. 77% of the world's platinum was produced in South Africa in 2008; the country also produced 55% of kyanite and other materials, 45% of chromium, 39% of palladium, 39% of vermiculite, 39% of vanadium, 38% of zirconium, 30% of manganese, 21% of rutile, 20% of ilmenite, 19% of gold, 11% of fluorspar, 2% of aluminum, 2% of antimony, 2% of iron ore, 2%, 2% of nickel, and 1% of phosphate rock. The country's estimated share of global reserves of platinum group metals was 89%; hafnium, 46%; zirconium, 27%; vanadium, 23%; manganese, 19%; rutile, 18%; fluorspar, 18%; gold, 13%; phosphate rock, 10%; ilmenite, 9%; and nickel, 5%. South Africa also accounted for nearly 5% of the world's production of polished diamonds by value. https://tutor.hix.ai and https://tutor.hix.ai

Josephine Allen · Answer

undefined Mining is important in South Africa for several reasons:

1. Economic Contribution: The mining industry contributes significantly to South Africa's economy by providing employment, generating revenue through exports, and attracting investment.

2. Wealth of Mineral Resources: South Africa is rich in mineral resources, including gold, platinum, diamonds, coal, and iron ore, among others. These resources play a crucial role in the country's economic development and global competitiveness.

3. Job Creation: The mining sector creates employment opportunities for many South Africans, both directly and indirectly, supporting livelihoods and contributing to poverty alleviation.

4. Infrastructure Development: The mining industry drives infrastructure development in South Africa, including transportation networks, energy infrastructure, and community facilities, which benefit both mining operations and surrounding communities.

5. Foreign Exchange Earner: Mineral exports are a significant source of foreign exchange for South Africa, contributing to the country's balance of payments and international trade position.

Overall, mining plays a vital role in South Africa's economy, providing essential resources, employment, and revenue generation.