During May 2004, the Minerals Act of 1991 was repealed and replaced by the Mineral and Petroleum Resources Development Act of 2002, MPRDA no: 28 of 2002. The Act enshrines a process of minerals and mining policy reformulation that took about 10 years to complete and involved extensive consultation with a broad spectrum of role-players in South Africa's mineral industry.

The role of the government

The State's involvement in the mineral industry is of a complementary and supportive nature, and it seeks to provide and maintain:

• a legal and fiscal environment that will allow rational exploration, mining, beneficiation and marketing of the country's minerals;
• an efficient physical infrastructure including road, rail, and airlinks, as well as harbour facilities, communications and health services, and power and water suppliers.

The MPRDA under which the Broad-Based Socio-Economic Empowerment Charter for the South African mining industry was developed, was promulgated in May 2004. This Act replaces the Minerals Act, 50 of 1991 and regulates the prospecting for and optimal exploitation, processing and utilisation of minerals, provides for safety and health in the mining industry and controls the rehabilitation of land disturbed by exploration and mining.

The state of mining in South Africa

In 2007, mining contributed R135,6 billion ($19,2 billion) or 7,7 percent to the Gross Domestic Product, an increase of R16,2 billion over the previous year. Mining and quarrying contributed 8,9 percent to Total Fixed Capital Formation

South Africa’s total primary mineral sales revenue increased by 15,2 percent to R223,9 billion in 2007. When the total sales and export sales are expressed in US dollars, the annual increases were 10,5 percent  (from $28,7 billion to $ 31,7 billion), and 10,6 percent (from $20,7 billion to $22,9 billion) respectively. The major foreign revenue earners in 2007 were platinum-group metals (40,8 percent), followed by gold  (22,2 percent) and coal (15,1 percent).

Domestic mineral sales value increased by 11,7 percent to R62,1 billion in 2007 but when expressed in dollar terms, the increase was much higher at 25,6 percent to $10,3 billion.  The major local income earner for the year was metallic commodities at 43,3 percent, followed by coal at 31,7 percent and miscellaneous mineral commodities with 12,7 percent, while industrial commodities accounted for 12,6 percent of local sales value.

The mining industry, excluding exploration, research and development structures and head offices staff, employed 2,9 percent of South Africa’s economically active population, or 5,1 percent of all workers in the non-agricultural formal sectors of the economy.  The average number of workers employed in the mining industry increased by 8,6 percent to 495 474 in 2007, as a result of expansion projects. Wage income amounted to R50,09 billion in 2007, or 22,4 percent of total mining revenue, an increase in nominal terms of 28,5 percent compared with that of 2006.

Source: SAMI