During May 2004, the Minerals Act of 1991 was repealed and replaced by the Mineral and Petroleum Resources Development Act of 2002, MPRDA no: 28 of 2002.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 2005, the mining and quarrying sector contributed R94,3 billion (US$14,8 billion) or 7,0 percent to Gross Value Added, an increase of R6,83 billion or 7,8 percent over the previous year's Gross Value Added, and 6,1 percent or R15,9 billion to Total Fixed Capital Formation, some 11,0 percent below the contribution to Total Fixed Capital Formation in 2004.

Although total primary mineral sales earnings climbed an impressive 14,1 percent year-on-year, their contribution to total South African export revenue increased only marginally to 29,3 percent from 28,7 percent in 2004. The contribution of gold to total annual primary mineral export sales value decreased to 18,6 percent in 2005, from 23,7 percent in 2004. Gold was South Africa's top mineral earner in 2003, but slipped into second place behind platinum-group metals in 2004. Platinum-group metals consolidated their position as the main contributor to South African primary mineral sales revenue in 2005, accounting for 26,9 percent of total mineral sales, followed by coal with 24,9 percent, with gold in third place.

During 2005, the mining industry employed 2,6 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 decreased by 5 609, or 1,3 percent, from 448 909 in 2004.

Source: SAMI