SOUTH AFRICA

South Africa (population 45 million; land area 1.22 million km2) ranks among the world’s wealthiest countries, with a GDP of some US$600 billion.

The country also accounts for a significant proportion of the world’s metals production and reserves, being the biggest producer of platinum, the second largest gold producer (falling behind China for 2007) and one of the leading producers of base metals and coal.

The country’s diamond industry is the third largest in the world (by value). The government is seeking to share this mineral wealth by legislating for 26% of the mining industry to be under black ownership by 2014. As part of this process, all mining companies were obliged to reapply for (‘new order’) mining rights (the three-year deadline was extended from the original date of May 2007). Royalties and export taxes were recently increased with the intention of encouraging further processing of minerals to add value to local output.

During 2007, safety standards also become an issue between the government, unions and mining companies. Despite these developments, the underlying picture remains relatively unaltered.

Gold production remains in decline as many mines approach the ends of their long lives; platinum production continues to expand on the back of rising global industrial demand for the metal; coal and iron ore exports remain affected by rail and port constraints; and production of other metals (including chrome, uranium and manganese) are responding to growing export demand.