433369666-The-Case-for-Investing-in-South-Africa

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GROWTH AND EXPORT PERFORMANCE
OF THE MINING SUB-SECTORS
Major mining export categories
ZAR
million
% of total SA
merchandise
exports
Gold mining: Gold, unwrought, semimanufactured,
71 681 5.8%
etc.
Iron ore mining: Iron ores and
56 354 4.5%
concentrates, roasted iron pyrites
PGM mining:
Platinum, unwrought, semi-manufactured 103 933 8.3%
Metals, clad with platinum, semimanufactured
1 0.0%
Total PGM mining 103 934 8.3%
Coal mining:
Coal, briquettes, ovoids etc, made from 82 047 6.6%
coal
Peat (including peat litter) 5 0.0%
Lignite, except jet 0 0.0%
Total coal mining 82 051 6.5%
Total major mining segments
(excl. other mining)
314 020 25.2%
Other mining export categories
ZAR
million
% of total SA
merchandise
exports
Manganese ores, iron ores >20%
46 490 3.7%
Manganese
Diamonds, not mounted or set 28 434 2.3%
Chromium ores and concentrates 24 780 2.0%
Titanium ores and concentrates 7 812 0.6%
Niobium tantalum vanadium zirconium 6 453 0.5%
ores, etc
Precious metal ores and concentrates 4 236 0.3%
Copper ores and concentrates 2 765 0.2%
Others 7 918 0.6%
Total other mining 128 889 10.3%
Overall mining exports 442 909 35.5%
COMPARATIVE ADVANTAGES OF SOUTH AFRICA’S
MINING SECTOR
Basis for comparative advantage
Significant and diverse mineral reserves portfolio
supports the sector’s long-term growth outlook.
Very high level of technical and production expertise.
Strong backward and forward linkages with other
sectors of the economy.
Competitive cost-curve position in several key
commodities.
Global leader in deep-level mining mineral recovery
and technology.
Stable environment supports the sector’s investment
outlook.
Select investment trends
• Capital investment in South Africa’s mining sector is
concentrated in brownfield project development.
• Several private equity and hedge funds have been
attracted to the country’s mining assets since the
commodity price slump of 2016.
• New investment projects are heavily weighted
towards PGMs mining.
• Declining mineral reserves and rates of production
from the central coal basin have led to increased
large-scale capital investments for new coal mine
development in South Africa’s Waterberg region.
• South Africa has been a key target for Indian FDI in
the development and operation of coal assets.
New Mining Charter gazetted in September 2018.
Current Mineral and Petroleum Resources Development
Act remains applicable, with the amendment Bill having
been withdrawn so as to provide greater certainty
for the mining sector.