The nation hosting the African continent’s largest economy is embarking on efforts to spur its mining industry with the assistance of technological aids, according to a published report.
Experts said that South Africa has seen funding slip while mining has been neglected on the government’s research agenda, according to The Mail & Guardian. Increased amounts of research for mining technologies and geology services are necessary to make the practice more safe, more clean and more economical.
Mining and quarrying in 2011 advanced the nation’s gross domestic product by well more than 260 billion rand, according to Statistics South Africa. Thousands of people find employment in the sector in the nation, many of whom are geology consultants.
The country always had been a global leader for mining technology. South Africa was forced to advance its own technology to move forward with methods to gain access to mineral resources over the course of its history. The country also was forced to surpass particular challenges that were specific to locations, which included how tough some rock is that embeds gold. Another example is the depth of some deposits.
Patent-producing nation
Numerous patents have been developed by South Africa regarding technology and geology tools that pertain to mining. Competitive economies include patents, which typically mark those more noted economic systems.
Economics professor David Kaplan with the University of Cape Town published an article in 2012 that noted the nation’s stature in the industry.
“South Africa has a very significant global comparative advantage in mining-related technology and innovation,” the professor wrote in the column.
However, another professor said that the nation has backed off that standing.
“We need to get back there,” professor Jean-Paul Franzidis with the school told the news source. He is the mineral benefication chair and the Minerals to Metals initiative director at the university.
Franzidis said the work he fulfills includes fomenting conversations among key people in the industry.
Contributions of mining to exports
The Independent Online reports the mining sector of South Africa effects notable contributions to exports. The sector also does its part to help upgrade the strength of the nation’s monetary unit as well as keeping borrowing costs in check.
As the rand grows weaker, the inflation rate tends to increase. In turn, that makes it more difficult for the central bank of the African nation to apply salve to the economy by slashing borrowing costs.
The news source notes that as much as 60 percent of all revenue from shipments from the nation consists of minerals and metals. For that reason, the foreign exchange value of the rand as it pertains to the prices and production of minerals and metals is sensitive.
But in 1960, the ration of the mining share to the economy was less than 12 percent. Ten years later the gross value added of mining was 8.8 percent.
The increase of prices of metals and minerals prompted mining to gain a larger share of the economy, rising to notch a 9 percent share last year. Sharper production of and increased prices of coal and iron ore were sizable contributors to the larger shares.
Key site to be temporarily closed
Mining.com reports Coal of Africa said earlier this week that it plans to shutter one of its interests in South Africa. The Mooiplaats Colliery will be treated and maintained.
The closure is attributable to the need to reverse operational losses, the news source reports.
The company noted that is has been unable to increase generation in order to comply with suitable targets because of challenging geological circumstances as well as less than optimal performance. Industry workers are hoping thermal coal prices reverse course from the past year of downward dives.
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