Overview of Mining Activities
South Africa has experienced growth in secondary industries in recent years, which has led to the decline of mining’s relative contribution to the nation’s gross domestic product. Even so, the mining industry continues to be an important contributor to South Africa’s economy, creating jobs, making up about 18 percent of the gross domestic product and earning more than 50 percent of foreign exchange.
Gold Mines in South Africa
Gold was discovered in South Africa in the late 1800s, and this discovery led to the development of Johannesburg and several other cities. South Africa’s Witwatersrand Basin is the biggest gold resource in the world. This basin covers three provinces in South Africa, although gold is found only on the north and west margins.
Gold mining began to suffer after the turn of the 21st century. Mines were forced to dig deeper, and gold prices dropped. That being said, gold mining continues to make up an important part of the employment sector.
Coal Mining in South Africa
Coal mining also began in South Africa in the late 1800s, in many of the same areas where gold was discovered. Coal mines are located in northeastern South Africa. The nation produces coal with medium ash content. To prepare some of the coal for export, it’s washed to make it a higher grade. Some of the coal is left at a lower grade for power station boilers owned by the South African public electric utility.
Initially, coal mining was a private industry. This changed around 1970, when foreign oil companies looking for coal became involved with the market, creating new coal mines. Currently, coal mining comes in as the third-largest mining industry for South Africa, following gold and platinum.
The Diamond Mining Industry in South Africa
The diamond mining industry in South Africa has existed since the 1860s. The first diamond was found near Hopetown, weighing 21.25 carats. Alluvial deposits were where the first diamonds were discovered, and later a large number of diamonds were discovered at the Cullinan mine.
Diamond mining in South Africa is considered to have a solid future, and the nation is engaged in the expansion of its three biggest mines, which are expected to remain active for 25 to 50 more years.
