Pendix: Sprott's Thoughts Analysis
pendix: Sprott’s Thoughts
D) Data Analysis
1) The Background of Gold mining in South Africa
Gold mining in South Africa has contributed to South Africa’s economic success because gold is one of its richest natural resources. The mining sector drove the development of Johannesburg, “The City of Gold,” and for the past 120 years South Africa has been a dominant force in the global gold mining industry. 7
Throughout the 1970’s and 1980’s gold was South Africa’s largest export.
Output from the Witwatersrand 53 operating mines peaked in 1970 and by 1975 South Africa had produced 40% of the gold ever mined. 2 As can be seen from the pie charts 3 and 4 on page 9, South Africa’s gold production dropped significantly from 67,7% in 1970 to just …show more content…
Legislation and policies that have been introduced have caused the mines to decrease production regardless of the metal prices. In 2002 the talk of nationalisation, and the fact that mining licenses could be taken away is a big problem for the industry, which provides many jobs. Investors aren’t keen to invest in mining ventures as The Mining Charter was amended to ensure that black South Africans hold at least 26% of the sector. Eskom is another problem that the industry faces, as it is 21% of the cost and takes away 15% of the companies profits. South Africa’s mining industry provides many jobs and if the companies close or become smaller, this is very negative for the economy and increases the unemployment rate. The mining sector used to account for 25% of the GDP, but now only accounts for 8%. (Mail and Guardian article in …show more content…
This information is significant to the research question as environmental damage and costs of rehabilitation will need to be taken into account by mines in order to assess if the mine is economically viable.
Suggested measures for minimising the damage, from source 9, include “cleaning up polluted areas, free health screenings, ensuring water treatment plants are adequate to prevent decanting, monitoring degrees of contamination and improving control of run-off and seepage from tailings dams.”
All the above data supports the hypothesis that South Africa’s remaining Gold mines are not capable of contributing enough to South Africa’s economy, as the costs of rehabilitation are very high for the mines and tight profit margins are making it difficult for companies to fund remediation.8
3) Role of the changing Gold price (Economic
D) Data Analysis
1) The Background of Gold mining in South Africa
Gold mining in South Africa has contributed to South Africa’s economic success because gold is one of its richest natural resources. The mining sector drove the development of Johannesburg, “The City of Gold,” and for the past 120 years South Africa has been a dominant force in the global gold mining industry. 7
Throughout the 1970’s and 1980’s gold was South Africa’s largest export.
Output from the Witwatersrand 53 operating mines peaked in 1970 and by 1975 South Africa had produced 40% of the gold ever mined. 2 As can be seen from the pie charts 3 and 4 on page 9, South Africa’s gold production dropped significantly from 67,7% in 1970 to just …show more content…
Legislation and policies that have been introduced have caused the mines to decrease production regardless of the metal prices. In 2002 the talk of nationalisation, and the fact that mining licenses could be taken away is a big problem for the industry, which provides many jobs. Investors aren’t keen to invest in mining ventures as The Mining Charter was amended to ensure that black South Africans hold at least 26% of the sector. Eskom is another problem that the industry faces, as it is 21% of the cost and takes away 15% of the companies profits. South Africa’s mining industry provides many jobs and if the companies close or become smaller, this is very negative for the economy and increases the unemployment rate. The mining sector used to account for 25% of the GDP, but now only accounts for 8%. (Mail and Guardian article in …show more content…
This information is significant to the research question as environmental damage and costs of rehabilitation will need to be taken into account by mines in order to assess if the mine is economically viable.
Suggested measures for minimising the damage, from source 9, include “cleaning up polluted areas, free health screenings, ensuring water treatment plants are adequate to prevent decanting, monitoring degrees of contamination and improving control of run-off and seepage from tailings dams.”
All the above data supports the hypothesis that South Africa’s remaining Gold mines are not capable of contributing enough to South Africa’s economy, as the costs of rehabilitation are very high for the mines and tight profit margins are making it difficult for companies to fund remediation.8
3) Role of the changing Gold price (Economic