The role of mining in South Africa - Presidential Address

The contribution made to the economy of South Africa by the-minerals industry is discussed according to four of its aspects. Firstly, the industry supports both students and lecturers in technical and academic institutions. This support covers virtually the whole range of courses available at the universities and technikons, although most is obviously devoted to the engineering and science faculties. Secondly, the industry makes a direct financial contribution to the State in that it contributes about40 per cent of the State's receipts from direct tax paid on incomes and 30 per cent of the contributions to the total State revenue. It provides employment for 28 per cent of the total active labour force, and contributes 24 per cent directly to the gross domestic product. Thirdly, the industry is responsible for over 65 per cent of the country's foreign earnings in spite of the significant rise in exports from the manufacturing sector. South African minerals are of crucial importance to the word, since the country has the world's largest reserves of seven minerals and features very prominently in many others. Finally, the industry makes an indirect contribution, referred to as the multiplier effect. This is the ripple effect on the economy made by a large injection of momey by which that money acquires an added effective value. A study made of the total production of the mining industry in 1978, for instance, showed this multiplier to havea value of 1,5. Thus, if this effect is included, the industry's contribution to the gross domestic product is 44,S per cent. Similarly, the industry is responsible for the creation of jobs both within itself and in other industries, which could amount to 100000 for the period 1981 to 1935.