The mining industry has historically been a key driver of the South African economy. Economic activity in modern-day Soth Africa has been centered on mining activities, their ancillary services and supplies. The country's stock exchange in Johannesburg was established in 1887, a decade after the first diamonds were discovered on the banks of the Orange River, and almost simultaneously with the gold rush on the world-famous Witwatersrand. Today, the South African mining sector employs approximately 490,000 workers (5% of the South African workforce) and contributes to roughly 8% of the country's GDP.
Unsurprisingly, the country's mineral wealth is a valuable source of foreign direct investment. In spite of prevailing regulatory uncertainty the mining industry remains a key focus point of the government and the private sector, and continued efforts are being made to engage foreign investors to stimulate further growth.
Topics covered in this publication:
- Overview of mining industry in South Africa
- Legal and regulatory structure
- Mining rights and title
- Duties, royalties and taxes
- Business structures
- Health and safety, and labour issues
- Social and community issues
- Anti-bribery and corruption issues
- Foreign investment
- International treaties
Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through – Mining 2018 (Published: July 2018). For further information please visit www.gettingthedealthrough.com.
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2021