By: Leigh McMaster

( Virtual Showroom) Mining has played a crucial role in South Africa's economic development and history, shaping both the nation’s economy and its social landscape. Mining in South Africa dates back to the early inhabitants who extracted minerals for tools and ornaments. However, modern mining began in the 19th century with the discovery of diamonds in Kimberley (1867) and gold on the Witwatersrand (1886). The gold rush led to rapid urbanisation and the establishment of Johannesburg, transforming it into a major economic hub. The influx of workers also spurred the development of infrastructure and services.

Mining has consistently been a significant contributor to South Africa’s GDP, particularly in the late 20th century. It remains a vital sector, providing jobs and fostering regional development. The country is rich in mineral resources, including gold, platinum, diamonds, and coal. The export of these minerals brings in substantial foreign exchange. The mining sector contributes roughly 8-10% of South Africa's GDP, although this figure fluctuates depending on commodity prices and production levels. Government also earns significant revenue through mining royalties and taxes, which are critical for national development. The Mining sector directly employs around 450,000 people, with indirect employment adding hundreds of thousands more.

In South Africa’s mining sector, Environmental, Social, and Governance (ESG) considerations have become increasingly important, driven by both local regulatory requirements and global investor expectations. The South African mining industry, which has historically been associated with significant social, environmental, and governance challenges, is now embracing ESG principles to ensure sustainable growth and improved stakeholder relations. The mining sector has responded positively over the last two decades in improving the environmental impact of mining through improved controls on Greenhouse gas emissions, rehabilitation, and water management. The focus on the social aspect of ESG is crucial given the industry's historical context, including labour disputes, inequality, and community impacts. Mining companies have engaged closely with host communities and other social partners in the recent past in developing projects of shared value for involved stakeholders. Safety & Health performance is a fundamental metric in relation to social performance. The industry has made significant strides in improving Safety and Health over the last 3 decades. Occupational diseases have reduced significantly on the back of improved occupational hygiene controls and monitoring thereof. The mining industry has recorded 33 fatalities in the year to date compared to 34 this time last year.  The number of occupational reportable injuries is 12% lower, with 1,537 of our colleagues hurt while at work so far this year. The industry has however realised significant reductions in mining incidents and particularly fatalities over the last three decades through initiatives such as the Khumbul’ekhaya CEO-led strategy which has had a significant impact over the last 5 years. Through the industry’s Fall of Ground Action Plan (FOGAP), there was a record low six fatalities in 2022, a 97% reduction from the 239 FOG-related deaths reported in 1994. Transport and machinery-related fatalities have similarly decreased, falling by 91% to eight from 87 three decades ago. This is another example that through our unwavering focus on these historical agencies that led to fatalities, we are making a positive difference in creating a safer working environment.

As we look forward to MineSafe 2024 we are encouraged by the current trajectory of the industry on Health & Safety. We look forward to a wonderful conference this year.