Question

In: Economics

Write an executive summary with 200-250 words about the Benoni Mining Incident for the passage below:...

Write an executive summary with 200-250 words about the Benoni Mining Incident for the passage below:

Mining and South Africa’s Economic History

Mining is an industry that is closely linked to South Africa’s history and economic development. In fact, South Africa’s very first commercial mining company was established as early as 1846 to exploit the newly discovered copper reserves in an area near Cape Town. Not long thereafter, the discovery of diamonds and gold in the late 1800s (near Johannesburg) created a “gold rush” that resulted in an influx of foreigners who arrived in South Africa in search of new found riches. South Africa would forever be transformed. New immigrants arrived from all over Africa, Europe, Australia and New Zealand in search of gold. Temporary housing (tents) for the new arrivals became permanent housing and towns sprouted up where none had existed just a short time before. The discovery of diamonds and gold and the annexation of lands that contained these rich deposits by the British led to the Boer Wars of the late 1800s.

The mining industry continued to thrive throughout the 1900s, fueling the country’s economic growth. Revenue from gold exports was a source of capital used to purchase machinery and oil, needed to support the country’s expanding manufacturing base. During much of the 20th Century, mining techniques improved. Advances were made in poisonous gas detection methods, more efficient mining methods – including even some chemical extraction methods of minerals from low-grade ore, and better ventilation systems. Gold mining peaked in 1970 when South Africa accounted for 68% of global production 2). Since then, South Africa’s share of global gold production has declined precipitously. In 2012 South Africa accounted for only 6% of global gold production. It was the country’s worst year in gold production since 1905, according to Gold Investing News. South Africa currently ranks as the 5th largest gold producer in the world, and has been overtaken by China, Australia, the United States, and Russia (ranked 1-4, respectively in global gold production) 3). As a result of the increased global competition, South Africa has had to close older, marginal and less profitable mines. When several gold mines closed in the 1990s, thousands of mine workers lost their jobs. Some of the mines still in operation are deeper and more challenging to access, and likely less profitable. The economic factors pose a serious threat to the workers, but there is another threat that has resulted from South Africa’s declining world position in gold production: a significant increase in the number of abandoned mine shafts. South Africa’s Council for Geoscience estimates that there are some 4,400 abandoned mines in the country, almost four times the number of operational mines!

Despite the decline in gold, mining continues to be a vital sector of South Africa’s economy. Today, South Africa is the world’s largest producer of chrome, manganese, platinum, vanadium and other minerals, and the world’s second largest producer of ilmenite, palladium, rutile and zirconium 4). In addition, it contains significant reserves of iron ore, chromium, copper, uranium, silver, beryllium, and titanium 5). In 2013, the nation’s GDP totaled $350.6 billion, and mining accounted for $17.5 billion, or 5% of GDP 6). Other estimates that consider the direct and indirect impacts of the mining sector on the nation’s GDP state that mining gives rise to a “real” contribution to South Africa’s GDP of between 15-20% 7). An estimated 500,000 workers are directly employed in the South African mining sector, while other estimates that take into account the positive economic ripple effects created from direct and indirect employment in the sector attribute 1,365,000+ employments to mining. Given the scale and scope of South Africa’s mineral resources, mining will likely continue to be an integral part of the nation’s economic, social and political landscape.

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Benoni Mining Incident :-

This incident is the illegal Mining case had took place in south africa in the February month of year 2014 near Johansburg from Benoni .A rescue attempt to save the lives of those who were trapped in was taken in february 2014 months . It was observed atleast 30 illegal minors were trapped there and that too due to rockslide but later it was revealed rival crew of illegal minor had trapped them .

In initial several were saved and later arrested . The news came to those illegal minor who were trapped in mine and they refused to leave the mine as feared of being arrested The crimes illegal mining, trespassing, theft, illegal entry into the country, and were some for which later all 30 were saved and arrested .South indian Government had reported 14000 individuals atleast involve in crime like Illegal mining estimating industry to be 570 Million $ Yearly . This industry is very important playing role in economic development of the south africa .

The first gold mine company in 1846 came The industry helped the country flourish in the 1900’s. Revenue was helped to purchase oil and machines to run manufacturing factories. Gold mining peaked in 1970 when South Africa accounted for 68% of global production, but in 2012 it only counted for 6%, they currently rank as the 5th largest producer in the world. Although the decline, mining remains an important part of their economy, they are the largest producer of chrome, platinum and other minerals. In 2013, the nation’s GDP totaled $350.6 billion, and mining accounted for $17.5 billion, or 5% of GDP.

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