South Africa’s mining sector is a substantial contributor to government and society in the form of its tax contribution, it earns more than any other local industry in foreign exchange, and 80% of its expenditure goes into the local economy.
In 2012, mining paid R21.4-billion or 14.1% of total corporate taxes, which is double its share of direct gross domestic product or GDP.
In the same year, the Chamber of Mines calculates mining exported R269-billion worth of product or nearly 40% of total exports.
If the exports of ferroalloys, steel, chemicals, plastics, polymers, lubricants, fertilisers, catalytic converters and intermediate mineral products are added, then the total contribution of mineral-related exports rises to well over 50% of total merchandise exports.
And of the R488-billion mining spent in toto last year, only 20% left the country.
It paid R5.6-billion to government in the form of royalties, R1.1-billion in the form of special electricity levies and R900-million in national skills development levies.
It collected R9.5-billion for government in the form of personal income tax from employees, who received R93.6-billion in salaries and wages.
Without mining, South Africa’s ability to import would be halved and so would the country’s ability to keep abreast of global technology or to buy crude oil to keep the country in motion.
Last year, minerals worth R94-billion went downstream into fabrication and energy industries, and for more than a century South Africa has relied on mining to make it the most industrialised country on the continent.