Our Research posts are about the latest academic research being done in the School of Economics. This week:
THE DECLINING PRODUCTION BY GOLDMINES IN SOUTH-AFRICA
by Prof. Ewert Kleynhans (NWU)
This study investigates the decline in the production of gold by South African goldmines, especially in the Dr. Kenneth Kaunda District Municipality (DKKDM). The research began when academics started to be concerned about the mines that are closing down in the region and many of their friends losing their jobs. It was realised that this could lead to poverty, hardship and all the economic development challenges that it may bring along.
The Dr. Kenneth Kaunda District Municipality (DKKDM) includes the local municipalities of Klerksdorp, Potchefstroom, Ventersdorp, Merafong City and Wolmaransstad. The economies of these municipalities are mainly dependent on gold mining. The reserves of the South African goldmines are declining as their gold deposits are becoming depleted. A large section of the population of the mining industry could be unemployed in the near future.
Gold reserves in South Africa are declining fast, while platinum is gradually taking its place as the leading export product on world markets. South Africa’s main export products in 2009 were respectively monetary gold (R53.4 mil.), low grade coal (R33.98 mil.) and semi-manufactured platinum, which together with unrefined platinum attracted foreign reserves worth R45.3 mil. Other products containing gold and scrap metal gold are now in the 45th place on the list of export products (Trade Map, 2010). More…