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Raise boring also makes round tunnels, which are more stable than those created by the blasting of stone. This reduces the risk of rockfalls. It also enables mines to cut costs, as horizontal boring to reach ore bodies enables them to be reached in a third of the time it takes using drills and explosives. According to the Chamber, raise boring is being tested on a number of gold mines in order to "remove people from the mining rock face".
Techniques are being used in coal mines so that workers do not have to enter so far into tunnels; this will reduce the risk to miners from rockfalls. Speaking at a "mining indaba" in Cape Town at the beginning of February , Mr Cutifani of Anglo American said that his company was building a "modern mine" in which "continuous rock-cutting machines safely extract the targeted ore — deep underground — without the need for explosive blasting".
Master Drilling announced at the same indaba that it would soon complete a pilot project at the Cullinan mine, east of Pretoria, which produced the Cullinan Diamond and other famous gems. Master Drilling said that raise boring would not only eliminate the need for drill- and-blast mining, but also increase mining productivity thanks to its continuous process. There would be significant safety benefits as well.
Tony O'Neill, Anglo American's group technical director, told a conference in New York in May that the amount of water and energy used in mining was unsustainable. Innovation was necessary to target only the metal or mineral, with radically less waste, water, and energy, along with a smaller footprint.
He told a conference in London in November that the company was planning to use computerised drills with "chiselling ability as good as a human" to increase productivity, cut costs, and reduce environmental impact. In response to increasing demands by environmental lobbies and surrounding communities, some of them backed by public interest law firms willing to go to court, the coal-mining industry will need to apply science and technology to an ever-escalating list of challenges, including mitigating environmental damage and reducing water consumption.
Another great challenge is of course that of safety. Since there are usually spin-offs from scientific advances in one field to other fields, South African mining companies will thus continue to make a major contribution to continued development of the country's intellectual capital. Although South Africa is slipping down numerous international tables ranking our performance in various fields with that of other countries, the continuing development of mining technology is helping to keep us in the top rank in that field.
TFR employs more than 31 people across the country. Apart from containers, motor vehicles, bulk agricultural commodities, and timber, TFR's trains convey the products of the country's mines either internally from mine to manufacturer or for export, not only abroad but also to neighbouring countries. In addition to coal, these include petroleum products; iron ore and manganese; steel, lime, and cement; non-ferrous metals, chrome and ferrochrome, rock phosphate, granite, magnetite, and hematite.
Eskom and companies supplying coal to its 16 coal-fired power stations are major customers, but so are companies exporting coal through Richards Bay, Maputo, and Durban. Lobbyists seeking to stop coal mining in South Africa seem to overlook the likelihood that, if they were to succeed, half of TFR's employees would be among the many people who would lose their jobs. Towns such as Ermelo in Mpumalanga play a key role in the coal export business. According to Transnet Freight Rail, Ermelo is its biggest marshalling yard, for it is there that trains from nearly 50 coal sidings at mines in the surrounding area are combined into wagon trains for dispatch along the kilometre railway line to the Richards Bay Coal Terminal for the export market.
Transport and logistics account for a third of the R1. A large part of this. Via Sasol, it is also the basis of a third of our liquid fuels, mainly petrol and diesel. Apart from those feeding Sasol, coal mines employ nearly 90 people. Given that Eskom owns 15 coal-fired power stations, including two big new plants, Medupi and Kusile, due to come into full operation in the next few years, South Africa for the foreseeable future is locked into coal, of which it has enormous reserves. However, supply from the large collieries is drying up, so that substantial new investment in coal mining is needed for future supplies.
A few years ago Eskom said that it needed ten new coal mines at a cost of R billion.
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But although several large local companies, among them Exxaro, have been making big investments in coal for both Eskom and the export market, this investment is not happening on the scale required. One reason is that the government has proposed though not yet imposed price controls on coal supplied to Eskom. A second is the preference of both the government and Eskom for much more nuclear energy. A fourth is the requirements of the third version of the Mining Charter. Although the export terminal at Richards Bay has enlarged its capacity, increases in coal exports depend critically on expanded rail capacity to accommodate more than the current two dozen trains running loads on behalf of three dozen customers every day.
Most coal is exported from the mines in Mpumalanga. Export from the huge new coalfield in the Waterberg, which is farther to the north west in Limpopo, will depend on major extensions of the railway and other investment in that area. While the urban and industrial infrastructure for coal mining in Mpumalanga is largely in place, this is not so for the Waterberg, so that expansion of coal mining there would necessitate substantial industrial and other development, boosting living standards and generating jobs in that area. Apart from generating demand for innumerable other goods and services, mining produces numerous by-products.
One of course is uranium, a by-product of gold production. Among others are a whole range of plastics, including numerous plastics produced by Sasol as by-products of the manufacture of oil from coal.
Prominent among these is polypropylene,. Sasol, which exports polypropylene to markets that include China, South America, Europe, the US, and the rest of Africa, commissioned a R1 billion polypropylene expansion project at Secunda in November The fortunes of mining also help determine levels of investment in the electricity sector. At the same time, of course, the capacity of the transport sector and the availability of electricity have an impact on investment decisions by the mining sector. Although this paper is focused on the current impact of the mining industry, no discussion of South African mining can avoid reference to the past.
The industry was built on a migratory labour system, which, as we shall see below, endures to this day. Although both white and black miners were unionised from early on, only the former were included in wage and other negotiations until black unions were recognised in the s. Down the years white unions strongly resisted attempts by mining companies to employ blacks in all but the most menial jobs. This was not only a denial of opportunity, but also helped to keep black wages down and perpetuate enormous inequalities in earnings as between black and white.
The colour bar in mining employment was not only a question of practice, but was also imposed by legislation. John Lang of the Chamber wrote in Bullion Johannesburg , his monumental study of that institution, that "the colour bar was a cruel deprivation of the right to develop industrial skills and to earn a commensurate wage.
These historical factors — often referred to as "legacy issues"— help to explain the hostility to the mining industry that is apparent in the ruling party and in other organisations. As is the case with manufacturing, the number of people employed in the mining industry has dropped steadily.
According to the Chamber, the industry employed more than. By , this figure had dropped to The Chamber says, however, that "for every direct mining job, a further two indirect jobs are created in downstream and support industries". In addition, says the Chamber, one worker's income feeds ten other people, some of them staying with the miner, others surviving on his or her remittances.
In effect, said the Chamber, the industry accounted for altogether 1.
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Asked for more precise figures, the Chamber said in year the number of indirect jobs accounted for by mining was , of which three quarters were in the tertiary sector, and the remainder in the secondary sector, with a handful in agriculture. On these figures, mining would account for employment of 1. Many communities, the Chamber argues, owe their existence to mining.
As we have seen, four of the nine provinces are directly dependent on mining for the largest single slice of their economic output. Although mining accounts for only 0.
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This is because migrant workers resident in that province have always contributed a large proportion of the mining industry's workforce. It may be assumed that many of these households are in the Eastern Cape and other former homelands. Neighbouring countries, in particular Lesotho, rely heavily on income earned by migrant workers on South African mines. Despite the antipathy towards mining frequently voiced in the ruling party, ANC officials sometimes seem to regret job losses, especially, it appears, when these might arise from.
Following an announcement in by Anglo Platinum that it was considering reducing its dependence on that metal which it did by selling its Rustenburg mines to Sibanye , Jessie Duarte, deputy secretary general of the ANC, said, "Lost employment in the mining industry, considering the low skills base of labour it employs, translates into a further burden on the country's social wage. It adds to the depression in the labour-sending areas that are already destitute. Down the years the mining industry, and gold mining in particular, has been criticised not only for colour bar and the compound system, but also for its low black wages and its hostility to black trade unions.
Writing in A History of South Africa: Social and Economic in , CW de Kiewiet pointed out that gold mining in South Africa was very expensive because of the small amount of gold in vast tonnages of rock: "The concept of an industry that was colossally wealthy only on condition that it jealously watched each penny of its expenditure is invaluable for any understanding of the history of South African gold mining. According to John Lang, after the end of the First World War the leaders of the mining industry took a decision to build a vast low-grade industry instead of exploiting only the higher-grade ores in fewer mines.
This meant spreading dividends over a number of years but also holding down wages because lower-grade mines would not be able to pay the wages that higher-grade mines could afford. Like agriculture and domestic service, mining was for a long time one of the lowest paying sectors of the economy. In , for example, the average monthly wage of black miners was R22, against R49 in the retail trade and R60 in manufacturing and construction.
By , however, the black wage in mining had risen to R, overtaking the average black construction wage of R Black mine wages had also overtaken those in clothing manufacture and were beginning to catch up with other parts of the manufacturing sector. Comparative racial breakdowns of wages by sector in more recent years are difficult to come by, but in average mine wages of all races had almost caught up with those in the wholesale and retail trade and catering and accommodation sector.
They were also beginning to catch up with those in manufacturing as a whole. By wages in mining and quarrying had comfortably overtaken both of these sectors as well as the finance, real estate, and business services sector, with construction lagging far behind. Only government; transport, storage, and communication; and electricity, gas, and water now pay higher average wages than those in mining. Bernard Swanepoel, former chief executive of Harmony said in January that to unskilled and unemployed people, jobs in mining were more attractive than those in other sectors. According to the Chamber, the average wage on gold mines in was R28 a month.
Wages in mining and quarrying as a whole are lower than this, however. According to Stats SA the average in February including bonuses and overtime was R22 against R16 in manufacturing.