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SA COUNTRY PROFILE

Glenover Rare Earth Project (Limpopo Province, RSA)

     
 

Official name: Republic of South Africa (RSA)
Capital: Pretoria
Official Languages: 11 - Afrikaans, English, Zulu
Government: Federal state with national government and 9 provincial governments
President: Jacob Zuma
GDP: $ 384 312 674 445 (2012)
GDP Growth rate: 2.5% (2012)
Inflation rate: 5.4% (2012)
Population: 51 189 306 (2012)

South Africa Investment Outlook

Economy
• Largest economy in Africa
• Accounts for 24% of Africa’s GDP
• Extensive rich mining history as a world leader in mineral production
• One of only four “upper-middle income” economies in Africa
• South Africa is the financial and business hub of Africa

 
     
 

The South African Mining Industry
The South African mining industry is long recognized as the most prominent sector and despite the fact that it is only the sixth largest contributor to total Gross Domestic Product (GDP) at present, it is still regarded as a cornerstone of the economy and the largest employer. Other sectors that contribute significantly to the country’s economy are: manufacturing, electricity, financial services, tourism, communications and construction.

Demand for the majority of commodities that South Africa possesses has played a major role in growing the economy of the country. The mining industry is a well-established and resourceful sector of South Africa’s economy and has a high degree of technical expertise as well as the ability to mobilize capital for new development. It has provided the impetus for the development of an extensive and efficient physical infrastructure and has contributed greatly to the establishment of the country’s secondary industries. With the diversity and abundance of its natural resources, South Africa is a leading producer and supplier of a range of minerals and produced approximately 53 different minerals from 1,548 mines and quarries in 2009 as well as exported to approximately 80 countries. Gold was produced from 53 mines, platinum-group metals (PGM's) from 45 mines, coal from 108 mines and diamonds from 395 mines, all as primary commodities.

South Africa is now in its second decade of a constitutional democracy that has endorsed the principles of private enterprise within a free-market system, offering equal opportunities for its entire people. The State’s influence within the mineral industry is not only confined to orderly regulation and the promotion of equal opportunity for all its citizens and investors, but also participates in mining operations through state owned companies.

Research conducted by Citigroup indicates that the country’s non-energy mineral reserves are worth $2.5 trillion, making South Africa the world’s richest country in terms of mineral resources. South Africa’s mineral exploration budget decreased from $0.378 billion in 2008 to $0.2196 billion in 2009, accounting for 3 per cent of the world exploration expenditure. The total world exploration expenditure suffered a decrease of 41.9 per cent from $12.6 billion in 2008 to $7.32 billion in 2009, the largest annual decline in over 20 years owing to a reduction in exploration spending due to the global economic crisis. Most countries either cancelled or postponed exploration projects, with various regions experiencing a decline in exploration allocations for the first time in seven years.

South Africa is one of the most sophisticated and promising emerging markets in the world. The unique combination of a well developed First-World economic infrastructure, and a rapidly emerging market economy, has given rise to an entrepreneurial and dynamic investment environment with many global competitive advantages and opportunities. Being a leading producer and supplier of a range of minerals, the country offers a highly competitive investment location ensuring that it can meet specific trade and investment requirements of prospective investors and business people, whilst meeting the development needs of its populace. The implementation of the Precious Metals Act, 2005 as well as the Diamond Second Amendment Act, 2005 is expected to increase investment in South Africa’s mineral industry by ensuring the continuation of a competitive business environment and the lowering of barriers to entry. The Southern African subcontinent will also benefit from improved regional cooperation, seeking to harmonize legislation governing the mining industry. South Africa boasts the most modern and extensive infrastructure in Africa, with a highly developed transport infrastructure consisting of extensive road and rail networks. Transnet is a public company recognised as a dominant player in the Southern African transport infrastructure, aimed at both supporting and contributing to the country’s freight logistics network.

Galileo Resources Projects in South Africa include:
> GLENOVER RARE EARTH PROJECT

 
     
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