China-South Africa co-operation: analysing China-South Africa joint venture operations in mining
The South African mining industry is still the economic backbone of the country. South Africa is the world’s largest producer of chrome, manganese, platinum, vanadium and vermiculite. However South Africa is still faced with challenges of utilising its mineral wealth to address poverty, unemployment and inequality. China-South Africa relationship has grown – politically and economically. South Africa is the only African country to invest in China, and it is well known for its technological advances (such as liquid fuel from coal and pebble bed nuclear reactors). South Africa’s exports to China reached an all-time high of R85 billion in 2011, an increase of 45 per cent over 2010. South Africa’s exports are resource-based, with ores and metals accounting for almost 70 per cent of the total. It is important to note that China’s mining investments in South Africa are noticeably different from investments in other African countries. Chinese companies have been establishing joint ventures with South African mining companies that are profitable and stable, so as to ensure a long-term supply of raw materials to the Chinese market. This research project will examine whether China-South Africa joint venture operations in mining have created jobs, led to value addition and mine community development in South Africa. Moreover this project seeks to make a contribution to an evidence-based debate that mining revenues can be translated into long-term benefits for communities.
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