South Africa becomes less attractive for mining investments think tank.

By bne IntelliNews January 25, 2012
South Africa has become significantly less attractive for investments in the mining sector since 2006, according to the independent think-tank South African Institute of Race Relations (SAIRR), fin24 reported. In 2006, South Africa ranked 37th out of 64 countries and territories in terms of attractiveness for mining investments, while in 2010 the country dropped to 67th out of 79 countries and territories surveyed by the Canadian-based Fraser Institute. The considerably lower ranking came as a result of uncertainty over nationalisation and mine ownership, and increasing work disruptions, which reduce investors appetite, according to SAIRR. Uncertainties concerning the administration, interpretation, and enforcement of existing regulations, as well as labour regulations, employment agreements, the legal systems reliability, and uncertainty over disputed land claims, have also contributed to the weakened investor interest. The mining investments in South Africa have been positively influenced by the presence of skilled workforce, the good infrastructure quality, the quality of its geological database, and the state's environmental regulations, the think-tank said. South Africas mining sector contributes 9.6% to the GDP and employs 3.1% of the country's labour force. In 2010 it accounted for 15.3% of country's exports.
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