The first challenge: South African mining need a large amount of foreign capital support
South African mining  plays an important role in its economic development, mining department each year in its gross domestic product, the contribution rate of more than 7%. Mining is capital-intensive, need a lot of money. And South Africa capital investment far from meeting the demand of the development, need a large amount of foreign capital support.
In recent years, due to the change of policy and mining legislation cause its mining investment growth weakness, particularly in 2002 President issued a new mine after the law, the investment of foreign mining declined, during 2002 ~ 2004, the South African mining investments to every quarter’s 4.2% speed decreases.

The second challenge: Mining policy not sure bring investment risk
In May 2004, the South African government has issued a new “mining and oil resources development law”. The new mining method is awarded to the South African mining and energy minister “vested largely on its own.” The purpose is to ensure that legislation appeared in the process of any mistakes have corrected the opportunity. But the rules further mining companies for future development of uncertain.
The third challenge: Mining tax rise sharply will make mine enterprises increased costs
A new mine law into effect in 2009 collection system royalties. According to submit the draft of the royalties, the country will be based on income tax of different minerals different rate: 3% on such as gold, platinum family metal charge 4%, 8% on diamond. According to professional forecast, a new system of royalties, after the government’s mining tax each year will be increased by 1 billion dollars.

The fourth challenge: Power cuts are currently influence South Africa mining development of one of the main factors
According to the South African media reports, South Africa 2008 in the first quarter of the mining industry production declined 22.1%, is the lowest level in 40 years. One important reason is because one of the power supply shortage caused some mine production. In addition, in recent years, South Africa’s social security problems more, especially for foreigners robbery or riots, including the attack on the Chinese people also have reported. So far, the problem is not with its economic causes obvious influence, but later may appear.

South Africa is very rich in mineral resources. Many minerals occupies an important position in the world, including gold, platinum and palladium reserves ranks first in the world. Vermiculite, manganese, chromium and fluorite reserves ranking second in the world; Vanadium reserves ranked
third in the world. Other important mineral and diamond, antimony, uranium, iron, lead, zinc, coal, nickel, zinc, copper, titanium and phosphorus, etc.

South Africa department of statistics released data show that from the end of last year to earlier this year, South African mining production appeared since July 2009 the first increase since. Among them, the chromite production growth is particularly fast. In 2009, the world’s supply of chromite for 58.33 million tons, including South Africa accounted for 37%, and this year it is forecast to global output for 75.7 million tons, South Africa will contribute 42% of the share. South Africa the reserves of  the world total chromite reserves of 75%.

South Africa economists in the newly released to the national mining output data analysis, said after the next few months the world economic recovery will directly promote South Africa mining rise steadily.