Impact of reporting codes on the growth of the mining industry in Africa.

Abstract

The South African Mineral Reporting Codes are in place to ensure that mining and exploration companies are reporting exploration results, mineral resources and mineral reserves correctly. In addition, they are ensuring that the public reporting of mineral asset valuations are performed in accordance with regulated norms. This research was done to assess the impact that the South African Mineral Reporting Codes are having on the growth on the mining industry in Africa. A qualitative approach to the research methodology was adopted and several domain experts were interviewed until conversion was observed. Key findings indicated that the South African Mineral Reporting Codes will have very little impact, if any, on the growth of the minerals industry in Africa. Where investment and growth comes from the international stock exchanges, the foreign codes will impact growth, but if investment comes from foreign direct investment then the codes will have little or no impact. The South African Mineral Reporting Codes have a very important role in the South African context. However, because of foreign direct investment into the African mining industry and funding from international stock exchanges, the international codes are assisting growth in the mining industry in Africa.