Abstract
D.Com. (Economics)
The objective of this dissertation was to examine the desirability or not
of the local processing of South Africa's gold into jewellery as an
instrument for the extension of the life of the gold mining industry.
The South African gold mining industry derives its significance not only
from its importance as the source of 52 per cent of the country's foreign
exchange receipts and a major consumer of labour, agricultural and industrial
products, water and electricity, but also from the fact that it
is the only long- term future source of gold for the world's jewellery
manufacturing industry.
The rapidly rising working costs since the early seventies was only
neutralised for a few 'years by the increase in the gold price. The
decline in profitability since the early eighties as a result of the
continuation of the cost escalation and the falling gold price, forced
the industry into a prolonged consolidation phase. Measures taken to
address its rapidly declining economic position include severe cutbacks
in its labour force, the closing down of marginal sections and curtailing
expenditure on exploration activities.