Economic Diversification and its Underlying Strategies in the Mining Industry: A Comparison of Best Practices and Business Models in Australia and South Africa

Abstract

This bachelor’s thesis, titled ‘Economic Diversification and its Underlying Strategies in the Mining Industry: A Comparison of Best Practices and Business Models in Australia and South Africa’, explores the critical role of economic diversification in enhancing the resilience and long-term sustainability of the mining sectors in Australia and South Africa. The study adopts a comparative approach to analyze the economic structures, strategies, and best practices in both countries, focusing on how they address the challenges and opportunities within their mining industries. The theoretical foundation begins by defining economic diversification and mining, emphasizing the importance of reducing over-reliance on a single industry. The mining industry in Australia significantly contributes to its gross domestic product, employing nearly 200 000 people and generating substantial export revenues. Australia’s mining sector, dominated by giants like BHP and Rio Tinto, is now pivoting towards critical minerals essential for green technologies. The country has a robust framework for promoting sustainable development, integrating technological innovations, and ensuring environmental stewardship. In contrast, South Africa’s mining industry, historically driven by gold and diamond discoveries, remains vital to its economy despite facing numerous challenges such as declining productivity, infrastructural issues, and socio-political instability. South Africa is the leading global producer of platinum and palladium and remains heavily reliant on coal. The country’s mining policies emphasize sustainable practices, community engagement, and technological advancement to improve efficiency and reduce environmental impact. The thesis underscores the importance of government policies and strategic initiatives in fostering economic diversification. In Australia, significant investments in green industries, technological innovation, and renewable energy sources are pivotal. The country leverages free trade agreements and international collaborations to expand market access and enhance trade resilience. Conversely, South Africa focuses on energy diversification, improving regulatory compliance, and addressing infrastructural deficiencies to attract investment and support economic growth. The study highlights the shared best practices between the two countries, such as the emphasis on sustainable development, health and safety standards, and community engagement. Both nations recognize the potential of digital technologies to boost productivity and enhance operational efficiencies in the mining sector. However, differences in regulatory frameworks, technological adoption rates, and approaches to managing community impacts are noted.

Date of Award	2024
Original language	English
Supervisor	Wolfgang Schwaiger (Supervisor)