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with more than fifty different minerals being mined throughout the country. For this and other reasons, mining is one of the crucial pillars in the South African economy and its importance is well documented (Robinson and von Below, 1990; Creamer, 2010; Department of Mineral Resources, 2015). In 2013, South Africa was the largest global producer of chromium, ferrochrome, platinum group metals (PGMs), and vermiculite and the second largest global producer of antimony, manganese, titanium, and vanadium (Chamber of Mines of South Africa, 2014). In 2013, the mining industry contributed 6.7% to South Africa’s GDP and was the fifth largest sector in the economy, as shown in Figure 1. Despite the mining industry’s relatively small direct contribution to the GDP, it accounted for 19.4% of the total private sector investment in 2013, or 12.2% when the public sector is included. The importance of mining in the South African economy is also demonstrated by its sustained average contribution of 33% to the total export account in the past decade (Chamber of Mines of South Africa, 2014). Hausmann and Klinger (2006) view this as a weakness, because firstly, minerals are exported as commodities with very little differentiation; and secondly, minerals are a fixed natural endowment that is gradually depleted, while the population and its diverse needs increase over time. Export sophistication arises when new products that require a higher knowledge intensity and various inputs are developed for export markets. Merely increasing the production of existing products constitutes an increase in productivity, but not in export sophistication. A good measure of export sophistication is an increase in the activities of the secondary and tertiary sectors of the economy. For mineral-endowed economies, part of the increase in these activities should be due to the linkage effect between the primary sector and the secondary and tertiary sectors.

The nature of mining input technology in South Africa