"If there is no geology ,you cannot have a mine. ( article courtesy : Wharton Knowledge)

Diamonds aren't forever. Just ask John J. Teeling, executive
chairman of Dublin-based exploration company African
Diamonds. During a panel discussion on mining and natural
resources at the recent Wharton Global Alumni Forum in Cape
Town, South Africa, Teeling told the audience that despite its
storied past as a leader in gold and diamond production, South
Africa "is mined out."
Teeling, whose company is currently co-developing a large
discovery in Botswana with South African diamond giant De
Beers, said that of the 12 mining operations he has started since
1983, seven are in Africa -- including in Mozambique,
Zimbabwe and Sierra Leone -- but none are in South Africa.
"We go where the opportunities are, geologically," he said. "If
there's no geology, you cannot have a mine." South Africa,
which began mining diamonds in 1867 and gold in 1887, has
seen its resources depleted over time, while rising stars like
neighboring Botswana have moved into the mining spotlight. Globally, the competition is rising as well:
After being the leader in gold production for more than a century, South Africa lost its seat to China in
2007. "The future large discoveries in Africa are not going to be found in South Africa," Teeling said.
Other panelists disagreed with Teeling's assessment of South Africa's future mining prospects, citing new
technology that can extend the life of older mines. Indeed, the consensus was strong that mining will
continue to play a major economic role throughout Africa, as emerging markets like China and India fuel
a long-term commodity "super cycle" and African nations learn to contend with the so-called "resource
curse," or the inability to extract value from their abundant natural resources.
Like any industry that has endured for more than a century, mining in South Africa has had its share of
problems. Teeling alluded to the historic difficulty of obtaining permits -- "it took years to get them" --
and recent changes regarding the terms of mining titles, which are now under government control. (In the
previous regime, titles were under mixed public and private ownership.) And earlier this year, the
industry was forced to a standstill by rolling blackouts caused by a national electrical system
overburdened by the massive demand from post-Apartheid urban development. (Eskom, the state-owned
power supplier, has said it will take at least five to seven years to correct the problem by building new
coal and nuclear power plants.)
Despite these hurdles, mining remains the top industry in South Africa. Wharton marketing professor David Reibstein
David Reibstein, who moderated the panel, noted that mining is the country's biggest employer: a
half-million people are employed directly by mines and another 400,000 indirectly through associated
services like shipping. South African mines produce nearly 90% of the world's platinum, 80% of
manganese, 73% of chrome and -- despite its recent slip in position -- 43% of the world's gold. Mining
overall contributed 7% to South Africa's GDP in 2006. When adjusted for associated services and
additional industry output, such as electricity production, the total rises to 18.4%.