The mining sector plays a huge role in building the economy of different countries. The contribution of the mining industry to the gross domestic product in South Africa has declined over the years due to different challenges such as risks and uncertainties. The main purpose of the study was to identify the external risks affecting the mining industry in South Africa and their mitigation strategies.
A total of 21 mines from six South African provinces were covered. The commodities covered in the study include gold, platinum, coal, copper, iron ore, and diamond. The external risks affecting mines globally that were identified from the literature review include fluctuation of commodity prices risk, volatility of exchange rates risk, political risk, environmental risk, health risk and pandemics risk. The survey used in the study revealed that South African mines are also faced with similar risks. Some more risks affecting South African mining that were identified through the questionnaire include illegal mining, attracting and retaining skilled labour, cyber-attacks, socio-economic challenges, load shedding and HIV/AIDS. The results revealed that most mining companies apply similar mitigation strategies such as hedging and insurance to combat the external risks.