‘Business as usual in mining industry – for now’

It is business as usual for mining operations across southern Africa despite talk of recession. According to Nolito Marques, communications coordinator for Manica Group Namibia, current mining operations are continuing as usual. “There has been no significant decline in business, other than world market influences on the price of the minerals. If the recession is severe, it will have a knock-on impact on all sectors of the Namibian and southern African economy,” Marques told FTW. “Although Africa is blessed with rich reserves of various minerals, a drastic decrease in international demand for these minerals will affect not only the mining sector, but will also result in job losses and lower GDP earnings.” Ivan Thuynsma, general manager Mining Vertical for UTi Africa, agrees, saying that mining will be one of the region’s – and continent’s – profitable industries, with regions such as the DRC and Zambia probably leading the way. Mining, most experts agree, will continue to be the bedrock of southern African economies, despite the global meltdown. Southern Africa did show a certain resilience, says Mahaveer Chavda of Chavda Freight, that stood it in good stead. “We managed to withstand the previous recession which has geared us for future turbulence.” According to the Department of Mineral Resources, there continues to be a concerted effort to address the lack of adequate infrastructure that has led to the mining industry suffering – be it electricity, roads or export logistics at the ports. The sector is the recipient of both financial capital and political will to ensure that the infrastructure is adequate, says a departmental spokesman.