T he mining sector is holding its own after a particularly tough year in which the regulatory and policy environment was the worst industry has ever experienced. Speaking at a recent press briefing, Chamber of Mines CEO Roger Baxter said the damage to the industry had been extensive despite the gradual improvement of the global economy. “There is no doubt that 2017 was a tough year for mining. The challenges in the regulatory and policy environment were arguably the worst the industry has ever experienced,” he said. And this was despite mining’s contribution to South Africa’s gross domestic product, improving by 3.7% year-on-year to R312 billion last year. The sector’s total contribution to the overall GDP was 6.8% Total primary mineral sales for the year amounted to R424 bn, while mining’s direct contribution to the country’s overall fixed investment came in at R93.4 billion. He said the gold and platinum sectors continued to be hit hard with prices static. There was some relief offered in the upward movement of coal, iron ore and manganese. But, said Baxter, the lack of a nurturing environment to stimulate long-term investment, exacerbated by a regulator that had failed to build partnerships with industry was negatively impacting mining and other related sectors like manufacturing. “The spillover from mining into the manufacturing sector, for example, is large and so investment in one will impact significantly on the other.” He said the reviewed Mining Charter released in June last year had by far been the biggest blow to the sector. “Minister of Mineral Resources, Mosebenzi Zwane, unilaterally proposed a revised Mining Charter last year that was probably developed in some back room somewhere. This led to what was probably the lowest time in living memory for the mining industry in terms of regulation,” said Baxter who maintained the only way forward was a charter developed and negotiated by all the stakeholders.
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The reviewed Mining Charter released in June last year has by far been the biggest blow to the sector. – Roger Baxter
