JOHANNESBURG - The South African mining industry is
in crisis, Roger Baxter, Chamber of Mines of South Africa
Chief Executive Officer said on Friday.
Addressing the third and final day of the Paydirt 2017
Africa Down under conference in Perth, Baxter,
said business confidence in South Africa was at its lowest
levels in more than three decades. “The South African mining sector is
renowned for its long cold winters and short hot summers,” he said.
“There are a number of critical factors impacting South Africa’s
investment attractiveness including the fact the mining industry has
lost confidence in the DMR Minister.” “Key governance and policy challenges in South Africa
have eroded business and investor confidence, undermining investment.”
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“Policy and regulatory uncertainty have ‘frozen’ new
investment in the sector. “Real mining GDP in 2016 (R226 billion) is smaller
than it was in 1994 [R242 billion]. “Real mining fixed investment has
shrunk over the past two years.
“The industry made an accumulated loss of over R30
billion in 2015. “In 2017, 65% of RSA platinum mining is
loss-making.The DMR has provided no assistance to help the industry through
the crisis.”
“The economic opportunity cost of the failure to get the
policy, legislative, administrative and operating environment right to promote
investment, growth, transformation and job creation in RSA mining is
material," Baxter said.