Shift in focus required to turn around decline of local mining
JOHANNESBURG (miningweekly.com) – The South African mining industry is in a state of financial decline, with many mining companies struggling to turn a profit and government stalling the amended regulation framework, according to financial services provider Nedbank Capital mining and metals investment banker Paul Miller.
He addressed key mining industry role-players at the thirty-second edition of mining networking platform the Africa Mining Network, which was held on Thursday at the Wanderers Club, in Illovo, Johannesburg.
Miller said amendments to the Mineral and Petroleum Resources Development Act and the delay in finalising the Mining Charter were resulting in uncertainties that discouraged investors and left existing mine operators with doubts about how to plan for the future.
In addition to a complex legislative environment, the South African mining sector was also being burdened with significant taxation, with as many as six streams of tax being levied on miners in various aspects of their business before mine owners had access to profits. These included taxes on things like the purchasing of equipment and paying income tax for staff.
The key to the survival of the local mining sector was finding and securing new capital, said Miller, adding that South African mine managers needed to realise that they had to compete with international miners in terms of attracting investment.
Miller suggested that what was required to achieve a turnaround in local mining business models was the implementation of a “world-class regulatory environment”, as current legislation was poorly drafted, resulting in it being difficult to understand, thereby leaving room for discrepancy.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
