Bleak future for mining industry in South Africa

Die Vryburger

Bleak future for mining industry in South Africa
Bleak future for mining industry in South Africa - Image - Die Vryburger

Mining companies have 12 months in which to achieve a 30% black ownership, according to the Minister of Mineral Affairs Minister Mosebenzi Zwane.

Mining rights will now only be granted to mines that can prove 50% plus 1% of black ownership. According to the minister, the time has now come where there will be no turning back.

Asked whether there is enough black expertise to serve on board and management level and the answer was: There are graduates each year who can fill the posts.
Observers say it would be interesting to post a graduate, without any experience, in a management post and see his input.

Economists calculate circumstances are now pitch black for the mining industry.

Statistics South Africa recently found that mining was only one of two sectors that showed growth. Agriculture grew the most with more than 22%, while mining was second with a growth of 13%. However, the sectors could not prevent the country from experiencing a negative growth as a whole.

The minister is now setting out political, ideological goals, without considering the likely disastrous economic consequences.

Shortly after the minister’s announcement, mining shares began to tumble, indicating investors’ disagreements with it.

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