JOHANNESBURG - The mining industry said it’s worried that companies in the sector remain under significant pressure as a cocktail of domestic and global challenges continue to bite.
Industry leaders made a sobering assessment of the state of mining on the first day of the annual Mining Indaba in Cape Town on Monday.
The chronic energy crisis, poor rail performance in the logistics sector, and crime are among the top culprits for the reduced mining output in the country.
The Minerals Council of South Africa said the strain on the mining industry was evident, as the sector continued to bleed.
As the value of production dropped in 2023, exports also took a substantial knock as a result of failures in Transnet’s rail infrastructure.
The council’s latest report shows a drop in the mining sector’s contribution to the gross domestic product (GDP) from 7.3% in 2022 to 6.2% in 2023.
Bulk commodity exporters in coal, chrome, iron ore, and manganese were the hardest hit.
While the outlook for mining performance for 2024 remains below par, the Minerals Council said it expected some improvement.
While the Minerals Council pinned its hopes on a turnaround at Eskom, the council warned that trouble at Transnet could still offset the marginal gains.