AMN - Progress in a South Africa “open for business” – comment by Yolanda Torrisi

South Africa is starting to show results from its efforts to turn around its mining industry and economy. Last quarter the southern African nation increased its production take for the first time in nine months.

The resource-rich country revealed a 2.4% increase in production for the June quarter when compared to the March quarter as many in the industry were in Australia for the annual Africa Down Under conference a fortnight ago.

South Africa’s mine production figures had fallen in the March and December quarters.

Iron ore production rocketed 23.7% in the June quarter while the biggest contributor coal rose 8.6% and platinum group metals followed with a 2.7% quarterly gain.

The turnaround result came after a number of positive signs of industry recovery and was welcomed by South African Mineral Resources and Energy Minister Gwede Mantashe who spoke at the annual Africa Down Under 2019 conference in Perth this month.

A now confirmed speaker for Mining Indaba 2020, Mantashe told Africa Down Under delegates in Perth that South Africa continued to be one of the best mining jurisdictions in the world.

He pointed to the country’s $2.5 trillion mineral wealth in the ground and flagged the African country’s minerals diversity as a strength.

Mantashe said in a speech, “South Africa’s mining industry is one of the key economic sectors in the country, contributing about 7.5% to gross domestic product, 30% of export earnings and over 450,000 direct jobs,” Mantashe said in a speech.

“As things stands there is no country that can match South Africa in terms of mineral diversity offerings, we are number one and we are here to say we are open for business.”

Repeating a refrain heard from Zimbabwean Finance Minister Mthuli Ncube earlier this year that Zimbabwe was “open for business”, Mantashe highlighted a good result for South Africa and a great result for its miners.

Mantashe said, “This is the strongest growth since the second quarter of 2016.”

South Africa’s economy grew 3.1% in the June quarter while its mining industry grew an impressive 14.4% after a noted improvement in its investment climate.

The mines minister flagged “iron ore, manganese and coal were the main contributors to this growth.”

It’s great to see South Africa showing good production results as more funds come into the country and more resources are put into its projects.

Earlier this year the country attracted US$20 million of investment commitments after an inaugural investment event held.

A groundswell $10 million was for the mining industry and came after the nation was given an improved global investment attractiveness ranking by the global industry in the latest Fraser Institute Survey.

It’s encouraging to see progress in South Africa as the industry puts its focus on moving things forward.

- Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the continent. Contact: yolanda@yolandatorrisi.com