Skip to main content

Mining in South Africa coming to a slow halt

In 1980, mining vied with manufacturing as the largest contributor to gross domestic product, with each at about 21%. Today, mines account for 7% of the economy. In 1987, the sector employed 763 000 people; that’s down more than 40% to 447 000 now. The government, retailers and banks are now the country’s biggest employers.

 

By pushing populist policies like the Mining charter only hinders growth by forcing the hand of an investor to another country.

 

As the unemployment numbers are sitting at a staggering six million people unemployed and looking for work, taking the jobless rate to about 28%, a 15-year high. This excludes 2.5 million discouraged job seekers.

Yet the ANC have a communist stubborn iron fist approach to land, mines and the economy which only makes us as a Nation Weaker against the open playing field of the world.

 

We at the Institute of Race Relations have consistently argued that if mining in South Africa is to live up to the country’s resource potential, an investment-friendly enabling environment is necessary. We have stressed that this requires not only more predictability but, critically, less governmental meddling in pursuit of ‘social’ ends which compromise business practice. If achieved, such an environment has the potential to unleash investment on a scale needed for true transformation of the sector. 

 

We are at a crisis and fingers can be pointed in many directions but as a country we need to be focusing on attracting investment and job employment.

If we want our country to grow, we need step back from policies that frighten off investors and focus on the huge opportunity to Design and Manufacture products using local raw materials mined in South Africa.

 

 

 

https://www.moneyweb.co.za/news/south-africa/gold-street-is-where-sas-mining-history-goes-to-die/

https://www.iol.co.za/news/opinion/mantashes-draft-mining-charter-a-recipe-for-disaster-15555047

 

 

Regards,

Andy D’Arcy Mossop

Marketing Manager/Design Engineer

0828554903

www.insumbi.com

 

Comments

Popular posts from this blog

Epiroc DM30/Pit viper Service

Atlas Copco Epiroc Drill Master 30 Atlas Copco’s rotary and DTH drill rig, DM30, used on surface mines and quarries for blasthole drilling in Africa and other parts of the world. For more than 30 years, the Drill MAster 30 drill rig – the smallest rotary and DTH model in the range – has retained its popularity among the world’s smaller mines and quarries. Specially designed for drilling blastholes at a diameter range of 152 mm–200 mm (6 –7 ½ in) range to a maximum depth of 45 m (147 ft), this multi-pass rig has been a favorite choice for its productivity, but even more so for its ease of use and flexibility. DM30 Features DM30 REPAIRS • A spacious one piece FOPS (Falling Object Protective Structure) rated cab with electric over hydraulic controls that are common with the DM series makes it easy to operate, especially for drillers who have experience in other DM series machines. • The DM30 II is designed for mining and the structural components will hold up to the heavy duty cycles requ

SA in Recession even though Mining is contributing positively to the GDP

The mining and quarrying sectors in South Africa has contributed positively to GDP in the second quarter according to data released by Statistics SA. Unfortunately, this has not prevented a recession in the country, which has been attributed to the agricultural and communications sectors. Mining increased by 4,9% and contributed 0,4 of a percentage point to GDP growth The agriculture, forestry and fishing industry and the transport, storage and communication industry were the largest negative contributors to growth in GDP in the second quarter. The agriculture, forestry and fishing industry decreased by 29,2% and contributed -0,8 of a percentage point to GDP growth. The decrease was mainly because of a drop in the production of field crops and horticultural products. https://www.miningreview.com/mining-in-sa-delivers-impressive-growth-in-q2-but-not-enough-to-prevent-a-recession/ http://www.statssa.gov.za/?p=11516

Russia looks at Zimbabwe for Diamonds

The world’s largest diamond producer by output, Alrosa of Russia, is interested in investing in exploration and mining in Zimbabwe, while also exploring the prospects of bilateral co-operation in technology transfer.   CEO of the Mirny-headquartered firm, Mr Sergey Ivanov, has already met President Emmerson Mnangagwa and is keen on moving into Zimbabwe.   Harare is crafting a new diamond policy and the Zimbabwe Consolidated Diamond Mining Company will be unbundled to open the sector to private investors. In e-mailed responses to The Sunday Mail recently, Mr Ivanov said “pre-work” was underway “to identify possible areas for co-operation”.   Alrosa is mainly engaged in the exploration, manufacturing, marketing and sale of diamonds.   http://www.sundaymail.co.zw/russian-giant-eyes-zim-gems/   Regards, Andy D’Arcy Mossop Marketing Manager/Design Engineer 0828554903 www.insumbi.com