Once upon a time, pre-1994 to be more precise, mining was the cash cow of South Africa’s economy. But that’s no longer the case, according to the South Africa’s Chamber of Mines, CEO, Roger Baxter.
Nowhere is mining’s diminishing influence better reflected than on the Johannesburg Stock Exchange (JSE) where mining accounts for less than 10% of market capitalisation. At its peak, mining was work 30% of market capitalisation.
Addressing an African Mining Network gala dinner at which African Mining Brief Online was represented, Baxter did not mince words that mining had been the worst perfoming sector.
Baxter explained mining sector’s woes to skyrocketing cost of doing business in the sector. “Our costs have being going up and
He said the state of the mining sector reflected the state of the economy. Mining was the economy’s barometer.
Instead of self-pity, Baxter called on the mining sector had to “increase productivity and keep costs down”.
Edited and adapted for AMB by Jimmy Swira