New report details ‘sterling performance’ of SA mining industry
A new report by PriceWaterhouseCoopers has painted a rosy picture of the country’s mining sector.
The findings for 2021 were revealed during a virtual press briefing on Tuesday.
PWC’s Andries Rossouw says it is the first time the sector is seeing an increase in the capital expenditure.
“Income tax paid up 14%, capital expenditure up 36% and this is the first time we’re seeing a real increase in capital expenditure investing in the future and a desperate need for the mining industry to be sustainable for the future. Distribution to shareholders up and this is dividends, 143% it has never been this high before."
But Rossouw warns that the coal mining industry is not performing as well as it should.
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He says the hope is for production to return to 55 million tonnes, to allow South Africa to take advantage of the international coal boom.
"But the coal mining industry is not performing at its optimum level, we've got mines that have to shut down because of not enough storage capacity they'd have to cut back on production because they don't have a market to deliver into. It's a real shame that we are faced with record prices when the world needs us to deliver it to them and we can't."
The shutdown of the Transnet Mpumalanga / KwaZulu-Natal coal line due to maintenance in July, has been attributed as one of the many factors which has stunted production in the sector.
