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A gain for SA mining in February
Mining production figures are out and the industry has recorded a gain. According to Stats SA, production was up 0.8 per cent year-on-year in February this year. That's an 3.8 per cent jump from January. Stats SA says the mining of Iron ore and manganese ore are to thank for this slight jump, while coal and gold were the big losers. Henk Langenhoven, Chief Economist at the SA Minerals Council joins CNBC Africa for more.
Tue, 13 Apr 2021 11:57:34 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The mining industry in South Africa recorded a 0.8% year-on-year increase in production in February, with a notable 3.8% rise from January, driven by iron ore and manganese ore mining.
- The sector has experienced significant fluctuations over the past year, with challenges like power cuts impacting operations and the need for structural adjustments to ensure long-term sustainability.
- While the allowance for mining companies to generate their own electricity up to 10 megawatts is a positive step, the slow implementation process and regulatory hurdles pose challenges for the industry's growth and development.
In a recent report released by Statistics South Africa, the mining industry in the country has recorded a gain in February. The production figures showed a 0.8% year-on-year increase, with a significant 3.8% jump from January. While this slight growth can be attributed to the mining of iron ore and manganese ore, coal and gold were noted as the big losers in the industry. Henk Langenhoven, Chief Economist at the South African Minerals Council, provided further insight into the sector's performance and outlook in a recent CNBC Africa interview. Langenhoven highlighted the roller coaster ride the industry has experienced over the past year, with significant fluctuations in production levels. He emphasized the need for structural adjustments in the sector to ensure long-term sustainability. Despite the current positive trend, Langenhoven cautioned that there are still challenges to overcome, including the impact of power cuts on mining operations. The recent allowance for mining companies to generate their own electricity up to 10 megawatts was welcomed, but it was noted that the implementation process is slow and may take up to two years to have a significant impact. Langenhoven stressed the importance of reliable power supply for mining operations to maintain production levels. He also addressed the challenges in obtaining the necessary approvals and licenses for companies to generate their own power and the delays associated with the regulatory process. The relationship between mining companies and the government, particularly the Minister responsible for approving such initiatives, was highlighted as a key factor in expediting the process. While there is willingness from the government to support the industry, there is still uncertainty regarding the timeline for implementation and the potential impact on production. Overall, the South African mining industry is showing signs of stabilization and recovery, with cautious optimism for future growth and sustainability.
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