Mining

With an estimated $2.5trn worth of proven mineral reserves, the mining sector accounts for around 8% of South Africa’s GDP and 14% of total employment, making it the second-largest employer in the country. However, the industry’s output and performance have been under pressure in recent years, as bottlenecks in labour relations, uncertainty in policy direction and power shortages have weighed on sector growth. Mining is also subject to global headwinds, as slower economic growth in commodity-consuming nations has driven down commodity prices and weakened export revenue. Financial turbulence and volatility will likely see continued fluctuations in sector share prices and could limit capital investment in the near to medium term. However, as South Africa continues to offer some the best mineral reserves in the world, the efficiencies gained now are expected to translate into greater profitability as global commodity prices recover.

This chapter contains an interview with Norman Mbazima, CEO, Kumba Iron Ore.