South Africa’s “Green” Minerals

More problems bedevil South Africa’s troubled mining sector, with its rand revenue suffering a 5% decrease between June 2023 and June 2022, as per the “Daily Mirror.”  

In 1921, the sector contributed some Billion Rand, 219.6 Billion Rand (12.8 Billion Dollar) to GDP.

The ”DM’s” report regarding the annual Mining Indaba, held by Resources 4 Africa on 4/5 of this month, warned of a new decline phase. Considering South Africa’s rich natural resources, this is alarming for the local and global economies. Its minerals and metals are said to be “crucial” to the existential climate change issue. 

Participants heard from Anglo-American CEO Duncan Wanblad that mining was crucial to affecting “green” energy change. It included mining “green” platinum group metals (PGMs), manganese, and copper, believed to be waiting to be found in the Northern Cape. Moreover, more food and, thus, mined fertilizer and minerals were needed for the planet’s increasing population. The CEO spoke of billions squandered daily due to crime, corruption, the energy crisis, and poor logistics, affecting profitability and sustainability.

Lower profits and smaller dividends result in lower GDP and less revenue for the cash-strapped treasury. Mining job losses threaten the economy, with unemployment at over 32%. 

The new business-government partnership has yet to result in change. 

As the “DM” wrote, progress must be made to deal with energy, corruption, crime, and poor logistics challenges. Otherwise, many operations are doomed to fail.