JOHANNESBURG - The South African mining industry is in crisis, Roger Baxter, Chamber of Mines of South Africa Chief Executive Officer said on Friday.

Addressing the third and final day of the Paydirt 2017 Africa Down under conference in Perth, Baxter, said business confidence in South Africa was at its lowest levels in more than three decades. “The South African mining sector is renowned for its long cold winters and short hot summers,” he said.

“There are a number of critical factors impacting South Africa’s investment attractiveness including the fact the mining industry has lost confidence in the DMR Minister.” “Key governance and policy challenges in South Africa have eroded business and investor confidence, undermining investment.”

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“Policy and regulatory uncertainty have ‘frozen’ new investment in the sector. “Real mining GDP in 2016 (R226 billion) is smaller than it was in 1994 [R242 billion]. “Real mining fixed investment has shrunk over the past two years.

“The industry made an accumulated loss of over R30 billion in 2015. “In 2017, 65% of RSA platinum mining is loss-making.The DMR has provided no assistance to help the industry through the crisis.”

“The economic opportunity cost of the failure to get the policy, legislative, administrative and operating environment right to promote investment, growth, transformation and job creation in RSA mining is material," Baxter said.

 - BUSINESS REPORT ONLINE