South Africa’s R1 trillion mining industry is in a downward spiral, say economists at Nedbank, with the sector recording itsMining production declined by 10.4% year on year in October, the bank noted this week, after shrinking by 5.1% in September.
Making matter worse, mining production has not recovered to pre-pandemic levels and remained 13.4% below the level achieved in October 2019, highlighting the continued strain on the sector.“Despite the moderation in commodity prices, it remains relatively elevated and continues to support mineral sales. Coal, in particular, has benefitted from stronger demand due to the ban on Russian exports,” the bank noted.
“The buoyant demand for some commodities, such as coal and copper – given its increased prominence in the shift to renewable power sources – will be offset by domestic supply constraints and a decline in demand for other commodities on the back of an expected slowdown in the world economy.
Eish… they aren’t the first and they won’t be the last. But vote ANC! Ramaphosa will save us! Amandla!