Mining companies reluctant to invest in SA amid ongoing infrastructure and energy crises | City Press

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Mining companies reluctant to invest in SA amid ongoing infrastructure and energy crises

South Africa will lose out from global mining investments if energy and infrastructure crises are not resolved fastMining companies are reluctant to invest long-term in the domestic economy because of the lingering uncertainty as South Africa struggles to resolve its energy and water crises and the problems persist at Transnet’s freight rail.

We haven’t had massive movements in terms of regulation in our industry for the last number of years. There certainly hasn’t been any focus or incentivisation locally on critical minerals, one side on the extraction of it. We haven’t explored a lot in order to find it and secondly, we haven’t done a lot of work to incentivise beneficiation locally.

Despite the move towards cleaner energy, coal was a top revenue earner for big mining companies last year as the commodity boom cycle winds down. Demand and prices for coal remain high, fueled by Europe’s geopolitical issues that have resulted in an energy crisis in that part of the world and in turn injected life into the demand for coal.

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Mining companies reluctant to invest in South Africa amid ongoing infrastructure crises | City PressPersistent energy and water crises and the critical problems at Transnet’s freight rail have been cited as major deterrent to investment.
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