Rolling blackouts undercut potential gains of mining industry

Analysts say rolling blackouts have undercut the potential gains of the mining industry.

Data released by Statistics South Africa indicates that mining production decreased by 9.0% on a year-on-year in November 2022.

The largest negative contributors were platinum group metals, iron ore and diamonds.

On a month-on-month basis, mining production decreased by 0.4% in November 2022 compared with October 2022.

Chief Economist at Econometrix Azar Jammine says the mining industry should be benefiting from increased commodity prices but the industry is at a loss due to rolling blackouts and other regulatory impediments.

“Well without a doubt one of the main reasons for the declining mining output would be intensification of load shedding. But over and above that, there are additional factors which are acting as constraints on mining including industrial action and geological problems that keep cropping up. Also, the fact that government interference has led to declining investment in the industry,” adds Jammine.

#Mining production decreased by 9,0% year-on-year in November 2022. The largest negative contributors were:
· PGMs
· iron ore
· diamonds

Read more here: https://t.co/VhEY09t48f#StatsSA pic.twitter.com/pe38TkULfM

— Stats SA (@StatsSA) January 17, 2023