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Predictions for South Africa’s gold and iron ore industries are extreme worst-case scenarios. If the total net profits of 29 major mining companies in South Africa were still far above pre-pandemic level, they were nearly half of the peak US$10.8 billion profits in 2021
South Africa may have less than 30 years of a viable gold industry left without renewed investment, according to a new report released recently by accounting firm PwC. Meanwhile, its overall mining profits slipped by more than US$5 billion in the last financial year, points out the report, which will be receiving considerable public attention in the coming days.
Predictions for South Africa’s gold and iron ore industries are extreme worst-case scenarios. If the total net profits of 29 major mining companies in South Africa were still far above pre-pandemic level, they were nearly half of the peak US$10.8 billion profits in 2021.
The report also highlighted an urgent need for Africa’s most advanced economy to refocus part of its mining sector on green energy metals and minerals like copper, nickel, lithium, and cobalt. The report didn’t mention whether environmental concerns played a role in lost investment as customers, governments, and activists worldwide call for greater action to combat climate change. Mining operations account for some 4% to 7% of global greenhouse gas emissions, according to global consulting firm McKinsey & Company. Mining contributed nearly 60% of South Africa’s exports in the first half of 2023.
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The annual report said global drops in some commodity prices following the COVID pandemic contributed to reduced profits as well as local challenges of currency fluctuations, high inflation, power blackouts, and logistical problems in exporting minerals because of deteriorating road, rail, and port infrastructure in South Africa.
