South Africa’s iron-ore production to stagnate amid ‘unfavourable’ regulatory environment
JOHANNESBURG (miningweekly.com) – An unfavourable regulatory environment is likely to result in South Africa’s iron-ore production stalling at 58-million tonnes a year for the next four years, research firm BMI said on Monday.
In an outlook covering the sub-Saharan Africa region’s iron-ore sector, BMI noted that the country would be “the largest and most important source of uncertainty”, as the recent passing of the new Mining Charter would likely lead to higher compliance costs for miners.
BMI warned that further divestments may be on the cards, as the charter imposed stricter rules over black ownership levels and hiked royalty rates, applying further downside pressure to the weak iron-ore production forecast in the country.
Anglo American has already said it plans to sell its iron-ore operations in the country and Ferrum Crescent on Monday announced its exit from the Moonlight iron-ore project, in Limpopo.
BMI has lowered South Africa's regulatory score in its Mining Risk Reward Index, where the country now scores 36.9 out of 100, below the regional average of 37.7.
However, while the South African industry would remain burdened, BMI expects sub-Saharan Africa’s iron-ore production will expand from 93-million tonnes to 103-million tonnes over the next four years.
This, it noted, would be spurred by continued Chinese investment into the region, which would offset the effects of lower global prices, identifying West African producers Guinea, Liberia and Sierra Leone as growth outperformers.
“We expect Chinese miners to be particularly spurred by strong government backing, providing them with a higher risk tolerance than western miners, who will continue to struggle with high debt loads and costs,” it said.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Design, Construction and Maintenance of Site Erected, Welded Bulk Storage Tanks for the Petrochemical, LNG, Ammonia and Sustainable fuel Sectors.
VISIT SHOWROOM
We at Hawk High Pressure Pumps specialise in industrial pumps and pumping systems. Our high pressure washing equipment is locally manufactured and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
