South Africa’s mining industry faced a difficult 2016, with an increase in short-term volatility, increased pressure on operating models, regulatory uncertainty and – a common theme we hear, subdued commodity prices.
In a report titled “SA Mine” – the eigth edition from PwC which looks at the trends in the South African mining industry, Michal Kotzé, Mining Industry Leader for PwC Africa says: “Companies had no choice but to cut back on new developments, re-focus on profitable production rather than maximum production and to save costs.
“The long-term nature of mining investments translates into a significant lag in the supply response to price changes. This lag contributes to the cyclical nature of the mining industry. Although there is no consensus, we have probably reached the bottom of the cycle, but may stay here for some time.”
Highlights from the report:
Closer look at commodities
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