SA’s mining industry sees steep decline in financial performance impacted by a slump in commodity prices and increased cost pressures
The 2015 financial year has proved to be extremely challenging for South Africa’s mining industry. Local cost pressures, labour action, and a continuing downswing in commodity prices have resulted in shrinking margins and impairment provisions.
Mining companies are grappling to improve productivity in order to address the demanding global and local mining environment.
These are some of the findings from PwC’s seventh edition of ‘SA Mine’, a series of publications that highlights trends in the South African mining industry, released by PwC today at the 2015 Joburg Indaba: Investing in Resources and Mining in Africa conference held in Sandton.
The mining industry continues to be marred by labour unrest with four gold mining companies continued to be locked in a three-month wage ‘stalemate’ with unions and the pressures of a recent coal strike mounting.
Michal Kotze, PwC African Mining Industry Leader, says: “The message to miners is clear: ‘Continue to focus on costs, refocus on your core business and carefully evaluate growth opportunities.’ It certainly will make for some interesting planning and forecasting discussions in the coming year.”