• Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Index & Interview Directory
04 Section 1: Introduction
05 The Road to Recovery
06 ABSA Group Interview
07 PwC Interview
08 Regional Trends
09 Sustainability & ESG Gaining Momentum
10 SRK Consulting Interview
11 Nafasi Water & ZN Geo Services Interviews
12 Section 2: Production, Development and Exploration
13 Precious Metals
14 Gold Fields Interview
15 Harmony & Pan African Resources Interviews
16 Base and Energy Metals
17 Lepidico Interview
18 Trevali Mining Interview
19 Orion Minerals Interview
20 Vedanta Zinc International Interview
21 Kumba Iron Ore Interview
22 Diamonds
23 Lucara Diamond Interview
24 Debswana Interview
25 Section 3: South Africa
26 South Africa
27 Ministry of Mineral Resouces and Energy SA Interview
28 Minerals Council SA Interview
29 Seriti & Exxaro Resources Interviews
30 NSDV & ENSafrica Interviews
31 Insights on South African Mining Industry's Health
32 Section 4: Namibia
33 Namibia
34 Chamber of Mines Namibia Interview
35 RMB & Standard Bank Namibia Interviews
36 Walvis Bay Salt Holdings Interview
37 Insights on Namibia as a Mining Investment Destination
38 Section 5: Equipment and Services
39 The Journey to Modern Mining
40 Murray & Roberts Interview
41 Kal Tire Interview
42 Eazi Access Interview
43 METC Engineering Interview
44 Insights on Digital Mining Revolution in Africa
45 MEMSA Interview
46 Fabchem Mining Interview
47 Insights from Local Manufacturers
48 Energy
49 juwi Interview
50 Engie Impact & Vivo Energy Interviews
51 Howden Interview
52 Section 6: Sponsored Company Profiles
53 Trevali Company Profile
54 Murray & Roberts Company Profile
55 Concluding Remarks
56 Credits

Andries Rossouw, Africa Energy, Utilities and Resources Leader,

PwC

"Renewable energy opportunities have opened up massive doors."

How would you describe the current state of the South African mining industry?

South Africa is very dependent on commodities which contribute approximately 7- 8% to the GDP. With the current high commodity price levels, the mining industry is performing exceptionally well and is generating cash, paying many taxes, and supporting the country from an export point of view. In the last few quarters, South Africa has had a surplus in the balance of payments, which showcases the country’s strong export mining industry in the commodity space.

Before the pandemic, we were already in a recession, and the South African economy is currently battling. In 2020, we hit a record decrease in our GDP as well as record unemployment levels. However, there are some signs of recovery in 2021. The reality is that we will probably only be back up to pre-Covid levels post 2023.

What trends are you witnessing in the green mining space and the move towards decarbonization?

The mining industry became more efficient in electricity use since 2008, when Eskom initially implemented load shedding. Renewable energy opportunities have opened up massive doors. The President recently permitted independent private power generation of up to 100 MW, which we hope will be a good opportunity for South Africa to kickstart energy transformation.

We are optimistic regarding hydrogen’s future contribution and expect billions to be invested in hydrogen locally and in Southern Africa as a whole. Given the region’s endowment with renewable energy sources (solar, wind and hydropower), which are required to produce green hydrogen, it makes it a possible game-changer for energy deployment.

What is the investment sentiment in South Africa regarding funding for exploration?

Our investors generally do not have an exploration investment culture. We believe that this can change if the country were to use a tax flow-through scheme like Canada has, which the Minerals Council, with support from the industry, is working on. Many people are starting to invest in Africa as there is a real need to find new green economy type commodities. Even in a mature mining destination like South Africa, greenfields exploration has been limited since the 1980s. At that stage, these green metals were not yet of interest and exploration technology was not at today’s level. With the advancement in technologies, much more exploration can be done. The Council of Geoscience in South Africa is starting to open up information that would facilitate getting data to potential explorers much quicker. The Department of Mineral Resources and Energy has realized that the Samrad system needs to be replaced, and a proposal will be coming out imminently for the backlog of applications around exploration and mining rights to be addressed. The challenge that we face is that if you are interested in a specific piece of land, it is hard to know if someone else already has exploration rights on it.

Which metals are currently in the spotlight in South Africa?

PGMs have over taken coal as South Africa’s main revenue generator for the first time since 2010 and continue to grow significantly. The increase of the platinum price has been relatively stable over the last two years, and the real revenue drivers for PGM producers have been rhodium, which hit a record price of approximately US$30,000/oz, and palladium. Iridium also did very well and is used as a catalyst in the manufacturing of hydrogen. The price of iridium has increased from US$1,500/oz two years ago to approximately US$6,000/oz today. Other Bushveld igneous complex metals such as chrome and vanadium also have interesting prospects.

The Northern Cape is showing impressive mining growth with the focus on iron ore, manganese, zinc and copper.

Although we are in an energy transition and are shifting away from coal, the demand for coal is likely to remain relatively flat over the next 5 - 10 years. As there is less funding for new coal ventures and supply will be under pressure, prices are expected to remain relatively strong in the near term.

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Article: Regional Trends