Highlighting trends in SA Mining industry
The 2017 financial year was another tough one for stakeholders in the mining sector. Investors in aggregate saw a decrease in dividends and market capitalisation after a cautiously optimistic view on a recovery last year.
Decrease as a result of regulatory announcements
10-year low - a reflection of the industry’s uncertain outlook.
R43 bn increase - the first substantial increase in more than 5 years
Improved prices brought the industry back into profitability.
The 2017 financial year was another tough one for stakeholders in the mining sector:
The negative environment has been offset somewhat by the excellent recovery in the prices of coal, iron ore, manganese and chrome over the last 18 months. Mining companies that have repositioned themselves within the current low-price environment have also started to see the benefits of cost saving initiatives reflected in lower operating cost increases.
It is not surprising to see cybersecurity being included as a risk by some companies. PwC’s Global state of the information security survey data shows that the compound annual growth rate (CAGR) of detected security incidents has increased 66% year on year across all industries since 2012.
Safety remains a focus area for all mining management and is probably one of the biggest success stories for the mining industry over the last 20 years. Statistics provided by the DMR show a downward trend in fatalities for the industry as a whole over the past 10 years, indicating that investments made in safety initiatives by both companies and the DMR are delivering positive results.