The nation just lately skilled a shift in its political panorama, leading to a brand new Authorities of Nationwide Unity (GNU). Notably, this was the primary time the African Nationwide Congress (ANC) misplaced its parliamentary majority since coming to energy in 1994.
In accordance with mining analyst Peter Main, the mining sector has confronted vital challenges because the ANC took over the federal government, significantly with the implementation of the Minerals and Petroleum Useful resource Improvement Act (MPRDA) in 2004.
“It’s been pummeled, overwhelmed up, kicked,” stated Main.
“It was in a position to survive the final twenty years as a result of we have been in a supercycle of metallic costs. Had it not been for that, I actually don’t suppose our mining sector can be even 1 / 4 of at present’s dimension. However as a result of we’ve had twenty years of nice metallic costs, it was in a position to maintain itself however not develop.”
Main believes there’s potential for the federal government and the mining business to collaborate on new mining laws.
“We’re cautiously optimistic,” Main informed Metals Market Information’s Devan Murugan.
Watch the total interview: