‘Good time to invest in South Africa’

And more updates from day 2 at the Joburg mining indaba.
The government is in talks with coal producers in a bid to reduce the price Eskom pays for fuel supplies, mines minister Gwede Mantashe says. Image: GCIS

South African mining executives, investors and officials gather in the nation’s economic hub for the second day of the Joburg Indaba conference to discuss the industry’s investment prospects after years of regulatory uncertainty.

Overall, it’s been a good year for South African miners as the rally in iron ore, gold and platinum-group metal prices boosted earnings and put dividends back on the agenda. Still, looming labor disputes, a reliance on a weak currency and the slow demise of gold mining leave the industry with plenty of challenges.

Read: Anglo CEO says investors need security

Here are the latest developments, updated throughout the day. 

Good time for South Africa investment (10:30 am)

The current bearish tone on South Africa means that mining assets are cheap, making it a“ good time to invest,” said Myuran Rajaratnam, portfolio manager at Metal Industries Benefit Funds Administrators.

South Africa continues to make progress and draw interest from investors, said George Cheveley, portfolio manager, at Investec Asset Management. “We certainly invest in South Africa, but there is always more to do as well from a regulatory and policy point of view,” he said.

Minister wants to cut coal price for Eskom (9:13 am)

South African Mines Minister Gwede Mantashe said the government is in talks with coal producers as it seeks to reduce the price paid by state power utility Eskom for supplies of the fuel.

Mantashe said the government is also worried that Eskom’s value could be destroyed should the transmission business be split off. “If you sell transmission, you are saying close down Eskom,” he said. The minister said South Africa’s resources plan will be presented to cabinet next week, adding that calls to abandon coal immediately show “shortsightedness.”

© 2019 Bloomberg L.P.


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This Mantashe guy is a hoot! It is not shortsighted to abandon coal immediately (impractical yes, but not shortsighted). It IS however shortsighted to expect the ANC, it’s members or Eskom to abandon the graft and patronage networks they have established in Eskom and related industries over the course of 25 years. It is shortsighted to expect change from the same crowd that brought you State Capture in the first place. Amandla.

Just amazes that the first thing that gets the blame is the coal producers! No mention that the corruption cases will be taken further with the corrupt persons arrested or the massive head counts are going to be fixed and employee costs brought into line with international standards

That poor tired minister. Yes-getting coal prices down is a start. But isnt it a lot easier to get a new CEO( and one not undermined by the disgusting Minister Gordhan) for Eskom to sort this mess out. Restaff and fire 40% of the deadwood and pass the savings on. A lot easier than bullying coal mines into insolvency-but I forgot-the (very) well fed minister is their because he bought the votes-with jobs at Eskom!!

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