INVESTMENT
Economists predict charter will fuel investment boom in mining sector
Mining is expected to detract from first-quarter GDP, despite a 3.1% increase in February. But economists say an amended Mining Charter, to be released in May, should revitalise investment in the sector. Mineral Resources Minister Gwede Mantashe said on Tuesday engagements with stakeholders about the charter had mostly been finalised and a new charter would be released at the end of May. Statistics SA data released on Thursday showed that mining production increased 3.1% year on year in February. In the three months ended February, seasonally adjusted mining production decreased 2.4% compared with the previous three months. The R230bn industry has been plagued by depressed prices, social unrest and policy uncertainty. It contributes 7.48% of GDP. Relations between the mining industry and ministry deteriorated in the past year over an impasse on the charter. "Policy and regulatory uncertainty around the Mining Charter has detracted from investment into the sector, preventing stronger...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.