Mining sector returned to profit in 2016, but employed fewer people
The South African mining industry showed signs of recovery during 2016 despite headwinds from global pricing and domestic uncertainty, said Chamber of Mines CEO Roger Baxter, while outgoing president Mike Teke said the black ownership target needed to be revisited. After making an aggregate loss of more than R30bn in 2015, the local mining sector generated R304bn towards SA’s gross domestic product, representing 7.4% last year, rising from R286m and 7.1% the previous year. The sector’s payments towards royalties and taxes, money that flows directly into government coffers, stayed steady at R3.7bn and R12.5bn respectively, while R6bn was paid to a variety of levies, including skills development. Employment in mining dipped to 455,109 people by the end of 2016, down from 457,698 a year earlier, the chamber said. Falling global commodity prices in 2015 along with operational challenges, including the "negative impact of inappropriate Section 54 safety stoppages", contributed to the nea...
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