The mining sector will remain under pressure despite positive interventions, according to Fitch Solutions Macro Research, a subsidiary of the Fitch Group. Fitch Solutions warned on Monday in a research note that President Cyril Ramaphosa's economic stimulus and recovery plan is unlikely to revive growth in the country's mining sector, despite a R400bn infrastructure fund pledge and renewed mining regulatory clarity. “Ramaphosa’s drive to spur growth in SA’s mining sector is unlikely to result in a significant revival of an industry in secular decline,” reads the report. “These proposals will be ineffective in kickstarting investment in the sector as the domestic construction industry is set to contract next year, while new mining regulations remain restrictive.” Importantly, Fitch Solutions is separate from credit rating agency Fitch Ratings. Fitch Solutions says that among the challenges for the sector are low prices forecast for strategic commodities, a contracting construction se...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now