Mining may be coming to end of 2016's rich seam
Whether mining houses will continue to be lifted by commodity prices for a second consecutive year is questionable
There is no doubt that miners had a good year in 2016. In the face of rallying commodities worldwide, the share prices of Kumba Iron Ore, Anglo American and Harmony doubled and in some cases even quadrupled, placing them among the 10 best performers on the JSE. But whether mining houses will continue to be lifted by commodity prices for a second consecutive year is questionable, according to analysts. This is especially the case for South African mining companies, which, despite cutting costs, improving productivity and reducing investments in the past two years - and getting a lift from commodity prices in the second half of last year - still face specific challenges. According to the Chamber of Mines, one area of focus in mining in 2017 will be safety. Chamber of Mines spokeswoman Charmane Russell said that while the final safety statistics for 2016 had not yet been published, the number of deaths in the industry had increased for the first time in a decade, despite a drop in over...
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