EDITORIAL: Don’t discount the nuggets of hope in mining
South Africa has been placed low in a worldwide ranking of mining companies, but there are some positives still
Creating a positive vibe for the local resource sector seems an impossible task these days. Large tracts of the sector are well past their respective heydays. However, mining still remains a key economic engine. It can be violently cyclical. So, when commodity prices boom, mining groups have to be allowed to execute efficiently to build enough capital to reward shareholders, reinvest in new projects and create a buffer for the inevitable downswing.
Let’s not forget the heaps of tax revenue that can be generated in good times — though this fact may be lost in the ideological layers that sometimes smother sensible economic policy...
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