With the easing of the nationwide lockdown on June 1 to level 3, the mining industry can return to full production.
Once the backbone of the SA economy, mining has taken a back seat to financial services but remains a major employer and a critical source of foreign-exchange earnings for SA.
The industry prides itself on being consistent in measures to take to prevent the spread of Covid-19 in operations and even in surrounding communities. Mineworkers are among the most screened people in the country and are perhaps safer from the virus in the workplace than anywhere else in the country.
For this reason, the preparations at mines provides a shocking glimpse into what could lie ahead.
Sibanye-Stillwater, the largest employer in the country, at its platinum mines has converted old hostels so that there is capacity to quarantine 1,800 people. At its gold operations, similar facilities have been prepared for 800 people. At local hospitals, the company has reserved 100 beds should they be needed. It sounds a lot but actually caters for 3.8% of the company’s 69,500 permanent employees.
It’s admirable that the company is taking the threat of Covid-19 seriously, but it’s hard to imagine how operations will run should the facilities need to be used.
The easing of government’s lockdown is indeed welcome, but next it may well be the virus itself that hamstrings even permitted economic activity in the months ahead.
Property funds in SA bet on European counterparts to perform
SA commercial property funds and their investors are banking on European and British assets to come good while SA’s economy struggles.
Last week, JSE-listed Lighthouse Capital announced it had raised close to R270m from SA-run institutions and individuals through an equity raise. The process included some investors paying cash for shares and share swaps with two companies. Following the raise, Lighthouse will hold a 7.47% stake in Eastern Europe’s largest landlord, Nepi Rockcastle, and a 10.31% stake in UK and Western-Europe-invested Hammerson.
Meanwhile JSE-listed Stor-Age Property Reit raised R250m in equity with the intention of investing deeper in the UK personal storage market. CEO Gavin Lucas said the demand for storage space had increased while Britons had been in lockdown.
Germany-invested Sirius Real Estate, which owns business parks and storage warehouses is also attracting investors. Its CEO, Andrew Coombs, said Germans were among European groups that travelled the most but had been unable to in their spring while in lockdown. They needed to store camping and other goods, which would be used for warm holidays.
Music festivals and other public gatherings have been cancelled across Europe.
Coombs said companies were also storing goods, that would usually be exported as they waited for the economy to open up.
On Friday, US group Apollo Global Management announced a bid to buy out British warehouse owner Atlantic Leaf Properties. If the deal goes through, its investors — who are mostly South Africans — will receive a cash payout of more than R3bn.
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