Despite widespread unrest which has crippled economic infrastructure such as roads, ports, rail and the country’s largest fuel refinery, SA’s mining sector has not been significantly impacted, the industry has said.
“At this stage the mining sector is not materially affected by the unrest,” Roger Baxter CEO of the Minerals Council SA told Business Day on Thursday after days of continued looting and vandalism engulfed Gauteng and KwaZulu-Natal.
Mining is a key sector for SA’s economy, employing 450,000 people and contributing 8.2% to GDP in 2020. Amid booming commodity prices, the industry has done exceptionally well this year so far.
While most mines across the country have continued producing at normal levels, the closure of the Durban port and the Natal Corridor rail link and some roads is frustrating the movement of goods in, out and around the country.
However, the council said most of its bulk commodity exports have not been affected. The rail shipments of coal to Richards Bay continue to run, it said. The Richards Bay Coal Terminal on Thursday said port services had resumed on Wednesday and there are three vessels awaiting berthing.
Export services through the Durban harbour are yet to resume and as a result chrome shipments are being delayed, though some have been rerouted. A small portion of chrome shipments sent by road along the N3 has been affected by the unrest, the council said.
The council said it was working with the police on security issues “especially in respect of road and rail infrastructure, and critical stores and materials”.
In Gauteng, there have disruptions to road transport which has delayed delivery of product, “but in general material inputs to the mining sector are flowing at a sufficient level”, it said.
The closure of the SA Petroleum Refineries (Sapref) on Tuesday has sparked fears of fuel shortage, but Baxter said the inland terminals and storage facilities are sufficient to ensure mines continue operating, and fuel is arriving safely at mine sites.
The council is, however, working with the police, petroleum industry and the government to ensure the Durban fuel and oil facilities resume services as quickly as practically possible, hopefully within the next week or two.
Baxter said the council has had several engagements with the mineral resources & energy department and is “managing the situation in a collaborative way”.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.