Africa-Press – South-Africa. South Africa’s mining industry may be facing its swan song if drastic action is not taken soon.
South Africa’s mining industry has made headlines recently with warring unions, hostage situations, deadly incidents, and illegal mining gangs pointing to a sector in trouble.
The latest incident occurred on Monday at South African mine Impala Platinum where 11 workers were killed and 75 seriously injured after a lift coming to the surface dropped about 200m.
A report by big four auditing firm PwC supports what analysts have been saying for some time – mining in South Africa is on the decline.
According to the report, the country’s iron ore industry may only have 13 more years left, while gold is expected to run out in less than three decades.
Staring down the barrel
“People have their heads in the sand,” says mining analyst David van Wyk. “Things are changing in the country and the industry.”
Lead researcher at the Bench-Marks Foundation, van Wyk says the industry in its current state may be facing its final days.
“Large-scale industrial mining is a sunset industry,” he tells The Africa Report. “No one wants to admit that it is not sustainable.”
The solution now, he asserts, is to focus on small- and medium-scale mining and renewable energy projects.
Treating the symptom, not the cause
Earlier this month, South Africa’s President Cyril Ramaphosa ordered over 3,000 military personnel to help in the fight against illegal mining activity, which reportedly costs the country billions of dollars annually.
Illegal miners, known as zama zamas, operate country-wide and have wreaked havoc on local communities, including cases of gang rape and missing persons as well as deadly explosions.
But could Ramaphosa’s enlistment of the army, called ‘Operation Prosper’, be a red herring?
“The mining industry is contributing to the zama zamas,” says van Wyk, who argues that mass layoffs leave workers with few options to ensure their survival. “Sending in the army won’t create jobs.”
White elephants
Mining towns across the country are suffering as old, deserted mines affect not only the economy but also the environment.
Hoards of mine workers have been laid off with mine closures, particularly gold mines. The impact of the job cuts on smalltown communities has been devastating.
The future of the mining industry in South Africa looks bleak, with van Wyk suggesting the country is on the precipice of a “post-mining nightmare”.
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