Nokukhanya Mntambo | 05 December 2022
File: Sibanye-Stillwater's Masakhane mine in Driefontein. Picture: sibanyestillwater.com
The multi-national company said that the controversial BEE policy and threats of land expropriation without compensation continued to push investors out the door.
JOHANNESBURG - Mining giant Sibanye-Stillwater said that some of government's transformation policies remained a sore point for the industry.
The multinational company said that the controversial BEE policy and threats of land expropriation without compensation continued to push investors out the door.
A poor policy environment, power cuts and labour disputes were among factors that contributed to a recent drop in the group's share price.
Despite the challenges, Sibanye-Stillwater said that the industry was in good shape.
Mining production in the country dropped by 4.5% year-on-year in September, making it the eighth consecutive drop.
The largest negative contributors were iron ore and gold.
The last time the industry saw a drop of this magnitude was at the height of the COVID-19 pandemic.
Meanwhile, Stats SA said that seasonally adjusted mining production increased by 0.1% in September, compared to the previous month.
Spokesperson for Sibanye-Stillwater, James Wellsted, said that while the industry had bounced back since the pandemic, there were still factors that continued to hamper growth.
"The regulatory and policy environment, unemployment, crime, social unrest, militant labour unions do make it quite challenging."
While the industry has often been at loggerheads with workers over wages and working conditions, Wellsted said that the relationship with labour had improved.
"I would say we've got quite a good relationship with the unions on the ground," Wellsted said.
While the country's economy continues to face some difficulties, the mining industry remains a top contributor to growth.
‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’