There are mixed feelings among investors and mining players ahead of the 2025 Mining Indaba to be hosted in Cape Town next month, with investment opportunities, production growth prospects and profitability prospects dimmed by logistical constraints, the scourge of illegal gold mining and policy inconsistencies.
The Mining Indaba attracts mining industry and government delegates from South Africa and from across the continent while also providing a platform for closer interaction between players, investors and bankers among others. This year’s edition of the Mining Indaba comes against the backdrop of the Stilfontein disaster where illegal gold miners have died and others are being rescued alive.
Busi Thabane, the general manager for the Bench-Marks Foundation that monitors mining companies, said this week that she expected the Stilfontein crisis and the scourge of illegal gold mining to take centre stage at the Mining Indaba.
Bench-Marks Foundation organises the Alternative Mining Indaba that runs parallel to the main Mining Indaba in the same city around the same time and Thabane said the organisation will shine the spotlight on Zama Zamas and the unfortunate incidents at Stilfontein.
“We definitely hope that this issue will take centre stage at the Mining Indaba in Cape Town next month. Ourselves we have the Alternative Mining Indaba that runs parallel to the main Mining Indaba and we will bring it up at the Alternative Mining Indaba,” she said.
Despite the Stilfontein crisis casting a shadow, other delegates to the Mining Indaba are optimistic of the opportunities offered by the gathering. Business France said, “Despite challenges such as infrastructure deficits and regulatory uncertainties, the continent’s rich deposits” still attracted significant investment.
“By engaging with key players and promoting the adoption of more environmentally friendly technologies within the sector, we can create further opportunities to strengthen connections between Africa and France,” said Business France South Africa industry head Stéfane Leny.
Leny said that Business France’s “presence at this year’s Mining Indaba aims to provide support to French firms that are interested in connecting with industry stakeholders” across the African mining sector.
Vuslat Bayoglu of Menar Investments which runs mining ventures in South Africa told Business Report that this year’s Mining Indaba presents an opportunity for the Department of Minerals and Energy to clarify industry issues to investors.
“Mining Indaba could be an opportunity for department of mineral resources to convince investors about spending capital in South African mining industry,” said Bayoglu.
However, the Mining Indaba has been criticised as not translating to key policy challenges, especially at a time when South African mining constraints such as logistics and energy costs have persisted. Recently ArcelorMittal South Africa said it was shutting down its longs steel business partly due to government policy failures.
“No (expectations) really, it’s typically a talk shop and little tangible comes out of it,” said South African markets analyst, Simon Brown in an interview.
Experts anticipate the African mining sector to be shaped by significant trends driven by global demand, sustainability goals, and technological advancements this year amid intensified focus on reduction of carbon footprints, managing water resources effectively, and aligning operations with global sustainability goals.
There is also likely to be “emphasis on building local refining and processing capabilities to boost economic benefits within the continent and reducing dependency on raw material” imports.
BUSINESS REPORT
