Up until now, South Africa remains unmatched when it comes to the diverse variety of minerals they have to offer. In this sector, South Africa is the forerunner and it is now operational for business.
After the decline in 2018, the loss from most of the metals and minerals has, more-or-less, reclaimed in 2019’s Q1. Precious metals are rising by a 6% average, whereas the base metals post an 8% average.
The demand for metals and minerals predicted to stay hushed for the remaining year, owing to frailer economic growth worldwide and the intensifying U.S.-China trade war.
Amidst geopolitical confusion, however, god prices are expected to continue rising.
The improvements seen in Q1 will probably be canceled out because of these negative market scenarios, hence the prices of minerals and metals are expected to be 2% lower in year 2019 relative to the last corresponding period.
The mining sector of South Africa is among the chief economic sectors of the country, adding nearly 7.5% to gross domestic product, 30% of export revenues, and more than 450 000 employment opportunities.
According to data released regarding Q2 GDP outcomes, the economy faced a rise by 3.1% in this 2019 quarter. Here, the mining sector contributed most at 14.4%, the sturdiest growth seen since Q2 2016. Manganese, coal, iron ore, contributed most to this rise.
The fact that coal was the biggest contributor, with 28%, shows how the country still houses ample coal resources. We rely greatly on coal-generated electricity, and will continue to do so for many years to come.
Eskom, our power utility, plays a vital part in making sure of energy supply, but in recent years it has undergone challenges linked with obtaining the particular quality and quantities of coal at fair prices.