June 2015
|
World Coal
|
15
W
ith its ratings at the
second-lowest
investment grade,
inflation forecasts set
to breach the top of the central bank’s
target range, reduced national growth
forecasts, a new coal policy from the
government, ships waiting seven days to
load because of power blackouts (while
national power utility Eskom seeks to
sell off assets), producers, analysts and
potential investors in the South African
mining industry are asking: is it not time
for a reality check?
The mining industry is fearful that
rapidly changing legislation will once
again move the goalposts when it comes
to black economic empowerment
requirements, putting existing rights and
licences at risk. Meanwhile, a senior
executive from the coal sector has spoken
of a lost decade and fears that the next 10
yr could easily result in little more than a
virtual replay of that time.
“We have the single largest measured
minerals inventory in the world,” said
Mark Cutifani, CEO of Anglo American.
“But in the course of the last 10 yr, real
values in terms of the prices of mining
