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Policy uncertainty dominates Mining Indaba

October 5, 2017 11:45 PM
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Investors say they are finding other African countries like Ghana, Rwanda and Botswana more attractive than South Africa for mining investments. (SABC)

Policy uncertainty has continued to dominate discussions at the Joburg Mining Indaba. Delegates heard that South Africa is a no go area for investments in the mining sector as a result of the uncertainty in the regulatory environment.

Analysts say there is very little new investment at the moment with investment mostly in areas where projects are already established.

Investors say they are finding other African countries like Ghana, Rwanda and Botswana more attractive than South Africa for mining investments.

They say the country's increasingly tough regulatory environment is forcing them to look elsewhere.

The Chamber of Mines says it is committed to engagement in resolving the mining sector's impasse with government.

The organisation says despite the court case, it is consulting stakeholders including those involved in drafting mining charter 1 and 2 about how the new mining charter should look.

Social activist Jay Naidoo says the indaba is happening at a time of instability in the country which is not purely caused by government, but he believes the private sector has played a role.

He called on the business sector not to be complicit in the looting of state resources.

Delegates heard that the current impasse is likely to impact on the fiscus going forward.

This as the uncertainty takes a toll on investments and job creation and as a result tax collection.

Source: sabc.co.za

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