Mining Mirror June 2019 | Page 32

Mining in focus Not all doom and gloom The South African mining sector is facing many challenges, but regulatory certainty and President Cyril Ramaphosa’s administration could spell a new dawn for the industry, writes Allan Reid, director and mining sector head in the corporate and commercial practice at Cliffe Dekker Hofmeyr. W hile the mining industry has been the main driver of the South African economy for many decades, it is under increasing pressure from rising costs, regulatory uncertainty, and waning investor confidence, but there [30] MINING MIRROR JUNE 2019 is hope that President Cyril Ramaphosa’s government will usher in a new dawn for the industry. The tough operating environment for South African miners is evidenced by subdued merger and acquisition (M&A) activity in the sector, which has plateaued Cliffe Dekker Hofmeyr About the author Allan Reid is the corporate and commercial director and the head of the mining and minerals sector at Cliffe Dekker Hofmeyr. www.miningmirror.co.za