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South Africa's miners disappointed by ranking

South Africa’s peak mining lobby group is disappointed with "stagnant" perceptions of the country’s attractiveness as a jurisdiction for mining investment.
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Minerals Council South Africa would like to see the country ranked higher as an attractive jurisdiction for mining investment

Staff reporter

The Minerals Council South Africa was responding to last week's release of the annual Fraser Institute's survey of mining companies, which saw Western Australia top the list.

South Africa had improved from 81st position in 2017 to 56 out of 83 in 2018, in terms of the policy perception index, following the end of Jacob Zuma's presidency and Mosebenzi Zwane's term as mining minister, the council said.

However for 2019, South Africa remained ranked at 56, out of the 76 jurisdictions for which adequate feedback was received.

"While perceptions of South Africa have not deteriorated in this regard, it is disappointing that they have remained stagnant," the council said.

It said the country was also in the bottom half of the overall investment attractiveness rankings at 40 out of 76, similar to its placing of 43 out of 83 a year earlier.

The council would like to see South Africa placed in the top quartile.

"To move towards the top quartile target, we believe the issues needing attention include the resolution of the unresolved Mining Charter and land issues, more certainty on the carbon offsets, performance improvements, and the tax free portions, especially over the long term, a more stable electricity supply and price visibility for the next decade, as well as more stable labour and community relations," the council said.

The survey was based on feedback from 263 respondents, compared with Mining Journal's comprehensive World Risk Report (feat. MineHutte ratings) - which received input from 812 industry professionals in 2019.