China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
A report from Statistics South Africa paints a bleak picture of the mining industry’s productivity.
In its February production and sales report, Statistics South Africa said total mining output retreated 14.5% from a year earlier, the greatest rate of decline since March 2008 when the world was gripped by the financial crisis.
More dramatically the overall output and sales from the resources industry in the African nation is now the lowest since 1961, according to a graph from Mike Schussler—that was the year South Africa left the British Commonwealth and declared itself a republic; the start of a long period of isolation that only ended with the election of Nelson Mandela as president in 1994.
Platinum mines were worst hit, producing 48% less due to a three-month strike at Impala Platinum’s Rustenburg mine- the world’s largest platinum mine- along with safety-related shaft closures. Gold production slumped 11.5% compared to the same period a year ago. Copper and diamonds were off a respective 15.1% and 8.8%. Nickel production fell 33.6%.
Bloomberg quoted an analyst at BMO Capital Markets saying that the significant decline in platinum in South Africa, which produces 75% of the metal used in autocatalysts and jewellery, could support PGM prices in the short term.
On the bright side, iron ore, chromium and manganese all showed production increases in February, with manganese the largest at 29.3%.
Mineweb quotes Nedbank’s economic unit saying that the mining sector is likely to remain weak over the next few months and may come in negative for the quarter in South Africa’s GDP figures:
“Mining production will remain under pressure in the short term. Weaker global growth prospects will be a drag on activity. China’s import growth weakened sharply in the first quarter, reflecting a slowdown in commodity imports and this trend will impact domestic mining activity negatively. In addition, domestic constraints, related to both infrastructure and the regulatory environment, will also continue to hurt the sector.”
3 Comments
rakeshkapila
In Africa the choices are rather limited, either you tandoori-roast the Goose which lays the Golden Eggs or make an economic omlette of the laid Golden Eggs. The local leaderships are Loud and Clear ” It is very difficult to improve upon things near perfection” Human gratification, personal entertainment and enjoyment must precede any work ethics, personal discipline and social controls. Long Live Africa and its eternal leaders often” Suffering from the Father of Nation Syndrome”
allritejack
This was all so predictable, as was the current Zimbabwe food crisis. History has clearly shown that economics runs last in the political thinking of Africa. Wait until the tax revenues are hit this year by these problems, which of course will surprise the government as they have no concept of cause and effect.
Mr Buffalo
Put in more Toll roads to cover the short fall in Tax !!