Lack of Investment Hurting South African Coal Industry

Mining Weekly reported that although coal is South Africa’s main source of revenue, the industry is suffering from a lack of investment. That’s partially due to the fact that potential investors are waiting to see what the pending revision of mining legislation brings.

As quoted in the market news:

‘We need more mines but for that, we need more investment,’ said senior coal analyst for XMP Coal Consulting Xavier Prevost.

He told the Investing in African Mining Indaba, in Cape Town, that potential investors were on tenterhooks pending the revision of mining legislation.

‘Investors are waiting and holding their investments until the new law comes into operation. They’re worried that they will be prevented from getting enough profits from coal mines.’

Click here to read the full Mining Weekly report.