Vaikundarajan explains the problems faced by mining sector in south africa

Vaikundarajan Explains The Problems Faced By Mining Sector in South Africa The political unrest and labour instability has put South Africa’s mining industry at a huge risk. This in turn is bound to affect the nation’s capital. “South Africa’s mining sector accounts for a 7% GDP of the country. With the mining industry facing a downside, it could well be possible that the country’s mining potential is never achieved,” says Vaikundarajan, founder of VV Minerals India, one of the leading sand beach mining companies in the country. As per the 2016 draft of the Mining Charter, companies are required to keep black ownership at 26%. This rule has not gone well with the Chamber of Mines who has threatened to take the government to the court. “The government did not consult the Chamber of Mines before passing the draft that redresses rules for white-owned companies selling stakes to black business,” informs Vaikundarajan. The investors are losing confidence in the mining sector due to these two factors – improper governance and labour instability. Losing on investment will result in immediate collapse of the mining sector in South Africa.

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Vaikundarajan explains the problems faced by mining sector in south africa

Published on Dec 14, 2016

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The political unrest and labour instability has put South Africa’s mining industry at a huge risk. This in turn is bound to affect the nation’s capital. “South Africa’s mining sector accounts for a 7% GDP of the country. With the mining industry facing a downside, it could well be possible that the country’s mining potential is never achieved,” says Vaikundarajan, founder of VV Minerals India, one of the leading sand beach mining companies in the country. As per the 2016 draft of the Mining Charter, companies are required to keep black ownership at 26%. This rule has not gone well with the Chamber of Mines who has threatened to take the government to the court. “The government did not consult the Chamber of Mines before passing the draft that redresses rules for white-owned companies selling stakes to black business,” informs Vaikundarajan.