South Africa’s mining sector will be navigating a path to the ‘new normal’ as the phasing in of mining operations begins – and this will comprise mainly unchartered territory.
The closure of certain mining operations has been unprecedented and caused a jolt to the mining sector, which was even before Covid-19, under extreme Financial pressures. However, there are some immediate opportunities to build on, and a legacy of expertise in infectious diseases which can support mining’s efforts to regain its footing.
The closure of mining operations – except for those deemed of strategic importance – has certainly been an unprecedented jolt to a sector already under various commercial and other pressures. The financial recovery from this point will be complicated by lower demand in the short term, which will further impact on cashflows. Bridging finance may be necessary to sustain business viability in many cases, and interim funding to provide liquidity is foreseeable.
