SA’s mining sector should have grown during the last mining boom‚ aided by a loose monetary policy‚ but it hasn’t‚ said Mike Schussler‚ a director at Economists.co.za.
Mining’s contribution to gross domestic product (GDP) has fallen by half since 1993‚ to less than 5 percent‚ despite a strong market for minerals‚ he said at the Mining Lekgotla.
Mining used to make up 24 percent of GDP in 1960‚ he said.
The sector employs 20 percent fewer people than in 1957‚ he said.
The interest rate environment is conducive to investment in the mining sector‚ but this has not happened‚ he said‚ pointing out there are other issues dragging the sector down.