There is bright future in the mining sector: Mining Indaba
There is a bright future in the mining sector; this is according to the Mining Indaba’s managing director Jonathan Moore.
Moore in an exclusive interview with CNBC Africa said he believes that there is potential to grow the mining investment in Africa.
“The resource opportunities here in South Africa are some of the best in the World and that is not disputable,” said Moore.
“When you couple that with long term supply and demand economics that drives this industry there is a very bright future.”
Moore said South Africa was in a down cycle now but all indications suggested that mining will continue to be a positive thing for the country for years to come.
He added that what investors needed in any decision making process was understanding what the supply and demand economics were and what the risk-reward economics are and make intelligent decisions from that knowledge.
Moore said the Mining Indaba creates that perfect platform from a combination of economists that understand the industry, ministers who speak on jurisdictions and also mining executives who understand the sector well.
He also said the current headwinds faced in the sector presented opportunities for the sector in the future.
“The commodity sector has been hit hard, mining stocks have been particularly hit hard and the Indaba will speak about long term proposition of those affected companies,” he said.
Moore said the jurisdictional uncertainties vary from country to country adding that this was going to be discussed at the Indaba.
A diverse group of investors are expected at the Indaba next year with some coming from Europe, China and Canada.
According to the SA chamber of mines, the mining sector accounted for eight per cent of the country’s GDP in 2012 demonstrating the importance of the sector to the South African economy.
Source: CNBC Africa