Eskom, Transnet hamper mining sector: The mining industry suffers when there are problems with electricity supply, infrastructure and transport
“Underground high value mining like platinum, gold or diamond need electricity more than they need transport like the rail and trucks. But the big guys who do manganese, iron ore, chrome, phosphate, titanium, those guys need the infrastructure, they need railroad cars, they need trucks. They’re
“[Load-shedding and Transnet woes are] so disruptive. The company’s costs are fixed and so they have to pay the full price for their workers because it’s not their fault, a full price for rental lease, taxes. It’s horrible and it’s eating up the profit margin. It makes the mining sector very offish. We have a government that’s helping to destroy the infrastructure,” Major said. .
There was also a caution that should Transnet fail to replace the current management, the company could fall into bankruptcy. performance of Transnet, that they cannot resolve the crisis and are not capable of turning around the performance. We are insisting on the critical need for urgent change,” the letter stated.
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