May 17, 2020

Changes in mining code lead to disgruntled South African workers

South Africa
Nell Walker
2 min
Changes in mining code lead to disgruntled South African miners
The South African government published a draft of the new Mining Charter last week, and the controversial proposals within it have left the industry in...

The South African government published a draft of the new Mining Charter last week, and the controversial proposals within it have left the industry in uproar.

There are now new rules surrounding Black Economic Empowerment (BEE) requirements. Mining businesses in South Africa are required to sell 26 percent of ownership to local BEE groups, meaning that a BEE group could then sell shares on to non-shareholders as it would be beyond their control. 

According to, the new charter states on this subject: “Where a BEE partner or partners have exited, BEE contract has lapsed or the previous BEE partner has transferred shares to a non-BEE company, the mining right holder must within the three years transitional period from the date of publication of the charter review its empowerment credentials consistent with the amended 2016 mining charter.”

This would force miners to constantly replace BEE shareholders when old ones left, and the rules also specify that five of the 26 percent must go to mine workers through a trust, with another five given to a local community trust. Requirements for black representation in management will be raised, growing from a previous 40 percent to between 60 and 88 percent. Enterprises must also source more capital goods from local black businesses.

Many companies have deemed the new proposal unacceptable, and as such the Chamber of Mines has said that it will engage with the government on the matter during the 30-day comment period for the draft rules.


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May 8, 2021

Global iron ore production to recover by 5.1% in 2021

Iron ore
Anglo American
2 min
After COVID-19 hit iron ore output by 3% 2020, GlobalData analysis points to 5.1% uptick in 2021

Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected  to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.

Iron Ore

Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.

“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”

GlobalData iron ore


Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.

Anglo American

Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”

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