A recent survey by the Chamber of Mines reveals an increase in miners’ confidence, with the Mining Business Confidence Index rising to +5.4 from -0.3 last year, driven by expectations of improved commodity prices.
However, 90% of miners remain dissatisfied with government fiscal policies, with a confidence index for these policies at -5.9 for 2025. Issues like royalties, taxes, and the exchange rate contribute to skepticism about the investment environment, with 94% anticipating ongoing challenges in accessing foreign currency.
Miners project a 10% revenue increase to US$6 billion in 2025, with average production expected to rise by 20%. Despite this, 40% anticipate reduced profits due to an 8% increase in costs.
Power supply remains a major concern, with current costs at USc14.21/KWh and diesel tariffs exceeding USc30/KWh during outages. The industry estimates potential revenue losses of around US$500 million due to power interruptions.
Miners recommend reducing royalties and increasing the retention level of export earnings from 75% to 85% to enhance competitiveness.
