South African miners are paying more for reduced rail volumes, which pushes up transport costs for the industry, according to the Minerals Council. Despite this, there are signs of relief in mining inflation for August.
Since the South African Reserve Bank started its interest rate cut cycle last month, the rand has remained strong against the US dollar, and fuel prices have fallen, so cost pressures for local producers are expected to ease.
“While factors like electricity and wage growth remain significant contributors to cost pressures, particularly in the energy-intensive mining industry, there are signs of relief in certain areas. Transport costs, though still elevated, have shown a slight decrease, and the stronger exchange rate has helped offset some input costs, particularly for imported goods,” said André Lourens, an economist…
