PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
SJ
 
Comments: 2
Article views: 0
 
 
Latest Badges:


 
View all SJ's badges.
 

Mining's last coffin nail?

08 March 2013, 13:00

The ideas of one, Transnet CEO Brian Molefe, to restructure rail transport tariffs to be aligned with the ANC regime's economic policy and the National Development Plan, can surely be nothing but pure stupidity. This increase will mean mining firms will see an increase up up to 68% in their rail transport costs. I am sure there are many seriously peed of mining CEO's and shareholders who are wondering if it is even worth doing further business in this new South Africa,

Molefe and his bosses are of the view that these increases will force miners to rather not export but add value to the minerals in South Africa. That might sound like a good plan, but it simply makes no business sense and the thinking behind is flawed. 

Even if these minerals, especially iron ore, are to be used locally, it will still have to be transported and the increased cost will still be part of the mines expenses. Secondly, China, who actually has a demand for the ore, will simply source it from somewhere else and the steel they make will still be cheaper than what can be produced in RSA  Even RSA users will import rather than use local steel. We will also have a surplus that basically will be dead stock.

The the reason why the regime wants this local use of minerals are twofold:

  1. Job creation

  2. Extraction  of more taxes

Businesses exists first of all to make profit and the two issues, important to government, are in no way a core principle for any business and mining is no different. Who on earth starts a business only to create jobs or pay taxes?

The mining sector is under severe pressure and this tariff restructuring might just be a last nail in an already almost shut coffin.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
Tiaan Davel
#Feesmustfall: Slight Solution

I am not going to pretend I understand the “struggle” the current students are going through with the #Feesmustfall.  Read more...

0 comments 1296 views
Submitted by
Commissar Mogotji
More wastage again in Elias Motso...

Management within the ambit of Elias Motsoaledi Local Council yet once again proved their lack of financial management and actually their ability to conduct sound financial management. Read more...

0 comments 440 views
Submitted by
Colin Webster452
MSSA welcomes Afrikaanse Hoërskoo...

The affiliation of Affies Sasolburg Mind Sports Club (ASMSC) is largely due to the sterling efforts of Leonard Loftus. Read more...

0 comments 236 views
Submitted by
Alex Butterworth
Bled dry by healthcare costs?

 Read more...

0 comments 176 views
Submitted by
Ben Sassman
SOLUTION To #FeesMustFall

SOLUTION: Let's make up a SA Government Task Team comprised of Depart of Education and Depart of Finance Professionals.  Read more...

0 comments 135 views
Submitted by
Tim House
Impunity Must Fall

If there is anything in South Africa that is overdue for a fall, it must surely be impunity. Read more...

0 comments 139 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2016 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.