* South Africa mining no longer the draw at Indaba gathering
* Labour, power costs, political risk curb enthusiasm
* Asia, South America, elsewhere in Africa tempt investors
more
By Ed Stoddard
CAPE TOWN, Feb 9 (Reuters) – The industry executives
who pile into Cape Town every year for the annual African mining
conference love the sun, wine and stunning mountain backdrop the
venue provides.
But South Africa’s once towering mining industry is no draw
and investors flocking to the “Indaba”, as it is called, have
their sights set on alluring prizes elsewhere on the continent.
Gold and diamonds built Africa’s largest economy, which also
boasts 80 percent of the world’s platinum reserves, but outside
investors remain wary of sinking money into an industry that
appears in a state of terminal decline.
Soaring labour and power costs which are not matched by
productivity gains, not to mention the world’s deepest shafts
for those mining gold, are all making South Africa a treacherous
place for miners who are finding less headaches elsewhere.
Political risk and policy uncertainty have also dampened the
enthusiasm of an industry that must invest millions and even
billions to build mines before it can recoup any profit.
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