Mining industry turbulent in 2017
Friday, December 22, 2017
Having experienced effects of the domestic economic contraction, the industry was dealt a severe blow by the closure of the BCL Mine in October of the prior year.
According to the 2017 budget speech, the negative growth of the economy was mainly due to weak performance of the mining sector, as a result of the reduction in diamond and copper production.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...