Mining boom in South Africa sets stage for growth in Eswatini’s mining sector

Mining boom in South Africa sets stage for growth in Eswatini’s mining sector

By Ncaba Ntshakala

The recent surge in South Africa’s mining production, which increased by 4.7% year-on-year in September 2024, has surpassed expectations and provides a strong indication of the sector’s resilience and potential for growth.

The increase was largely driven by positive contributors such as platinum group metals (PGMs), iron ore, manganese ore, chromium ore, and diamonds, with coal and gold being the only negative performers.

The data from Statistics South Africa (Stats SA) signals a continued recovery in mining, with seasonally adjusted production increasing by 3.8% in September, following a strong August performance.

As mining continues to rebound, Eswatini’s mining sector, which is expected to see significant growth in the coming years, could benefit from the trends emerging in its regional neighbour.

In Eswatini, the mining and quarrying sector is forecasted to grow by 33.0% in 2024, following an impressive 61.4% increase in 2023. This remarkable growth is largely driven by the expansion of coal production, particularly from the mining of high-yielding crown land.

As regional mining giants like South Africa experience a resurgence, there is considerable potential for Eswatini to tap into similar growth trajectories, especially within its coal, iron ore, and other mineral deposits.

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Eswatini’s proximity to South Africa, one of the continent’s most robust mining economies, creates a unique opportunity for the country to leverage regional mining trends to its advantage.

South Africa’s strong performance in iron ore, manganese, and chromium ore, which have seen double-digit growth, offers valuable lessons for Eswatini’s emerging sector.

By improving exploration and extraction processes in these areas, Eswatini could enhance its competitiveness in the regional and global mining markets.

The increase in South Africa’s mining output also highlights the importance of easing energy constraints and improving logistics; factors that are crucial for any mining sector’s long-term growth.

Eswatini, like South Africa, has struggled with logistical bottlenecks in the past, but with concerted efforts to improve rail and port infrastructure, the country could reduce operational costs and boost productivity in its mining sector.

A key challenge for Eswatini, however, will be attracting the necessary investments to modernize infrastructure and expand mining operations.

Minister of Economic Planning and Development, Dr. Tambo Gina, has recently indicated that Eswatini’s mining sector will benefit from the significant increase in coal production, strengthened by access to crown land.

Crown land, which is government-controlled land designated for extraction, offers a strategic advantage in boosting production and ensuring long-term stability in the mining industry.

Coal mining in South Africa.

With the global demand for coal, especially in the energy and industrial sectors, Eswatini’s expansion in coal production could prove lucrative for the country’s economy.

While Eswatini’s mining sector is still relatively small compared to South Africa’s, the country’s growth trajectory suggests a shift toward a more competitive and diversified mining industry.

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As South Africa’s mining sector benefits from energy improvements and logistical reforms, Eswatini could mirror this progress by investing in similar infrastructure upgrades.

With a focus on efficient rail systems, modern mining equipment, and better energy solutions, Eswatini could accelerate its mining output and join regional mining leaders in providing much-needed minerals to global markets.

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