Wes the coal profits? Lost in the economy’s sludge
Two mining companies have already begun trying to claw their way out
The SA economy has fallen on hard times, and the reverberations are being felt in the mining sector, even though commodity prices have been buoyant.
This week not one, but two, JSE-listed mining companies have remarked on the effects of struggling contractors on their business due to financially embattled contractors.
Exxaro Resources, which on Wednesday engaged investors ahead of a closed period, noted the completion of its GG6 expansion will face delays of three to six months after it terminated Group Five’s contract in March after the construction company announced it had initiated business rescue proceedings. A new contractor is now in place to do the balance of the work...