Service Activities Incidental to Mining of Minerals Sector in South Africa 2022

Introduction

Conditions in the mining services industry are favourable, and most companies are positive about their prospects, largely due to higher demand for a range of commodities.

The mining support services industry’s total income has been increasing over the past few years. Africa is widely regarded as a key long-term growth market for mining, providing opportunities for local mining services companies. However, the local mining industry’s sustainability is not certain, as not enough mines are being developed to replace ageing mines.

Opportunities

Growth in the African mining industry.

Increased demand for commodities needed for the world’s clean energy transition.

Outlook

Globally, the mining support services industry’s revenue is expected to grow in response to increased demand for metals and minerals needed for the world’s clean energy transition. Stefanutti Stocks expected the number of tenders to increase due to high commodity prices. Murray & Roberts said there was a significant pipeline of new projects it was bidding on.

Report Coverage

This report on service activities incidental to mining of minerals in South Africa covers various services to mining companies such as site preparation, drilling, blasting, crushing, screening, truck loading, hauling, , stockpile management, shaft sinking, rock boring, tunnelling, exploration drilling and mine rehabilitation.

It includes information on the state of the sector, notable players, corporate actions and developments. There are profiles of 25 companies including major players such as Aveng Moolmans and Master Drilling and Murray & Roberts, logistics companies such as Cargo Carriers and specialist services providers such as Lesedi Drilling and Mining Contracting and UMS Shaft Sinkers.

Strengths

High levels of technology use and innovation.

Large number of well-established companies.

Threats

Impact of COVID-19.

Local mining industry is not growing. Poor economic growth affects the industry’s performance. Rising input costs, especially diesel.

Weaknesses

Providing services to only one industry. Skills shortage.