With the volume of tailings deposits globally increasing at a faster rate than it did in the last century, it has become prudent for mining companies to ensure minimal risks to surrounding environments and communities, including through constant collaborative innovation and meaningful community engagement.
DRDGold CEO Niël Pretorius said for some time, neglect and corruption had eroded delivery at key state-owned entities, Transnet and Eskom in particular. “It seems as though certain elements within the ruling party – desperate to cling to the state’s monopoly on electricity supply – are frustrating efforts to decentralise and privatise power generation."
Areas in which cable theft is rife may eventually be left off the power grid as it is economically unsustainable to keep replacing infrastructure, especially if power provision becomes partially privatised, says DRDGold CEO Niël Pretorius. The 128-year old debt-free company, founded as Durban Roodepoort Deep in 1895, released half-year results on Wednesday, noting revenue grew 6% thanks to a rising gold price.
In terms of rising input costs, Pretorius told Mining Weekly that seen is a slight moderation in the rate at which prices have been increasing, with a slightly better outlook going forward. “Diesel costs seem to have moderated somewhat, so we don't anticipate as steep a profile in costs as we did last year,” he explained.
DRDGold came out with its [interim] results today, also issuing us with some real, real talk on how it felt South Africa’s economy was being run right now, essentially saying that the state is in consistent default of its constitutional mandate, and the state has become a threat to the economy and the quality of life of ordinary South Africans. So a very big and bold and critical statement to make about the state right now.
DRDGold said it had processed less ore due to power cuts, which have intensified over the past several months as South Africa’s state-owned power utility Eskom struggles to supply adequate electricity. The share was down half a percent on Wednesday afternoon.
The company, which recovers gold from processing mine dumps and tailings dams, reported revenue of 2.65 billion Rand (R) for the six months ended December 31, 2022 mainly as a result of an 11% increase in the average rand gold price received to R961,022 per kilogram (kg).
"It seems as though certain elements within the ruling party – desperate to cling to the state’s monopoly on electricity supply – are frustrating efforts to decentralise and privatise power generation," DRDGold CEO Niël Pretorius wrote in the company’s half-year results statement.
DRDGold said it had processed less ore due to power cuts, which have intensified over the past several months as South Africa's state-owned power utility Eskom struggles to supply adequate electricity.
Pretorius cited the impact on business from the collapse of both Eskom and Transnet as the main reasons, but he also highlighted the social knock-on from the implosion at Transnet which has “placed commuters at the mercy of the mini-bus industry”.
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Results for the six months ended 31 December 2022 15 February 2023 (PDF - 3.25MB)
Results for the six months ended 31 December 2022 (PDF - 0.36 MB)