SA gold industry has rosy future

miningmx.com
by Marc Watchorn
05 July 2006

THE mining industry in South Africa has changed substantially over the past few years - primarily due to changes in legislation in the country, according to Marc Watchorn, the CEO of JSE-listed exploration company Wits Gold.

"The South African gold industry in particular has a reasonably rosy future," Watchorn said, adding that those who previously predicted that it was a sunset industry "may be proven wrong."

Watchorn is also confident that exploration firms in South Africa are well poised to reap the rewards of taking on risk a few years back. "We took advantage of the situation and concluded deals with major mining companies when the gold price was $350/oz and there was a degree of uncertainty regarding legislation," Watchorn said, referring to South Africa's minerals legislation whereby mining companies had to commit to using their mineral rights (and therefore investing in them) or lose them.

"It's only a matter of time before the pendulum swings and major mining companies look at South Africa again [for reserves]," Watchorn said.