The Minerals Council South Africa has urged a speedy resolution to the strike affecting state-owned Transnet’s rail and port network, costing the country and damaging an already fragile economy, it said in a statement.

The council, whose members account for more than 80% of Transnet’s rail business and 50% of the group’s income, is concerned that the strike is damaging exports and imports, threatening not only mining companies but the country’s fragile economy at a time when 44% of people are unemployed. 

According to the council’s estimates, bulk mineral exporters are losing 815 million rands ($44 million) worth of exports per day because they are unable to rail and load 357,000 tonnes of iron ore, coal, chrome, ferrochrome, and manganese onto ships daily.

On average, South Africa exports about 476,000 tonnes of bulk minerals daily, worth 1.06 billion rands. 

“We estimate that just 120,000 tonnes of minerals worth 261 million rands are being exported daily. Major mineral export harbours are operating at between 12% and 30% of their daily averages,” according to the council statement. 

The council estimated an export loss of 50 billion rands on an annualised basis this year for iron ore, coal, chrome, ferrochrome, and manganese exporters as measured by delivered tonnages against contracted rail tonnages.

This compares to a loss of 35 billion rands in 2021 based on the same metric, the statement said.

(Editing by Seban Scaria seban.scaria@lseg.com)