Mining companies are grappling to improve productivity in order to address the demanding global and local mining environment.

These are some of the findings from PwC’s seventh edition of “SA Mine”, a series of publications that highlights trends in the South African mining industry.

The mining industry continues to be marred by labour unrest with the pressures of a recent coal strike mounting, according to PwC African Mining Industry leader Michal Kotze.

“The message to miners is clear: ‘Continue to focus on costs, refocus on your core business and carefully evaluate growth opportunities’,” he said.

“It certainly will make for some interesting planning and forecasting discussions in the coming year.”

The 2015 financial year saw the declining trend in market capitalisation continue with few, if any, companies left unscathed. Market capitalisation for the top 35 companies declined to R414 billion as at 30 June 2015 (compared to R675 billion as at 30 June 2014).

The decline continued when compared to market capitalisation as at 30 September 2015 of R304 billion, resulting in an aggregate decline of R371 billion when compared to 30 June 2014.

Although coal prices were the most severely impacted, platinum and gold mining companies have not escaped the continuing downward slide in commodity prices.

SA’s main revenue generating commodities haven’t experienced real prices as low as those experienced in 2015 in ten years, and it is not certain yet if or when the prices will start to recover.

Despite a continued reduction in prices, coal remains the highest earning commodity in South Africa. Coal had a solid performance over the last decade, with marginal increases in production in the last few years.