SA miners' market cap falls 55% - PwC

Johannesburg - The combined market capitalisation of South Africa's 35 top mining companies has more than halved since last June, a report said on Wednesday, highlighting the impact of a sharp fall in commodity prices and other challenges.

The report by consultancy PwC said the market capitalisation of the 35 companies had fallen to R304bn as of Sept 30, 2015, from R675bn on June 30 last year - a drop of 55%.

The report, released on the sidelines of the Investing in Resources and Mining in Africa conference in Johannesburg, said the industry's cash flow "is the worst since the financial crisis in 2008".

Aside from depressed prices, mining companies have been grappling with rising costs, notably for labour, though its share of costs declined this year.

"Labour costs still remain the biggest cost component in the local mining industry. The share of labour costs decreased marginally from 47% to 45% in the current year," the report said.

Commodity prices across the board have been slumping in the face of slowing growth in China.

SA is the world's biggest platinum producer but the report said coal is the economy's highest earning commodity.

Investor flight from South Africa's once towering mining industry, especially the gold sector, is becoming a stampede.

In its latest quarterly review of stocks on its benchmark Top-40 Index, the JSE put AngloGold Ashanti at number 38, clinging to membership of an index now dominated by banks, technology companies and diversified mining firms.

Kumba Iron Ore also lost its blue-chip status.