The Minerals Council South Africa on Wednesday committed to work with the government and other stakeholders to improve the performance of the mining sector that is currently underperforming.
This was said by the president of the council Mxolisi Mgojo at their annual general meeting. Mgojo pointed out that the mining sector is not doing well currently but they are committed to change the situation.
“The chamber and the mining industry is ready and willing to play its part in working with government and other stakeholders to revive South Africa’s economy. In fact, it is our quest to reposition the South African mining sector as South Africa’s pre-eminent industrial sector,” said Mgojo.
Mgojo said in the past three years greenfields investment has largely been placed on hold. He said in 2016 real mining gross domestic product was smaller than that recorded in 1994.
“The reality of mining in South Africa in the past few years and today is that this remains an industry in crisis,” said Mgojo.
“Without a nurturing environment that encourages long-term investment in the mining sector, those mineral deposits will remain sterilized beneath the surface with no value created for the country.”
The chamber said they do not want to take the government to court like they did in the past but was forced to do so by the non-cooperative minister then. The mining chamber said they are willing to transform the sector and willing to work with government to come up with an acceptable mining charter.
Roger Baxter, CEO of the Minerals Chamber of South Africa said there is a huge gap between the mining sector’s potential and its current performance.
South Africa is ranked in the top quartile (position 20/91 jurisdictions) by the Fraser Institute Survey. It is also ranked in the worst quartile for the policy attractiveness (position 80/91).
“Without investment our industry will dwindle and die. That does not have to be the case,” Baxter said.
The Minerals Resources Minister Gwede Mantashe established technical teams on transformation and the mining charter. The other one is on competitiveness and inclusive growth and the committee of principals that will facilitate the further transformation and sustainability of the industry.
In April, South African President Cyril Ramaphosa appointed a team of experts to source for 100 billion U.S. dollars of investment to boot the economy. The chamber stated that they will work with all stakeholders to ensure that becomes a reality. Enditem