Cape Town – Mineral Resources and Energy Minister Gwede Mantashe has emphasised the mining sector’s importance to South Africa, despite a decline in production.
Speaking while delivering a speech in Parliament during his Budget Vote, Mantashe said that the mining industry remains a significant contributor to the country’s gross domestic product (GDP).
In 2022, the value of production reached R1.18 trillion, up from R1.1 trillion in 2021, driven by strong global demand, Mantashe said.
He highlighted the sector’s contribution to employment, with 23 552 jobs created between December 2021 and December 2022, resulting in a total of 472 088 workers employed.
Mantashe mentioned the significant financial contributions of the mining sector, with R89 billion in corporate tax and R28.45 billion through royalties during the 2021/22 financial year, contributing 7.53% to the GDP.
“This is a clear indication that mining remains a strong pillar of our economy,” the minister said.
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He acknowledged the challenges faced by the mining sector, including South Africa’s low investment attractiveness ranking according to the Fraser Institute Survey. To address this, the government is taking steps to improve transparency in licensing systems by initiating a procurement process for a licensing system with integrity.
Mantashe also highlighted notable investments in the mining and energy sectors, amounting to R397 billion. These investments include projects by De Beers, Exxaro, Impala Platinum, and the Steelpoortdrift Vanadium Project.
“These pledged investments reinforce our assertion that mining is a sunrise industry ready to bolster South Africa’s economy for years to come,” Mantashe said.
In the energy sector, the minister mentioned the positive impact of lifting the threshold on embedded generation, citing the example of Goldfields’ investment in a 50 MW photovoltaic plant. He also mentioned the Seriti-Green commitment to a 155 MW wind energy facility, emphasizing progress in addressing the country’s electricity challenges.
Furthermore, the government has gazetted an exploration strategy aiming to attract 5% of global exploration spending by 2025. The Department of Mineral Resources and Energy is working with the Industrial Development Cooperation (IDC) to establish an exploration fund for junior miners, which will be concluded by the end of June 2023, with an initial investment of R500 million.
Mantashe also noted improvements in health and safety within the mining sector, highlighting a record-low number of fatalities in 2022 and a decrease in reported occupational diseases.
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Source: AFP
Picture: Getty Images
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