Cape Town – President Cyril Ramaphosa has told key figures in the African mining sector that the government is exerting significant efforts to tackle the challenges confronting the industry.
Ramaphosa was speaking during the inaugural session of the 30th Investing in African Mining Indaba in Cape Town on Monday.
The Indaba is scheduled to run until Thursday.
The mining industry constitutes a substantial 7.5% of South Africa’s Gross Domestic Product (GDP) and represents around 60% of the country’s exports in terms of value.
“We are all acutely aware that we face strong headwinds, and a number of persistent challenges are impeding mining performance. Globally, commodity price volatility, high energy prices, geopolitical tensions and a global cost of living crisis are playing a significant role in dampening the business operating environment.
“Domestically, the energy crisis and port and rail bottlenecks are putting serious pressure on miners’ operational costs. Illicit mining, cable theft and infrastructure vandalism place a further strain on mining output and returns. We are committed to work hard and work together to overcome these serious challenges,” he said.
[Watch Live] President Cyril Ramaphosa on Investing in African Mining Indaba
Here is full speech: https://t.co/3yutDV6PU6 #MiningIndaba #MiningIndaba2024 #30YearsOfExcellence #MI24 https://t.co/G6Q2cpSqXT
— South African Government (@GovernmentZA) February 5, 2024
Domestically, issues like the energy crisis, port and rail bottlenecks, illicit mining, cable theft, and infrastructure vandalism were highlighted.
“The Department of Mineral Resources and Energy has secured 1384MW of new generation capacity that is currently in construction or already in operation. The department has released requests for proposals for the procurement of 5 000MW of renewable energy under Bid Window 7 and 2 000MW of gas-to-power and 615MW of battery storage.
“Transmission capacity remains a challenge especially in the Cape provinces. Eskom has therefore recently published a curtailment regime which unlocks 3 470 MW of additional capacity in these provinces, and which will be essential to the success of Bid Window 7,” he said.
“Since the establishment of a specialised police unit, working with the defence force, we have seen a number of arrests, prosecutions and convictions of the perpetrators of this crime.”
#MiningIndaba2024 welcomed H.E Cyril Ramaphosa, President of South Africa, H.E. Hakainde Hichilema, President of Zambia and H.E. Jean-Michel Sama Lukonde, Prime Minister of the DRC, who shared pivotal insights during the Heads of State Keynotes.
#HeadsOfState #MiningIndustry pic.twitter.com/BvQC052aOi— Mining Indaba (@MiningIndaba) February 5, 2024
Turning to cable theft and criminality, the president acknowledged that this has “serious impact on key rail freight corridors, including the supply of coal for export through Richard’s Bay”.
“Cooperation between the private sector, Transnet and the security services has resulted in an improvement in the security situation over recent months,” he said.
He emphasised the importance of logistics reforms to support the mining sector and expressed commitment to collaboration for inclusive growth and innovation in the South African mining industry.
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Compiled by Betha Madhomu
