- Write by:
-
Monday, July 5, 2021 - 12:51:58
-
676 Visit
-
Print
Mining News Pro - Mining is vital to the South African economy and the opportunities that exist in mining can help guide the country’s path to a more inclusive and equitable economy, President Cyril Ramaphosa stated on Monday.
Writing in his From the Desk of the President column, Ramaphosa placed mineral and precious metal exports at the top of the list of exports that had contributed to May’s record trade surplus of R54.6-bilion.
“Rising global metal prices will play a significant role in accelerating our recovery from the pandemic downturn. In addition, they open up a host of new opportunities in the mining value chain, boosting the fortunes of the mines themselves and with them the suppliers of capital goods and the options for beneficiation,” Ramaphosa stated.
On the one hand, mining contributed to more than half of South Africa’s goods exports, representing about 10% of gross domestic product and 5% of employment.
“It’s a pillar of our capital goods industry. It’s not a coincidence that when global metals prices peak, our economy and job creation surge.
“Now is the time to facilitate investment along the mining value chain to promote broader job creation, small business development and growth in dynamic new industries,” the President wrote.
He described investment in infrastructure as being a crucial part of government’s contribution to growth in mining, evidenced by the rapid growth in the platinum belt over the past 20 years and the fact that Kumba Iron Ore would not exist without Transnet’s bulk ore lines from the Karoo to the coast. The new mining developments in the Waterberg in Limpopo, he noted, were also dependent on the State for efficient and low-cost transport and energy.
But government also faced a host of other worthy demands for infrastructure support, ranging from basic services for communities hit by the Covid crisis, to upgrading industrial sites for manufacturing and to fixing the national electricity system.
The challenge in these circumstances was to use investment in infrastructure for the mining value chain to improve conditions for producers and communities.
New investments in mining must mobilise resources from outside of the government and contribute to broader economic development.
“Our recent decision to facilitate private generation of electricity up to 100 MW demonstrates the kind of smart measure that we need,” he stated, adding that this crowded in investment from the mines and refineries for renewable generation, while helping to stabilise electricity supply for producers across the economy and providing Eskom with space to improve maintenance on its own plants.
Similarly, mining projects could help to pay for bulk water developments, which also served communities; cross-border transport corridors and bandwidth access in rural areas.
“We need to design these projects so that they support new economic activities in agriculture, manufacturing and services and empower smaller businesses. In short, these projects must leverage our mineral riches to support broad-based industrialisation.
“Mining is vital to our economy and will continue to be for the foreseeable future. Let us grasp the opportunities that exist in this sector so that mining can help guide our path to a more inclusive and equitable economy,” the President stated
Short Link:
https://www.miningnews.ir/En/News/614829
Copper traded near $10,000 a ton, hitting a new two-year high on its way, as investors continue to pile in on a bet that ...
Adriatic Metals is taking over as the operator of the Rupice deposit development, which is part of the company’s Vares ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Iron ore futures prices drifted higher on Thursday as the latest soft data from top consumer China triggered renewed ...
Rio Tinto said on Wednesday it is teaming up with a global venture studio and start-up investor to back the development ...
Outflows from global physically backed gold exchange traded funds (ETFs) continued for a 10th month in March, but at a ...
Australia’s Fortescue said on Monday it would form a joint venture with OCP Group to supply green hydrogen, ammonia and ...
BMO Bank quietly dropped its policy restricting lending to the coal industry in late 2023, helping it avoid being ...
Mining News Pro - The ceremony of commemorating the tree planting day and the beginning of the afforestation project and ...
No comments have been posted yet ...