“Over the past three decades, South Africa’s mining industry has undergone considerable transformation”. These were the words of South African President Cyril Ramaphosa in his opening speech at the 30th Investing in African Mining Indaba on Monday 5 February 2024 in Cape Town, South Africa. The theme of the event, which runs from 5 to 8 February 2024, is “Seizing the power of positive disruption: a bold new future for African mining industry”.
He informs that for almost 150 years, mining has been a mainstay of the South African economy. It currently contributes around 7.5% to GDP and accounts for some 60% of South African exports by value. The South African government, in collaboration with industry and trade unions, has carried out a far-reaching and sustainable transformation of the sector over the past three decades. He highlighted some of the achievements: “In 2004, the year the Mining Charter was first introduced, black people held around 2% of the industry. Today, that proportion is around 39%. During apartheid, the mining sector was notorious for labour exploitation, human rights abuses and poor health and safety standards. Today, the mines employ around 476,000 people. Miners can organise themselves and their rights are protected. A legal regime gives mining companies the responsibility to provide quality services and promote development in the communities where they operate. There are also a number of employee share ownership schemes that encourage the participation of mineworkers in mining companies. We are all fully aware that we are facing headwinds and that a number of persistent challenges are hampering the mining industry’s performance”.
He also highlighted a number of difficulties at international level that are impacting on the operating environment of companies, including “volatile commodity prices, high energy prices, geopolitical tensions and the global crisis that is increasing the cost of living”.
At the national level, Cyril Ramaphosa spoke of “the energy crisis and the port and rail bottlenecks that are exerting strong pressure on the operational costs of the mines”. Illegal mining, cable theft and vandalism of infrastructure are putting further pressure on mining production and returns, according to the South African President, who pledged to work hard and collaborate to address these significant challenges.
Returning to Mining Indaba 2024, he said that this year’s theme was aimed at a transition to a low-carbon, climate-resilient economy, society and world.
“The vast majority of minerals that are essential to the global energy transition lie beneath the soil of our continent. These include manganese, iron ore, copper, cobalt, nickel and platinum group metals. Africa has the potential to be the linchpin of the global energy transition, with mining at its centre,” acknowledged the South African President.
For this reason, he felt that this Indaba should prioritise discussions on how Africa can take advantage of these changes to breathe new life into mining, strengthen mining value chains and improve enrichment.
South Africa, for its part, is pursuing a just energy transition at a pace and scale the country can afford, while ensuring energy security and creating new opportunities for the people involved.
Its Just Energy Transition Investment Plan sets out the path for creating new industries and supporting more livelihoods in the green economy. The implementation of this plan is based on close collaboration between the government and all the social partners. It is counting on the mining sector to ensure the success of this investment plan for a fair energy transition. “The mining industry has a crucial role to play in building the economy of tomorrow,” he concluded.
Elie KABORE
Cape Town pour #Mines_Actu_Burkina
#Indabamining
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