Mineral Resources and Energy Minister Gwede Mantashe told the breakaway session on mining at the 5th South African Investment Conference on Thursday that the mining value chain starts with exploration, which is why he was so excited by the partnership with the Industrial Development Corporation (IDC) to create a R500 million exploration fund.
In particular, he was enthused about the prospects in the Northern Cape, which was relatively under-explored compared with the main mining provinces of the North West, Limpopo and Mpumalanga.
“Mining is a very dynamic sector as it is in a state of change all the time,” Mantashe said.
In his view, the manganese sector was a hidden diamond. He also said one should not be afraid of illegal mining, as illegal mining was a criminal offence and would be dealt with by the police.
He was especially proud of the reduction in the number of fatalities, but said that one death was one too many.
“When I was a shop steward I heard of one of the worst mining disasters when 177 miners died at Kinross gold mine in September 1986. Now I am glad to say that only 49 miners lost their lives last year, but our aim is zero harm, so even one life lost is one too many,” he said.
The importance of the mining sector was highlighted by the fact that this sector was the first sector that was mentioned when this year’s investment pledges were announced.
There were six announcements with Ivanhoe Mines announcing a R6 billion investment in the next phase of the development of their Platreef Mine in Limpopo. The Menar Group from Turkey pledged R1bn in coal mining activities in Mpumalanga, while Nkwe Platinum said they would spend R13bn on a new platinum mine in Limpopo. Gold One will invest R520 million in gold mining in Gauteng, while PMG Mining will spend R1.25bn in a manganese mining in the Northern Cape. The biggest spender was Anglo American with R29bn across their various mining operations in South Africa.
Another panellist said she was optimistic about the mining industry as over the past 156 years since the Eureka diamond was discovered in 1867, the sector had shown its ability to solve problems. When it came to the new buzzword of ESG or environmental, social and corporate governance, she said the emphasis should be on values.
“We need to value the right things and then do the right things,” she said.
In that respect, Mike Teke of Seriti said the legacy of mining should not only be holes in the ground, but the contribution it made to society.
“One only has to see how a community reacts to the announcement of a new mine, as that encourages investment in houses, schools and small-scale service and goods providers,” he said.
As the mining industry relies heavily on efficient railways and ports for their export logistics, a National Logistics Crisis Committee will be established to ensure the smooth functioning of the supply chain.
BUSINESS REPORT