Cape Town – Mineral Resources Minister, Mosebenzi Zwane, has told mining companies from around the world that Africa remains the ideal destination for investment.
Minister Zwane said this when he opened the 2016 Mining Indaba at the Cape Town International Convention Centre, in Cape Town, on Monday.
“The African continent is indeed the right address for investment directed towards mining and minerals development in line with the African Mining Vision.
“I am optimistic that as investors and analysts present here, you will evaluate the investment prospects of the continent appropriately and take a long-term and comprehensive view,” he said.
The Minister said while there are highs and lows, the 2016 Mining Indaba comes at a time when the mining industry is in its “winter season”.
Following engagements with captains of industry, the Minister said government remained committed to addressing bottlenecks that were raised as a cause of concern to investment.
“As Minister of Mineral Resources, I serve the people of South Africa. I will continue to execute this responsibility with due consideration and unwavering courage.
“As part of my open door policy, I commit to frank and robust engagement with you at all times. I am directed by the same will that mobilised efforts that resulted in the democratic dispensation we enjoy today,” he said.
Calls for restructuring to be done in a responsible manner
With the industry facing tough times and job cuts, the Minister called on companies to approach restructuring in a responsible manner.
He said companies indicated that restructuring was inevitable for the sake of ensuring sustainability in their businesses operations.
“You indicated that empowerment and transformation of the industry was taking place at a very slow rate.
“Our quest for inclusive economic growth - including empowerment of women, the youth and other members of vulnerable groups - is designed to help us achieve the type of society where everyone has a better life.
“We will provide the requisite support for this new generation of miners, which we anticipate will be characterised by junior to mid-tier mining companies.
“Restructuring of assets must be done in a respectable and responsible manner that also assists in the empowerment of our people.”
The Minister also used his address to emphasise the importance of saving jobs and protecting the interests of mineworkers.
“Leaders in the industry convened under the auspices of the MIGDETT – the Mining Growth, Development and Employment Task Team - and committed to a 10-point Declaration in an attempt to save jobs and ameliorate the impact of job losses.
“We intend to ramp up implementation of the contents of the Declaration to minimise the impact. I call upon captains of industry to deal with this matter responsibly after proper consultation with all affected stakeholders, especially the workers,” he said.
Ensuring peace and labour stability
The Minister said government is doing all it can to ensure that there is peace and stability in the labour environment to create an enabling environment for investors in South Africa.
He said during his engagements with captains of industry, he received an indication on the importance of stable labour market conditions.
“Together we have created a stable mining environment through the Presidential Framework Agreement for a Sustainable Mining industry. There are now fewer disruptions in the industry, enabling operational activities to stabilise under the circumstances.
“However, we should take lessons from the protracted platinum strike in which there were no winners and ensure that such events are not repeated.
“It is our view that the commitment of stakeholders to dealing with these matters will go a long way in addressing negative perceptions about the labour market conditions,” he said. – SAnews.gov.za
