President Cyril Ramaphosa has announced that government will pour efforts into re-energising the mining industry.
He said this when he delivered the State of the Nation Address at the Cape Town City Hall on Thursday.
According to the Minerals Council of South Africa, the mining industry contributed approximately 6.3% to South Africa’s nominal Gross Domestic Product (GDP) in 2023.
It also commands a large share of South Africa’s exports by value.
“We are breathing new life into the mining industry, which remains one of our most important and valuable endowments,” the President said.
He added that the Department of Mineral and Petroleum Resources was implementing modern mining rights systems.
While that work is underway, the backlog in prospecting and mining applications was also being attended to, with at least 114 mining rights, 982 prospecting rights, and 385 mining permits and ancillaries processed and finalised.
“We are on track to implement a new, modern and transparent mining rights system this year, which will unlock investment in exploration and production.
“We will put in place an enabling policy and regulatory framework for critical minerals.
“By beneficiating these minerals here in South Africa, we can make use of the extraordinary wealth that lies beneath our soil for the benefit of our people,” President Ramaphosa said.
Renewable energy
Although mining remains a key pillar in the South African economy, President Ramaphosa emphasised that a new growth sector in renewable energy was emerging which South Africa was well positioned to leverage.
“To create jobs, we must leverage our unique strengths and our unrealised potential to build the industries of the future – green manufacturing, renewable energy, electric vehicles and the digital economy,” he said.
Furthermore, South Africa is abundant in the natural resources linked to renewable energy.
“We are harnessing the sun and the wind to make our country a leader in renewable energy and green manufacturing.
“With an abundance of cheap, green energy, we can produce products that are competitive anywhere in the world and create hundreds of thousands of new jobs in the process,” President Ramaphosa said. – SAnews.gov.za
