[miningmx.com] — MINES Minister Susan Shabangu said she has found no evidence that investors are fleeing South Africa due to the nationalisation debate.
In a written reply to a question from Cope MP Graham MacKenzie on whether the debate is affecting the country’s ability to capitalise on the current commodities boom, Shabangu said that it wasn’t the case.
“Based on the feedback from various sources, including meetings during the roadshows and promotional activities there is no evidence that there is a trend of disinvestment due to the nationalisation debate.’
She was also asked by MacKenzie whether her department has any plans in place to resolve “the growing trend of global mining companies choosing not to in invest in South Africa’.
Shabangu replied that the department continuously engages in stakeholder forums with organised business and labour to devise means of attracting and promoting inward bound investment.
“South Africa is in competition with other mining jurisdictions for mineral investments. There are therefore varying comparative advantages and disadvantages and this differs from commodity to commodity,’ she said.
In another question, MacKenzie asked whether the department has established the reasons for the 4% drop in mining output volumes during the period 2004 to 2010, and how did the DMR intend to create “an enabling environment’.
“As part of the Mining Industry Growth Development and Employment Task Team (Migdett) process, social partners working together with government identified the binding constraints to growth and employment of the sector,’ Shabangu said.
“These have since been incorporated as part of the New Growth Plan with clear action plans which are under implementation.’
