[miningmx.com] — MINING would become a thriving sector in South Africa within the next five to ten years, according to Mines Minister Susan Shabangu.
Speaking at the official opening of Great Basin Gold’s Burnstone mine on Tuesday, Shabangu said more investment would follow, similar to the Burnstone project.
“Our regulatory framework is conducive to investors and they also have incentives to invest in our country,” she said.
She spoke a day after government, labour and business met under the banner of the Migdett (Mining industry growth and development task team) process in preparation for a roadshow scheduled for early March in Canada and the United States.
“One of the constraints was the negative perception of the South African mining industry in investor circles around the world and the roadshow is Migdett’s response to this challenge and will set the record straight,” read a statement issued by the department of mineral resources.
The roadshow would be led by Shabangu.
Speaking at the opening of Burnstone, Great Basin Gold CEO Ferdi Dippenaar said the mine was a “triumph” after exploration activities were almost abandoned in 2009 due to financial difficulties.
“We had to take on extreme debt in order to make Burnstone come to life and today I know we made the right decision,” said Dippenaar.
“This project is a 20 million ounce resource and is one of the 10 largest ore bodies to be mined in the world,” he said. “With gold at an all time high we can now start repaying our debt.”
Production at the mine is expected to reach an annual average target of 254 000 ounces and has a life expectancy of up to 25 years.
Shabangu said the company should focus on beneficiation and to improve the skills of the 1,100 employees the firm has employed.
She added that she was “particularly interested’ in the implementation of Great Basin’s social labour plan.
“I am aware of the involvement of this mining house in this area with investments in bursaries with local students being trained in critical skills, especially in the fields of mining and electrical engineering, finance and metallurgy,’ she said.
“The skills challenge calls upon all of us to think about better ways not only of creating these skills but how to retain them.’
She said she was pleased by the overall response of the mining industry to beneficiation.
By the time Dippenaar retires from the helm of the company there should be a black CEO, preferably female, ready to take over the reins, she said.
“Groom a real CEO who will understand mining and add value to the company. If companies do not train people then they can not grow their mines,’ said Shabangu. “In future it will reflect that you have done well as a miner.’
GBG said it was working to uplift the Dipaleseng community as part of its social responsibility programme.
“To date we have built 188 units of houses in Dipaleseng, but we still have a long way to go to eradicate the shacks,’ Dippenaar said.
The company said it was also looking to construct a resource centre in Siyathemba, another local area.
“We are in the process of identifying small businesses to supply us with material as part of a procurement plan to uplift the community.’
