SA president Cyril Ramaphosa says Govt. has “taken steps” to resolve mining policy certainty

South Africa President, Cyril Ramaphosa

EXPLORATION, local minerals beneficiation, and domestic and regional gas development are some of the key areas where the South African government is driving legislation to attract investors, South African President, Cyril Ramaphosa, said on Tuesday.

“To increase the contribution of mining and energy to the economy, we have taken steps to resolve policy and regulatory issues that investors have raised with us as constraints to greater investment,” he said.

He was delivering the keynote address to the Investing in African Mining Indaba. Mining Indaba, which is in its 27th year, is being presented digitally because of Covid-19. According to the organisers, about 6,000 people had pre-registered for the event.

Ramaphosa acknowledged the importance of the industry, which contributes about 8% of South Africa’s GDP, and the fact that it had recovered quickly from the Level 4 Covid-19 lockdown in April to post a 288% surge in quarter-on-quarter growth in the third quarter.

“The industry’s ability to weather the pandemic was the result of the positive relationship between government and mining industry. We should build on this, adapt to Covid-19, provide greater policy certainty, attract more investment and protect livelihoods,” he said.

Apart from exploration, beneficiation and gas, Ramaphosa said the government was also working on legislation to formalize small-scale and artisanal mining, revitalize sterile mines and promote the discovery of new minerals, especially those critical for the future.

He acknowledged the importance of reliable and affordable energy as “… the lifeblood of mining”, and said the government’s implementation of the Integrated Resource Plan (IRP) would broaden the energy mix, enable energy generation for own use and reform and strengthen the capacity of state-owned power utility Eskom.

“We want both government and the private sector to work with us to provide energy for all sectors, while providing jobs and opportunities,” he said.

7 COMMENTS

  1. So how is the President going to do it? Fire the entire DMRE and appoint capable non corrupt officials? I wish.
    At this stage we need more capacity in the courts to sort out the mess they created.

  2. No, Miningmx, the President has not committed the government to future mining policy certainty. He was using the past tense. Like Gwede Mantashe he appears to also believe that the gazetting of Mining Charter III (plus the later issue of a chapter length explanatory memorandum because the charter was so poorly drafted) means there is currently policy certainty.

    This is simply a delusional position to take.

    Mining Charter III has only 3-years to run. Anyoine know what is likely to be in Mining Charter IV? Or Mining Charter V, 5-years after that?

    The MPRDA and extralegal Mining Charter process have policy uncertainty baked in. There was nothing fundamental in the speech to suggest any improvement on the policy certainty front at all.

  3. There are a lot of contradictions here. There is no certainty if the Mining Charter keeps changing. Also, how can the President claim that the Government wants the private sector to work with them to provide energy, when they block everyone but Eskom from providing energy? South Africa remains with DRC, CAR, Tanzania, and several other jurisdictions where our investors won’t go until such time as there is better policy, transparency, and administration of mining.

  4. Miningmx, you tend to copy and paste speeches made by Gov. That is not journalism. Please be critical. Speak to the experts to hear the real story. Ns, I do not include mineral clouncil under the definition of experts.

  5. Let us face reality – Ramaphosa is merely the spokesman for the anc/sacp politburo. The politburo tells him what to say. The ewc and national democratic revolution must be implemented. This lot are stuck in the cold war paradigm. They don’t realize it is 2021 and that the world has changed many times since 1990.

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