South Africa’s mining sector “should take comfort that there are no immediate plans from the state to nationalise mines”, Deputy President Kgalema Motlanthe said on Monday night.
Speaking at the Chamber of Mines AGM dinner, Motlanthe said for some time there had been concerns that the industry had not transformed as quickly or sufficiently as it could.
“It is these concerns that have fuelled a call for nationalisation of mines from some quarters of our society,” said Motlanthe.
“Whilst this healthy debate continues, the sector should take comfort in knowing that there are no immediate plans from the state to nationalise the mines. Public discourse should be separated from public policy. The latter is an outcome of extensive multi-sectoral consultation within the African National Congress-led government,” he said.
But he did warn that there was a need to expedite the transformation of the industry.
“A particular concern around transformation is to ensure the mining industry contributes to diversification and growth of our economy,” said Motlanthe.
He said that transformation cannot be limited to changing the nature of ownership, but must enhance the contribution of the industry to development, the creation of decent work opportunities and sustainable growth.
To enhance the value of exports, localise imports and create sustainable jobs, the government has developed a beneficiation strategy that seeks to encourage the mining industry to facilitate downstream minerals beneficiation.
“This is necessary to facilitate economic diversification, expedite progress towards a knowledge-based economy, achieve incremental GDP growth in mineral value addition, and create opportunities for enterprise development and skills development,” he said.
Beneficiation presents numerous opportunities for investment in the country by both South African and foreign investors. It is also seen as a job creator.
South Africa’s mining industry has been navigating its way through the international economic crisis, but it has not been saved from the sharp fall in most commodity prices.
Motlanthe said the government was very concerned about the impact of these trends, not only on companies, but also on workers.
In the past year, the mining industry has lost thousands of jobs — 7% of its total employment, according to the Labour Force Survey.
“These job losses have imposed huge costs on some of the poorest households and communities in our country. We are grateful to organised business for working with us to limit retrenchments, but much more needs to be done,” Motlanthe said. — I-Net Bridge