Mining stalwarts discussed the importance of greater investment into the local mining industry to unlock the value of South African mineral resources at the recent Joburg Indaba, as many raised concerns that mining sector would miss out on the latest commodity boom if urgent action was not taken. Speaking after the event, principal mining engineer, Joseph Mainama, shared his take-outs and highlighted the urgency expressed by industry leaders.
Nolitha Fakude, president of the Minerals Council South Africa and chairperson of Anglo American South Africa’s Management Board, reiterated that more investment into exploration was vital to unlock the value of local mineral resources. “Fakude delivered a strong message that South Africa should not miss the current commodities boom like it had missed the last one,” said Mainama. “Among the challenges she singled out were the slow approval process for exploration permits, and the uncertain regulatory framework – a point emphasised by a number of speakers.”
Government has committed itself to some ambitious targets in promoting exploration. Mainama noted that Minister of Mineral Resources and Energy Gwede Mantashe had responded by announcing a departmental strategy to secure 5% of global exploration spend within the next five years. The strategy was reportedly with cabinet for ratification.
“The minister told the conference that geoscience data on the country’s mineral deposits was currently being updated to facilitate better access by exploration companies,” said Mainama. The information on who owns mining rights was to be readily available to all stakeholders and investors.
“The minister was also adamant that transformation was imperative in the future exploitation of Mineral Reserves, and that there should be a strong focus on developing black-owned mining companies,” he said. “Speakers and delegates also seemed to share the view that greater collaboration between stakeholders – guided by a common and constructive vision – was the only way forward.”
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