South African mining market still a lucrative investment - Mantashe
4 Oct 2019 - by
With all that’s been happening at Sibanye Stillwater, the mining sector has found itself between a rock and hard place as of late, but according to Mineral Resources and Energy Minister, Gwede Mantashe, the sector still remains a viable option to turn the economy around. Speaking at the 2019 Joburg Indaba in Sandton yesterday, Mantashe, reassured investors of the government’s commitment to the sector.
“We assure you that as part of our commitment to being a responsive department, our doors are always open for constructive inputs that can take the industry, and indeed the economy, forward,” said Mantashe.
He continued: “It is for this reason that government has started engagements with coal producers and independent power producers to discuss the state of the economy and the role of electricity in contributing to economic growth.”
Despite a negative first quarter growth - due partly to load shedding and the strike in the gold mining sector - the mining industry remained a positive performer in the markets.
“Load shedding, electricity pricing and a five-month protracted strike in the gold sector accounted for the first quarter decline,” he said.
“In 2018 alone, South Africa’s mining sector received over US$3.2 billion in investments, which created an estimated 5 000 jobs. We must continue to prospect and explore the world-class mineral.”
“The mining and energy industries remain the bedrock of the South African economy. It is in our mutual interest that these sectors are provided with the necessary support to ensure they contribute positively to our country’s growth and development aspirations,” the Minister concluded.