JOHANNESBURG (miningweekly.com) – There are significant opportunities for young entrepreneurs to enter the local mining industry, particularly with a number of senior miners exiting their existing assets owing to depressed commodity prices and general business challenges, Department of Mineral Resources (DMR) deputy director-general Joel Raphela told delegates at the 2016 Youth in Mining, Procurement and Transformation Summit, in Johannesburg, on Tuesday.

He said great strides had been made in transforming the mining sector and bringing in new, young business people over the past 22 years; however, he conceded that more still had to be done.

Raphela noted that the DMR had proposed in the draft Mining Charter to obligate mines to procure at least 60% of their capital equipment assets from black-owned companies and 70% to 80% of their consumables from such companies, as this would provide new opportunities for young entrepreneurs in the South African mining sector.
"Economic empowerment of young people is crucial to securing prosperity in South Africa," he stated.

However, African National Congress (ANC) treasurer general Dr Zweli Mkhize pointed out in his keynote address that many young people felt marginalised, frustrated and disillusioned owing to the current levels of youth unemployment in the country.

He added that compounding the problem was that only 6% of the country's youth were involved in entrepreneurial activities with most of these activities located in Gauteng, KwaZulu-Natal and the Western Cape.

"There is little or no youth entrepreneurship being undertaken in mining communities, which are largely rural areas, which is one of the main reasons why young people can often be found leading community protests near mines and often the mines offer the only viable job opportunities that exist for them," Mkhize said.

He further highlighted that the mining sector remained vital to the South African economy, as it was the largest provider of foreign exchange revenues and a significant source of jobs.

Mkhize explained that it was for these reasons that the low commodity prices and recent labour unrest in the sector had negatively impacted on the country's economy as a whole.

He revealed to delegates that at a recent meeting between the ANC and the Chamber of Mines both parties agreed that the mining sector was not a sunset sector and that it had many years of growth and profitability left within it.

"A united South Africa Incorporated approach is required that focuses on ensuring we attract new investment to the mining sector; one that also focuses on creating growth, providing new job opportunities and transformation.

"The recovery of the South African mining industry must start now in anticipation for the eventual price rise. This is vitally important as we need to get our ducks in a row to ensure future crises are avoided, like those that have plagued the industry in the past," Mkhize emphasised.

Further, he pointed out that the ANC had, since 2012, officially rejected the notion of the nationalisation of the mines. Instead, the party had placed emphasis on strengthening empowerment within the sector itself.

Mkhize stated that young people needed to know how they could get involved in the sector and about what assistance was available to them through government sponsored training and education programmes as well as through State-owned entities such as Mintek.

He moreover remarked that a conversation was required among government, youth bodies and mining companies to assess whether enough was being done to provide the youth with opportunities and what more was required to be implemented to provide young people with sufficient opportunities.

"There is a need to turn desperation into hope for young people, which needs to be evaluated on an outcomes basis. We also need to disabuse ourselves of this notion of entitlement. Instead we all need to work hard to ensure that business contracts are awarded to people on merit, based on providers offering cost competitive and high-quality services and not because of family patronage or on the basis of political connections," Mkhize commented.