What the Minerals Ministry should be focusing on to ensure mining’s competitiveness
What South Africa’s Mineral Resources Ministry and the Department of Mineral Resources (DMR) have come up with for mining so far is simply unsustainable. It is destructive rather than constructive and simply cannot last.
When the penny drops with this administration or the next, a constructive approach will demand the introduction of a legislative framework that is enabling and an administration that is efficient.
Whoever is next in charge – and the far-reaching industry needs to look beyond the current incumbents because they are destined to fail ignominiously – will have to devote time to aligning the different government departments.
Mining companies that are setting out to establish mining projects need coordination between the DMR, the Department of Water and Sanitation and the Department of Environmental Affairs.
Once that is fixed, there will have to be an acknowledgement that mining is bedevilled by huge challenges unrelated to the commodities cycle and caused by a trust deficit between the private sector, government and labour.
Good leadership will be essential to replace the excessively confrontational current relationship with a mutually beneficial joint effort that rewards productivity.
Intense training and skilling must target the creation of a workforce that is engaged and globally competitive.
There will also have to be acknowledgement that appropriate investment will have to be made in research and development (R&D).
There are declining prospects in certain metals and minerals, not because there are not significant quantities of them still there to be mined, but because conventional mining methods can no longer extract them economically.
Equally important will be appropriate investment in R&D for processing and even exploration.
It is essential for South Africa to realise the importance of steadfastly keeping abreast of what is required technologically to mine and beneficiate with optimal competitiveness.
The importance of the South African mining industry is its many linkages to other sectors of the economy and it needs to be acknowledged and appreciated at all levels that the multiplier effect of a mining investment goes far beyond direct mining activity and supports a myriad of other industries along other lucrative value chains.
On average, an underground mine employs about 2 500 people directly and opening a couple of these each year will help to move the economic growth rate further than that underground mine itself, and assist the country in gaining ground against our triple evils of unemployment, inequality and poverty.
There is no doubt whatsoever that the mining industry can provide that important radical economic thrust across a broad front.
But, to do so effectively, government, industry and labour must arrive at the collective realisation that the citizens of South Africa benefit most when they work together selflessly and efficiently.
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