The third-quarter performance of South Africa’s mining sector is encouraging, says Mineral Resources and Energy Minister Gwede Mantashe, noting that “impressive growth” was recorded despite “difficult conditions” brought on by Covid-19.
The sector grew at a yearly rate of 288.3% compared with the second quarter of the year, contributing 11.8% to the yearly 66.1% gross domestic product (GDP) growth rate in the third quarter.
These are the results of the “dynamic engagements” the Department of Mineral Resources and Energy (DMRE) had with stakeholders in the sector as the country went into a nationwide lockdown in March, he says.
“We came up with a programme to save the industry together, while saving lives and protecting livelihoods.”
The DMRE set stringent health protocols, insisted on screening and testing of mineworkers as it opened up the sector and allowed full production at Alert Level 3 of the lockdown.
Mantashe also welcomed the increased production of platinum group metals, iron-ore, gold and manganese ore, which led to the positive performance of the sector.
Further, the DMRE appreciates the 58% recorded growth in electricity, gas and water, which, combined, contributed 1.3% to the yearly GDP growth rate.
Going forward, he said all stakeholders must continue working together for the sector to do even better and take a step closer to an “ambitious target” of the sector contributing 12% to GDP and attracting 5% of global exploration investment.
“If we can stay focused, we can turn things around.”
Mantashe added that, more importantly, safe production was key to profitable and sustainable production.
“We must prioritise the health and safety of all persons at mines at all times. Workers must be able to go underground and be assured of coming back alive.”