Deputy Minister in the Presidency, Buti Manamela addressed the Barclays and ABSA Mining Showcase at the Radisson Blue Hotel, Cape Town which forms part of the Mining Indaba currently held in the Mother City. The deputy minister appeared on behalf of Minister Jeff Radebe who couldn’t make due to other pressing national responsibilities. Attendants at the showcase included the deputy chief executive of Barclays Africa David Hodnett, members of the local and international investment community, members of the Diplomatic Corps and executives.
Manamela acknowledged the challenges currently faced by mines as a result of the volatile economic environment. “Global economic growth has significantly slowed, and this poses major risks for national economies especially in the developing world,” he explained.
According to the deputy minister, there is a need to engage in drastic measures to ensure that poverty, inequality and widespread unemployment is eliminated. “We are grappling with the challenge of reaching the ambitious National Development Plan (NDP) targets, which include dropping the poverty rate from 39% to zero, and creating 11 million jobs,” said Manamela.
According to Deputy Minister, The regulatory environment makes a concerted effort to diversify the mining industry while at the same time enhancing its sustainable growth. In 2010, the minister of mineral resources adopted the “strategy for sustainable growth and meaningful transformation of South Africa’s mining industry.” Manamela told delegates South Africa has a historical backlog of skewed economic system characterized by exploitation and imbalanced distribution of wealth along racial lines. “This calls for a radical transformation of our economic environment.” He explained.
Manamela said there is a need to accelerate radical economic transformation to ensure beneficiation of the majority of black people who suffered centuries of colonial domination, decades of expressive apartheid rule and economic deprivation. “At the core of the radical economic transformation program must be the creation of decent work and accelerating shared and inclusive economic growth especially in the mining industry. It is regrettable that there is not enough diversity in the ownership of mining companies.” he explained.
Manamela acknowledged that government has granted mining licences to diverse stakeholders, but it continues to lack comprehensive data on the recipients of these mining licences. “In effect, we have failed to use the issuing of mining licences as a tool for economic transformation and changing ownership in the mining sector,” he said.
“We need to implement the NDP effectively to drive radical economic transformation through a diversified mining licence regime. Most importantly, the NDP and all the other subsidiary plans that we have for our growth path will not succeed without the support of the private sector,” he concluded.Share this article on Social Networks