South Africa’s mining industry is now 39% black-owned.

South Africa’s mining industry is now 39% black-owned, according to Mining IndabaIn 2004, the year South Africa’s far-reaching Mining Charter was first introduced, black ownership in South Africa’s globally recognised mining industry stood at a negligible 2%. 

This has now leapt nearly 20 times higher to approximately 39%, South Africa President Cyril Ramaphosa highlighted in his well-attended, full-house opening address on day-one of the four-day Investing in African Mining Indaba in Cape Town which is being attended by close to 10 000 people. 

“It is appropriate that the 30th Mining Indaba coincides with South Africa’s celebration of its 30th anniversary of democracy,” stated Ramaphosa, highlighting the substantial changes that the country’s mining sector has experienced over the past three decades, after serving as a cornerstone of the country’s economic power for 150 years.

The President discussed how democratic government had transformed the industry, which was infamous for apartheid-era labor exploitation, human rights abuses, and poor health and safety regulations. The sector had been transformed through collaboration with labor and industry.

Today, the rights of approximately 476000 people employed by the mining industry are protected and a legal regime confers responsibility on mining companies to provide quality services and promote development in communities where they operate. 

There are also a number of employee share ownership schemes through which mineworker participation in mining companies is being promoted. 

During his speech, President Ramaphosa praised a number of factors that he identified as essential to the mining industry’s continued growth in South Africa. 

“We are all acutely aware that we face strong headwinds, and a number of persistent challenges are impeding mining performance. Globally, commodity price volatility, high energy prices, geopolitical tensions and a global cost of living crisis are playing a significant role in dampening the business operating environment,” said Ramaphosa. 

“Domestically, the energy crisis and port and rail bottlenecks are putting serious pressure on miners’ operational costs. Illicit mining, cable theft and infrastructure vandalism place a further strain on mining output and returns. 

“We’re committed to work hard and to work together to overcome these serious challenges,” the President added at the event, covered by Mining Weekly.

Last year, the South African government outlined four objectives to develop the sector, improve its global competitiveness and harness the global drive towards sustainable development. 

The first was to achieve a secure supply of electricity and several measures to improve the performance of the existing generation fleet and to add new electricity capacity have been taken through the Electricity Action Plan. 

The second objective of accelerating economic reforms has resulted in the removal of the licensing threshold for embedded generation, with a third of this capacity supplying the mining load. 

The third objective of tackling illegal mining and damage to infrastructure by establishing a specialised police unit, working with the defence force, has resulted in a number of arrests, prosecutions and convictions of the perpetrators of this crime. 

The State-owned mining technology agency Mintek has sealed 251 derelict mines and shafts, and closure of a further 352 shafts is targeted over the next three years. 

Criminal activity, such as copper cable theft, has resulted in South Africa’s freight logistics system undergoing a process of rapid and fundamental change to improve its efficiency and position it for the future. 

Working with the private sector under the auspices of the National Logistics Crisis Committee, the public sector is working to overcome the challenges with ports and rail, with the recently approved Freight Logistics Roadmap guiding this process. 

“By introducing competition in freight rail operations, while maintaining State ownership of the routes, we will unlock massive new investment in South Africa’s rail system. This will support jobs in every sector of the economy, from mining to manufacturing to agriculture. 

“Mining has a crucial role to play in building the economy of tomorrow. We look forward to deepening our collaboration with industry as we write a new chapter in the history of South African mining. A story of inclusion, growth, transformation and innovation – and one in which no-one is left behind,” Ramaphosa emphasised