Zuma: SA government trying to salvage mining industry
“The mining sector is extremely strategic to the South African economy. Evidently, the mining sector is facing an acute challenge, partly as a result of the dramatic drop in commodity prices,” Zuma told reporters at the Sefako Makgatho presidential guesthouse in Pretoria.
“An alarming number of companies are loss-making and investment in exploration and extraction has dropped significantly. At current prices, more than 40 percent of the country’s platinum mining industry and 31 percent of the gold mining industry is loss-making. We need to work together to turn this around.”
Under government’s ambitious Operation Phakisa, an initiative designed to fast-track the implementation of solutions on critical development issues in the country, Zuma said government aims to build partnerships with key stakeholders in the mining sector. Such a move would unlock investment and optimise the sector’s positive developmental impacts on the economy and society.
“Phakisa” means “hurry up” in Sesotho.
“As part of the mining Phakisa process, we continue to implement a comprehensive stakeholder consultation process with government departments, the private sector and labour,” said Zuma.
“More than 30 consultations have been held with business associations, individual mining companies, trade unions, civil society organisations and various government departments in preparation for Phakisa.
"The actual Mining Phakisa Laboratory will begin in October 2015.”
Zuma was addressing media on progress in implementating of the various segments of Operation Phakisa, designed to implement the National Development Plan priorities in key socio-economic sectors.
The presidency describes Operation Phakisa, which borrows from the the Malaysian model for boosting growth, as an innovative approach that enables government and key stakeholders to transform plans into detailed implementation programmes that rapidly deliver results.
ANA