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President opens Mining Sector Stakeholders' Consultative Forum

President Jacob Zuma. Picture Credit: Gallo Images
President Jacob Zuma. Picture Credit: Gallo Images

The National Mining Consultative Forum came at a critical time when the South African economy and the mining industry in particular were confronting major challenges and the meeting “represents our aspiration to reinstate the necessary confidence in the mining industry development‚ which remains a key pillar of the economy“‚ President Jacob Zuma said on Tuesday.

“It is for this reason that the Mining Phakisa will be convened next month. It seeks to position the industry as a catalyst for development‚ maximise the development of the industry across all value chains in the country‚ and find ‘win-win’ solutions for mineral beneficiation.

The president was speaking at the National Mining Consultative Forum on the Framework Agreement for a Sustainable Mining Industry in Pretoria.

“The global economy is experiencing a downturn which is posing a challenge for South Africa’s economy‚ which is a net exporter of key mineral commodities. Recent gross domestic product figures released by Statistics SA show that the economy contracted by 1‚3% in the second quarter of the year.

“This is not unique to South Africa‚ it is a global phenomenon. The sustained depressed commodity prices and the risk of job losses necessitated urgent intervention by all stakeholders in our country‚” he said.

Zuma congratulated stakeholders for signing the declaration which sought to explore all options to save jobs last week. “You also agreed to implement the intervention plan that addresses the underlying causes of retrenchments. These interventions will assist our collective initiatives to support the sustainable growth and development of the mining industry.”

He said that as government‚ “we have taken the lead in acting decisively to ensure that the sector remains viable and continues its positive contribution to the economy”.

“I am sure stakeholders have welcomed the recent commissioning of Unit 6 of Medupi Power Station‚ which will relieve pressure off the electricity grid.

“We recognise the constraints that electricity challenges pose on the mining sector‚ and we believe we are making good progress in ensuring that we have a stable electricity supply that will catalyse the economic growth of South Africa and the region as a whole.”

The president said that since the implementation of the Framework Agreement for a Sustainable Mining Industry‚ which was entered into by organised labour‚ organised business and government‚ a steady improvement in peace and stability in the mining sector had been experienced.

“This has restored confidence in the mining industry‚ and inspired our ability as a country‚ to address complex challenges facing us. However‚ we acknowledge that there are still some challenges that require us to accelerate development in a collaborative manner.

“We should all commit to the full implementation of all the elements of the framework agreement‚ and also emphasise the need to be responsive to the needs of the communities within which mines operate. In this regard‚ the acceleration of development in improving conditions within the priority mining towns as well as labour sending areas remain of utmost importance.

“I would like to urge stakeholders to strengthen collaboration with regard to the socio-economic development of communities affected by mining.”

Stakeholders should also continue to encourage adherence by their respective constituencies to the commitments made in the framework agreement‚ which include the respect for the rule of law‚ denouncing violence and intimidation as well as ensuring that mining investment flows into the country to sustain the industry.

“I wish to commend all of you here for the work done so far‚ and believe that if we continue to work together as a collective‚ we can indeed achieve our goal of moving South Africa on path that will ensure the accelerated implementation of the National Development Plan‚” Zuma said.

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