Keynote address by Deputy President Shipokosa Paulus Mashatile on the occasion of the SAYEC Business Dialogue at the Mining Indaba 2024, Table Bay Hotel, Cape Town, 06 February 2024
President of SAYEC, Kanakana Mudzanani;
Deputy Minister of Mineral Resources and Energy, Dr. Nobuhle Nkabane in absentia;
MEC of Limpopo Economic Development, Rodgers Monama;
CEO of the Development Bank of South Africa, Boitumelo Mosako;
Acting CEO of the Petroleum Agency of South Africa, Dr. Tshepo Mokoka;
Representative of the National Youth Development Agency, Lwazi Khoza;
CEO of JEPA Resources, Mpho Skweit;
CEO of Swarisanang, Seane Kanyane;
Ladies and Gentlemen,
Good evening,
Let me begin by thanking the SAYEC President and his team for inviting me to this dialogue. It is a great pleasure to be part of this South African Youth Economic Council dialogue that takes place alongside the Mining Indaba.
I was impressed by the gala dinner you hosted as SAYEC last year and have since looked forward to engaging with you again.
I acknowledge SAYEC’s efforts in keeping the youth as a focal point in the country’s economic trajectory. Young people must be constantly engaged in issues that affect the development of our nation.
It is through such engagements that you can consolidate the voice of the youth and advocate for its inclusion and involvement in strategic decision-making.
Permit me to extend my sincere congratulations to the leadership of SAYEC and its President, Kanakana Mudzanani, assisted by the Department of Mineral Resources and Energy, on the successful completion of a significant transaction involving the purchase of Shiva Uranium and Gold for Africa Gulf International Mining.
It is indeed encouraging to see the youth at the forefront and participating in strategic sectors of the economy.
Today, we are here to explore possibilities in the mining sector that we can leverage to create a platform that enables and promotes strategic engagement with youth.
Yesterday, at the opening of the Indaba, President Cyril Ramaphosa said, "Mining has a key role to play in building the economy of tomorrow." You are the future of this country, and you need to take advantage of the valuable resources and huge business opportunities in the mining industry.
The mining sector is playing a crucial role in shaping our nation's economic terrain. It has contributed significantly to our economic growth and employment, supported by a rich natural endowment of mineral resources.
In addition to diamonds and gold, the country also contains reserves of iron ore, platinum, manganese, chromium, copper, uranium, silver, beryllium, and titanium.
We must capitalise on the increased demand for these raw materials to build our nation's economy and attract more investors.
Therefore, the theme of this year’s mining indaba, “Making South Africa a Favourable Destination for Mining Investments,” is relevant given the position of transition that South Africa finds itself in.
As we mark 30 years of democracy this year, we can all acknowledge that South Africa’s mining industry has undergone significant transformation.
As President Ramaphosa said yesterday, for nearly 150 years, mining has been a pillar of the South African economy. It currently contributes roughly 7.5 percent to GDP and accounts for some 60 percent of South African exports by value.
Recently, a survey of 32 member companies undertaken by the Minerals Council of South Africa found that these companies largely complied with the five key transformation elements of the 2010 Mining Charter.
These elements included ownership, employment equity, procurement, human resources development, and mine community development. It is worth noting that the surveyed companies achieved a weighted average of 39.2 percent ownership equity by historically disadvantaged South Africans, which exceeds the Charter's 26 percent target.
Although the Mining Charter has had some success in reforming the mining industry, much more work still needs to be done. The 30 years of our nation's democracy should compel us to become even more proactive about the issue of economic transformation in this industry and country.
The transformation of this sector is important because it forms a vital part of our country's development trajectory, driving infrastructure development, which includes the construction of roads, railways, and power plants, and positively impacting the economy. Our country's rich natural resources provide a comparative advantage in processing, manufacturing, and beneficiation through mining value chains.
It is therefore an opportune time to explore opportunities that will make the youth a key part of this sector, integrating it with strengthening vital industries like manufacturing and technology. As youth, you should identify your role in the value chain and position yourselves in a way that empowers you and benefits the mining sector globally.
The economic viability of the mining sector relies on developing strategies for expanding the industry through mineral beneficiation, which improves the economic and social contribution of the sector. This presents an opportunity for youth inclusion in the value chains associated with the mining sector.
Ladies and Gentlemen,
Finding complementary sectors supported by policies that can enhance the mining sector is important.
Alongside this, strong emphasis should be placed on the significance of skills development for the youth that is not in employment education and training between the ages of 15 and 24, a demographic that is over 32 percent of the total population and is increasing notwithstanding the multiple efforts to address unemployment.
To challenge this pattern, we urge industries like mining to provide skills-development opportunities that will lead to much-needed employment opportunities.
It is time for us, as government and private sector, to invest more than ordinary resources in the development of our youth. We must allow them to voice their concerns, and their proposed solutions must be valued and integrated into the broader strategy for economic growth.
The dynamic perspectives of the younger generation and the wealth of experience from industry leaders and public servants should lead to notable strides in the process of growing and transforming the sector.
I must emphasise that while the economic growth of the sector is important, equally important is its transformation, to the extent that it is inclusive of women, youth, and other marginalised groups in our society.
The subject of diversity and inclusion in the mining sector should be at the top of our agenda. We must ask ourselves: How can we ensure equitable sharing of social and economic benefits in the mining sector?
Our talks must thus be aligned with our developmental goals of developing a society that is non-racial, non-sexist, and prosperous.
Ladies and Gentlemen, when it comes to the mining industry, strategic partnerships between established incumbents and emerging young entrepreneurs are important.
Such partnerships help cultivate an environment that promotes creativity, diversity, inclusivity, and sustainable growth.
Since 1994, the government has promulgated policies, programmes, and initiatives to facilitate transformation in the mining industry. We not only created a regulatory framework to optimise the sector, but we also actively created the technical capacity for the inclusion of youth and other marginalised groups.
The Mining Charter and Broad-Based Black Economic Empowerment (B-BBEE), which are the foundation of the government's primary procurement incentives, encompass our commitment to economic transformation.
The Mining Charter establishes transformation targets and procurement standards, while the B-BBEE programme promotes diversity by empowering black people and businesses.
Through the Preferential Procurement Policy Framework Act (PPPFA), the government fulfils its responsibility of guiding processes and ensuring that the selection of suppliers is inclusive.
The implementation of these regulations results in the development of a diverse and empowered supply chain, addressing past injustices while encouraging economic equality.
When it comes to promoting the growth of local content, the Mineral and Petroleum Resources Development Act (MPRDA) takes the lead by promoting local goods, encouraging the hiring of nationals, and enabling the transfer of talents.
In line with the National Development Plan (NDP) 2030, we emphasise local industrialisation and value addition and are committed to increasing the proportion of value-added operations that we participate in within the mining value chain.
The government is committed to including the youth in its sustainable development strategy. Our mining policies are more than paperwork; rather, they are strategic frameworks that direct us towards mining operations that are responsible, sustainable, and socially inclusive.
President Mudzanani, I am aware of your ambition to launch what you call a 'Young Industrialists Fund’ to raise R1 billion towards providing capital support for emerging entrepreneurs.
Regarding this, I would like you to directly contact my office so that we can bring on board relevant departments such as NYDA, the National Empowerment Fund, the Industrial Development Corporation of SA, and other development finance institutions and the private sector to engage further on how we can make this vision a reality.
Your aspiration as future leaders of our society brings us hope. As the government, we are committed to playing our part in developing our youth and creating a better society.
I look forward to this evening's deliberations, and I am confident that the inputs from the discussion will provide insights to enhance South Africa's attractiveness for investments in critical minerals and demonstrate social commitment towards all South Africans.
It is my sincere hope that your participation in the Indaba will be fruitful and that you will make the most of the possibilities presented by the industry.
I would like to conclude by congratulating Tayla, a young South African woman who has won a debut Grammy award for her single 'Water'.
We are proud of her.
I would equally like us to celebrate and congratulate Bafana Bafana for their sterling performance at the African Cup of Nations. We are behind them, and tomorrow they will emerge victorious against Nigeria, as we are well on the way to reaching the final, like the team of 1996.
The future of our country is in good hands.
Let us continue to build a winning nation - a nation that contributes to the betterment of the continent and the rest of the world.
Thank you.
