President Jacob Zuma will tomorrow, 22 October 2013, launch the construction phase of the De Beers Venetia Underground mine in Musina, Limpopo province.
The project is a R20 billion investment in the diamond industry, which is the biggest single investment in the diamond industry in decades and demonstrates confidence in the country's diamond industry and mining sector.
President Zuma, accompanied by Mineral Resources Minister, Ms Susan Shabangu and Limpopo Premier Mr Stanley Mathabatha,is scheduled to join Anglo American Chairman, Sir John Parker and the Chairman of De Beers and CEO of Anglo American, Mr Mark Cutifani at the launch.
Mining continues to be the cornerstone of South Africa's economy. The mining industry has manifold benefits for the country.These include the following;
- It creates in excess of a million direct and indirect jobs.
- It accounts for about 18% of gross domestic product (GDP), including multipliers,
- It contributes approximately 50% to foreign exchange earnings,
- It accounts for 18% of total fixed investment,
- It accounts for more than 30% of the Johannesburg Stock Exchange's (JSE) value, which is in excess of R2 trillion,
- It accounts for 18.5% of corporate tax receipts,
- It creates demand for 50% of volume of Transnet's rail and ports,
- It contributes 93% of electricity generation via coal power plants and consumes approximately 15% of national electricity demand.
The mining sector is also responsible for 37% of the country's liquid fuels through coal, which is essence worth R30 billion.Given the pivotal role of mining in the economy, government continues to work with the sector to promote its growth and expansion so that it can create jobs and contribute to economic development.
Government is also working with the mining sector to promote socio-economic development in mining towns and labour sending areas and to improve the living conditions of workers, in line with the Mining Charter as well as the Presidential Package of October 2012.
On the 4th of this month, President Zuma joined Anglo-American Platinum to officially open the R45 million Ethridge Junior Secondary School in Mbizana in the Eastern Cape, built by the company as part of its Social and Labour Plan to invest in labour sending communities.
The project had been fast-tracked in line with the President's agreement with mining companies and labour to improve human settlements in mining towns and to invest in human development in labour sending areas.Government also continues to work with labour and mining companies to promote stable labour relations in the mining industry, under the leadership of Deputy President Kgalema Motlanthe.
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