The Minister of Mineral Resources, Ms Susan Shabangu,
The Minister of Energy, Ms Dipuo Peters,
MEC for Economic Development and Tourism Mr Mokoena,
Executive Mayor of Emalahleni, Councillor Nhlapho,
Mphakathi waseMalahleni,
Sizizwa sijabule kakhulu ukuba nani la Emalahleni eMpumalanga. Sijabule impela ngoba lonyaka unyaka wokwakha amathuba emisebenzi. Kumnandi ukuthi sihlanganiswe umcimbi wokuvula inkampani entsha kahulumeni yezimayini.
Lokhu kuyasho ukuthi sizimisele njengohulumeni ukusebenza kanzima ukuze amaphupho ethu nawabantu baseNingizimu Africa afezeke. Namhlanje sizokwethula inkampani kahulumeni yezimayini ebizwa nge African Mining Exploration and Finance Company. Futhi sizohlaba isoyi ngoba sikhombisa ukuthi lenkampani kahulumeni izokwakha imayini entsha yamalahle kulendawo, kwakheke amathuba emisebenzi, bese kutholakala amandla kagesi ngamalahle azophuma kulemayini ezokwakhiwa.
We are also happy to be back in Mpumalanga just a few months after launching the return to service of the Camden power station in Ermelo. That project has created about 2 000 jobs, of which 265 are permanent.
This is indeed the year of job creation. We have to do everything possible to create opportunities for people to find work.
Ladies and gentlemen,
Our country has one of the richest reserves of mineral wealth in the world. The value of our mineral reserves is estimated at no less than eighteen trillion rand.
We are currently the world’s number one producer of platinum as well as a leading producer of many other minerals including gold and coal.
The mining sector continues to be a key component of the Johannesburg Stock Exchange. By 2008, it accounted for around 35% or R1,5 trillion of the value of the exchange.
The mining industry employs more than 2,9% percent of the country’s economically active population. That is currently just below half a million direct jobs and a further half a million indirect jobs. That is why we will continue investing in the growth of this industry in our country.
As we launch our state owned mining company today, we do so against the background that just like the rest of the world; we are emerging from the worst economic recession in a century.
The mining industry in our country was badly affected by this crisis. We also recall that in 2008, at the beginning of that fateful year, the mining industry had to deal with the effects of the dreaded load shedding.
The load shedding happened right at the tail end of the commodities boom of the time. Little did we all know that soon thereafter we will contend with the recession that we referred to earlier.
The mining industry was the one sector that was the worst affected during that period. It was required by Eskom to reduce the total electricity consumption by 10%. We are happy to be recovering from all those challenges.
Today we are making a firm statement of how we as a government intend to manage our mineral resources. We have to use these resources to benefit our people and our country in the years ahead.
We are today proving that indeed, the state is the custodian of the country’s mineral resources on behalf of the people of this country.
The role of the State cannot merely be confined to that of a regulator.
The State must actively participate in the mining industry to ensure that our national interest is protected and advanced. As you would be aware, our policy is to build a strong mixed economy, where the state, private sector, cooperative and other forms of social ownership complement each other, to achieve shared and inclusive economic growth.
Government policy on minerals and mining does not make provision for the nationalisation of mining assets, but it does not prevent the State from participating actively in mining, competing with other companies.
As a result, a State diamond mining company, Alexkor, has been operational throughout the transitional phase of introducing the new regulatory framework.
Today we are happy to launch the newly-endorsed African Mining Exploration and Finance Company, a subsidiary of the Central Energy Fund, as the nucleus of the State Owned Mining Company.
The ultimate goal would be to consolidate all state mining interests in one vehicle. The African Exploration Mining & Finance Corporation’s (AEMFC) current portfolio includes coal, uranium, and limestone, which constitute strategic mineral resources.
Today, we are also happy to announce the first project of our mining company, the Vlakfontein coal mine project. About 90% of South Africa‘s electricity is generated by coal, which makes it a key strategic energy resource.
The Vlakfontein project fits the AEMFC’s strategy in that it will assist in securing a strategic mineral like coal which, in turn, improves the security of energy supply. The mine is expected to supply Eskom power stations in this area with coal.
Mining is expected to take place for a period of about fifteen years.
Eskom currently burns approximately one hundred and fifteen million tons of coal per annum, and expects to burn approximately two hundred and fifty million tons per annum by 2018, depending on electricity demand. During the initial years the mine will produce about 840 000 tons a year, which will gradually increase in the coming years.
Ladies and gentlemen,
Mining operations must benefit their host communities and therefore labour will be sourced mostly within the Emalahleni Local Municipality areas.
Our state owned mining company will have to ensure that its business contributes to sustainable development and the upliftment of the local communities within which it operates.
This means we should balance the opportunities for growth and development with ensuring that the social, environmental and economic impacts of mining, both positive and negative, are managed in an open and accountable way.
I have no doubt that the board and management of AEMFC will ensure that the Vlakfontein project sets the benchmark for the many other projects which this company will be embarking on in the months and years to come.
The company has a critical role to play in the State’s efforts to strategically manage our mineral resources and ensure that South Africa and its people benefit from our rich mineral endowment.
Ladies and gentlemen,
While launching a coal mine project today, we acknowledge that South Africa is a significant contributor to greenhouse gas emissions and is one of the largest developing country emitters. Historically our abundant and cheap coal as the main feed stock to power our economy has been a key source of our competitiveness as a nation.
Into the future however, continued reliance on this may jeopardise our international competitiveness in a future, carbon-constrained, global economy.
Fortunately South Africa has a, largely untapped, abundance of renewable energy sources, most notably, solar energy. As our Green Paper on Climate Change states, this presents new economic opportunities and potential competitive advantage.
South Africa is committed to contributing its fair share to the global greenhouse gas mitigation effort and has committed to its emissions peaking between 2020 and 2025, remaining stable for a decade and declining in absolute terms from around 2035.
In December 2009, South Africa committed at Copenhagen to reduce its greenhouse gas emissions by 34% by 2020 and 42% by 2025 below business as usual, on condition that it receives the necessary finance, technology and support from the international community that will allow it to achieve this.
Ladies and gentlemen,
It is truly a pleasure for government to celebrate the launch of our state owned mining company, and also to undertake the sod-turning of the company’s first greenfield mining project.
Siyathemba ukuthi lenkampani evulwa namhlanje izokhula idlondlobale, isize ekwakheni amandla kagesi ozosiza umnotho wethu. Siyabonga kakhulu ukuthi nikwazile ukuba nathi kulomcimbi namhlanje.
I thank you.
Source: The Presidency
