Remarks by the Honourable Deputy Minister of Mineral Resources and Energy Dr Nobuhle Nkabane (MP) at Intergovernmental Summit, Investing in African Mining Indaba Westin Hotel, 05 February 2024
Programme Director,
Ministers and Deputy Ministers present here,
Leadership of Organised Business,
Members of the Investment Community,
Distinguished guests,
Allow me to extend our warm greetings to you all at this important intergovernmental summit, which forms part of the 30th occasion of the Investing in African Mining Indaba.
We welcome your participation in this summit which, to us, serves as an important platform for delegates to engage on opportunities presented by mining, and collectively respond to the common challenges faced by our nations and businesses.
Africa’s blueprint and master plan for transforming Africa, Agenda 2063, enjoins us to prioritise inclusive social and economic development, continental and regional integration, democratic governance, peace, and security, and reposition our continent as a central and dominant player in the global arena.
Fact of the matter is that the African continent is blessed with vast mineral and petroleum resources. In terms of global reserves, our continent hosts 91% of Platinum Group Metals (PGMs), 79% of phosphate rock, 53% of cobalt, 46% of manganese, 35% of chromite, 21% of graphite, 6% of copper, and a substantial percentage of coal and uranium.
The Petroleum Agency of South Africa (PASA) estimates that South Africa, on its own, holds 27 billion barrels (bbls) and 60 trillion cubic feet (tcf) of prospective oil and gas resources on the south, west, and east coasts. Adding to this, the estimate for the onshore exceeds 200 tcf of prospective shale gas resources, biogenic gas, and coal bed methane.
This proves that Africa hosts significant quantities of the minerals that are needed for the just energy transition and green industries.
It is, however, regrettable that, despite this mineral and petroleum resource endowment, our continent remains underdeveloped as these resources get exported out of the continent in raw form, and then imported back in manufactured goods. As a result of this historical pit-to- port approach to mining, the jobs and profits that ought to accrue to the continent get passed on to other countries.
It is, therefore, critical for all role players in the African mining industry to ensure that the natural resources that are mined in our shores get beneficiated at source or locally.
Our firm belief is that by promoting industrialisation and trade among African nations, more of what is produced on the continent can be consumed on the continent. Hence, South Africa promotes the African Continental Free Trade Area (AfCFTA) as a game changer for industrialisation and development across the continent.
Reality of the matter is that the AfCFTA opens real opportunities for African entrepreneurs to expand exports of their manufactured goods beyond the borders of their home countries to other African countries.
For Africa to attain maximum benefits from mining and the AfCFTA, we must continue working together to transform the African mining industry by advancing exploration to reignite mineral development, accelerate new mineral discoveries, promote emergence of new mines, and advance meaningful participation of women and young people in the extraction and exploitation of these natural resources.
It is against this background, that the Department of Mineral Resources and Energy (DMRE) in collaboration with the Industrial Development Corporation (IDC) has established the country’s exploration fund, which we will officially launch tomorrow, 06 February 2024. Through this fund, we intend to assist qualifying junior miners to conduct prospecting work and promote economic inclusion in the midst of high unemployment, extreme poverty, and inequality.
Equally important, the DMRE is also providing support to artisanal and small-scale miners through the artisanal and small-scale fund. Through this fund, we intend to assist small-scale miners with financial provision for capital equipment. To this end, we have published an invitation to qualifying small-scale miners to apply for the funding. Women will also benefit from this program.
Programme director, we are mindful that none of these measures can be achieved as long as our logistics infrastructure constrains and electricity interruptions persist, hence government continues to invest resources and efforts, working closely with all role players, to resolve these immediate problems.
Equally important to building the Africa we want will be ensuring that the people of Africa not only have access to energy but have access to affordable energy. Achieving this, will require collaboration among African countries, hence we are heartened by the collaboration of progressive African countries at the COP 28 who contributed to a balanced consensus on the transition towards a low carbon economy in a manner that is just and at a pace that each country can afford.
With that said, programme director, allow me to take this opportunity to reassure all delegates to this summit that the South African government remains firmly committed to advancing the African Agenda 2063 to
build a united and prosperous continent. We will never betray Africa’s industrialisation and infrastructural development programme.
You can be certain that the South African government will continue to make its contribution towards peace, unity, and development of the African continent, and the world at large.
I thank you.
