Speaking notes by the Honourable Minister of Mineral and Petroleum Resources Mr Gwede Mantashe (MP), Official Opening of Qala Shallows Mine, Roodepoort, Johannesburg
Programme director, Mr Oliver Dickson
Australian High Commissioner, Her Excellency Ms Tegan Brink, Chairman of West Wits Mining, Mr Michael Quinert,
CEO of West Wits Mining, Mr Rudi Deysel,
CEO of Minerals Council South Africa, Mr Mzila Mthenjane and your delegation
Distinguished Guests,
It is a great honour to participate in the official opening of the Qala Shallows Gold Mine in South Africa.
Today’s ceremony is important because it demonstrates – especially to those with lingering scepticism - that South Africa remains one of the wealthiest countries when it comes to mineral resources. To us, this is a milestone that signals renewed growth and new opportunities in our mining Industry.
It is a known fact that the South African gold mining industry – now existing for more than a century – is in a mature phase, characterized by deep-level underground operations and high operating costs.
However, this reality does not disturb us, because we understand that mineral deposits are finite. Mining is not like mixing water and syrup to produce a cold drink; the more we mine, the more the deposits naturally deplete.
Despite these difficulties, gold mining continues to anchor our economy and provide much-need jobs to the people of South Africa. This was evident in the second quarter’s performance, where the mining industry increased output by 3,7%, contributing 0,2 percentage point to the GDP, with platinum group metals (PGMs), gold and chromium ore being the largest positive contributors.
Our study on the state of mining shows that in 2023, the South African gold mining sector directly employed 93,900 people, making it the third largest employer after PGMs and coal.
The sector’s contribution to the economy was further demonstrated by its 2023 production of 96 tonnes, positioning South Africa as the 13th largest gold producer globally and the 4th largest in Africa. While this is a decline from our proud history as the world’s top gold producer, the sustained performance of the industry speaks to its resilience and enduring contribution to national development.
A key factor in today’s opening of the mine, is that it comes at a time when the gold price is at a record high, and projections indicate further upward movement.
However, high commodity prices come with inherent risks. In pursuit of profits, some companies tend to neglect their duty to protect the health and safety of mineworkers. As the South African mining industry, we have committed ourselves to a goal of Zero Harm. We are making progress in this regard.
In 2024, we recorded the lowest number of fatalities on record – 42. This is a significant departure from the tragic disasters of the past: the Coalbrook disaster which claimed 435 lives, the Kinross disaster where 177 workers perished, and the Vaal Reefs disaster which claimed 104 lives.
Regrettably, most mining fatalities today still occur in the gold and PGMs sectors. We, therefore, urge all mining companies, including West Wits Mining, to collaborate with us to achieve our Zero Harm goal. You can do this by adopting safer technologies, modernising your operations, and adhering strictly to safety protocols.
Allow me to remind you of the importance of investing in the communities in which you operate – and in labour-sending areas – through the full and faithful implementation of your Social and Labour Plan (SLP).
The SLP forms part of the industry’s social license to coexist with communities, and it is essential to changing mining from a sector historically known as dirty, difficult, dangerous, diseased and deadly.
Let me conclude by commending you on reaching this milestone. It not only strengthens our confidence but reinforces that mining remains a sunrise industry – one that will continue to grow and contribute meaningfully to South Africa’s development.
You can be assured of our continued support.
I thank you.
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