Companies in the mining sector are willing to increase their investments by 84% over and above the existing capital, during the next five years, if regulatory hurdles are resolved.
That’s according to President Cyril Ramaphosa, who was addressing delegates at the second day of the African Mining Indaba in Cape Town. The president said his government understood clearly what it needed to do to sort out the red tape plaguing the mining sector.
“We need to clear the backlog of mining and prospecting rights and mineral rights transfer applications, put in place a modern and efficient cadastral system, and implement an effective exploration strategy. We understand very clearly the need to significantly improve the functioning of our railways and ports, and the vital importance of ensuring a secure and reliable supply of affordable electricity.”
President Ramaphosa was concerned that South Africa had fallen into the bottom 10 of the Fraser Institute’s Investment Attractiveness Index rankings. The country was currently ranked 75th out of 84 countries.
Despite the seeming unattractiveness of the industry, the mining sector managed to grow to over a trillion rand in value for the first time and had contributed close to 12% to the country’s annual GDP growth in 2021.
Ramaphosa said the publication of the White Paper on National Rail Policy outlines plans to revitalise rail infrastructure and enable third party access to the freight rail network.
“We hope that such proposals will be discussed at this indaba, drawing on the experiences of other countries”
Earlier this year, Transnet invited the private sector to – at a cost – use its infrastructure network and operate 16 slots along its Gauteng to Durban and Gauteng to East London corridors over a two-year initial period.