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ADu ReVIeW

SA relations on improve but

investment still low

he relationship between South Africa’s overall tone of the speech was in keeping 2018.
Tgovernment and mining sector is show- with the conciliatory nature of discussions. Mantashe pointed to Orion Minerals Ltd
ing signs of recovery from the deep mistrust His 15 months as Minister have seen and its Prieska copper-zinc project – an op-
which engulfed the final days of Jacob Zu- Mantashe rewrite and gazette the new eration which was granted its mining right
ma’s presidency. Mining Charter, send the Minerals and Pe- on the eve of the conference – as evidence
Whether that can now be converted into troleum Resources Development Amend- South Africa could still produce new devel-
sector growth is another question entirely. ment Act back to Parliament for further opments.
The contrast in mood is increasing by the debate and close a number of regional “Base metals are the newly revived com-
day, with this year’s Africa Down Under the regulatory offices suspected of widespread modities in the South African mining space
clearest evidence yet that government and corruption. and present huge opportunities for growth.
industry are closing in on a common agen- Mantashe said the moves were part of Copper mining has been revived by Orion’s
da. Minister for Mineral Resources and En- a deliberate strategy to produce a stable Prieska copper-zinc project in the Northern
ergy Gwede Mantashe made his second investment framework for international in- Cape Province and projections are that the
appearance at the conference this year, vestors. R4 billion project will be paid back in less
12 months on from being parachuted in by “We have taken decisive action to cre- than three years.
President Cyril Ramaphosa to tidy up the ate policy and regulatory certainty in the “The revival of mining of copper and
mess his predecessor Mosebenzi Zwane mining and upstream petroleum indus- nickel in some parts of the country pro-
had left of both the ministry and the sector. tries,” he said. “The gazetting of the Mining vides a good replacement pipeline for the
While Mantashe’s address was mocked Charter… [was undertaken] with the aim depleting minerals which have been mined
in the South African media for its reference of achieving growth, competitiveness and for over 130 years in the country. They are
to imaginary “battery mineral” hazenile, the transformation of the mining industry.” also an indication that mining is indeed a
The policy, he said, was working with sunrise industry in South Africa and that
$US3.2 billion injected into the South Afri- the gold decline should not be interpreted
can mining sector in 2018 with a further 60 to mean the death of the entire mining sec-
projects worth a combined $US7.8 billion in tor in South Africa.”
the development pipeline. Mining is a major Speaking at an investor luncheon follow-
focus of the Government’s drive to attract ing his presentation, Mantashe said the
$US100 billion of investment over the next Government would continue courting inter-
five years. national investors.
Independent evidence suggests the “We are seeing new projects but need
message is starting to permeate with in- to make more progress on certainty and
vestors. At the beginning of the year, South stability to attract investors,” he said. “We
Africa improved its position in the Fraser will be travelling to London, to Canada and
Institute’s Annual Survey of Mining Com- here to Australia to talk with all investors.”
panies, lifting its ranking on the Investment Orion is one of just a handful of juniors
Attractiveness Index from 48th out of 91 active in South Africa, a situation which is
Gwede Mantashe jurisdictions in 2017 to 43rd out of 83 for in stark contrast to countries such as Aus-

The annual South African investment luncheon during Africa Down
Under was well attended with the upbeat atmosphere representing
the new dynamics at play between government and industry

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