South Africa seeking to attract investment in mining sector-Xinhua

South Africa seeking to attract investment in mining sector

Source: Xinhua| 2023-02-07 21:50:30|Editor: huaxia

CAPE TOWN, Feb. 7 (Xinhua) -- South African President Cyril Ramaphosa on Tuesday invited investors to invest in the country's mining sector, saying the government is working to address challenges faced by the sector.

"Just as we look to attract investment in mining to grow our economy and create jobs, investors will find South Africa as an attractive destination for miners and associated sectors," Ramaphosa made the remarks while addressing the 2023 Investing in African Mining Indaba held in Cape Town.

Mining continues to be an essential part of South Africa's economy, however, it is far from realizing the full potential of the industry, according to the president.

Due to electricity shortages and inefficiencies in logistics, mineral production contracted by 9 percent year-on-year in November 2022, while coal exports through the Richards Bay Coal Terminal, believed to be the largest in Africa, dropped to about 50 million tonnes in 2022, the worst performance since 1993, he said.

In addition to the energy crisis and problems with port and rail operations, the outlook for the year ahead has been dampened by concerns about safety and security, illegal mining and the pace of the structural reform program, Ramaphosa said. "These are precisely the issues that the government is working to address."

To grow the sector, South Africa needs to achieve a secure supply of electricity, accelerate economic reforms to improve the operating environment, tackle illegal mining and damage to infrastructure, as well as improve the regulatory environment, he said.

The 2023 Investing in African Mining Indaba started Monday and will end Thursday, with attendees from governments, the business community and civil society of various African countries.