Question NW2048 to the Minister of Mineral Resources
26 July 2018 - NW2048
Esterhuizen, Mr JA to ask the Minister of Mineral Resources
In light of the fact that 45% of global economic activity is ostensibly attributable to mining, what (a) percentage has mining contributed to the economy of the country in the past three financial years and (b) has he found to be the impact of legislation and regulations on the contribution that mining can have on the economy?
Reply:
a) Mining industry is one of the country’s key economic sectors with substantial contribution to economic growth and development, job creation and transformation, consistent with the government’s objectives to achieve more balanced economic and inclusive growth. In the past three financial years, the mining industry contributed R282.9 billion (7.8 percent) in 2015, R307.3 billion (7.9 percent) in 2016 and R334.7 billion (8.0 percent) respectively to gross domestic product (GDP). Mining contribution to Gross Fixed Capital Formation (GFCF) grew from 9.1 percent in 2015 to 9.3 percent in 2017.
b) The object of the mining and minerals legislation is to create a conducive environment for mining companies to access the country’s mineral wealth. It also strives to ensure that there is transformation in the mining industry through redressing of the past imbalances where the ownership was skewed in favour of the minorities with exclusions of the Africans. It also ensures that the mining industry contributes towards socio-economic development of mine communities and major labour sending areas as a form of compensating them for adversities associated with mining activities. It further provides for competitiveness of the industry through skills development and equitable representation in the workplace in line with demographics (both national and provincial).