Cape Town: President Cyril Ramaphosa has declared that the government will intensify efforts to rejuvenate the mining industry as part of his State of the Nation Address at the Cape Town City Hall.

According to South African Government News Agency, the mining sector contributed approximately 6.3% to South Africa’s nominal Gross Domestic Product (GDP) in 2023, and it plays a significant role in the country’s export value. President Ramaphosa emphasized the importance of the mining industry, stating, “We are breathing new life into the mining industry, which remains one of our most important and valuable endowments.”

Efforts to upgrade the Department of Mineral and Petroleum Resources’ mining rights systems are underway, with a focus on addressing the backlog in prospecting and mining applications. To date, 114 mining rights, 982 prospecting rights, and 385 mining permits and ancillaries have been processed and finalized. The President assured that a new, modern, and transparent mining rights system is on track for implementation this year, aimed at unlocking investment in exploration and production. He also highlighted plans to establish an enabling policy and regulatory framework for critical minerals to benefit the nation by processing these minerals domestically.

In addition to mining, President Ramaphosa highlighted the emergence of renewable energy as a new growth sector for South Africa. He stressed the country’s potential to leverage its strengths in green manufacturing, renewable energy, electric vehicles, and the digital economy to create jobs. South Africa’s abundance of natural resources linked to renewable energy positions it well to become a leader in this sector. The President stated, “With an abundance of cheap, green energy, we can produce products that are competitive anywhere in the world and create hundreds of thousands of new jobs in the process.”