Minister of Mineral and Petroleum Resources, Gwede Mantashe, has told an indaba that there is evidence to suggest that mining is 'the bedrock of our economy' and that the country is an attractive investment destination for mining. According to the Minerals Council of South Africa, the industry contributed some 6.3% to South Africa's nominal Gross Domestic Product (GDP) last year. 'There is a strong case emerging out of the study on 'The State of Mining' that the South African mining industry not only remains the bedrock of our economy, but an attractive investment destination for mining. 'Coupled with the draft South Africa's 'Critical Minerals Strategy', the study points to the reality that the South African mining industry is diversifying from the gold mining era to an industry with wide-ranging mineral resources, including the world's largest known deposits of platinum group metals (PGMs), manganese, chrome, coal, gold, copper, vanadium, and other natural resources that are considered critical for the just transition,' the Minister said at the Annual Joburg Indaba in Sandton on Thursday. He added that with the diversification of the industry, its potential to continue growing remains high. 'Notwithstanding the challenges faced by the gold mining sector, including deep level mines and heightened safety concerns, the 2023 gold production statistics positioned South Africa as the world's thirteenth and Africa's fourth largest gold producer. 'Despite the fluctuating prices of palladium and rhodium, of which South Africa supplies 38% and 81%, respectively, to the global commodities market, the PGMs sector is poised to play a catalytic role in sustaining the South African mining industry, and in the growth of our economy. 'Considering South Africa's reserves of known manganese and chrome deposits, as well as being the largest producer and exporter of manganese and chrome ore, the South African manganese and chrome sectors are poised to continue playing a significant role globally driven by their use in the a utomotive and construction industries,' Mantashe said. Addressing challenges He acknowledged that during last year's Joburg Indaba, industry players raised issues that 'we needed to resolve for the sector to thrive, including the need to ensure the necessary policy and regulatory certainty for investment'. 'Although the South African mining industry's regulatory framework is stable and predictable, the Department of Mineral and Petroleum Resources is drafting amendments to the Mineral and Petroleum Resources Development Act (MPRDA). 'This is so as to address its shortcomings and ensure that areas that have been challenged legally are strengthened against international best practice. The amendments will further improve the business environment while keeping in sync with our socioeconomic fabric. 'The completion of the migration process to the new efficient and transparent mining licensing system, in June next year, is poised to modernise our licensing system, ensure regulatory certainty, and the sustainab ility of the South African mining industry. 'Having completed the first phase of the project, which included the assessment of the current environment to establish the baseline and its readiness, and the requirements with respect to system hosting, software integration, and the enhancement of cybersecurity, the development of the new system is therefore progressing very well,' the Minister explained. READ | Presidency transfers Department of Mineral Resources and Energy legislation Furthermore, the Minister told the industry leaders that between April 2023 and March this year, the department has processed and finalised 127 mining rights, 1 527 prospecting rights, and 2 313 mining permits and ancillaries. There are no backlogs in the Western Cape and the Free State while backlogs in the Northern Cape, Limpopo, North West, Eastern Cape and KwaZulu-Natal have been significantly reduced. Mpumalanga is the only province with a significant backlog. 'As we come to the end of this year's Indaba, we wish to encou rage the South African mining industry to continue sharing insights about the realities of this industry, advance beneficiation at source, and support our exploration initiatives. 'We further encourage junior miners to take up the opportunities presented to them in order to transform the industry and ensure that the people of South Africa derive value from their country's mineral endowment,' Mantashe concluded. Source: South African Government News Agency