Cape Town, South Africa — MININGREVIEW.COM — 23 April 2010 – South Africa’s Mineral Resources Minister has wooed mining investors to the country, emphasising that the world’s biggest platinum producer and fourth-largest gold producer still had world class mineral deposits to be exploited.
Reporting this here, Reuters said Susan Shabangu had cited the Fraser Institute Survey of Mining Companies, which had indicated that South Africa was one of the less attractive countries for minerals exploration.
It added that the country’s active mines, specifically the gold mines which rank among the world’s deepest, were losing their attraction because of lower yields and higher extraction costs, as the world emerged from a global economic crisis which had dampened commodity demand.
The minister said the country still had world class mineral deposits, and had halved the time it took for authorities to issue mining and prospecting rights to investors.
“The mining industry cannot be sustainable unless it begins to invest in replenishing the finite nature of the current reserves and prolongs its future growth,” Shabangu continued.
“There is still considerable residual potential for discovery of world-class deposits using modern exploration technology,” she said in parliament
Besides platinum and gold, Africa’s strongest economy is also a major producer of iron ore, coal and diamonds, with the key mining sector contributing more than 30% of South Africa’s total export revenue last year.
Shabangu reiterated that South Africa was a host to significant known resources and reserves, with almost 60 minerals being actively mined.
The minister went on to say that she would introduce a more frequent monitoring and evaluation mechanism to vet the country’s plan to bring greater black ownership to the sector. She also said she was finalising the creation of a state-owned mining company to be considered by cabinet in May.