Sth Africa urges ongoing investment

And, to link that investment with Government initiatives to deliver greater mine safety.
Addressing the conference, South Africa’s Minister of Mineral Resources, Hon Susan Shabangu, said profits from mining in South Africa could not continue at the expense of the health of mining workers.
“We are introducing much tougher obligations on the sector and its stakeholders to cut the unacceptably high death rate in our mining performance and for our investors to value being part of a far greater focus on workplace occupational health and safety,” Shabangu said.
“The Government does not plan for these amendments to be a deterrent to ongoing Australian investment in our mineral wealth. Rather, Australian investors should see this safety drive as an enhancement of their investment and part of recognising that South Africa is now a destination that cares for its employees in exploration and mine production.”
Australia has invested more than one billion Australian dollars in South Africa in recent years, the bulk of which has gone to resources projects.
“South Africa is open to business and we invite Australia’s mining houses to continue to investigate and evaluate what mining opportunities can be developed so that a stronger mining partnership continues between the two countries,” Shabangu said.
“We also assure Australian investment and mining stakeholders that we have recognised our energy grid problems within the country. We know it has suffered a number of shortcomings but we are now taking a number of steps to make sure lack of adequate or consistent electricity supply does not impact negatively on mining productivity.
“South Africa boasts major coal reserves with a coal life span of more than 150 years - so investors in our resources can increasingly do business without fear of power supply shortages, particularly as we emerge from the effects of the global financial crisis.”
Shabangu said that mining accounts for around 50 per cent of South Africa’s GDP and will continue to do so, but it also needs to now attract investment that can value-add to our primary resources wealth and create a second-tier economy from beneficiating mineral resources.
The Minister revealed that stimulus packages by the South African Government had minimised the effect of the GFC, limiting job losses in the mining sector to below 30,000 as against predictions of 100,000 job losses across mining operations.
“This represents less than five per cent of South Africa’s mining employee numbers and sends a strong signal to overseas resources investors that they have a partner in the South African Government that is capable of managing the transition in our mining aspirations to greater partnerships and joint ventures despite global pressures.”
Shabangu said the outcome would be announced shortly of the Government’s review of the country’s mining charter as part of the need to “transform our mining industry” as part of achieving greater job creation, skills development economic growth.

EFIC assessing wider involvement in African mining
The Federal Government’s export credit agency says it is continuing to support and expand its financial backing for Australian-backed mine project opportunities in Africa.
Addressing the Africa DownUnder Conference, Export Finance Insurance Corporation (EFIC) director, Jan Fuchter, said support for Australian involvement in a range of additional countries in Africa is being considered in addition to current project support in Kenya, Zambia and Mozambique.
“In the northwest, we are currently assessing support for Australian projects in Morocco, Mali, Senegal, Guinea, Ghana, Nigeria and Cameroon,” Fuchter said.
“We also plan to lift our presence on the southeast and southcoast, possibly adding Uganda, Tanzania, Mozambique and South Africa to our current African exposure.”
The Corporation has already committed since 2004, more than US$420 million in support for African ventures involving Australian firms, including copper projects in Zambia, the Mozambique to South Africa gas pipeline, and for engineering, procurement and construction services for the Moma Mineral Sands project.
The bulk of funds have been to support Lumwana Mining Company’s Lumwana copper project in Zambia.
“The EFIC is willing to support the growth of Australian business internationally by providing financial solutions in a manner that is complementary to, not in competition with, commercial lenders,” Fuchter said.
“Our key focus as a lender, insurer and guarantor is structured trade and project finance for larger companies and projects and SME/mid size companies and obviously Africa’s resources expansion is attracting interest from Australian explorers and mine developers.”