Economic stimulus plan to boost mining
• Central element is the reprioritisation of spending towards activities that have the greatest impact
In his statement on September 21 2018 on the economic stimulus and recovery plan, President Cyril Ramaphosa said it is imperative that SA restores investment and exploration levels in the mining sector as mining and mineral beneficiation activities have significant potential to drive long-term growth, exports and job creation.
“Following extensive consultation that involved industry players, communities, labour and government, Cabinet approved the revised Mining Charter,” he said.
“This will revitalise the mining industry and provide certainty to investors while charting a sustainable path towards a transformed and inclusive industry.
“Parliament will be requested in terms of its rules not to proceed with the Mineral and Petroleum Resources Development Act Amendment Bill, which has contributed to a lot of uncertainty in the sector.
“Separate legislation for the regulation of the oil and gas industry will be drafted through the legislative process.
“To reduce the cost of doing business, to boost exports and to make SA’s industry more competitive, government has begun a review of administered prices, starting with electricity, port and rail tariffs.”
Ramaphosa said the stimulus and recovery plan consists of a range of measures, both financial and nonfinancial, that will be implemented immediately to, first, ignite economic activity, second, restore investor confidence, third, prevent further job losses and create new jobs, and fourth, to address urgent challenges that affect the conditions faced by vulnerable groups.
“The central element of the economic stimulus and recovery plan is the reprioritisation of spending towards activities that have the greatest impact on economic growth, domestic demand and job creation, with an emphasis on township and rural economies, women and youth.”
Ramaphosa said in support of the stimulus efforts, the IDC will be targeting to increase its approvals to R20bn over 12 months, an increase of 20% on the previous year. This funding will target the productive sectors of the economy, including manufacturing, mining, industrial infrastructure and sectors in distress.