Sowetan

THERE ARE HARD TRUTHS BEHIND BENEFICIAT­ION DEBATE

-

WE sell our mining riches to the world largely in a raw state.

That earns us foreign exchange. Yet at the same time we place ourselves at a disadvanta­ge by not finishing off the job in South Africa – leaving it to outsiders to benefit.

That is the hard, inconvenie­nt truth behind the beneficiat­ion debate.

Take jewellery, highlighte­d at the National Jewellery Forum we hosted recently.

An analysis of the precious metals value chains, when it comes to jewellery, shows that South Africa is a world-class supplier of the main jewellery raw materials, con- tributing about one-fifth of our global output per year.

Yet our own jewellery production is a mere 1% of our global contributi­on in these raw materials.

At the forum we were able to share a common vision for South Africa to become a world-class jewellery hub.

Historical­ly, the South African mineral and mining sector was deeply racialised, resulting in highly skilled white people working as engineers and managers, and black people working as unskilled and underpaid labour.

There was little or no beneficiat­ion of minerals in our country. The minerals came back as finished products ready for selling.

This had many consequenc­es. For example, South Africa was denied the economic benefits of its minerals, the human capital required for beneficiat­ion was not developed and there was an adverse effect on careers.

The mining industry created an extremely unequal society, the effects of which are still felt in post-apartheid South Africa.

We must reverse this trend and enthuse our youth about prospects; build a skilled base of blacks in the mining and minerals sector generally – and specifical­ly in the jewellery-making industry.

Bantu education excluded blacks from learning subjects like maths, science and other technical subjects. The current lack of knowledge and skills and low levels of entreprene­urship among black youth are evidence of the negative impact of the past.

We must begin to nurture motivated, self-directed young entreprene­urs.

The Department of Mineral Resources has already developed policies, legislatio­n and various instrument­s to transform and develop the mining and mineral sector to its full potential.

The Mineral Beneficiat­ion Strategy was adopted by the government as

We want to create a world- class jewellery hub

policy in 2011. Beneficiat­ion means adding value to raw minerals from their extraction through to the sale of finished products to consumers. It includes large-scale and capitalint­ensive operations like smelting and technologi­c- ally advanced refining and labour-intensive activities such as the craft of jewellery.

The minerals strategy recognises that South Africa is rich in mineral wealth, which provides a comparativ­e advantage.

The strategy identifies five value chains – one of which is jewellery manufactur­ing – that should leverage South Africa ’ s precious metal and gemstone reserves and position the country as a thriving and globally competitiv­e jewellery hub.

For successful implementa­tion we need intensive coordinati­on and partnershi­p across a number of government department­s, stakeholde­rs and businesses, as well as human resource developmen­t and skills training.

It is noteworthy that 20 years into our democracy there is little evidence of programmes or initiative­s producing entreprene­urial jewellery designers and manufactur­ers who can create more jobs, transform the jewellery manufactur­ing sector and contribute towards the economic growth of the country.

Training opportunit­ies so far have neither appropriat­ely responded to the needs of prospectiv­e employers and markets, nor created a critical mass of sustainabl­e and competitiv­e jewellery manufactur­ing entreprene­urs.

We urgently need skills developmen­t interventi­ons to underpin both technical and business skills so we can break through the deep-rooted cycle of history and neglect.

Shabangu is the Minister of Mineral Resources

 ??  ?? Susan Shabangu
Susan Shabangu

Newspapers in English

Newspapers from South Africa