South African President Cyril Ramaphosa has announced that the country’s electricity crisis has significantly impacted its mining industry, a crucial component of the South African economy. Ramaphosa made the declaration while speaking at the Investing in African Mining Indaba, the largest mining investment conference in the world.
According to the Minerals Council South Africa, the total mining volume declined by 6% last year, amounting to $1.8 billion. Ramaphosa acknowledged the role played by the 200 days of power cuts in 2022 in the slump, but also outlined the government’s plans to rectify the situation.
He highlighted the government’s decision to allow mining companies to generate their own electricity without any limitations, and stated that this would have a significant impact. The Minerals Council of South Africa reported that around 89 embedded projects have been developed since the licensing threshold was lifted, with a focus on renewable solutions such as solar, wind, and battery storage.
Minerals Council South Africa’s Chief Economist, Henk Langenhoven, welcomed Ramaphosa’s speech and praised the government’s efforts to resolve the electricity crisis. Langenhoven also noted the challenges faced by the mining industry in terms of transportation and logistics and expressed confidence in the council’s collaboration with Transnet, the state-owned transport and logistics company.
Ramaphosa’s announcement of the upcoming implementation of an electronic management system known as cadastre was also well received by Langenhoven and Mining Analyst Peter Major of Modern Corporate Solutions.
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