Exxaro CEO on mining's role in S.Africa’s economy

The economic landscape of South Africa is abuzz with discussions surrounding the 2024 Joburg Indaba, where industry leaders, CEOs, investors, and government officials are convening to address pivotal issues that will propel the economy forward. One of the focal points of these discussions is the mining sector, often considered the backbone of the South African economy. Nombasa Tsengwa, the CEO of Exxaro and President of Minerals Council, sheds light on the importance of inclusive growth within the mining industry and its profound impact on the nation's economy. Tsengwa emphasizes the need to shift the narrative of mining being dominated by a select few to one that encourages broader participation and benefits for all South Africans. This approach aims to empower marginalized communities and ensure they play an active role in decision-making processes and reap the rewards of the industry. Inclusive growth has emerged as a critical imperative for South Africa, championed by President Cyril Ramaphosa's vision of a more inclusive economy. Tsengwa underscores the significance of financial growth alongside inclusive practices, highlighting the mining sector's substantial contribution to the country's GDP, currently standing at approximately eight percent. Despite the challenges faced by traditional gold mining, Tsengwa points to the growth potential in other mineral sectors like chrome, which are showing promising results. The industry's focus on diversification, exploration, and sustainable practices is instrumental in driving continued growth and employment opportunities. The global demand for critical minerals and the energy transition further underscore the importance of South Africa's rich mineral deposits. Tsengwa stresses the need for investment in exploration to tap into new commodity markets and support the evolving demands of the energy transition. Enhancing the country's exploration capabilities and streamlining the licensing processes are crucial steps to attract foreign investments and foster growth in emerging mineral sectors. By expanding the mining industry's footprint and embracing new technologies, South Africa can position itself as a key player in the global supply chain for critical minerals. Furthermore, Tsengwa discusses the potential for South Africa to enhance its mineral processing capabilities and move up the value chain by focusing on beneficiation. While the country has historically relied on primary production, there is immense potential to add value through downstream processing and local beneficiation. Collaborative efforts between the government and industry stakeholders are essential to create a conducive environment for expanding the processing capabilities and nurturing local talent in the beneficiation space. Unlocking the full potential of mineral processing and value addition can significantly contribute to job creation, economic growth, and the country's long-term sustainability. As South Africa navigates the complexities of transforming its mining landscape, Tsengwa emphasizes the need for concerted efforts to drive inclusive growth, foster sustainable practices, and unlock the full economic potential of the mining sector. By embracing diversity, innovation, and collaboration, the mining industry can play a pivotal role in driving economic growth, creating employment opportunities, and ensuring a more inclusive and prosperous future for all South Africans.