JOHANNESBURG (miningweekly.com) – Given its far-reaching multiplier effect, mining is the epicentre of South Africa’s economy and social wellbeing and has been at the heart of its economic progress and development for much of this country's history, Minerals Council South Africa's 134th AGM attendees heard in Johannesburg on Wednesday.

Simply put, a R1-million increase in mined output results in 2.5 economy-wide job opportunities.

On the basis of household dependency of three to four individuals for every employee, seven to ten people are able to escape the clutches of poverty.

Importantly, the mining industry leads in investment that is not directly mining related, in this case private-sector energy investment.

For example, mining has a pipeline of about 90 renewable-energy projects. These total some 15.8 GW, are worth R275-billion and account for 70% of the total project line-up.

The decline in recent years in mining output performance because of infrastructure constraints is thus a tragedy that is manifesting in undesirable employment losses, Minerals Council South Africa CEO Mzila Mthenjane told the council’s AGM, covered by Mining Weekly.

“A thriving industry is characterised by investment and growth. We need the lifeblood of fresh mineral deposits, which will be found by energetic prospectors and a vibrant exploration sector.

“These deposits will lead to investments in new mines and expansion of operating mines. The cadastral system is important to improving investor sentiment, but so is a holistic and investor friendly legislative environment.

South African mining currently employs 480 000 people – with increased investment and growth, the possibilities for job creation and poverty reduction are significant.

“It is critical for the sustainability and unfettered contribution of the mining industry to the economy that exploration is revitalised so that South Africa can enjoy the benefits of its mineral endowment as it plays its part in supplying the metals it is known for and the critical minerals the world will need in the just transition journey to a lower carbon future,” Mthenjane emphasised

“Mining matters to South Africa. This is an industry that has made fundamental changes to the way it engages and shares the benefits of the nation’s mineral wealth,” outgoing Minerals Council president Nolitha Fakude, who served three terms, highlighted.

“For much of our country's history, mining has been at the heart of its economic progress and development,” she added.

Dr Nombasa Tsengwa, CEO of Exxaro Resources, has been elected as president of the Minerals Council and Mpumi Zikalala, CEO of Kumba Iron Ore, and Richard Stewart,chief regional officer of Sibanye-Stillwater, have been newly elected as vice-presidents.

Paul Dunne, CEO of Northam Platinum, and Themba Mkhwanazi, Anglo American Africa and Australia regional director, were re-elected as vice-presidents.

“The very high calibre of leadership of women and men who are willing to step forward and play key leadership roles is one of our greatest strengths.

“These leaders have a profound impact on the future direction of the mining industry and the country,” Mthenjane noted.