Minister Mantashe Addresses Platinum Sector Retrenchments, Calls for Mitigation Strategies

Given South Africa's substantial mineral reserves crucial to global economies, Mantashe emphasized the importance of increased exploration.

Minister Gwede Mantashe, overseeing the Ministry of Mineral and Petroleum Resources, has expressed deep concern over recent retrenchments within the platinum sector, despite the mining sector employing 489,000 workers nationwide. Speaking during the Department of Mineral Resources and Energy’s Budget Vote in Cape Town, Mantashe underscored efforts to collaborate with social partners to develop strategies aimed at minimizing job losses in the sector.

Progress has been noted by the National Energy Crisis Committee (NECOM) and National Logistics Crisis Committee (NLCC), who have partnered with industry stakeholders to enhance infrastructure supporting mining operations. Mantashe highlighted ongoing efforts to amend the Mineral and Petroleum Resources Development Amendment Act (MPRDA) to fortify weak areas and align with international best practices, particularly addressing legal challenges.

"The amendments aim to streamline the licensing regime, reducing bureaucracy and enhancing the investment climate while remaining sensitive to South Africa’s socio-economic landscape," Mantashe explained, noting these reforms as a continuation of policies initiated in the previous administration.

Given South Africa's substantial mineral reserves crucial to global economies, Mantashe emphasized the importance of increased exploration. In collaboration with the Industrial Development Corporation (IDC), the ministry has established an exploration fund tailored to support emerging and junior miners, guided by the national exploration strategy.

The minister highlighted government's commitment to bolstering funding for artisanal and small-scale miners, including enterprises owned by women and youth, with R72 million allocated for this purpose in the upcoming financial year. Mantashe stressed that ensuring the health and safety of mine workers remains a top priority, noting improvements in reducing fatalities, injuries, and occupational diseases, albeit setbacks such as the Impala Rustenburg disaster in 2023.

"We are intensifying efforts to combat fatalities related to motor accidents and illegal mining, including the development of minimum standards and guidelines in collaboration with industry stakeholders," Mantashe affirmed.

For the 2024/25 financial year, the Department has been allocated R8.84 billion, with R6.4 billion designated for transfers to public entities, municipalities, and implementing agents to support its mandate effectively.

In conclusion, Mantashe reiterated the ministry's commitment to fostering a resilient mining sector that contributes significantly to South Africa's economy while prioritizing the well-being of its workforce and sustainable development practices.