Mpumalanga - Mpumalanga Premier David Mabuza has called
on the province’s finance development institution Mega to explore the
possibility of establishing a diversified state-owned mining company.
He said the Lily Mine disaster, where three miners
perished after a shaft caved in a year ago, needed a “bold and innovative”
approach.
Mabuza said it had directed the Mpumalanga Economic
Growth Agency [Mega] to “explore the viability of utilising its current mining
holdings as a base from which to build a diversified state owned mining company”.
The premier, who was delivering his State of the Province
Address in Mpumalanga on Friday, said: “We cannot have mining assets in this
province that are lying idle and unproductive when unemployment is this high.”
He said such an initiative would not only create new jobs
but also demonstrate “our commitment to the growth and development of a sector
that will remain a significant contributor to our GDP for some time to come”.
Mabuza, who also serves as ANC provincial chairperson,
said despite the negative outlook in the mining sector, he was excited that
they were partnering with mining company Exxaro on skills and enterprise
development. This would ensure his administration responded well to the “plight
of communities around their mine”.
“I am also excited that they have decided to invest in
the province to the tune of R3.8 billion in Belfast. This investment will create 1
160 new jobs and the GDP impact over the entire life of the mine is R39 billion.”
Read also: Lily mine hopes to resume search in 2017
“The closure of Glencore’s Optimum Colliery and the
tragic incident at the Lily Mine is one such area where we have had substantial
job losses. Last week, together with the Minister of Mineral Resources [Mosebenzi
Zwane], we visited this mine and thousands of workers and their dependents are
now destitute and living in dehumanising conditions,” said Mabuza.
Speaking to Independent Media, Mega chief executive
officer, Xola Sithole, said: “Look, Mega already holds a number of mining
interests, operating companies and others that are already in development. As a
province, we have a lot of mineral resources under the ground, some of which
are unexplored. What we have to explore, under the circumstances, [is] mining
is about 26 percent of our GDP [gross domestic product]. If mining fails in the
province, the economy will never grow. We have to find ways in which we can
develop this resource that we’ve got in partnership with the private sector so
that mining, which will remain a big contributor to our GDP, thrives and
therefore creates jobs.”
Sithole added it would work with all stakeholders to
revive the crucial mining sector to create jobs in the province. "Our
economy grows when mining grows and falls when mining collapses."
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