President Cyril Ramaphosa has emphasised the importance of the critical minerals sector in driving global economic growth and sustainability.
By leveraging key sectors such as mining, energy, and manufacturing, the president said South Africa is set to improve its business environment and attract much-needed investment.
He was addressing the African Minerals Forum hosted by the Business Council for International Understanding (BCIU) and Prosper Africa. This was on the sidelines of the UN General Assembly (UNGA 79), in New York, US, on Monday.
New GNU ready to foster economic growth
He highlighted that four months ago, South Africa held national general elections. These ushered in a Government of National Unity (GNU). In it, 10 political parties have come together to coalesce around a common agenda. This is geared towards economic growth and sustainable development.
Ramaphosa underlined South Africa’s commitment to reducing greenhouse gas emissions and mitigating climate change. This through the country’s Just Energy Transition Plan. The plan aims to guide the shift from coal to renewable energy. While also ensuring equitable economic opportunities for affected communities.
“South Africa’s and Africa’s critical minerals sector has a crucial role to play in this regard. And we recognise the importance of collaboration with other countries to develop the potential of our critical minerals sector.
“The US in particular has established expertise in advanced mining technologies. Also automation and sustainability practices.
“We want to strengthen our ties with US companies and institutions to foster technological advancements. To also enhance supply chain efficiencies and attract investment into our mining sector,” he said.
UN Secretary-General’s position paper on Critical Energy Transition Minerals
Ramaphosa said South Africa strongly endorses the UN Secretary-General’s position paper on Critical Energy Transition Minerals. In it he highlights the importance of beneficiation and benefit sharing. Also local value addition and economic diversification.
“…The minerals that lie beneath the African soil are powering the green energy revolution. Thirty percent of the world’s proven critical mineral reserves are found in Sub-Saharan Africa.
“South Africa has substantial reserves of platinum group metals, manganese, vanadium as well as chromium.
“These resources are fundamental to the development of cutting-edge technologies. These technologies drive progress in various sectors. What will be critical is to ensure that this progress does not leave Africa behind,” he said.
He stressed the need to avoid perpetuating colonial-era exploitation. This is where African countries primarily export raw minerals. He said that by focusing on beneficiation and domestic processing, African nations could see significant economic growth.
Ramaphosa said beneficiation and local processing of critical minerals could increase the continent’s GDP. This can increase by 12% or more by 2050.
Mining can generate 2.3 million jobs on the continent
He cited estimates suggesting that African countries could generate $24-billion annually in GDP. And they could create 2.3 million jobs by investing in mining beneficiation and domestic processing.
Ramaphosa highlighted the strides made by Sasol, South Africa’s flagship petrochemical company. Sasol is leading green hydrogen technologies research and development.
“…The global automotive industry moves towards Electric Vehicles and New Energy Vehicles. And we are leveraging our rich experience with automotive production. This to get some of the world’s leading automotive manufactures with a footprint in South Africa. For them to produce more their green vehicles in our country,” he said.
Despite improvements in the beneficiation of South Africa’s mineral exports, he admitted that more needs to be done.
He underscored the country’s commitment to creating a supportive policy framework for the critical minerals sector. This focused on streamlining regulations and fostering innovation in mining technologies. Also building workforce skills, improving transport and logistics infrastructure, and incentivising investment.
South Africa’s five-point policy approach aims to create a supportive environment for the critical minerals sector. This includes simplifying regulations and supporting research and development in mining technologies. Also investing in workforce skills and, improving logistics infrastructure. And incentivising domestic and international investment.
“South Africa also has a beneficiation strategy that seeks to use our minerals. It seeks to translate the benefits of our country’s mineral endowments into a national competitive advantage.
Critical Energy Transition Minerals
“As the UN Secretary-General’s paper has noted, Critical Energy Transition Minerals can transform economies. It can create green jobs and foster sustainable local, regional and global development,” he said.
Ramaphosa said both mineral-producing nations and their end-user countries must embrace inclusivity. This is for the potential of critical minerals to be fully realised,
He emphasised the importance of creating decent work opportunities. also eradicating exploitative practices such as child and forced labour, and ensuring human rights protections.
Local beneficiation and industrialisation were highlighted as priorities. Alongside environmental safeguards to ensure sustainable extraction practices.
He urged for a long-term focus on inter-generational equity. Recognising that critical minerals are vital for solving global challenges like climate change, energy, and food insecurity.
Sustainable development
He called on US companies to collaborate in fostering sustainable development.
“By leveraging our respective strengths, pursuing strategic collaborations, and implementing supportive policies, we stand ready to meet the demands of the global market and drive sustainable development.
“I call on US companies and investors to join us on our journey,” he said.
- SAnews.gov.za
