Mineral Resources Minister Gwede Mantashe said today that the South African mining industry, particularly the diamond sector, needed to work more to improve its contribution to the country’s overall gross domestic product (GPD).
GDP figures released by Statistics South Africa on Tuesday revealed that the economy grew by 2.2 percent quarter-on-quarter in the third quarter of 2018, bringing to an end the country’s second recession since 1994.
But the mining industry was the biggest detractor from economic growth between July and September, declining by 8.8 percent, with lower production levels recorded mainly in platinum group metals, iron ore, gold, copper and nickel.
Mantashe today met with the Minerals Council South Africa and chief executives in the iron ore, manganese, gold and diamond sectors to receive an update on the current state of these sectors, as well as constraints and possible opportunities for growth.
The meetings are part of the Mantashe’s ongoing engagements with the industry, to ensure that it is stable, transforming, competitive and continues to make a positive contribution to GDP growth, foreign earnings and employment creation, among others.
“We are paying a lot more attention to detail. The contribution of the sector to the latest GDP figures means we need to work that much harder to improve mining and its overall contribution to the economy,” Mantashe said.
“Mining is a major economic sector and it’s up to us to facilitate the growth of the industry and ensure that together we move the industry forward.”
– African News Agency (ANA)