Mechanisation in the mining industry will create more job opportunities – Ramaphosa

President Cyril Ramaphosa says the mining industry, which has historically been the bedrock of the South African economy, will continue to play a central role in the economy for many decades to come due to the country’s vast mineral reserves and mechanisation in the industry.

“Greater investment in mining, localisation and beneficiation all contribute to extending mine life to increasing mining exports, to skills development and to the creation of employment,” Ramaphosa said.

The president made the remarks on Friday, at the launch of the new Sandvik Khomanani Manufacturing Site in Kempton Park in Ekurhuleni.

The opening of the high-tech head office facility by the Swedish global manufacturer of mining and mineral processing equipment, consolidates operations previously undertaken at five separate sites and accommodates approximately 550 employees.

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The engineering company also made an investment pledge of R350 million at the 4th SA Investment Conference in Sandton six months ago.

Mining capital goods industry

Ramaphosa said the mining capital goods industry had developed alongside the mining sector to supply mining and mineral processing equipment to enhance productivity and safety, lower costs and improve efficiencies. 

“The capital equipment industry is critical to the South African economy. The focus on capital equipment will contribute to a new age of mechanisation in our mining industry,” he said.

Contrary to the view expressed by some critics that mechanisation would result in significant job losses in the mining industry, Ramaphosa said research showed it would instead generate additional employment opportunities.

“The convergence between the information technology and machinery and equipment industries is the basis for smart manufacturing and smart societies.

 “These are vital constituents of the Fourth Industrial Revolution.”

Beneficiation

The president said the mining machinery and equipment sector also had significant linkages to other parts of the economy.

He said increasing local production would further contribute significantly to the revival of South Africa’s manufacturing industry. 

 “The companies supplying equipment to the mining industry have important backward linkages to major assembly suppliers, sub-assembly and parts suppliers, specialist component suppliers and raw material suppliers. 

 “A growing local capital goods manufacturing sector will have a positive impact on other sectors of the economy, like agriculture and construction, and further strengthen sectors such as banking, hospitality and tourism,” Ramaphosa said.

Compiled by Thapelo Lekabe

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