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South African minister pledges open-door policy to encourage mining growth

South African Mining Minister Mosebenzi Zwane pledged an open-door policy and active engagement with stakeholders to promote growth and investment in the country's mining sector but failed to address the most pressing topic, the controversial reviewed mining charter.

"We continue to prioritize the promotion of good working relations with right holders, and we engage on a continuous basis on issues which will advance the growth and development of the sector," Zwane told delegates in his opening speech on the first day of this year's Mining Indaba in Cape Town, South Africa. "As the week progresses, we will continue engaging with the investment community and hold bilateral discussions with visiting ministers to see what progresses we together have made in this industry."

Initial meetings with global mining companies operating in South Africa showed dedication to the jurisdiction and further investments on the way, Zwane said, namely a potential investment of US$450 million from Rio Tinto.

"The company has also demonstrated its willingness to align with government policies by exceeding the targets we have set for empowerment and transformation," he added.

Additionally, De Beers SA plans to inject US$2 billion into its Venetia underground project to extend the life of the diamond mine to beyond 2040, Zwane said.

As widely expected, the minister kept his cards close to his chest regarding changes to the mining charter. It will be subject to court hearings between Feb. 19 and 21.

He made some general remarks in the context of legislative and regulatory frameworks, highlighting that the "meaningful integration of the mining sector into the broader economy" was a major goal of governments across the continent.

"We urge investors to work with us and to turn these policy directives into mutually beneficial programs," he continued, noting that 220 billion South African rand of investments in the project pipeline demonstrated that "South Africa remains a critical investment destination."

In light of the recent incident at Sibanye Gold Ltd.'s Beatrix mine, and exactly two years after the disaster at Vantage Goldfields Ltd.'s Lily mine, Zwane urged companies to refine operational strategies in line with the target of achieving zero harm by 2024. "We recognize companies such as De Beers, who have gone ten years without a fatality in their operations, and encourage more in the industry to achieve this milestone."

Three workers died and several others were trapped underground but later rescued when a pillar collapsed at the Lily mine. Many families of the victims are still awaiting answers.

"The inquiry into the accident has been concluded, and a report will be submitted to the Department [of Mineral Resources] in the next few weeks," Zwane said.