SPEAKING NOTES BY THE HONOURABLE MINISTER OF MINERAL AND PETROLEUM RESOURCES MR GWEDE MANTASHE (MP)
OFFICIAL OPENING OF NAUDESBANK COLLIERY
14 March 2025, Carolina, Mpumalanga
Programme Director,
CEO of Seriti, Mr Mike Teke
MEC of Economic Development and Tourism, Ms Makhosane Masilela
Executive Mayor of Gert Sibande District Municipality,
Mayor of Chief Albert Luthuli Local Municipality,
Distinguished Guests
The official opening of the Naudesbank Coal Mine is crucial in a sense that it takes place a few days after the National Treasury delivered the 2025 Budget which highlighted a myriad of challenges that negatively affect inclusive economic growth, employment creation, and consequently aggravate poverty and inequality.
Although the South African gross domestic product (GDP) expanded by 0,6% in the fourth quarter of 2024, Statistics South Africa reported that the South African “mining activity was down on weaker production levels for manganese ore, iron ore, gold, chromium ore, nickel and copper.”
They further reported that coal and platinum group metals (PGMs) were positive, however, this was not enough to prevent the South African mining industry from going under, hence the -0.2% contribution to the GDP.
In 2024, the South African mining industry employed 484 837 mineworkers, marking a significant decrease of 0.9% from the previous year. Changing this reality for the better will require all social partners – government, business, labour, and communities – to put shoulder on the wheel and make it possible to do business in South Africa, including opening new mines and thereby create the much-needed employment opportunities.
It is within this context that we are particularly pleased with the new sizeable investments that cut across the South African mining value chain. For instance, in 2024 alone, Canyoncoal produced first coal at its new Gugulethu Mine, whereas Ikoti Coal Mine broke ground and produced its first coal from its underground operations in December.
Just over three months later, we are gathered here to officially open the Naudesbank colliery which not only promises to enhance the local economic activity, but reinforce our assertion that mining is a sunrise industry that is ready to bolster South Africa’s economy for years to come.
The study on the state of mining in South Africa further confirms that the South African mining industry is not a sunset industry, but an industry that is diversifying from the gold era to an industry with a diverse range of mineral resources including, but not limited to, coal, PGMs, manganese, chrome, and rare earth minerals.
The study shows that coal will continue to play an important role as it makes up the largest share of baseload energy generated in developing and developed nations such as South Africa, China, India, and Japan. Despite the fact that South Africa has proven reserves of coal that are equivalent to 173 times its annual consumption, the study further shows that at the current production rate, the operational collieries in South Africa should have more than 50 years of coal supply left.
In 2023 alone, the coal mining sector increased its production from 230 million tonnes in 2022 to 232 million tonnes and thereby positioned South Africa in the top 10 of coal-producing nations and the fifth largest coal exporter in the world.
By investing in the coal mining, and opening this mine, Seriti, you are practically demonstrating that king coal is back, and that coal will continue to play a significant role not only in energy generation, but in cement production, steel making, and the production of synthetic petroleum based fuels.
More encouraging about this project, and the coal sector in general, is that it is predominantly black-owned which augurs well with our transformation agenda. The truth of the matter is that the South African mining industry in general is transforming from an era where:
All these has changed with the enactment of the Mineral and Petroleum Resources Development Act (MPRDA) in 2002 which not only bestowed the mineral resources beneath the South African soil under the custodian of the state on behalf of, and for the benefit of, all South Africans, but reinforced the freedom charter’s clarion call that “the people shall share in the country’s wealth”.
It is against this background that we are encouraged by the increased participation of historically disadvantaged individuals in the industry, in particular black people in general, women, and youth. The study on the state of mining in South Africa shows that by 2022, the South African coal mining sector employed nearly 91 835 mineworkers, of which 15 140 (20%) were female. We need to see more women and the youth participating in the industry as they are the hardest hit by the scourge of unemployment, poverty, and inequality.
Another key element of our transformation agenda is increased investments in the social and economic welfare of the communities in which our mines are operating, as well as the labour sending areas. It is encouraging that mining companies are beginning to implement impactful projects such as clinics, schools, and road infrastructure in our communities as part of their Social and Labour Plans (SLPs). We cannot overemphasise the fact that SLPs are not a replacement of the Municipal Infrastructure Development Plan (IDP), but a social license for mining companies to coexist with their communities.
As the Department of Mineral and Petroleum Resources, we will continue to follow on the implementation of these SLPs as they are meant to uplift our communities, whilst on the other hand, they help to change the reputation of mining that is associated with being dirty, difficult, dangerous, and deceased.
Safeguarding the health and safety of every mineworker and all persons affected by mining activities in the South African mining industry, cannot be overemphasized. Although in 2024, the industry has recorded the lowest ever number of fatalities in the history of mining in South Africa, the latest fatalities in the industry are a great concern to us. We, therefore, urge the industry to double their concerted effort that are aimed at maintaining a working environment that is safe and without risk to the health and safety of employees and all those that may be directly affected by the activities of mining.
As government, we will continue to work with the industry to attain the goal of zero harm.
With that said, let me congratulate Seriti for officially opening this mine, and urge you to open more mines.
I thank you.