Mining Indaba: Mantashe responds to industry impediments

Mineral and Petroleum Resources Minister Gwede Mantashe said government is responding to impediments in the mining industry, as companies buckle under the weight of infrastructure bottlenecks, a tough regulatory environment and high operating costs.

The calls for government to address the challenges in the industry were front and centre when the annual Mining Indaba opened its doors in Cape Town on Monday.

Miners, government leaders and investors are meeting over four days to talk shop.

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Last year, South Africa’s last remaining manganese smelter, Transalloys, warned it would have to close the plant in Emalahleni, in Mpumalanga, and cut hundreds of jobs if its soaring electricity costs are not brought down.

Other companies like Glencore, Samancor and Almar Investments had also previously sounded the alarm about tough times ahead.

Mantashe addressed the issue during a press briefing.

“The Minister of Electricity has cut the tariffs to, to fellow alloys and heavy minerals by half. It's not yet at the level where the industry wants it to be, but the industry must meet us halfway by doing something extra and do more with less. But there is an effort to correct that situation.”