Monday, February 6, 2012

IDC report highlights jobs potential of SA mining

JOHANNESBURG - A supportive operational environment together with a turnaround in South Africa's mineral extraction rates could stimulate the creation of an additional 140 000 direct mining jobs by 2020 and over 200 000 by 2030, the State-owned Industrial Development Corporation said in a report published on Monday.

Entitled 'Sectoral trends: Performance of the primary and secondary sectors of the South African economy', the report noted that the country's raw mineral exports had increased steadily over the past decade, while exports of beneficiated minerals were exceeding prefinancial-crisis levels in value terms.

However, research and information head Jorge Maia said South Africa's mineral extraction rates lagged global averages in key mineral categories, while the country had not fully exploited the commodities boom that preceded the onset of the crisis.

"Significantly higher levels of investment, supported by major improvements in the energy and transportation infrastructure, some of which are already under way, could further unlock the country's enormous potential," Maia said.

The report, which analyses the production, employment and external trade performance of three broad sectors and 30 subsectors up to and including the third quarter of 2011, showed that employment in the domestic mining sector had almost returned to precrisis levels. Mineral Mining Crusher Mineral Plant

"Comparing the first three quarters of 2011 with the same period a year earlier, the biggest percentage gains in employment were recorded in the manganese, iron-ore, chrome and diamond segments, whilst large employers such as the platinum-group metals and coal mining segments also recorded healthy job growth," Maia reported.

The report, which was released at the 18th Annual Investing in Africa Mining Indaba being held at the Cape Town International Convention Centre, cautioned that South Africa's manufacturing sector was likely to continue experiencing challenging trading conditions and also warned that commodity exporting countries, including South Africa, could also experience less favourable demand conditions in 2012. SBM Crusher Products

But it still highlights the need to improve the mining sector's performance so as to "take full advantage of favourable periods in the commodities cycle in the years to come".

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