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S. Africa to explore rich mineral resources: minister

Xinhua, April 20, 2016 Adjust font size:

South Africa is working with key stakeholders to develop a plan focused on the development of its world-class mineral resources estimated at 50 trillion rand (about 3,472 billion US dollars), Minister of Mineral Resources Mosebenzi Zwane said on Tuesday.

Boasting of a wealth of such minerals as manganese, platinum group metals and chrome, Zwane said "we are working with key stakeholders to develop a plan focused on the development of these minerals in a manner that benefits investors, workers and communities alike," Zwane said in Parliament while delivering a budget speech.

Zwane also spoke of the state of South Africa's petroleum exploration potential of oil and gas with frontier basins both onshore and offshore.

Recent estimates show that South Africa has eight largest shale gas reserves in the world and the Karoo area in the Northern Cape Province is believed to be holding up to 390 trillion cubic feet of recoverable gas reserves.

The exploration of shale gas is expected to ease the energy shortage in the country.

There have been concerns about the effect the exploration activities will have on water quality and availability in areas where water is scarce.

Zwane said the government has noted the concerns of some members of the community on the potential impact of shale gas extraction on both the environment and water.

"We have accordingly taken measures to mitigate the risks inherent in the future," he said.

The current economic downturn has had a negative impact on the beneficiation of diamonds, gold and platinum, Zwane said.

"We have analysed the decline in diamond production as well as diamond cutting and polishing activities over the years. The cutting and polishing industries have not been performing to our expectations in recent years," said Zwane.

As a remedy to this situation, the State Diamond Trader has entered into a partnership with the Mining Qualification Authority to facilitate business growth and support for 25 youths in training in Italy, according to Zwane.

These young South Africans commenced with training in Italy in September 2015 and will complete the training in 2017. As part of the initiative, the students will be enrolled in the watchmaker programme in Switzerland to further their learning and exposure in watch-making.

Stability within the mining industry remains imperative to ensure its sustainable growth and competitiveness, Zwane said.

"The importance of healthy relations between mining companies as well as communities and local government, cannot be overstated. For mining to be sustainable, mutual respect and cooperation are critical," he said.

The Department of Mineral Resources will continue to provide support to the implementation of the Framework Agreement for a Sustainable Mining Industry, which is designed to avoid labour unrest in the mining sector, said the minister. Enditem