JOHANNESBURG (miningweekly.com) – An Operation Phakisa (Hurry Up) for the mining sector, aimed at realising its full gross domestic product (GDP) potential, was on the way in consultation with all the key stakeholders, including the Chamber of Mines and organised labour, Minister in the Presidency Jeff Radebe said on Wednesday night.

Speaking at the third Mining Lekgotla gala dinner in Midrand in the absence of President Jacob Zuma, Radebe said the government was already in the midst of its first Phakisa operation aimed at growing the ocean economy’s contribution to GDP from R54-billion in 2010 to up to R177-billion by 2033, as well as increasing the ocean economy's employment complement from 300 000 in 2010 to up to one-million in 19 years’ time. 

To thunderous applause, Radebe said that mining would have a shorter Phakisa horizon of 2025 and a target several times higher than the current GDP, which had declined considerably from the 1970s.

The decline was even noticeable in terms of a recent comparison, having shrunk from a 6.7% contribution to GDP in 2000 to 5.3% in 2010.

Speaking forcefully, Radebe urged the Mining Lekgotla to come up with bold suggestions, as well as clear implementation plans and timelines.

The Phakisa concept drew on the experience of the Malaysian government and involved all stakeholders in implementing detailed action plans that were then rigorously monitored.

Radebe said the government was open to persuasion on policy and regulatory frameworks that would lead to shared economic growth, poverty alleviation, inequality reduction and sustainable employment.

Finger pointing would get the country nowhere and should be replaced by collective action.

“We’re in this together,” he said to intermittent applause, adding that the government also planned to sign a new social compact with the Chamber of Mines that would drive improved living conditions for mineworkers, using financial support and land donations from mining companies.

The government's recently released Medium Term Strategic Framework to 2019 had adopted the National Development Plan, which contained the mining-specific recommendations of opening up the Waterberg coalfield; building infrastructure; introducing equitable incentive-balanced taxation; providing property right certainty; strengthening labour dispute resolution institutions; and bettering business/labour relations.