The mining sector in the Free State has been facing challenges of investors disinvesting due to exhausted minerals, especially gold; however, the Free State government says the sector still has great potential.
Assessments in the mining sector show that the Free State still has great potential and minerals that can be extracted for many years to come. According to the MEC for the Department of Small Business Development and Tourism (DESTEA) and Treasury Mr Ketso Makume, there is an abundance of diverse minerals in the Free State.
“Some have referred to mining as a sunset industry, but indications are that there are still some opportunities in gold extraction for years to come. Other mining opportunities in the Free State are in low-grade coal, diamond, uranium, and salt. Furthermore, the natural gas deposits discovered in a large area around Virginia and other parts of the province represents an opportunity for creation of hundreds of jobs in downstream economic activities,” said the MEC.
The sector currently contributes 9.8% towards the province’s GDP, and the Premier Ms MaQueen Letsoha-Mathae says new opportunities in mining will be identified to exploit the sector’s immense potential and grow its contribution towards the economy of the province.
Small players in the sector will also receive support from the government to allow them to pursue the available opportunities.
“We will remove all barriers to entry and support small-scale miners in sectors such as sandstone, clay, salt, diamonds, and other commodities,” said Premier Letsoha-Mathae.
But the provincial government has a huge mountain to overcome, that of illegal mining, which is very prevalent in the province. MaQueen Letsoha-Mathae said the province is up for the task to fight Zama zamas.
“We welcome the deployment of a multi-sectoral team led by the South African Police Service to combat illegal mining by Zama Zamas. We are happy that arrests are being made daily, heavy sentences imposed, and our economy protected.
We will continue to work with this team to reclaim our economy from criminal activities. Foreistata hase mantlwaneng. We will also establish a sustainable post-mining economy and address the environmental impact of mining. Re-use of our mining infrastructure to support our present and future growth will be prioritised too,” said the Premier.