Ms Shabangu said that these sectors had been negatively affected by persistent global market factors which had had an adverse bearing on their long term viability. I have directed my officials to urgently explore all available avenues and develop a rescue plan, which will enable us to find appropriate government wide measures for appropriate sector wide responses, with particular focus on both supply and demand side interventions, in order to position them along a recovery path.
She said that the platinum and gold sectors were among the largest sectors of South Africa's mining industry in terms of employment, investment and revenue generation. A bilateral cooperation agreement with Russia would contribute significantly to the creation of a suite of interventions necessary to stabilise the platinum industry.
Russia and South Africa signed an agreement on cooperation in the development of the platinum group metals industry during the BRICS (Brazil, Russia, India, China and South Africa) summit in Durban in March.
Ms Shabangu said that "I invite PGM companies to work with my department to leverage relations we have established with the Russian Republic. In January, Anglo American Platinum announced its intention to restructure its business.”
President Mr Jacob Zuma and Mr John Parker chairman of Anglo American plc met recently in Pretoria and agreed to find sustainable interventions to enable business continuity and sustainability while preserving employment where possible.
Mr Shabangu believed that by working together, a sustainable, discerning solution had been found one she hoped the labour movement would consider favourably.
She said that "This demonstrates and emphasizes the importance of taking different stakeholders into confidence and opening to them a long-term window, which enables them to appreciate the dynamics of the inherently cyclical nature of the mining industry."