Chinese companies urged to invest in SA mining

Thursday, July 8, 2010

Pretoria - Trade and Industry Minister Rob Davies is calling on Chinese companies to invest in South African mining.

Davies was speaking at China-South Africa Business Seminar in Shanghai, on Wednesday, where he called on companies to invest in mining beneficiation, capital equipment and metal sectors.

"The success of World Cup 2010 in South Africa and the Shanghai World Expo 2010 in China speaks volume about what is happening in the world economy today. The world economy has undergone very profound changes in the last few years. The new poles of economic power and the new forces of dynamism in the world economy have shifted very decisively to the South," said Davies.

He said China has emerged as the second largest economy in the world while adding that India and South Africa are two developing countries that are making progress in the world economy.

"The fact that South Africa is part of the dynamic advanced developing countries, a power in our own right, and are also part of the African continent, makes us a very important focus for investors and those interested in expanding trading relations," said Davies, adding that China has grown from being SA's fourth largest trading partner to being South Africa's largest trading partner in 2010.

Currently, South Africa is in discussions with China to increase the proportion of value-added products that are being exported there. .

"Our policy is to encourage investment in higher levels of beneficiation of the SA mineral products. We believe some level of processing and beneficiation of the products in our country will add value to our economy and make returns for those investments more equitable and more growth enhancing," he said.

Davies is on a four-day trade and investment mission where he is leading a delegation comprising business people from the metals, mining and capital equipment sectors, as well as officials from provincial investment promotion agencies.