Zuma appeals for stability in S. African mines

PRETORIA - South Africa needs greater stability in its strategic mining industry to speed up lacklustre growth in Africa's biggest economy, President Jacob Zuma said on Thursday.

In an address to journalists in Pretoria, Zuma sought hard to reassure the public and investors that renewed unrest in the mines sector would not derail the country's growth prospects against a backdrop of challenging global economic conditions.

But growth in the remaining three quarters of the year would have to be much higher for South Africa to achieve a projected 2.7 percent annual expansion, Zuma said.

After being battered by wildcat strikes last year, South Africa faces another wave of strife in the mining industry, where workers are increasingly pushing for higher wages.

"We need faster growth," Zuma said.

"When our mining sector is in difficulty, it affects our economy widely, leading to industrial slowdown," he added, calling for a "fair and expedient" outcome to ongoing tense wage negotiations.

Mining directly accounts for 6 percent of South Africa's gross domestic product (GDP) and 18 percent indirectly, he said.

South Africa is the world's top supplier of platinum and a major gold producer. Mining accounts for about 60 percent of its export revenues.

Reuters