COUNTRY IN FOCUS •

Covid-induced uncertainties forced miners to place new investments , particularly big ones , on hold . Menar adopted a strategy that led to putting underground mines on care and maintenance while awaiting the right time . We have reached that time . So , in line with our strategy , Menar will be re-opening Zululand Anthracite Colliery and Kangra Coal respectively in KwaZulu-Natal and Mpumalanga .

Are we ready for the super-boom ? The question is whether South African miners are ready to reap the fruits of a potential commodity ‘ super-cycle ’ that The Economist publication in its January 2021 edition seemed to suggest could be around the corner . This will depend on factors that are both within and outside the control of the miners . Improving productivity in our mines is technically possible , but we will need to take control of the health and safety of workers to improve productivity .

In recent years and during the pandemic , South African mining companies have done well to keep fatalities relatively low . Of course , one death is one too many . However , the mining industry ’ s campaign for health and safety should be heightened as a commodity boom will require high productivity levels from the work force that might increase the health and safety risks .

In addition to all the health and safety protocols , including the Covid-19 standard operating procedures , we need to ensure that most of the mineworkers get access to a vaccine when it becomes available . Failure to take care of this could lead to loss of lives or declining productivity . Ultimately , it could make it difficult for the sector to take full advantage of an upswing while competitor jurisdictions thrive .

Critical minerals for infrastructure The global economic recovery driven by government-supported economic stimulus packages where infrastructure development is central , will likely increase demand for minerals that are critical to infrastructure development , among them iron ore , manganese , and chrome . We hope to increase our exposure to manganese following our initial investment in the development of East Manganese , a new mine in the Northern Cape that started operations in the middle of Covid-19 in September . The Platinum Group metals will continue to do well in light of the demand for minerals that support the push for renewable energy equipment and the fast-growing market for electric cars .

What is certainly out of the control of miners is capacity of the state to execute its plans . The success of President Cyril Ramaphosa ’ s economic recovery plan hinges on speedy regulatory approvals by a variety of authorities . He has made this clear . Hence , the Department of Mineral Resources and Energy , Department of Water and Sanitation as well as the Department of Environment , Forestry and Fisheries have to implement the president ’ s undertakings to encourage new investment and expansion of existing operations . Were this to happen in a context of a global economic turnaround , mining can sharply increase the number of jobs from the current total of half a million .

Part of the state ’ s capacity is the provision of logistical and energy requirements to the mining sector , respectively by Transnet and Eskom . Transnet ’ s rail and ports divisions will have to work on a scenario of heightened demand for logistics solutions for exports . Equally important would be whether Eskom would be able to deal with energy supply constraints and reduce the risks of load shedding relatively better than in 2020 . As far as this is concerned , 2021 has not started on a good note . But with the continued focus on turning around the power utility ’ s capacity constraints , we might end the year on a relatively better note . •

Vuslat Bayoglu is the co-founder and managing director of mining investment company Menar , which has controlling stakes in Canyon Coal , Zululand Anthracite Colliery , Kangra Coal and East Manganese .

All photos : Menar

Menar ’ s East Manganese started operating in September last year .