EXCURSION • transparent and frank . For instance , this year , in a robust online discussion with Duncan Wanblad , CEO of Anglo-American , Wanblad was up for the challenge . After he had presented how the company is positioning itself for the future with its strategy of portfolio simplification and divestment plans , when I asked , ‘ Is your current strategy a knee jerk reaction to the hostile BHP bid or was it always on the cards ?’ His answer was that it was most certainly always the strategy . Bear in mind that , although Joburg Indaba creates an environment where one can candidly state a claim – we test these claims with the audience with what I like to call the BS barometer – a real-time , online tool and app , which affords the audience a voice in the conversation and enables all stakeholders to respond and interact using their mobile phones in response to questions asked by myself .
Similarly , the audience can pose questions through the app to key-note speakers and panellists on stage in the same manner – like with Minister Mantashe – who gives as good as he gets . On the home front , my question posed to the minister on the embarrassing journey in the cadastre debacle spoke for itself : ‘ How can we as South Africa not have a modern , functional cadastre system in place ?’ His response was open and frank . He acknowledged the rocky road to date but directed the audience to the good news that the new recently procured system was en-route to going live in a major province .
There was also what I believe was a useful conversation when it came to the topic of ‘ defining critical minerals ’, which indicated that the government ' s approach to critical minerals and the industry thinking around critical minerals is not on the same page – yet . Minister Mantashe and his team unashamedly hold views like ‘ coal is critical ’. It ' s not hard to argue that as long as we are coal dependent , we can in fact call it critical or important . However , there is also obviously an international definition evolving around what a critical mineral is involving the likes of more future-facing copper , cobalt and manganese , for example . Clearly , there ' s further alignment required on this topic . This annual event showcases the process that takes place within these crucial conversations , converging over time , while alignment is being achieved . It ' s very important to have a public session where people can check in with and track where the government stands versus where the industry is at .
AM : In the same vein , it was interesting to see you take both Eskom and Transnet to task on the proposed , cost-reflective tariffs .
BS : This was certainly a challenging conversation with the CEOs of both SOEs – at the event and subsequently – because how can one argue against ‘ cost reflective ’? However , when this lands on a closeto 40 % increase , which will of course kill the economy , one has to question it . The point was made that , one can sit in a boardroom and say , ‘ If I don ' t get 40 %, my business will not recover ’, but when key customers highlight that this kind of increase will force business to find alternative energy sources or shut their businesses down , surely , in the case of a state owned monopoly , one should quiz them and look at the cost base , do the cost comparisons , analyse the cost structure and ask , ‘ How did your costs come to be what they are ?’ And this is what we did at the Joburg Indaba . I ' m not saying these entities have therefore behaved differently , but when all the cards are placed on the table , they cannot say that they were not aware of the consequences for the industry .
Unity ( GNU ) cohesion – although fragile – and the Public- Private Partnerships ( PPPs ) taking the country forward , in the right direction . Both clear enablers to the industry . What do you believe are the ingredients SA should add to make this a winning recipe in 2025 for re-industrialisation and growing the economy ?
BS : There is a new sentiment in the air – that GNU will challenge government , and although the parties could agree on very little , they did agree on job creation through inclusive economic growth . Although this is a narrow agenda , its a fantastic and focussed agenda , because if we achieve that objective so much more can be achieved and , then perhaps additionally , all the other party preferences will become secondary .
GNU is about creating an enabling environment where we can grow our economy , and government has acknowledged that the journey must incorporate the private sector – even in areas like state owned enterprises ( SOEs ) through the PPPs . The government has become a better co-player in the economy , and it is addressing the issues of infrastructure , energy and crime to create a more investor friendly environment and is moving towards policy certainty . Now , its up to the CEOs to start to allocate the capital , or are they still going to be driven by this unstated strategy to diversify and to move beyond the South African borders ?
This feeds directly into topics like exploration . Who is currently exploring in South Africa ? The answer , quite simply is , NO ONE . Back in the early 90s , when South Africa was a significant player in the world of exploration – up to 4 and 5 % – a huge percentage of that came from a single company called Anglo American – they were exploring in South Africa then .
Next year , we must hold those that hold the purse strings accountable and ask the questions – ‘ Are you beginning to contemplate investing in the country ? And if not , why not ?’ There are companies currently exceeding expectations in the gold sector for instance , like Harmony and they are making big announcements of investments , as one would expect . Then there ' s the platinum industry , which is broadly speaking , in survival mode , and heavily affected by the commodity price and cutting back on capital expenditure . We must also talk more granularly about the subcomponents and check in to see which environment is favourable for further investments right now in South Africa . For instance , whatever Anglo American decides in London causes ripples throughout the mining industry as its strategy plays out in a South African context . This led to some great conversations where we were able to talk to De Beers on how their independence might affect South Africa and Botswana . Also , Anglo platinum , once spun out of Anglo , is going to be a gorilla in the platinum space , once free from London directives . These were just some of the interesting topics highlighted at the event , which no doubt , will be fleshed out in the near future .
To conclude , African Mining asked Swanepoel what he believes the overarching message is from the South African industry to “ the powers that be ” and to the world . •
Scan in the QR code to view Swanepoel ’ s response .
AM : You noted at the conference this year that the tone was “ cautiously optimistic ” in the light of the Government of National
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