MINE EXCURSION
MINING INDABA REVIEW:
SOUTH AFRICA HAS
LOST ITS LUSTRE
South Africa is no longer the envy of African countries at the annual
Mining Indaba, writes Leon Louw.
I
nvesting in African Mining Indaba is one of the biggest
global mining events in the world. Come February,
executives, dealmakers, dealbreakers, bankers and
hangers-on all congregate in Cape Town to clinch deals,
network, listen to industry leaders or alternatively, sip a few
glasses of wine over lunch at the Westin or Cullinan hotels.
For whatever reason, it was a blessing in disguise. For once, the
focus was on mining in Africa and not on South Africa, despite
the opening address by South African Minister of Mineral
Resources and Energy, Gwede Mantashe.
Under pressure to appease international investors, Mantashe,
a hard line communist, lost his ideological verve, and
momentarily became a free marketeer calling for more
competition in the South African energy space. Mantashe is
a chameleon, and what you see in a tight-fitting black suit on
the main stage at Mining Indaba on the third day of February,
is not what you get a week later at the ruling party’s NEC
meeting. Mantashe’s brief appearance was quickly forgotten
though, and is, in a way, symbolic of South Africa’s waning
status as a top mining producer in Africa.
South Africa hardly features in talk on the sidelines of Indaba.
It is no longer the envy of the global mining world. The
country has become just another troubled jurisdiction, with
the same deposits and the same risks, but under the illusion
that it is still superior. Mantashe told delegates at a session on
the second day, that exploration in the country has doubled
in the last year. But if the number of big-ticket, greenfield
exploration projects, even after it has doubled, number
fewer than 10, how can you claim that you are a top mining
destination attracting international investors?
14
African Mining March 2020
photos
For the past five years or so Mining Indaba coincided with the
President of South Africa’s State of the Nation Address. This year
it didn’t.
Gwede Mantashe, Minister of Mineral Resources and Energy telling
investors what they want to hear.
The rise of Africa north of the Zambezi
The economies of many African countries in east, west, central
and north Africa have grown significantly over the past five
years. Most of them host substantial reserves of mineral
resources, and with technology, it has become easier to
discover and unearth deposits. Moreover, it has become much
easier to do business in countries previously regarded as no-
go areas.
On the other hand, the economies of countries in Southern
Africa, especially South Africa, is expected to remain stagnant.
While the South African government remains at sixes and
sevens about regulations, and stumbles about trying to
generate enough electricity to keep the lights on, what
Mantashe and Co don’t seem to understand is that investors
and exploration companies have forsaken the country a long
time ago.
www. africanmining.co.za