MINING INDABA 2018
The Investing in Africa Mining Indaba 2018 took place from 5 to 8 February under the theme ‘ Providing the foundation for sustainable junior and major mining growth in Africa ’, and set the stage for mining companies , investors , governments and media to make valuable connections , learn from experts and gain industry insight .
Andrew van Zyl , partner and principal consultant at SRK Consulting , said the top mining risks discussed at the Indaba conference were varied – relating to the environment , geology , safety , financial issues and the social licence to mine – but performance in all these elements could be improved with proper alignment of strategy and technology . This focus was a theme running through all four days of the conference .
Day one of Indaba was an optimistic affair compared to the past three or four years . Delegates were noticeably upbeat , and there were more of them . However , it was the reconciliatory tone of the South African Minister of Mineral Resources , Mosebenzi Zwane , that took most by surprise . In Zwane ’ s welcoming speech , he emphasised the need to improve current geological knowledge , something Roger Baxter , CEO of the Chamber of Mines , touched on in an earlier press conference .
However , the elephant in the room was his failure to address the regulatory uncertainty compounded by the – now suspended – Mining Charter III , gazetted last year .
Jonathan Veeran , partner and deputy head of law firm Webber Wentzel ’ s mining sector group on Mineral Resources , said he was disappointed in the speech and that Zwane did not take the opportunity to say that South Africa is open for business . Although , he concedes , “ I suppose Minister Zwane could not say that because of the political impasse that we are at .” Plus , the announcement by Speaker of Parliament Baleka Mbete on Tuesday afternoon that the State of the Nation Address , due to be delivered by President Jacob Zuma on Thursday evening , had been postponed , just highlighted the fraught political situation .
Veeran adds that there were three key elements that Zwane ’ s speech did not address : policy uncertainty , specifically that surrounding Mining Charter III and policy inconsistency ; unclear legislation and regulation ; and the trust deficit that has arisen over the past five years due to these two issues . “ What you need to do in order to build a prosperous mining industry in South Africa is create a social compact between [ labour , business , communities and government ]. And those are for me the three key themes that the minister should have spoken [ about ] and highlighted because these themes need to be discussed .”
Overall , Zwane was optimistic about the future of South African Mining , saying that the mining industry in South Africa is now in spring time , and that it would be summer soon . “ Those companies that invested during the winter , will now reap the benefits ,” he said .
He highlighted the mining industry ’ s contribution to South Africa ’ s emergence from a technical recession in the second half of last year . “ After two consecutive quarters of economic contraction , in the fourth quarter of 2016 and the first quarter of 2017 , GDP rebounded in the second and third quarters of 2017 , growing by 2.8 % and 2 %, respectively . This expansion has helped allay fears of sustained economic recession and was driven in no small part by growth in the mining sector ,” said Zwane . “ In fact , the mining sector was responsible for no less than 2 % of the growth in the period .”
Later , during a midday question and answer session , Zwane was in a compromising mood , stating that his department ’ s door remains open for anybody to discuss the controversial Mining Charter . “ We are willing to discuss and settle the matter outside court if we have to ,” he said . But Zwane remains uninspiring , and what motivates his new narrative is anybody ’ s guess . If he is really willing to negotiate remains to be seen . Yet , the positive talk adds to the building wave of optimism sweeping through southern Africa .
Even Baxter believes that positive winds of change are blowing through South Africa , and that a new political order in southern Africa is a cause for great optimism . “ We are definitely seeing a turn , and all the signs are there that we will have a much better 2018 .”
And while in-depth surveying , geological mapping and making this information available online is essential to ensure a thriving exploration sector , Baxter stresses the need for more exploration projects in South Africa . “ There are many undiscovered ore-bodies in the country , and we need to encourage emerging exploration companies to become part of the mining environment ,” he says .
When it comes to getting exploration projects off the ground , the big constraint is funding , which is something that , “ The government needs to address as soon as possible ,” Bridgette Radebe , CEO of Mmakau Mining and official representative of South
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