AMN - Industry welcomes Zuma’s mining commitment - comment by Yolanda Torrisi

A commitment by South African President Jacob Zuma to ensure that the mining sector is a priority area of the economy has been welcomed by the nation’s mining industry. During a State of the National Address in February, the President resolved to finalise as soon as possible the passage and promulgation of amendments to the Mineral and Petroleum Resources Development Act (MPRDA).

The Chamber of Mines of South Africa has welcomed the assurances, saying that it hopes the review of the Mining Charter can be resolved on a mutually satisfactory basis. Its CEO Roger Baxter says, “In order to create a better platform for greater investment in mining, we need a predictable, competitive and stable mining policy and regulatory framework applied in a ‘smart tape’ manner.”

He says 2017 will be critical for the mining industry as well as for South Africa and that the chamber trusts that the green shoots of mining recovery will be permitted to develop with appropriate forms of government support.

While mining has been acknowledged as an important player in President Zuma’s desire for more rapid transformation of the South African economy, the delivery of basic services, education and training at all levels, adequate healthcare, and the development of an environment conducive to economic development and growth are all critical to South Africa’s future success.

In noting and appreciating these factors, the Chamber of Mines says the challenge is to pursue them in a manner that promotes transformation and competitiveness as being reinforcing concepts.

Roger Baxter says the mining industry is committed to doing all it can to support these transformation goals and believe it has already done more than most. He says in regards to the President’s concerns about economic concentration, in the 1980s the mining industry was largely controlled by six major companies but today the Chamber has more than 100 direct and indirect members spread across all commodities and sectors, including many emerging miners.

Regarding the President’s wish for more black-owned and controlled mining companies, the Chamber believes significant progress has been made, but it cannot be assumes that the parts of the industry that are not black-owned are South African white-owned. Roger Baxter says more than 50% of the mining industry is owned by millions of South Africans through pension funds and investments while the bulk of the remainder is owned by foreign pension and other asset management funds on whose investment dollars the country is very dependent.

Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the African continent. Contact:yolanda@yolandatorrisi.com