#JoburgIndaba: Dragging mining into the future

The country has also fallen from the number one position to seventh in gold production globally and foreign direct investment (FDI) into the sector has declined to less than that of Brazil, India and China.

So, it’s clear to see that the impact of mining has changed, and that fact needs to be recognised.

Not a happy place

Former finance minister, Trevor Manuel said mining is not a happy place to be. “The fact is that the industry cannot continue to do the same things and expect a different result. South Africa today is a different place, and mining in the country has changed. This is a tough industry with tough labour conditions, and energy and water issues, although currently these are not issue given the low output of the industry.”

While there are other problems the industry faces, the biggest problem is regulatory uncertainty. “The sector requires capital that is committed for a long period, but this is impossible when there is regulatory uncertainty.”

He called on the department of mineral resources (DMR) to clean up itsact. “What we do right now will determine our responsibility as stewards of depleting resources. It is not good enough to have an absence in policy and dependence on the favours of a minister.”

By the same token, he says industry need to build a strong resident voice thorough the Chamber of Mines. “I do not understand how things happen without consultation. There needs to be better accord in general and the dealing of tough unresolved issues, including that of communities and their infrastructure.”

Our geology rocks

The deputy minister of mineral resources, Godfrey Oliphant described the local industry as “mature, well developed and resilient, that has been tested over many years” and he says we can do better.

“We have one of the most beautiful geologies in the world, and investors not here for religious reason, but for the geology,” he says, and asking as to how do we ensure there is mutual benefit for all out of this geology.

“The industry is older than the ANC, and the history of this country cannot be told without the mining industry. It has been the backbone of the economy and the country is where it is because of the contribution of mining.”

However, he says there is a bad side to mining and it is this legacy that we have to address, such as environment, safety and health and illegal mining. Despite this he is excited about the industry’s future. “Mining and beneficiation is part of the government’s nine-point plan. Other developments such as the platinum and fuel cell development, the biggest zinc deposit in the world in the Northern Cape and our future looks good. To secure the future we need to bring in young people.”

He adds that government wants to finalise the Charter question by the end of October. “The president wishes to find an out of country solution to this matter.”

A vision for industry

The ANC's head of economic transformation, Enoch Godongwana, says that by government and industry working together, the challenges can be identified and solutions found to rectify them to move forward. “Over the years we have seen a massive decline in gold production, then from 2008 to last year disruptions in power supply and the huge price increase of energy impacted on the industry. Added to this are labour and environmental issues, not to mention the regulatory uncertainty created by the Charter and the Mining Petroleum Resources Development Act (MPRDA).”

All of these have combined to create an unclear vision for the industry. “What is needed is a vision 2030. Government has the national development programme 2030, and industry needs something similar.”