Roger Baxter Significant efforts have been made by the organisers of the Indaba to ensure that the conference is more relevant to companies
The 2019 Investing in African Mining Indaba was a useful platform where stakeholders worldwide, including producers, investors and government officials discussed the issues facing the mining industry, and the opportunities that would enable the industry to achieve its full potential, says mining industry employers organisation Minerals Council South Africa CEO Roger Baxter.
He states that, over several years, significant efforts have been made by the organisers of the Indaba to ensure that the conference is more relevant to companies, it is accessible to a broad range of stakeholders, and that high-level investors attend.
“The Minerals Council is highly supportive of this initiative, which is an excellent platform to provide exposure for emerging and junior miners. We are extremely pleased that minerals explorer Orion Minerals achieved second place in the Mining Investment Battlefield Competition for its Prieska zinc/copper project, in the Northern Cape.”
Moreover, Baxter notes that Mineral Resources Minister Gwede Mantashe recognised the contribution made by mining to the economy and suggested that, within five years, mining could contribute 10% to the gross domestic product if certain preconditions are achieved including ethical leadership and good governance; policy and regulatory certainty and competitiveness; available, efficient, cost competitive and reliable infrastructure; improving productivity and competitiveness; and creating a “greenfield exploration boom”.
The Minerals Council estimates that, in 2018, the mining industry employed 453 543 employees who supported about 4.5-million dependants. He mentions that one of the biggest changes the industry has seen in the past year has been the extent of real engagement between business and government.
“There have been a number of useful engagements between business, President Cyril Ramaphosa and Mantashe. The industry has a Minister who is willing to engage and listen, not only over broad policy issues but also the detail of what different mining sectors need to develop and grow. That does not mean that we agree on everything, but being able to engage is a very important starting point.”
Baxter highlights that this vision must be tangible and has to outline realistic steps with clearly defined roles for all stakeholders. “Through strong leadership partnerships and proper strategic plans, we can enable the South African mining sector to realise its true economic and transformational potential.”
He further comments on the importance of policy certainty, as it can lead to improved competitiveness, but only if that policy is in itself competitive. In this regard, the Mining Charter has been a major issue over the past few years.
“The Minerals Council, and most of the industry, consider most aspects of the charter published in September 2018 to be a framework with which we can live. Naturally, there are several aspects in respect of which a different outcome would have been preferred, but the Minerals Council also accepts that the Minister and his department had many different interests to accommodate,” says Baxter.
Meanwhile, he comments that the Minerals Council is pleased with the recognition in the application of the Mining Charter that special conditions should apply to junior and emerging miners. Addressing constraints on exploration in South Africa is something that the Minerals Council is passionate about and is an important area of focus for its Junior and Emerging Miner’s Desk.
The Minerals Council is also pleased that exploration projects need not adhere to similar charter requirements that major companies have to, Baxter adds.
“This removal of disincentives for projects that do not generate revenues is a short-term welcome. What is needed further is an environment that actively encourages exploration and welcomes the risk-takers and mavericks who have the vision and courage to seek and discover new deposits, big and small,” he concludes.