The opinion from Deloitte on Minster of Mineral Resources, Mosebenzi Zwane’s opening address at Mining Indaba in Cape Town this morning was that it “ticked all the right boxes for the mining industry.”  But, according to Andrew Lane, Africa Mining Leader for Deloitte, industry would have liked to have heard a more tangible action plan for addressing key issues in the mining sector.

“What actually creates certainty is cohesiveness in government’s statements. How is he going to ensure business stability in the current climate? We would have liked to see a more palpable reassurance for investors,” said Lane, who added that there were no surprises in the Minister’s address.

It was the Minister’s first opportunity to address industry leaders since his appointment four months ago, and the message was one of reassurance and commitment. “In terms of our constitution, our legislation and regulatory framework provide the highest order of protection of investment,” he said, before going on to confirm that his department has prioritised the finalising of the MPRDA Amendment Bill and is committed to a review of the Mining Charter.

Lane welcomed the Minister’s commitment to the revision of the Mining Charter, but commented that there was no indication of how the Charter and the DTI scorecard would be aligned. “Right now, a company may comply with all the provisions of the Charter,” he said, “but still fall short in term of the DTI scorecard, and that is a concern.”

The Minister had a strong message for industry about the treatment of workers, and praised a number of mining companies which had achieved a zero fatality rate during 2015. He also made the important point that the treatment of workers impacted on their productivity, which is vital for the growth of the mining industry in South Africa.

“As an industry we know that inclusive growth is what is needed right now. Business understands that jobs matter and that in the current climate we need to work together to ensure that everybody wins, or tightens their belts together,” concluded Lane.

Jacques Barradas, Partner specialising in the Mining sector, at Grant Thornton Johannesburg commented that “the Minister’s commitment to ensuring that the updating of the MPRDA Act remains a priority this year, via the Amendment Bill and Mining Charter, is commendable.  The updated Act will hopefully bring South Africa on par with other emerging economies while ensuring that as a nation, we continue to lead on the African continent in terms of governance and reporting standards and requirements.”

“Overall, the Minister’s speech was of a person who is still finding his feet. It was a non-committal and non-specific address that had very few aspects which would raise any concern, but the Honourable Mosebenzi Zwane did manage to find some positive aspects to highlight to the delegates at the 2016 Mining Indaba,” said Barradas.

He congratulated the Minister on specifically mentioning the names of mining houses and companies that delivered zero fatalities during the 2015 year. “In my view, it is quite rare for a Minister to give a list of company names in a public address and I believe that it shows that he will be taking mine safety very, very seriously.”

Minister Zwane emphasised Government’s positioning that the five months of strike action which occurred during 2014 in the platinum sector will never be allowed to happen again. “This,” commented Barradas “was the most promising message in today’s keynote address because it should help to give international investors’ confidence in the South African economy.”

On research and development Barradas noted that Minister Zwane said “Government will support a stronger focus and emphasis on research and development.  While this is laudable, unfortunately this is a process which should have started many years ago because the benefits in supporting research and development takes years to come to fruition.  This really will be part of the Department of Mineral Resources’ long term strategy.”

Minister Zwane said that the Department of Mineral Resources and the Department of Labour will work together to ensure greater skills development in local communities. It is Barradas’s opinion that “it will be imperative for the Department of Education to be involved, too, so that the local content development for the communities is carefully planned – from an early, basic education level, all the way through to tertiary education.”