South Africa’s Minister of Mineral Resources Mosebenzi Zwane’s opening address at the Mining Indaba in Cape Town was one of the more positive we’ve have had from the ministry in the past few years, says Andrew Lane, Africa Mining Leader for Deloitte. But, conciliatory as the minister’s message was towards the mining industry, Lane said the true test would be government’s continued commitment to the industry.
“It was positive to hear Minister Zwane appeal to investors and government alike, to acknowledge and help drive the concept of ‘shared prosperity’. Hearing the Minister promote government’s open-door policy was very encouraging,” Lane said.
In his opening address Minister Zwane mentioned a few initiatives in aid of government’s intent to make the environment more investor friendly. He, for example, drew attention to the fact that government was busy with a geo-mapping campaign that will run for the next 10 years with the aim of establishing the country’s remaining mining potential.
He further drew attention to government’s effort to bolster the industry, highlighting the ministry’s geo-mapping project, the intended improvement of regulatory efficiency, a successful wage negotiation season and implementation of projects suggested through the Phakisa project.
Turning to the future of the mining industry in South Africa Minister Zwane alluded to the commitment by government to supporting junior miners in the industry.
Commenting on this Lane noted: “The new era of junior miners and commitment by government to invest is definitely positive and noble, but is also indicative of the fact that larger investors have disinvested over the past few years and we do need big capital to come back.”
Lane briefly added that going forward, the issue of illicit flows will become more pertinent within the industry and will remain controversial.
“Minister Zwane reinforced government’s commitment to beneficiation, but there is a need for government to articulate that they know it is not a challenge that can be addressed by the mining sector alone, but rather a joint effort by a wider set of stakeholders,” said Lane.
“In terms of legislation and regulatory framework, Minister Zwane stated that his department is committed to finalising the MPRDA Amendment Bill and review of the Mining Charter. The mining fraternity is patiently waiting for these as they are looking to see whether the Charter will actually reflect their input,” said Lane.
