SA’s mining industry’s hope of revisiting the transformation and growth of the resources sector were dashed at weekend talks with new Mineral Resources Minister Gwede Mantashe.
The industry had hoped for a fresh and innovative plan to address transformation and growth in the sector after acceding to a request from Cyril Ramaphosa in one of his first acts as president to postpone its court case in February to review and set aside the shambolic and damaging third iteration of the charter, which was drawn up under the tenure of former mines minister Mosebenzi Zwane.
Chamber of Mines CEO Roger Baxter and its president Mxolisi Mgojo both spoke of the optimism that Ramaphosa's intervention had sparked and how they wanted to use the opportunity to develop a new document to change the industry, moving away from the charters that have been in place since 2004. They have both said using the third version of the charter, which has numerous flaws and targets which would damage the sector, was not an option.
However, that is exactly what was presented as the basis of talks at the weekend, with the third charter presented for talks, with all parties at the talks invited to say what was problematic with the document. The charters have limited lives, allowing new ministers to force changes on the industry at intervals, leading to prolonged uncertainty and a drying up of investment in new mines, exploration and projects.
Noticeably absent from the talks was the Association of Mineworkers and Construction Union (Amcu), a key player in the industry. It allegedly said it had not received an invitation.
Talks pressed on without the union, an arch rival of the National Union of Mineworkers (NUM), but it is understood it will be invited to all further sessions.
Amcu president Joseph Mathunjwa did not respond to requests for comment.
Senior players in the industry had spoken of the desire by the Chamber of Mines to use the chance of a new minister and the postponed court review of the controversial third version of the charter drawn up under the shambolic leadership of Mosebenzi Zwane, to find common ground with the government as espoused by Cyril Ramaphosa when he made his maiden address as president of the country.
Senior industry figures spoke of this as a chance to put a new plan in place of charters, which have been in force since 2004, to transform the racial ownership of the sector as well as living and working conditions.
However, there was a cold dose of political reality at the weekend when it appeared that far from abandoning the suspended third charter, the ministry under Mantashe — a former NUM general secretary — merely proffered changes to the document and agreed to the setting up of two teams to discuss transformation and competitiveness.
The teams drawn from each party present at the talks — including the department; the chamber; the South African Mining Development Association representing a tiny contingent of emerging miners; and labour represented by the NUM, Solidarity and Uasa — would thrash out ideas and report back on April 10. One delegate described exchanges between the department and the chamber as being like watching two heavyweight boxers flailing each other. But Mantashe’s skills were in clear evidence, calming the debates with light touches of humour and little lectures to each side to defuse tension.
"Gwede was absolutely in his element, you could see his passion for this industry in everything he did and said. What a difference it made compared to Zwane," the delegate said.
"Also, Gwede comes with a gravitas of being a very senior ANC figure. He spoke with authority and is clearly the custodian of ANC policy."
Two of the major punch-ups were about the third charter forming the basis of the talks, and the process nearly floundered before it began.
Deputy Mineral Resources Minister Godfrey Oliphant suggested nobody refer to it as the third charter again but as the government’s draft policy, with Mantashe calling for input on the numerous sticking points and legal problems in the poorly drafted document. The second area of contention was ownership levels and the once empowered always empowered concept, which the chamber has taken to court for a declaratory ruling. The chamber said it had agreed to 29% ownership, up from 26%, and was caught by surprise when the third charter stipulated 30%.
One of the achievements of the meeting was the re-establishment of the mining industry growth, development and employment task team, which died under Zwane. It is a grouping of stakeholder principals that will meet regularly.
A senior mining figure said last week the stakeholders in the mining industry should move away from a document that must be reviewed every five or 10 years, creating something like the Constitution that would remain in play unless there were serious flaws.
James Lorimer, who is part of the parliamentary portfolio committee on mineral resources, which was invited to the weekend talks, said: "It’s very disappointing that the government has missed a golden opportunity to reset the relationship between the department and industry. There was a hope that the government had realised the trouble the industry is in and would lighten its grip."
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