In the week since the 13th Joburg Indaba, I have reflected on the thoughtful discussions that CEOs, investors, government and SOE heads and others engaged in over the two-day conference.
We engaged — vigorously and positively — in every sector: platinum, coal, gold, diamonds and iron ore, and across these sectors there are many commonalities. These are my five takeaways.
Exploration is crucial
SA is still one of the vastly underexplored regions in the world, which may be surprising to some. The cadastral system that has now been rolled out in a trial phase in the Western Cape will be a game changer for exploration once it is fully functioning. But companies and governments need to work together to encourage exploration, which inevitably juniors are better at than majors. The Junior Exploration Fund that was established in 2023 with an initial R400m and which Anglo American has recently bolstered with R600m, is an important tool to progress exploration.
Jurisdictions that sort out policy attract money
Policy uncertainty persists and it’s one of the biggest worries for investors, who want to know that when they invest, the legal framework is not going to change every five years. The industry is currently engaged in consultations related to the Mineral Resources Development Bill, but this process has been a frustrating one. Ironically, solutions to policy clarity and cohesion are in our control, and we need to work, as an industry, in partnership with the government to develop the best policy for SA. The benefits of getting this right, along with a more seamless permitting process, will attract investment.
A common thread in countries that have improved their competitiveness as mining jurisdictions, such as Morocco, Zambia and Saudi Arabia, is improving regulation and policies and streamlining the process to issue permits.
As a mining jurisdiction SA has a lot going for it
Mining companies continue to operate successfully in SA. Even Anglo American CEO Duncan Wanblad commented that SA was not the most difficult mining jurisdiction they operate in. The country is not a remote location with an inhospitable climate — think Canada, as an extreme. Even with logistics challenges and, until relatively recently, energy issues, SA is an important mining destination. But as Richard Sellschop of McKinsey pointed out, SA can either be a bystander in the global minerals race or a formidable competitor. We have extensive resources and mining expertise to build our industry.
Building the next generation of mining leaders
SA is known for providing global mining businesses with expertise. Natascha Viljoen, president and incoming CEO of Newmont, was mentioned by delegates as one of our many successful exports. In SA there are young skilled people working throughout the industry, and it’s up to current company leaders to ensure the next generation of CEOs and executives are being mentored into the roles and responsibilities they will need to take on. To keep a pipeline of skills for the industry, mining companies need to increase the number of bursaries in mining engineering and other technical fields and provide more opportunities for on-the-job training. All of us got into the industry because someone gave us a chance. We now have to create similar opportunities for younger people.
A coalition of the willing
All of this brings me to my final point — that of collaboration and partnerships. We need to be optimistic but with a healthy dose of realism, given the challenges. But with the strong coalition of the willing that we have, these challenges can be overcome.
This willingness to discuss, analyse and consider solutions was perhaps most evident in the session with the CEOs of three leading PGM companies. Only a few years ago a frank discussion between these fiercely competitive companies would not have been possible.
Our business is seemingly straightforward: extracting and processing minerals. However, the context we operate in is complex and beset with many issues and sometimes unnecessary complications. But miners are a pragmatic bunch, realists and problem solvers, and it was encouraging to witness at this year’s Joburg Indaba the underlying optimism and the willingness to co-operate where appropriate and to find solutions to industry-wide problems.
• Swanepoel is chair of Joburg Indaba.
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