In his address at Mining Indaba, President Ramaphosa challenged the mining industry to take steps to implement what he called “10 value-adding principles”.
Supplied by the Minerals Council South Africa
In his response, president of the Minerals Council South Africa Mxolisi Mgojo, said, “I believe that our industry would be at fault if it did not respond to the President’s challenge.
“We must not only respond to him, but also continue to engage with President Ramaphosa, with government and with other stakeholders on how we can best contribute to this great country of ours by “making mining matter”.
Mxolisi continued, “It is only through leadership collaboration and a focus on jointly solving challenges that we can help make the mining sector realise its true economic potential.
“Ultimately, we are at the right moment in time to drive a positive reform process that will significantly boost the mining sector’s investment prospects.
“This can be achieved through a leadership focus on improving competitiveness, productivity growth, ensuring predictable and competitive policies and regulations, modernising the sector and most of all working collaboratively to grow and transform the sector.”
Challenge 1: To foster inclusive growth in the areas of operation
Said Mxolisi, “It is well-known that we, as an industry, have been investing huge amounts of money in corporate social investment projects over many decades.
“Most of our members began doing that long before the Mining Charter made it mandatory. Since the Mining Charter was implemented in 2004, the
industry has invested considerably in social and labour plans and in corporate social investment projects.
“We know that we need to sometimes do this better and more effectively, and more collaboratively with other stakeholders – other mining companies, municipalities and government departments, NGOs
and communities themselves.”
Mxolisi went on to discuss key issues that affect the industry’s ability to create value.
These include the 523% increase in the electricity price and the lack of security of electricity supply which has materially affected the mining sector’s competitiveness.
Also having an important negative effect are unresolved policy and regulation matters, such as the lack of continuing consequences
on renewals in the current charter, combined with the unworkable financial provision regulations just published by the DEA and uncertainty about the carbon tax.
Mxolisi spoke of the Minerals Council’s optimism that the regional office structures being established with pilots in Mpumalanga and the Northern Cape, “will enhance and rationalise the collective development efforts
of our members.”