A successful mining industry in South Africa is in the interest of all stakeholders – whether directly and indirectly linked to it – i.e. mining companies, government, investors, communities, labour (including unions) and the broader South African economy.
Yet, the industry finds itself at a difficult juncture, with a future that has perhaps never before been so uncertain. Charting a new path for the sector will not simply happen on its own. It requires a collaborative effort amongst all stakeholders, bound together by a common purpose.
Shared understanding is critical
There are several multi-stakeholder efforts currently underway, many of which are intended to promote action through dialogue. Yet, a key factor impeding progress in these discussions is the lack of a shared understanding amongst different stakeholders and a common fact base and language upon which to build trust. In an effort to foster collaboration, KPMG seeks to work with stakeholders to help them move from dialogue to action.
Lack of clarity and consistency is a problem
Says Carel Smit, KPMG Director for Energy & Natural Resources “There is no denying that a prosperous mining industry is in the best interest of everyone. Though what is currently lacking, is clarity and consistency in policies as well as the detailed plans and actions needed to bring the sector into a new, prosperous equilibrium.
Smit adds, “In the current economic climate pots of cash are smaller and rates of investment are lower. Where junior mining companies labour to raise cash and look at opportunities that offer greater security and a good rate of return for their investment, larger mining companies are spinning off their collection of assets to focus on core business.
“As a result, there is a great need to change perceptions of South Africa, from a ‘seller’s market’ to a ‘buyer’s market’. Nonetheless, to attract valuable investors and achieve a buyer’s market in South Africa, there needs to be a strong understanding of what investors want,” says Smit.
CEOs at the Joburg Indaba
To kick off discussions about how to satisfy sector investment, Smit will chair a panel of CEOs at the Joburg Indaba at Inanda Club on Thursday, 9 October 2014. Speakers will include:
- Srinivasan Venkatakrishnan (Venkat), CEO, AngloGold Ashanti: Using Innovation to Lift Productivity in Deep Mines,
- Neal Froneman, CEO, Sibanye Gold: Giving Shareholders what they want!
- Steve Phiri, CEO, Royal Bafokeng Platinum: How do we attract Investors into SA platinum?
- Mike Schmidt, CEO, African Rainbow Minerals: Value Creation through Diversification and Organic Growth
Background to the Joburg Indaba
The Joburg Indaba is a unique event for leaders from the mining and resources sectors to engage in value added strategic conversations that are open, honest, and bold, fresh, relevant and to the point. Newsworthy content is delivered from shared thinking, solution focussed interaction by delegates and renowned entrepreneurs and CEOs.
Conceived and developed by the industry for the industry, this credible platform delivers undisruptive audience participation through lively debates, thought provoking discussions in an intimate and quality environment. With direct access to investors and leading analysts, opportunities are explored enabling business to be done in a constructive and entertaining way.
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 155,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative, a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
Collaborative solutions for mining in South Africa
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