Time to keep your eye on the end game
With a new dawn beckoning for the mining sector, the coming months should see a rebuilding of relationships and alliances that could set us up for a period of growth and investment.
This is a long way from the fractious stand-off that has developed over the past year, which has been characterised by a hard-nosed response from the Chamber of Mines.
“The unilateral publishing of the Department of Mineral Resources’ Reviewed Mining Charter and various other instances where the mineral resources minister acted recklessly and to the detriment of the industry have caused an enormous amount of damage to the relationship between the regulator and the industry,” Roger Baxter, Chamber of Mines CEO said. “That is why the chamber was forced to come to the conclusion that it cannot engage with any confidence with him on the industry’s future and instituted various court proceedings.
“Having said that, the chamber appreciates that a new Mining Charter has to be developed and the chamber stands ready to do so with government leaders of integrity and all other stakeholders.”
IMPASSE
The industry’s insistence on certain fundamental points are neither unreasonable nor onerous. And in Cyril Ramaphosa they’re hoping that their shared history from his previous roles, as a mining union leader and then investor, will break the impasse.
The early signs are that this is inevitable, with the new ANC leader coming out unequivocally in support of a more market-friendly approach that encourages investment.
This investment is needed not only by international companies looking to buy or develop projects that can support long-term growth, jobs and exports. Local miners and smaller players in the supply chain are also needed to support growth and development.
“In times of transition, you need to keep your eye on the end game and navigate the organisation to get there,” says Denver Dreyer, CEO of WorleyParsons RSA, on the role that his company plays in supporting clients’ ambitions.
PROGRESS
“Our role as an engineering consultant in a rapidly changing resources and energy market is vitally important. We help our customers to develop their assets but we are also a partner in delivering sustained economic and social progress, creating opportunities for individuals, companies and communities to find and realise their own futures.”
Employment is obviously a key objective, as is the pursuit of government’s transformation goals, which had become a major sticking point with the industry.
“We recognise that small, medium and micro enterprises can be key drivers of economic growth and we’re looking at ways we can assist in helping these businesses to grow.
“There are opportunities for small, black-owned engineering businesses in the coal sector, for example, and we will partner with these companies in a technical capacity to jointly deliver services. By doing so, we can expose these companies to world-class delivery systems and transfer skills and capabilities to enable them to grow,” Dreyer says.
WILLINGNESS
Industry has made it clear that as much as government has been quick to blame it for not transforming, there is no lack of willingness to do so. Achieving sustainable transformation, however, is a process that requires a willingness from government to create an environment that is supportive rather than punitive.