Zwane fails to inspire hope at Mining Indaba

Minister sidesteps regulatory uncertainties Delegates say speech lacked substance

There was no succour for the South African mining industry in a dull and apathetic opening presentation at the African Mining Indaba by Mineral Resources Minister Mosebenzi Zwane, but industry players spoke of talking to ANC figures about a way out of the regulatory and policy impasse crippling the sector.

In a speech roundly condemned by delegates at the annual conference of mining investors, companies and service providers, Zwane did not touch on the regulatory uncertainty made worse by his actions on the now suspended third version of the Mining Charter he gazetted in June 2017. Those actions led to a complete breakdown in relations with the Chamber of Mines, which has taken his charter to court to have it reviewed and set aside.

Far from allaying any fear investors may have about putting money into mining or encouraging inflows of cash, Zwane turned in a dull and apathetic speech compounded by a hoarse throat that made his delivery painful to listen to.

“Today’s opening address by the minister lacked hard substance, which was unfortunate. The mining community wanted to hear direction and resolution to some significant issues in the South African context, but nothing came forth in this morning’s speech,” said Jacques Barradas, partner and head of mining at Grant Thornton.

Wildu du Plessis, head of Africa at Baker McKenzie, said the speech “did little to encourage investment in the South African mining sector and neither did it provide much-needed clarity in terms of South African mining law reforms”.

Other delegates pointed out the opportunity lost in Zwane’s speech, with the minister failing to build on the positive momentum that Deputy President Cyril Ramaphosa put in motion during his appearance at the World Economic Forum in Davos.

Ramaphosa said in Davos that the charter could be revisited and that corruption would not be tolerated.

“The minister appeared more intent on showing that the

industry was supportive of his policies that are currently before the courts for review than with perpetuating the optimism for effective dialogue that was evidenced in Davos,” said Allan Reid, a director at Cliffe Dekker Hofmeyr.

It was left to the chamber to give some insight into how the impasse on the charter could be resolved, with CE Roger Baxter talking of discussions with highlevel ANC figures about the policy document, which is stalled in the courts.

“The challenges in the regulatory environment in 2017 were arguably the worst the mining industry has ever experienced,” Baxter said.

“Immense damage” was done by the unilateral implementation of the charter in June 2017 by Zwane, which brought with it the potential to destroy the local mining industry, Baxter said, adding it was the “lowest point in living memory” for the sector.

The chamber refuses to talk to Zwane, with Baxter saying on Monday the minister was “not the right person to lead the department” because of the corruption allegations hanging over him and his poor handling of the charter, which the chamber has said showed bad faith.

“Initial signals from the ANC give us hope, but they must be followed up by action.

“There are still complex political dynamics at play and we must exhibit a degree of patience, but the green shoots are there and we’re keen to work with the government,” he said.

Several delegates said they were surprised that Zwane had presented at the indaba, given the allegations of inappropriate behaviour hanging over him and for which he is being investigated by the police.