New initiatives are required

One of the crucial questions that will be discussed at the Junior Indaba this year is “what proactive initiatives can governments take that will lead to a constructive way forward for the junior mining sector?” according to Paula Munsie, CEO of Resources 4 Africa, organisers of the meeting.

She says it is notoriously difficult to attract investment for exploration due to its high risk nature and therefore it does not help if there is added country risk and political risk, security of tenure issues, unwanted delays, onerous regulations, obligations on small companies or compliance hurdles.

“Junior mining companies are typically smaller and entrepreneurial by nature, therefore a one-size-fits-all approach across the industry can’t work in terms of compliance and regulations. I’ve heard it said that in SA junior miners are noncompliant before they get out the starting blocks due to the hundreds of pieces of legislation they have to adhere to which is almost impossible for small companies.”

The Junior Indaba, now in its fourth year, talks specifically to the junior mining space — explorers, developers and investors — and will take place at the Johannesburg Country Club in Auckland Park, Johannesburg on June 5 and 6.

Munsie says changes in policy and governments impact the sector and countries can be more or less in favour as an investment destination at any given time, as can various commodities with their fluctuating prices.

“There is a lot of interest in battery metals so we have dedicated a panel discussion to this area — asking the question which metals will be needed for batteries and energy storage in the future and how junior miners can benefit from what is an expected growth in demand over the next five to 10 years?

“Other important questions are: ‘Where is investment going in Africa in terms of commodities and regions as far as junior mining is concerned?’; and ‘What is the long-term mining industry outlook?’”