Chamber of Mines is in the process of rebranding

THE CHAMBER of Mines of South Africa, the industry employers’ organisation whose members collectively produce 90 percent of the country’s minerals by value is in the process of re-branding, including changing its name, to adapt to the changing environment in which it operates.

Speaking at the Chamber’s 127th annual general meeting, outgoing chamber chief executive Mike Teke, who also runs Seriti Resources, said that the chamber’s role was much more than mining and it needed to think about changing itself.

“It is with this in mind that the council has agreed that the Chamber of Mines should rethink its identity and its name, to be more reflective of what it is and what it wants to be. “We will share more thoughts on this process and its outcomes in the months to come,” said Teke in his address.

Under the whip The mining industry has been under the whip for lack of transformation, the impact of the migrant labour system, the damage of mines to the environment and communities among others.

Sibanye Gold chief executive Neal Froneman who was re-elected as joint vice president, said that the chamber had adopted a new strategy.

“The change to the chamber’s name marks a new beginning and the chamber’s rebranding is an integral part of the new strategy. There is a lot of work behind scenes on the strategy,” said Froneman.

Mxolisi Mgojo, the Exxaro Resources chief executive, was appointed as the new chamber president. Royal Bafokeng Platinum chief executive Steve Phiri was elected as the new chief executive and Andile Sangqu was re-elected as joint vice president of the chamber.

MXOLISI Mgojo, 57, the chief executive of Exxaro Resources, has been appointed president of the Chamber of Mines.

Mgojo, who was elected at the Chamber’s 127th annual general meeting in Johannesburg yesterday, said that ensuring regulatory certainty and addressing the trust deficit between the government and communities would be at the top of his agenda.

Mgojo told journalists on the sidelines of the meeting that regulatory certainty was crucial in order to attract investment to the ailing mining sector, which contributed 7.3 percent to South Africa’s gross domestic product.

“The issue of getting across the line in terms of the Mineral and Petroleum Resources Development Act (MPRDA) is a priority. We cannot have uncertainty in the industry,” he said.

The MPRDA is a tool with which the government aims to facilitate the meaningful participation of black people in the mining and minerals industry. The act provides for the development of the Mining Charter to implement transformation with specific targets.

The charter was revised after the Department of Mineral Resources (DMR) found that it had a number of shortcomings, with the so-called “once empowered, always empowered” principle a point of contention.

The DMR argues that there should be a continuous compliance requirement for the duration of a mining right, whereas the chamber is of the view that black ownership is a once-off requirement. Mgojo says that regulatory certainty is crucial in order to attract investment to the ailing mining sector.

The charter, which was published in the Government Gazette for public comment in April, has yet to be finalised, despite the government’s intention to complete the process in March.

Mineral Resources Minister Mosebenzi Zwane said last week that he was confident that the charter would be gazetted to reflect meaningful engagement with stakeholders.

Earlier yesterday, Mike Teke, who will be replaced by Mgojo, said the chamber had participated in several discussions and had raised concerns about the Mining Charter with the DMR.

“The DMR and us have not met for two months, and we are waiting for a response from the DMR, and nothing has happened as yet,” Teke said.

The mining industry is suffering losses amid falling commodity prices and the increasing incidents of illegal mining and community protests in mining towns.

The death of more than 30 illegal miners in the Free State came as the chamber had been engaging with the DMR to see how small and emerging miners could become part of a legitimate and vibrant junior mining sector, Teke said. Complex protests Mgojo said community protests over jobs and economic opportunities in mining towns, including Marikana, where Lonmin had to close two shafts for the safety of its employees, were complex.

“Community protests have a huge financial impact when shafts are closed. It is not something that we, as the chamber, can address on our own. We need support from the government to address the issue,” he said.

In 2015, the mining industry made a loss of R30 billion as it grappled with cost pressures, falling global low prices and challenges including section 54 safety stoppages.

Roger Baxter, the outgoing chief executive of the Chamber of Mines, said that in 2016 there were “green shoots”, spurred by an improvement in the prices of some minerals that have helped the sector to recover, although some components were still struggling.

“At current prices, more than half of the platinum sector is marginal or loss-making, which is a significant challenge for the country,” Baxter said.

He said that real fixed investment in the mining industry, which employs 455 109 people, had dwindled over the years.

He said that between 2001 and 2008 real fixed investment grew by 12 percent a year, while between 2009 and 2015 it grew by 2 percent a year.

However, it had shrunk over the past two years.

Baxter said R3bn of employees pensions in the mining industry had yet to be collected.