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African Mining Vision, Zambezi Protocol taking centre stage as South African mining companies espouse new insights

28th October 2016

By: Martin Creamer

Creamer Media Editor

  

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Chamber of Mines of South Africa VP Neal Froneman raised the Africa Mining Vision as an important guide during his powerful speech at this month’s Joburg Indaba.

Also in his sights is the Zambezi Protocol, a blueprint developed by the Brenthurst Foundation for solving the current crisis in African mining, as well as the far more strident idea of conducting a Truth and Reconciliation Commission covering mining's dreadful past.

What the African Mining Vision seeks to create is a transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socioeconomic development.

This vision is then given impetus by its implementation arm, the African Minerals Development Centre, the job of which is to underpin the vision with strategic operational support.

As the Zambezi Protocol spells out, solving the current crisis in the African mining sector requires moving from the current series of tactical actions to a more cohesive, inclusive and strategic approach.

The intent must be to exit the current backward-looking, destructive downward spiral in which mining is currently locked and shift to a positive, constructive cycle that offers a ‘win-win’ deal for all.

In a parallel move, the mission of the African Mining Vision is to work with member States and their national and regional organisations to promote the transformative role of mineral resources in the development of the continent, with its activities of the last quarter including a review of its mineral information strategy plus capacity building on contract negotiation.

Just in the last three months, it has reached out to the Democratic Republic of Congo, Niger and Equatorial Guinea on contract negotiation and is being domesticated in Malawi, Eritrea, Ghana and Kenya.

Meanwhile, the Zambezi Protocol points out that, for a win-win deal to occur, all parties need to recognise the inevitable outcomes of the current cycle – the gradual deflation and downsizing of the mining industry.

The difficult issues that have underwritten the current crisis will need to be addressed and the historical legacy dealt with along with definitions of reasonable profit and the spelling out of a mining company’s responsibility to employees and communities.

At the same time, governments and communities will have to accept that mining is an inherently risky and long-term endeavour.

The African Minerals Development Centre this month drew attention to the use of the African Geological Mineral Information System to improve geological and geospatial information.

Risk needs to be reduced, business cases need to be firmed up and collaboration must be clinched to make mining a generational endeavour to the mutual benefit of all parties.

Enough trust must be rebuilt between all parties to allow meaningful dialogue to occur.

Froneman has been radical in this regard by proposing a process for mining similar to the Truth and Reconciliation Commission, which marked the end of apartheid and the start of reconciliation.

The Sibanye Gold CEO sees a Mining Truth and Reconciliation as ridding the industry of mistrust and restarting from a clean slate.

A frank, open discussion needs to unfold on all the key issues that have contributed to the current crisis and agreement will need to be reached on a way forward, to the mutual benefit of all.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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