Diversified mining company African Rainbow Minerals (Arm) says that the mining industry in South Africa is recovering from the effects of the recession and the outlook is positive for the long term, even though volatile.

“The global resources industry has been through a challenging period, being impacted on by the global recession. However, owing to the continued strong demand for resources from China, the industry is recovering and the future looks bright,” says Arm Exploration CE Dan Simelane.

He adds that a major challenge facing South Africa is the global com-petitiveness of mining operation costs.

“The cost of electricity is increasing and the electricity supply is inconsistent. Increasing labour costs also detrimentally affect the competitiveness of the South African mining industry,” Simelane points out.

Meanwhile, Arm has reaffirmed its commitment to responsible business practices by joining the International Council on Mining and Metals (ICMM), thereby committing itself to comply with the ICMM’s sustainable development framework and position statements.

Arm CEO Andre Wilkens says that sustainable development is more than a policy for Arm; it supports the business principles that drive short- and long-term strategic targets.

“Arm’s ‘we do it better’ management philosophy applies as much to the nonfinancial aspects of its business as it does to the operational and financial aspects. Having established Arm as a partner of choice for mining in Africa, the ICMM membership enhances our position as a world-class diversified mining company,” he asserts.

Simelane says that the company is currently looking to explore for platinum-
group metals in Zimbabwe and is investigating the possibilities of mining coal in Africa. Arm has active mining operations in South Africa, and explora-tion projects in Zambia, the Democratic Republic of Congo and Namibia.

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