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Business, labour need to engage on equal, open footing to develop new mining compact

18th November 2016

By: Martin Creamer

Creamer Media Editor

  

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The point has been made that mining business and mining labour have never been closer than now and that they need to make use of this window of opportunity to establish a better foundation between themselves that can shame government into moving mining forward for the benefit of all South Africans.

The necessary first step is seen as business acknowledging its terrible ills of the past so that the way can be opened for the acceptance of a new mining vision that eventuates in the striking of a social-economic compact to elevate all stakeholders.
The coming together of business and labour must have as its priority the protection of mining’s sustainability.

Government will have no option but to respond to a strongly united business and labour front.

If it fails to do this, the concept should be migrated and offered to more responsive governments in Africa to consider.

After all, we are Africans and a strong business/labour compact is essential for all parts of this continent.

If the concept is spurned by the divided South African government, every attempt should be made to elicit public praise for it by African governments outside South Africa.

Competitive juices must be allowed to flow and South Africa’s errant Department of Mineral Resources made to hang its head in shame for the major damage that it has done to the people of South Africa by playing fast and loose with an industry that is able to revitalise the domestic economy.

The factors that are inhibiting the potential of the South African mining industry are recognised in the 2015 Fraser Institute survey, covering over 100 mining jurisdictions.

The report flags South Africa’s potential to improve from its present low ranking below the Democratic Republic of Congo and Ethiopia by providing regulatory certainty, removing productivity- destroying labour militancy and introducing sound socioeconomic agreements.

Business and labour must embrace their new joint role of developing the society of the future and commit jointly to a very different way of turning metals and minerals to account on the continent.

Africa, as the host to 95% of the world’s known platinum reserves, 90% of all chromite and 80% of phosphates, 60% of gem diamond reserves, more than 50% of cobalt, 28% of vanadium, 25% of manganese, 23% of titanium and 20% of known gold reserves, is one of the few continents where mineral exploration is expected to yield yet further meaningful discoveries.

As Chamber of Mines of South Africa VP Neal Froneman stated in his new roadmap document, the new united front must ensure that value flows equitably to all stakeholders according to an agreed and specific framework, including employee benefits, profit sharing, taxes, social expenditure and dividends to shareholders.

While more pressure is applied to the recalcitrant South African government, business and labour need to engage the best brains to draw up a new mining franchise, in harmony with the African Mining Vision and the Zambezi Protocol.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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