Mining companies must evaluate the risks that are likely to arise in the lead-up to South Africa’s 2016 local government elections, warns security, risk and strategy advisory consultancy Foresight Advisory Services CEO Mthuthuzeli Madikiza.

“All the country’s major political parties will continue to drive their manifestos, with specific focus . . . on their different versions of transformation, particularly with regard to the mining sector and other major industrial sectors.”

Madikiza notes that “some political parties” will agitate for nationalisation of mines without compensation, alluding to the Economic Freedom Fighters’ view on the mining industry.

“This message will be used as a key issue to gain members and voters in the lead-up to the 2016 local government and . . . the 2019 general elections,” he states.

Additionally, Madikiza points out that the risk of general civil unrest spilling over into the mining industry should also be a concern for the sector, as “disgruntled employees, local politicians, pressure groups, community activists and unions on the one hand . . . and criminals and loan sharks that exploit poor mineworkers on the other are all potential catalysts for unrest at mines and in the communities in which mines operate”.

He states that, according to research undertaken last year by the global private foundation for the advancement of human welfare the Ford Foundation, the number of service-delivery protests in South Africa has increased.

“This reversed the downward trend that existed after 2010. The number of protests in 2014 reached an all-time high of 218, beating the previous maximum of 204 in 2009, which was also an election year,” Madikiza highlights.

Although there was a downward trend in protest numbers between 2009 and 2014, the number of protests peaked in the run-up to the 2014 election, he adds.

“Protests have also become increasingly violent, resulting in significant damage to property, many injuries and, in several cases, even fatalities.”

According to the Ford Founda-tion, about 80% of all service delivery protests in 2014 resulted in acts of violence (on the part of its participants), Madikiza notes.

Cybercrime Concern

Madikiza says the mining industry should be concerned about cybercrime.

“According to the South African Banking Risk Information Centre, South Africa lost about R2.2-billion in 2013 to cybercrime-related fraud,” he points out.

Concurring with these sentiments, mobile operator Cell C forensic services executive Advocate Jacqueline Fick highlights that the US Federal Bureau of Investigation has flagged South Africa as the sixth-most active cybercrime country.

“South Africa is also the second-most targeted country globally when it comes to phishing attacks,” she notes.

Fick says that being ready for a cyber forensic investigation should form part of any information security strategy for not only companies in general but also mines.

“The investigation should also be closely related to incident response and business continuity, thereby ensuring that evidence found during an investigation is preserved and the continuity of evidence is maintained.”

Fick adds that companies should hire cyberexperts to compile a detailed assessment of an organisation’s readiness to undertake or support a digital forensic investigation, regardless of such readiness being part of an internal investigation, a criminal investigation or as the result of a compliance requirement.

Madikiza and Fick spoke at business-to-business events organiser Fleming Gulf’s 2015 African Mine Security Summit, held in Johannesburg last month.