Last week’s 125th annual general meeting of the Chamber of Mines of South Africa showed resolve to put mining back on the front foot, despite the current tough period that is characterised by depressed commodity prices, rapidly escalating costs, electricity supply problems and continued uncertainty about some mining and transformation laws.
The chamber revealed that it has the full backing of its council for a strategy aimed at doubling mining investment by 2030.
The chamber is keen to continue to fulfil its contribution to investment, economic growth, transformation and development of this country. Read on page 13 of this edition of Mining Weekly of its view that all key industry stakeholders need to work together to rebuild confidence in the national interest.
A key issue is South Africa’s standing as a preferred mining investment destination and how it is stacking up against the likes of Botswana, the Democratic Republic of Congo and Zambia in Africa and against Australia and Canada globally.
Project Phakisa – or Operation Hurry Up – was held up as an opportunity to engage in fresh collaboration to resuscitate the industry’s flagging rapprochement with government.
A strong call was made on national leadership to position mining now to realise its vast potential in the years ahead.
The chamber itself has undertaken to work more assertively to “get this great industry” back on to the front foot.
Chamber of Mines president Mike Teke elaborates on the chamber’s plans.
Meanwhile, a risk advisory consultancy has cautioned that mining companies will need to evaluate the risks in the lead-up to South Africa’s 2016 local government elections.
During this period, the risk of major political parties driving their different versions of mining-sector transformation is expected to heighten.
Read on page 12 of this edition of Mining Weekly of the expectation that calls for mine nationalisation may rear their head once more to drum up voter support not only in 2016, but also ahead of the general election in 2018.
Mines have been advised to take into account the risk of general civil unrest spilling into mining industry and also of protest action tending to become increasingly violent.
On the capital-raising front, dual-listed gold producer Central Rand Gold (CRG) has outlined the steps it intends taking to provide working capital for its surface mining operations and plant upgrades.
Read on page 16 of this edition of Mining Weekly of this London- and Johannesburg-listed company, which mines under Johannesburg, wanting to raise £600 000 through the placing of 2.55-million new ordinary shares and the subscription of 3.46-million new ordinary shares at a price of 10p each.
CRG has entered into four separate nonbinding memoranda of understanding with Chinese groups Huili Resources, Hiria Group, Beijing Ankong Investment and Shengbang Jiabo, which coiuld result in in the disposal for $150-million of all of the shares it holds in its Netherlands subsidiary.