JOHANNESBURG (miningweekly.com) – The private sector worldwide is the engine for job creation, in partnership with trade union organisations, government and communities, and South Africa must link its tax legislation to job creation.
That is the view African Rainbow Minerals (ARM) executive chairperson Dr Patrice Motsepe expressed at ARM's virtual results presentation on Monday. (Also watch attached Creamer Media video.)
During question time after the Johannesburg Stock Exchange-listed company reported outstanding cash-generating and dividend-yielding financial results for the 12 months to June 30, Motsepe said there was a big commitment to make South Africa a very good place for the private sector.
Mining Weekly had asked him to spell out the political and regulatory conditions needed to stimulate vital private sector investment in mining to grow the industry’s huge potential, against the background of some mining companies refusing to invest under current conditions, which they say are not conducive to investment.
“There’s a lot of good money that is on the sideline, huge money, and we have to incentivise. We’ve got to be creative and innovative. We’ve got to look at our tax legislation and link it up with job creation and I’m very confident that there’ll be huge investments in the mining industry. Create jobs, create a future for all our people. The big challenge for South Africa is the poor. The big challenge for South Africa is unemployment. The big challenge for South Africa is quality education and skills. This country has exceptional people. We will make success and grow in the medium to long term.
“I’ve got friends who say, Patrice, I’ve had it now. People I’ve known and I was at school with who say they’re going to sit in some cold country elsewhere. I’m going to stay here and we’ll work it out,” Motsepe said.
“I’ll never give up on the people of this country. I grew up in a country that was divided, had lots of problems, lots of tension, in a country that was segregated by law. Discrimination, apartheid. Even at that time of legalised division, I had the privilege of seeing some of the most incredible people in this country, black people, white people, and everybody else. My view of the future of this country, in the context of the question, is based on this huge amount of support, love, encouragement, as a young, young boy, over many years, that I’ve been given by all South Africans.
“Last week I was at a Zoom meeting where Chatham House rules apply, where some of the top CEOs of the world, without a doubt, I mean the top CEOs of the world, and it emphasised that what we have to do as a country is to be globally competitive,” Motsepe said.
GLOBAL EMPHASIS ON THE GREEN ECONOMY
The contribution of platinum group metals (PGMs) to ARM increased from 16% to 40% in the 12 months to June 30, emphasising the major benefit of diversification.
Motsepe acknowledged the global emphasis on the green economy and environmental, social and governance (ESG) as part of the sustainable development goals.
“We’re a company of the future and we're committed to the green obligations that all of us have,” he said.
The company was also committed to partner in implementing the global best practices principles relating to ESG as well as the United Nations sustainable development goals.
“Growth is an essential part of our future,” Motsepe said.
The headline earnings of diversified ARM increased by 6% to R5 534-million for the financial year to June 30. A final dividend of R7 a share was declared, in addition to the interim dividend of R5 a share, taking the total dividend for the 2020 financial year to R12 a share.
The net cash position of ARM improved to R3 790-million, compared with the R2 601-million at the end of the 2019 financial year.