Junior miners set to capitalise on ‘new dawn’

25th May 2018 By: Donald Makhafola - Creamer Media Reporter

Junior miners set to capitalise  on ‘new dawn’

NEW DAWN Junior miners in South Africa are hoping to get sufficient government support and attract investment, following the election of President Cyril Ramaphosa
Photo by: African Sun Mining

There is a mood of optimism sweeping across the country following the election of Cyril Ramaphosa as the President of South Africa and the appointment of Gwede Mantashe as the Minister of Mineral Resources, with the junior mining sector hoping to capitalise on this through proactive initiatives and the proposal of a constructive way forward to attract investment, says Junior Indaba organiser Resources for Africa Investment Conferences CEO Paula Munsie.

The fourth edition of the Junior Indaba – for explorers, developers and investors in junior mining in Africa – which will take place on June 5 and 6 attracts about 500 people. Munsie says new and exciting junior projects will be showcased and assessed by an esteemed panel of investors.

“It helps to hear how the seniors have worked the mining playing fields, so insights gleaned from the legends of the mining industry, such as investment company Talent 10 chair- person Sipho Nkosi, exploration company PanEx Resources director Anton Esterhuizen, mining company Seriti Resources CEO Mike Teke, consulting geologist Allan Saad, Australian minerals explorer Orion Minerals MD and CEO Errol Smart, make for a must-attend session.”

She points out that the junior mining industry is high risk, but potentially also highly rewarding for companies that are prepared to invest time and money in exploration and early-stage mining projects.

“Junior mining is not for the faint-hearted, as this sector is subject to changing sentiments of investors and fluctuating commodity prices, as well as frequently changing unpredictable policy and regulatory environments in most African countries.”

She indicates that delegates have shown an interest to discuss and engage in topics about how to invest, where to find investment, and which commodities are in demand.

“The conference will also address the changing political and regulatory environments in several African countries and the impacts on the junior mining sector, and will explore what the changes are likely to mean for accessing finance.”

However, Munsie notes that where governments are prepared to invest time and effort in assisting and incentivising this sector, it can be significantly rewarding for all concerned.

“Despite improved commodity markets, which have a positive knock-on effect for junior miners, much can still be done by governments to create environments conducive to encouraging and attracting investment dollars that are not averse to the high risk associated with exploration and early-stage mining projects.”

She says the conference is the best platform for such explorers, developers, junior miners and investors and that without greenfield projects, there would be no mining.

“Let’s not forget that Africa and South Africa have rich mineral deposits, and there are different investment levels required across the junior and larger mining sector to extract these minerals. Financiers and investors have different levels of investment to offer.”

Munsie calls on the South African government to expedite the process of issuing mining licences and lessen the red tape of regulatory requirements. “There needs to be an understanding by regulators, labour and investment that mining laws cannot be set across the industry as a one-size-fits-all – they need to be amended for the junior sector, as it is different from mainstream mining,” she concludes.