The 2013 Investing in African Mining Indaba aims to unite the mining industry to take stock of current events and new developments and to find solutions for industry challenges, says law firm Edward Nathan Sonennbergs (ENS), which will sponsor events and seminars at this year’s event.
ENS held a session on October 31 to finalise its strategy for the 2013 Investing in African Mining Indaba, which will take place from February 4 to 7 at the Cape Town International Convention Centre. “We know what we want to sponsor at the Indaba, but have to finalise the details,” notes ENS head of mining Otsile Matlou.
ENS analyses the challenges in the mining industry and the economy and establishes communication links with the public and government authorities at the Mining Indaba. “There are many key focus areas for this year’s event,” Matlou notes.
The law firm aims to position itself as the firm of choice at the Mining Indaba. “We also want to bring the mining indus- try closer to authorities in the mining industry.
“South Africa can communicate better, even at the worst of times. When a crisis manifests, it is clear that inadequate communication prevails between members of the mining industry and its regulators,” Matlou states.
In 2002, the mining industry (represented by the Chamber of Mines), the trade unions (represented mostly by the National Union of Mineworkers) and government were able to negotiate the South African Mining Charter during a tripartite process.
“That is an excellent example of what good collaboration can produce,” he stresses.
Since then, it does not seem as if these parties have maintained that level of collaboration, Matlou notes.
“There will always be tension, as these parties have conflicting and complementary mandates, but they can be much closer and the Mining Indaba is one of the ways in which these parties can re-establish communication through collaboration.”
Forums, such as the Mining Indaba, will enable government, investors, mining companies and trade unions to find one another and promote conversation.
Possible Key Focuses
ENS aims to sponsor sessions at the 2013 Investing in African Mining Indaba to tackle current challenges in the mining industry, Matlou emphasises, highlighting the need for mining companies to tackle unfavourable working conditions.
Matlou says sustainable development will also be addressed at the Indaba to ensure responsible mining together with environmental conservation. “While South Africa has an adequate regulatory framework in place, more should be done to ensure enforcement from the Department of Mineral Resources (DMR) and compliance from mining companies.”
“I would be surprised if we don’t have a session focused on current labour unrest in South Africa’s mining industry, offer- ing sustainable solutions to this challenge,” he says, reflecting on the wildcat strikes that took place in the mining industry in 2012, starting in the platinum industry at platinum producer Lonmin’s Marikana mine, in Rustenburg.
Mining unrest requires innovative long-term solutions. Wage package negotiations and strike resolutions only deal with the challenges that pose an immediate threat, Matlou adds.
One of the challenges that should be a focus at the Mining Indaba is South Africa’s mine licensing system. “It takes far too long in South Africa for companies to apply for and be granted a mining licence, which makes South Africa unattractive to investors. “In neighbouring countries, such as Namibia and Zambia, licences can be granted in as little as two to four months. In South Africa, on average, it takes more than a year.”
Matlou stresses that this problem needs urgent attention, as there is no reason why it cannot be solved. “It is a result of bureaucratic slowness and we can certainly capacitate the DMR to speed up the process of granting mining licences.”
Another challenge he highlights is South Africa’s energy shortage hampering new mining-project development. “Mining companies want to start new mining operations but they are not guaranteed a power supply. The national grid has to be improved and this should be a key focus at this year’s Mining Indaba.”
Matlou also expects recent draft amendments to the Mineral and Petroleum Resources Development Act to be discussed.
The law firm was a sponsor of the 2012 Investing in African Mining Indaba, at which it had a booth and arranged a conference session facilitated by Minister in the Presidency responsible for the National Planning Commission Trevor Manuel, who spoke on the economic outlook for Africa.
ENS arranged a business lunch with the CEOs of mining companies, which was also attended by Mineral Resources Minister Susan Shabangu, who was a keynote speaker, officially opening the event.
ENS notes that the lunch was first hosted at the Mining Indaba in 2011 and has become a yearly event since then.
“The purpose of the lunch is to bring the captains of the mining industry under one roof with the Mineral Resources Minister to reflect on industry events and the discussion points from the Minister’s keynote address. “This allows the mining industry to hear government’s thoughts and intentions,” Matlou explains.
Matlou notes that ENS has taken strides to bolster its presence in the mining industry and to encourage mining com- panies to converse about challenges facing the industry.
“The Mining Indaba enables regulators, such as the Mine Health and Safety Council, to discuss problems and engage with the industry,” he explains, adding that it enables communication between industries, joint efforts to deal with challenges and the sharing of messages regarding industry challenges and opportunities.”