The first bulk shipment of manganese sinter from the Kalagadi tolling project in the Northern Cape, which has arrived in China after being shipped from Saldanha Bay, is sinter with a difference. As can be read on page 12 of this edition of Mining Weekly, it is sinter from an integrated manganese mining and processing project that has been developed with a black South African woman at the head and which is being managed and operated by black South Africans. It is a major milestone with State backing through the Industrial Development Corporation and with the African Development Bank among the funders. President Jacob Zuma had high praise for the black-controlled Kalagadi Manganese enterprise, which is headed by executive chairperson and co-founder Daphne Mashile-Nkosi. JSE-listed Metmar is managing the sale of the sinter as part of a promising steel-feed diversification programme.
A stable law regime is essential for the mining sector because of its long-tern nature. Read on pages 8 and 9 of this edition of Mining Weekly of the concern continuing to be caused by some amendments to the Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill and the Mining Charter, which are seen as debili- tating. Law firm Hogan Lovells partner and mining head Warren Beech points out that this regulatory uncertainty impacts significantly on investment decisions in the South African mining industry, which has been compounded by the ongoing strike by the Association of Mineworkers and Construction Union. The investor concerns lie in proposed amendments such as a free-carry interest by the State in all new exploration and production rights for oil and gas. The perception is that, if these provisions can be included in respect of petroleum, they can easily be extended to other minerals. Beech points out that investors require some certainty in relation to the capping of potential State interest in mining operations. To a lesser extent, there is some concern among investors regarding the proposed amendments to the MPRDA Amendment Bill in relation to fines.
South Africa’s third-biggest gold mining company Harmony Gold sees its zealous compliance with black economic empowerment (BEE) and the Mining Charter as making the company an attractive transaction haven for companies that are battling to meet the April 30 charter deadline. Read on page 14 of this edition of Mining Weekly of Harmony exceeding the BEE ownership requirement by 2% and of the indication that Harmony’s own internal equity targets are above those laid down in the Mining Charter, which is now under interim audit by the independent consultancy Moloto Solutions. Harmony’s most recent was the deal with Phoenix that boosted its BEE status and the company would like to do more like that. The company’s low-cost regime has also put it in a strong position to be part of industry consolidation, sparked by the brief time-zone-focused Barrick-Newmont rapprochement.