Zwane pledges to support mines

Mineral Resources Minister Mosebenzi Zwane commits to solving the problems facing SA’s ailing mining industry.

Johannesburg - Mineral Resources Minister Mosebenzi Zwane yesterday committed to solving the problems facing South Africa’s ailing mining industry, which has shed thousands of jobs, as he called for the creation of new players.

Zwane told the 126th annual general meeting (AGM) of the Chamber of Mines that the government was willing to compromise to help the industry, as well as being open to promoting technology to turn fortunes around.

“I am a team player. I would like to assist the sector. If technology is the way to go, let us engage labour. Let us not shy away from these issues,” said Zwane, who has been minister since September.

Zwane also indicated that section 54 of the Health and Safety Act had been minimised.

“We understand the impact of closing mines willy-nilly,” Zwane said.

For years the industry has accused the department of implementing section 54 stoppages in a dangerously heavy-handed manner.

Zwane called on the chamber, which represents 90 percent of domestic production, to help create new entrants into the mining sector. “The issue of transformation and putting new entrants into the industry is important. This country belongs to all of us,” he said.

The government published a draft of the revised mining charter last month, in which it maintained minimum 26 percent black ownership and put in a minimum ownership threshold for the meaningful economic participation of black people.

The sticking point from the chamber was whether they were obliged under the existing charter to get new black partners if their old shareholders had sold their shares.

Zwane said there had been four meetings between the industry and the government on the revised charter.

“We are now dealing with the nitty-gritty and how we should structure the charter.”

Zwane, who was part of a cabinet team that met banks on the closure of Gupta-owned Oakbay’s bank accounts, told journalists after the AGM that Oakbay jobs had to be saved.

“We engaged with the banks. We have sticking points, and a report on the matter will be presented to cabinet,” he said.

“Our view is that the matter should be resolved. We will not allow people to lose their jobs just like that,” he said.

Mining as a contributor to gross domestic product (GDP) has been in the doldrums due to weak commodity prices and its contribution to GDP shrunk to just 7.7 percent last year from 14.7 percent in 1994.

Chamber of Mines chief executive Roger Baxter said half of the mining industry was making a loss.

He said its members had been adversely affected by weakening commodity prices, rising costs, falling productivity and some regulatory issues, which challenged the chamber’s ability to sustain operations and maintain jobs.

“With an average of half of the companies in loss-making territory, the focus for many has been on restructuring for survival,” he said.

“As after tax and dividends the net loss in mining was R10.6 billion in 2014 and ballooned to a loss of R47.5bn last year,” he said.

Mining employed 462 000 people in the last quarter of 2015, 29 000 less than the 491 000 who were employed in the last quarter of 2014.

Wage talks in the platinum industry were expected to start shortly at the three largest platinum companies, Anglo American Platinum, Impala Platinum and Lonmin.

The three companies were rocked by a five-month platinum belt strike.

“Given the country and sector’s current strained economic circumstances, together with the threat of a sovereign downgrade, a repeat of the events in the previous wage round will be foolhardy,” Baxter said.

Mike Teke was re-elected as president of the chamber.

BUSINESS REPORT