Investment in port and rail infrastructure is critical if South Africa wants to revive investment in its mining sector, according to Norman Mbazima, deputy chairman of Anglo American SA. “A large portion of our production by value is bulk commodities like iron ore, coal and manganese,” he said. “These are produced in inland mines and need to be transported to the coast, loaded onto ships, and taken to overseas markets like China, India, and Europe where they are required. In the 15 years that I have been associated with this industry, I have not seen any significant expansion of the rail capacity for transporting these products to our ports. For the mining industry to grow, we need to urgently expand our rail and port networks.” Mbazima said most of the large infrastructure projects around the world had happened when government took the risk to invest in infrastructure to encourage investment, or when government had put in regulations allowing the private sector to do so. “Increasingly, there is a move towards Public Private Partnerships as an enabler for infrastructure development,” he said. “Many of our competitors, in countries like Australia and elsewhere in the world, have mines that are closer to the sea and are geographically located closer to the customers. This makes them more competitive than us. “ Mbazima urged government and the mining industry to engage in dialogue immediately to work out how best to ensure that adequate investment in the rail and port infrastructure took place. This, he said, would go a long way towards facilitating the growth and competitiveness of the mining industry. “While we may have one of the world’s most endowed mining jurisdictions, we have not been able to bring this endowment to account,” he said. “We need to attract capital for South Africa’s mining industry, whether foreign or domestic, and we must accept that such capital needs to get a competitive return.” The right infrastructure was thus vital, said Mbazima.
INSERT
For the mining industry to grow, we need to urgently expand our rail and port networks. – Norman Mbazima
