Zwane misses the point as mining industry heads back to court

Mining executives have called on the South African government to immediately enter into dialogue with the industry which they say is fast heading for disaster. Amidst increased calls for the removal of Minister of Mineral Resources, Mosebenzi Zwane, the general consensus is that the ongoing regulatory and policy instability in the country is scaring off investors and placing the sector at risk. Zwane, under investigation for alleged corruption and inappropriate behaviour by the Hawks, has other ideas. Struggling his way through a bland and unimpressive opening address at the annual Investing in Africa Mining Indaba in Cape Town last week, he ignored the criticism and spoke instead of the good relationship he had with the big mining houses, his open-door policy and the positive meetings in which they were all engaging. Roger Baxter, CEO of the Chamber of Mines, challenged this saying all negotiations between the industry and Zwane had come to an end as industry had lost all faith in his capability. Anglo American SA deputy chairman, Norman Mbazima, said the relationship between industry and Zwane was at an all time low, while Mxolisi Mgojo, CEO of Exxaro and president of the Chamber of Mines, called for ethical leadership for the sector. It was clear, however, that Zwane was showing no insight or concern for the fears of the mining sector about regulatory and policy instability during his appearance at the Indaba. He said the reviewed Mining Charter would be published next month in line with government’s plans for radical economic transformation. It seems this will happen regardless of whether industry agrees with the contents or not. In the last week of February industry heads back to court, having started a legal process over the charter in November last year after it became clear discussions with Zwane were going nowhere. According to Mgojo and Mbazima, dialogue between all the stakeholders is the only way forward. Mgojo said while industry did not have a say in who was appointed as minister, they were firm about having conversations with ethical leaders who had the interests of the country at heart. “A collective vision for mining is required,” he said. “It is not what any one individual needs, but what this country needs. It is about what is best for South Africa.” Whilst the court process will now run its course, both Mgojo and Mbazima said the issues that needed to be resolved were comprehensive and could only be resolved by dialogue and engagement involving multiple stakeholders. This was the only way to arrive at a regulatory regime that worked for everyone. One that was clear, concise, and consistent. Jonathan Veeran, a partner at Webber Wentzel’s mining sector group, said there was disappointment in Zwane’s speech as it had missed the opportunity to state that South Africa was open for business. Key elements not addressed in the speech included policy uncertainty around the Mining Charter and unclear regulation and legislation. “It leaves the industry in a state of limbo as no forward planning can be done.  The laws can change at any given time, which is further exacerbated by inconsistent application of legislation and regulation. Labour, business, communities and government are also not constructively engaging each other,” said Veeran. Executives are adamant that while discussion is the key to moving forward from the current impasse, unless the charter issue is resolved and the country introduces stability, mining will remain under threat.