TEL: +27 (0) 11 622 0908
FAX: +27 (0) 11 622 1312
info@abexsteels.com
Welcome .. Bienvenu .. Karibu .. Khala Wolandiridwa .. Mwalandiridwa .. Mwaiseni .. Chewa .. Tilandile .. Tigashire .. Sethule .. Mauya .. Semukele .. Welkom

Abexsteel

Rip up charter, provide tax incentives, back junior miners – Maimane

Mining Charter Three should be ripped up, proper tax incentives introduced and junior mining enterprises supported to restore investment in the mining industry, which is a stimulator of the South African economy as a whole, Opposition Democratic Alliance leader Mmusi Maimane said on Wednesday.

Delivering a keynote address on the first day of the fifth Joburg Indaba conference, Maimane said it is an indictment against South Africa and the mining industry that the country’s last significant diamond discovery was at Venetia 40 years ago.

He noted that Canada and Australia had far more listed mining companies than South Africa and the vast majority of these were relatively small mining companies.

He said Johannesburg should be the big mining capital and not Perth, but it was not, because South Africa had shut the door on new mining development through discouraging policy.

New mining developments were virtually non-existent despite thousands of mining rights having been issued to people with no interest or expertise.

“This is how we kill an industry,” he said, adding that in countries other than South Africa investors are able to gain mining right information online.

Ninety per cent of mining students are black and they should be the mining entrants of the future.

In the early eighties, mining contributed 21% to South Africa’s gross domestic product (GDP) but currently both mining and manufacturing have dropped out of the top three, with mining contributing only 5% of GDP.

 

Source: mining weekly

Continued reciprocal trade between S Africa, Australia predicted

Despite the current economic climate in South Africa and the global downturn in mining, owing to low commodity prices, South Africa and Australia will continue to build their reciprocal trade relationship, says law firm ENSafrica.

“South Africa is Australia’s biggest trading partner on the African continent and Australia has more mining projects in Africa than anywhere else in the world,” ENSafrica mining director Lloyd Christie tells Mining Weekly.

He adds that Australia looks westward for investment opportunities and recognises South Africa as its port of entry into Africa and the Southern African Development Community, which includes 15 African countries. “Australia continues to build on a constructive and mutually beneficial business relationship with South Africa.”

South Africa and Australia have similar legal systems, business cultures and practices, as well as accounting practices; and both countries are also well endowed with mineral resources and technical expertise, says Christie.

 These common traits make it easy to facilitate trade and, with the two countries forming the Australia–South Africa Joint Ministerial Commission in 1997, collaboration has increased ever since, he elaborates.

To aid continued collaboration, the Australia–Africa Minerals and Energy Group was established in 2010 to facilitate active engagements between the continents’ mineral resources industries.

Christie points out that, according to employers organisation the Australian Industry Group, there has been a 10% yearly average increase in trade between South Africa and Australiain the past five years.

“This serves as motivation to reinforce the relationship with Australian counterparts and continue attending events that facilitate trade.”

Therefore, ENSafrica will attend the annual Africa Down Under conference for the second time from September 6 to 8 in Perth, Western Australia, to interact and network with clients and investors, and learn about the latest developments in mining in Australia and Africa.

Further, Christie says legal certainty, which is an issue in some African countries, is often a consideration for investors, especially foreign investors such as Australia, when deciding to enter new markets.

“Africa’s labour unrest and factious industrial relations might also scare off mining investors. But, with the global miningindustry having to endure depressed commodities markets for many years, volatility is a natural consequence in any mining jurisdiction.”

He adds that declining commodity prices and profit margins can, ultimately, put strain on employee circumstances, as companies threaten retrenchment and are unable to increase wages. This is not unique to Africa, and is typically not an environment conducive to investment.

Regardless, there are still indicators of continued interest and investment in South Africa and other African countries, says Christie.

ENSafrica mining director Ntsiki-Adonisi Kgame says Australian mining companies still remain significant employers in Africa, which also encourages innovation and skills transfer between the involved countries.

“We’ve seen skills migration from South Africa to Australia, especially in terms of deep-level mining expertise. Australiahas recognised South Africa’s proficiency in this regard and has benefited from that skills transfer.”

ENSafrica plays a significant role in representing South African and Australian mining entities – such as diversified miners BHP Billiton and South32 – when navigating mergers, legislation and general trade issues regarding mineral resources.

 

Source: Mining Weekly