Mining in focus
but also about government’s insistence
that mining companies should beneficiate
what they mine. “Beneficiation requires a
consistent power supply, but at the moment,
we are not even sure that we have sufficient
electricity to run our mines profitably,” a
delegate, who wanted to remain anonymous,
told Mining Mirror on the sidelines of the
conference.
Mantashe, and Ramaphosa (on day two),
emphasised the need to create value through
beneficiation. Ramaphosa said, “Mining should
embrace value creation through beneficiation,”
and it became the sixth Ramaphosa
principle (or commandment, as moderator
Iman Rappetti referred to it) laid down by
the president as a requirement for mining
companies to invest in South Africa. Ironically,
and almost as if taunting Ramaphosa, Eskom
announced stage 4 load-shedding a little more
than a week later, throwing cold water on the
president’s hot promises.
The difficulties at Eskom have the potential
to cripple the mining industry and the South
African economy. Any country that wants
to build a sustainable mining industry, let
alone beneficiate its raw products, needs a
stable grid, and if anything, that should keep
Ramaphosa and Mantashe awake at night.
Community first
But the two stalwarts have a lot more
to think about. The recurrent theme at
All people should express their views and
we shouldn’t only have to listen to those
who are the loudest.
Mining Indaba was no doubt community
involvement, and inclusive growth. By
incorporating the Alternative Mining
Indaba, which has historically been held
separate from the main event, the message
at Indaba was loud and clear: communities
do matter! And speaker after speaker
reinforced the message: “We care about our
communities”; “Community voices should
be heard”; “The most important stakeholder
is the community”. To this, Mantashe added,
“We need to co-exist with communities;
mining should not be a negative. It has to
benefit communities; not only shareholders.
Workers and communities are equally
important.”
The minister must have delivered this part
of his speech with at least some trepidation.
Just weeks before, Mantashe was heckled
at a community meeting at Xolobeni in the
Eastern Cape, where Tormin, an Australian
company, intends mining the sand dunes
for titanium. For weeks, every single public
participation meeting at Xolobeni ended
up in chaos, and part of the community
accused Mantashe of not addressing their
concerns. Eventually, the matter had to
be settled in court, and the judge ruled
against Mantashe in favour of the local
community. Not only was the court’s
decision egg on Mantashe’s face, but the
fact that communities in traditional areas of
South Africa now have the power to decide
whether mining should take place or not,
puts Mantashe in a precarious position —
government, meanwhile, has appealed the
court’s decision.
Mantashe backed into a corner
Mantashe is, and has always been, an avid
communist and for him, central control is
non-negotiable to develop the state and the
mining industry. Putting communities in
control of such decisions asks of Mantashe
to relinquish which has, until now, been an
unwavering belief in the communist ideal.
How the Xolobeni case will eventually
play out, will be a good indication of
whether government is really serious about
community engagement, and if Mantashe
has the stomach to challenge his deep-
rooted ideologies. It is a festering wound
that could lead to his demise.
He was unequivocal at Indaba, though,
and maintained that only a small minority
of the Xolobeni community is opposed to
mining. “We cannot allow anarchy.
Anarchy should not be the order of the
day. All people should express their views
and we shouldn’t only have to listen to
those who are the loudest. We need to
engage with communities and talk more,”
Mantashe said.
No soft issues
Gwede Mantashe, South Africa’s minister of mineral resources, speaking at the 2019 Mining Indaba in
Cape Town.
[26] MINING MIRROR APRIL 2019
Most major mining houses presenting at
Indaba confirmed that they were on-board
when it comes to social responsibility and
community development. Mining, especially
in South Africa, is no longer just about
digging a hole in the ground. Environmental
issues, community engagement, and health
and safety can no longer be considered ‘soft
issues’. They should form an inextricable part
of the mining plan and are key in a country
like South Africa, where unemployment and
inequality are some of the most pressing
socio-economic issues.
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