Indaba preview
In the run-up to the 2019 Mining Indaba
in Cape Town, Warren Beech reviews the
key trends of 2018.
T
he mining industry cannot be looked at in isolation; it is
the engine room of most economies. In countries with
substantial mineral resources, mining plays a critical role
in transformation and development. Where the industry
is not performing, this manifests itself in various forms, including the
failure to deliver on socio-economic expectations, the rise of resource
nationalism, and in some cases, the call for nationalisation (complete
control and ownership by the government), community unrest, and,
often, undemocratic and unconstitutional attempts to drive through
unsustainable changes to mining laws, creating policy and regulatory
uncertainty, and the consequences that flow from this, namely a
downturn in investment, and socio-economic upheaval.
The mining industry operates within the wider context of
infrastructure development (ports, rail, water, and roads), agriculture,
telecommunications, construction, and engineering. When mining
performs, these related sectors generally also do well, together
with the broader benefits that flow from this, such as increased
investment, socio-economic development, and consumer spend on
aspects like housing.
Even at the most basic level, mining has an impact, whether
good or bad. Generally, every mine worker supports or provides
a form of income for up to 10 other people, including direct
dependants, extended families, artisanal and micro businesses (such
as transportation and food), and the medium to large consumer-
focused entities that have taken their business to mining towns and
communities.
The key trends for the mining industry in 2018 impacted on each
of these dimensions.
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FEBRUARY 2019 MINING MIRROR [23]