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South Africa has moved a long
way towards creating the much-
needed stability with the extensive
consultation process and subsequent
publication of Mining Charter 2018,
and the withdrawal of the contentious
amendments to South Africa’s primary
mining law, namely the Mineral and
Petroleum Resources Development Act,
2002 (Act No. 28 of 2002).
Other jurisdictions have also taken
the opportunity, such as the Democratic
Republic of the Congo (DRC), which
amended its mining code to include
stability provisions (but negotiations seem
to be stagnating, and this may impact on
the positive view of the DRC). Tanzania,
on the other hand, is in a quagmire of
litigation, after its legislative amendments.
The formation of the African
Continental Free Trade Area (ACFTA)
may provide further opportunities for
growth and development that have,
until now, been lacking. The agreement
concluded to establish the ACFTA has
the potential to significantly change the
way that trade is conducted in Africa.
Once ratified by the 22 signatories, the
agreement will establish the ACFTA,
which aims to create a continent-wide
common market for goods and services.
The ultimate aim is to create an Africa-
wide customs union.
Where African countries have moved
towards creating a more stable policy and
regulatory framework in 2018, this has
opened up opportunities.
Safety and security
Safety and security of personnel has
become a key consideration, with many
multinational companies taking extra
precautions when deploying personnel.
In countries where threats to safety and
security have increased in 2018, this has
impacted on decision-making, with more
and more decisions being taken to focus
on safer jurisdictions.
Corruption
Actual or perceived corruption has
played a significant role in investor
decisions in 2018, and a growing
number of companies are focusing on
compliance as well as anti-bribery and
anti-corruption measures.
Whether this is driven by listings
requirements, legislation, reputational
risk, or moral grounds, compliance and
monitoring programmes have increased
www.miningmirror.co.za
in complexity, with a strong emphasis
on acknowledging the current borderless
world of crypto currency, the slippery
slope of the first ‘facilitation payment’
made to expedite and facilitate the
licencing process, and socio-economic
realities in several mineral-rich countries.
4IR
The Fourth Industrial Revolution (4IR)
is a reality, and the Internet of Things,
artificial intelligence, mechanisation,
automation, and block chain have become
everyday jargon in the mining space.
The move towards mechanisation and,
ultimately, automation, is not necessarily
an easy one — there are several
concerns, particularly the potential
loss of jobs. While there has been an
acknowledgement that the move to
automation provides the potential for
upskilling, fears remain of large-scale
job losses.
The energy mix
While some countries, such as Canada,
are moving towards total electrification of
mines, and are moving away from costly
and often ineffective diesel power, Africa
seems set, in the short to medium term at
least, to generate the bulk
of its energy from fossil
fuels.
Renewable sources
of energy will play a
significant role in a
sustainable mining
industry, and while
progress has been made in
2018 towards diversifying
the energy mix, 2019
is likely to see a strong
focus on renewable and
sustainable energy.
The digital age has provided several
opportunities for irregular practices, and
it has been interesting to see the progress
being made on the Tracr Diamond
Industry Blockchain Traceability Platform.
While diamonds have been the subject
of several traceability and authenticity
programmes, the principles of traceability
are likely to receive further focus in 2019
for minerals other than diamonds.
There has been a strong move towards
conscious decision-making by investors,
in 2018, and programmes that provide
assurance of tracking from production
to end use could impact significantly on
investment decision-making in 2019.
Where to in 2019?
The themes and trends, some of which
have been addressed here, are likely to
continue in 2019, with a strong focus on
developing frameworks for accountability
in relation to environmental and other
incidents; implementing frameworks
to facilitate compliance and root out
corruption and irregular activities; and
developing stakeholder models which
ensure that communities benefit from
mining activities on their doorstep and
the growing importance of the social
licence to mine.
Transparency
Several stakeholders
in the mining industry
have made strong
calls for greater
transparency, so that
there can be increased
accountability and
improved accessibility to
basic information such
as where minerals are
located, who holds the
licences in respect of
these minerals, and when
licences expire.
FEBRUARY 2019 MINING MIRROR [27]