http://www.bdlive.co.za/ [South Africa]
CHAMBER of Mines boss Bheki Sibiya says nobody should be under any illusions about the impact that proposed mining law amendments will have on the industry and South Africa.
Public hearings on the amendments ended this week, leaving an overwhelming sense of approaching disaster. Mr Sibiya, who in three years as CEO of the chamber has impressed with his measured, thoughtful but frank assessments of the challenges facing the industry, says this could be the biggest so far.
The crux of the amendments being pushed through by the government in the teeth of detailed submissions by the mining industry is that they will empower the minister to intervene in all sorts of issues from pricing to ownership rights.
The immediate consequence is that “quite a number” of marginal mines will close, says Mr Sibiya. Projects that are at the prospecting stage will be suspended, thousands of jobs will be lost and investors will not invest.
“Mining is long term. Once one is not so sure about one’s rights in the long term, one would rather say let’s cut our losses now. This is what investors will do.”
In the name of beneficiation, the amendments will allow the minister to dictate which minerals are sold, at what price and to whom.
“If pricing is not going to be decided by the markets but by some individual, then when you do your projections you’re shooting in the dark.”
Mr Sibiya is reluctant to accept the inevitable before it happens, but agrees that the manner in which parliament’s portfolio committee on labour ignored the voice of business when it approved labour law changes this week does not bode well.
“We’re worried about what we’re hearing. But we’re hoping that even at this 11th hour the representations which have been unanimously expressed by the mining houses are going to be heeded.”
Anglo American executive director Khanyisile Kweyama told the public hearings that the mining industry was in “a state of emergency”. Although not necessarily disagreeing with her, Mr Sibiya would rather say the industry is “under a huge amount of pressure”.
Marikana was a “big wake-up call” for both the government and the mining sector, and he hoped it would lead to greater cooperation between the two. But this has not happened.
“The cooperation we should have engaged in has not met my expectations. It leaves a lot to be desired. I wish I knew why but I don’t. Sometimes I think our partnership with the government is not where it should be.”
For the rest of this article, click here: http://www.bdlive.co.za/business/mining/2013/09/22/biting-the-hand-that-feeds-it