JOHANNESBURG (miningweekly.com) – Chamber of Mines (CoM) CEO Roger Baxter on Wednesday said the chamber’s members had experienced progressively weakening commodity prices, rapidly rising costs, falling productivity and some regulatory issues that challenged their ability to sustain operations and to maintain employment levels.

“With an average of half the companies in lossmaking territory, the focus for many has been on restructuring for survival. And while we are gratified at the industry’s improving safety trends, with 2015 being the best year on record, the early months of 2016 reminded us that we have no cause for complacency in our quest for zero harm,” he added during the CoM’s annual general meeting (AGM).

He further highlighted a number of key events and issues that arose during the year including labour stability, the rising cost of electricity, the proposed carbon tax, industry restructuring, the Mining Phakisa, the release of the Farlam report and social instability in mine-hosting communities.

Baxter also stressed that the issue of regulatory certainty was a major concern for the CoM’s members.

He said the CoM was disappointed that the extensive consultation by government with industry and other stakeholders in 2002 and 2010 respectively was not the approach adopted in the development of the revised Mining Charter, gazetted by the Department of Mineral Resources (DMR) in April.

“We have been encouraged nonetheless by Mineral Resources Minister Mosebenzi Zwane’s commitment to consultation with stakeholders going forward.

“It was with regulatory certainty in mind that we have proceeded with a court case to seek clarity on the assessment of the ownership element of the Mining Charter, particularly in respect of the continuous consequences of previous black economic empowerment deals,” Baxter stated.

He commented that the chamber was continuing with the process, while at the same time remaining open to a negotiated settlement. Baxter said the CoM believed that resolving this issue would accelerate investment in mining and further increase the quantum of transformation in the mining sector.

Zwane, who was in attendance at the AGM, informed the media in a press briefing following the event that negotiations between the CoM and the DMR regarding the draft Mining Charter were ongoing and were developing positively.

“The DMR has had three or four formal discussions with the chamber and both parties are happy about what has emerged from these meetings to date. We are largely on the same page; we just have to sort out the nitty-gritty issues,” he stated.

CHAMBER LEADERSHIP
Members re-elected Mike Teke as CoM president, who would serve his third term in the position, while Andile Sangqu was re-elected as VP and Neal Froneman newly elected as the chamber’s dual VP. Froneman would succeed outgoing VP Graham Briggs.

“The CoM office bearers play a crucial role in representing the industry and give freely and unselfishly of their time. We are fortunate to have continuity as a consequence of the re-election of Teke and Sangqu.

“We also welcome the appointment of Froneman, who brings with him a wealth of experience and expertise. Together, we will continue to work towards implementing the chamber’s strategic plan, engaging constructively with all stakeholders and getting the industry back on the front foot,” said Baxter.

Teke extended the industry’s gratitude to Briggs for the valuable contribution he had made to the mining industry. “Briggs has provided solid leadership during difficult times for the industry, which persist to this very day. His commitment to the welfare of the industry has been exemplary,” he added.