CAPE TOWN (miningweekly.com) – Anglo American CE Mark Cutifani has advocated a new future for mining, through innovation, a sharper focus on resilience and, in South Africa in particular, a recognition that “capital has no colour”.

He told delegates at the annual Investing in African Mining Indaba conference, in Cape Town, that it was vital to dispel false and misleading perceptions. 

Cutifani said many people did not understand that the owners of most South African publicly listed mining companies were not the “Randlords” or magnates of previous generations, but rather ordinary pension and investment fund owners – average South African citizens of all races – black, white, coloured and Indian.

“White and even black monopoly capital is a conversation that should be condemned to a difficult and dark South African past,” he told several thousand delegates at the opening of the Mining Indaba.

“We need to put aside the personal conversations and attacks and focus on constructive dialogue. In today’s world, capital has no colour. It is a powerful tool that can help create a better country for all.”

Cutifani said 64% of the mines operated by Anglo American, as well as those they empowered, were effectively owned by South Africans – through direct and indirect shareholdings.

“If I assume 27% direct black ownership in our mines and add to this the participation by black South Africans in pension funds and directly on the JSE, black South Africans own more than 45% of our South African operating assets.”

“To not acknowledge the progress we have made seems intellectually dishonest.
We are in a new world where we must work together and create a new future.”

Cutifani said a business environment that promoted ease of doing business over lengthy and complicated processes, which sometimes unnecessarily landed up in court, could unlock more opportunities for mining companies.

He outlined various innovations that had contributed towards a 40% increase in productivity at Anglo American’s operations since 2013.

The company has adopted a unique approach in the mining world called FutureSmart mining, which has brought together experts from academia, the mining industry and other industries to develop step-change thinking.

In mining innovation, he said Anglo American was building “the modern mine” by transforming hard-rock mining. Through this, employees are kept out of harm’s way. Continuous rock-cutting machines safely extract the targeted ore deep underground, without the need for explosive blasting.

At its Twickenham platinum mine in South Africa, it has created a system for developing low-profile tunnels in hard rock safely, quickly and cost efficiently. This is important in preventing the risk of collapse and guaranteeing roof stability in platinum mines.

Anglo American is also finding ways to mine more metals and minerals and reduce waste rock. This helps to minimise the environmental footprint, reduce costs and maximise the ratio of metal to ore. 

“Picture a mine where we are no longer processing more than 95% waste rock, and instead getting more directly to the precious metals and minerals that the world needs,” said Cutifani. He said the approach was already helping to reap rewards at its Kumba Iron Ore subsidiary’s Sishen mine.

Sharply aware that 80% of its operations across the world are in water-stressed areas, Anglo American is also working towards building the “water-less mine” 

“Through innovative and existing technologies, we are investing in a number of ways to conserve and, where possible, eliminate the use of freshly drawn water from our mining processes,” said Cutifani.

He said that, in 2015, recycled water was used for 64% of Anglo American’s total operational water requirements.

Anglo American is also working on building what it calls the “intelligent mine” which uses big data, robotics and “machine learning” to build a more connected mine.

Cutifani said despite reducing the number of assets from 68 to 42 the company produced more product in 2016 than it did in 2012. This was partly through shrinking its cost base and improving quality.

“Our productivity has improved by around 40% since 2012, and our unit costs are more than a third lower, while our volumes are up over the same period.”

Cutifani said sustainability needed to be a “North Star” for mining’s future. In this vein, Anglo American would set a number of ambitious targets this year to renew its commitment to sustainability in critical areas such as safety, education, biodiversity, energy efficiency and job creation.

He said that, despite a tough few years, mining was the “heartbeat” of the global economy.

“While market watchers were ready to sound a death knell on mining’s prospects, we are still here, stronger than we were before, despite the continuing ebb and flow of sentiment and prices.”