[miningmx.com] – A RECENT survey of 500 mining companies by a UK organisation called Women in Mining found that only 7.9% of total board members were women – a statistic that reinforces the common perception that extractive industries are stuck in the dark ages.
Of the top 100 companies surveyed, with a value of $1.28 trillion out of total $1.46 trillion worth of firms covered in the study, women comprised 11.1% of total board members which represents a measly 3.1% increase in three years.
This is despite a claim in the study that failing to have sufficient women on your board represents bad business. Women in Mining said performance indicators, such as return on capital employed, is actually better when there is female board representation.
South African mining, however, compares favourably against its international peer group.
According to the websites of Johannesburg Stock Exchanges (JSE’s) top 11 mining companies, there are some 30 women serving as directors, equal to 23% of all board positions (130).
In some cases, women control executive roles as well such as Cheryl Carolus who chairs Gold Fields and Christine Ramon who is CFO for AngloGold Ashanti.
These 30 women include Glencore’s recently appointed female director, Patrice Merrin, whose arrival at the Swiss minerals and trading group seven months ago ended the last of the FTSE 100 Index’s all-male boards.
It’s not just Glencore, however, that could do more to appoint women.
Surprisingly, Exxaro Resources has only one female director whilst another empowerment group, African Rainbow Minerals, has only two female directors out of 14 board seats – the largest directorate of the South African mining companies studied by Miningmx.
Mike Teke, president of the Chamber of Mines, comments that it’s no surprise boards on which women serve perform better in business but links this to the importance of establishing diversity. “We shouldn’t stop this conversation, though; we need to get better and transform more,’ he says.
Impala Platinum leads the way, incidentally. Of its 12-strong board, nearly half – five in total – are women. Roughly a quarter of the boards of Anglo American and its listed subsidiary companies consist of women, although mostly in non-executive roles.
“Bawdy banter’ and the “Boys Club’ culture were seen by the Women in Mining survey to be one of the major inhibitors to appointing women to mining company boards, but there are other less sinister factors at work as well.
“The most common degrees for female directors on mining boards is finance and economics with the most of the men holding mining and engineering degress,’ said Carole Ferguson, an analyst for Numis Securities in the UK.
“Some would argue that is one of the main reasons there are not enough women on the board, particularly in executive roles. Arguably women with engineering degrees who are talented have choices and mining may not be their top pick,’ Ferguson said.
Women on mining company directorates
Glencore – 1 out of 8
BHP Billiton – 2 out of 13
Anglo American – 3 out of 12
Sasol – 3 out of 14
Kumba Iron Ore – 4 out of 11
Anglo Platinum – 3 out of 13
AngloGold Ashanti – 3 out of 11
Impala Platinum – 5 out of 12
Exxaro – 1 out of 12
Gold Fields – 3 out of 10
African Rainbow Minerals – 2 out of 14
30 out of 130 = 23%
