[miningmx.com] – Mike Teke, president of South Africa’s Chamber of Mines (CoM) hit back at “incorrect perceptions” there had been a breakdown in relations with the government saying it was impossible they could agree on all matters.
However, Teke added that the mining sector was seeking a fair reflection regarding the progress it had made with transformation, specifically in respect of ownership of mining companies by Historically Disadvantaged South Africans (HDSAs).
Teke was addressing the CoM’s annual general meeting today in which he also called on the South African government to speedily resolve delays preventing the promulgation of the MPRDA Amendment bill which contains important changes to regulations.
“The perception that there is a breakdown of trust between the chamber and the DMR [Department of Mineral Resources] is incorrect,” said Teke. “We are not going to agree on everything.”
He was referring to a public exchange last week between the chamber and the DMR which had earlier published its audit findings regarding compliance with targets that had been set down in the mining charter.
The DMR said that 90% of the companies achieved the 26% target on an employment weighted basis with an average of 32.5% HDSA ownership.
But, when the issue of “meaningful economic participation” was taken into account, only 20% of these transactions complied – a view with which the CoM disagreed.
“I would love to have a response from the [mines] minister [Ngoako Ramatlhodi] on why he has done this and I absolutely do not know why the DMR has taken such a negative stance,’ Teke said at the time
The CoM was also incensed that the DMR’s interpretation of the compliance audit was not kept confidential until after a joint declaratory court order in respect of interpreting the mining charter was heard.
“The mining industry has done more for transformation than any other component of the private sector since the advent of democracy,” said Teke at the AGM. “What we are seeking is a fair reflection of the progress made,” he said, adding that there were still gaps in delivery of transformation in the sector.
Speaking later to Miningmx, Teke said he was seeking a meeting with Ramatlhodi to get “the process back on track”. He said he didn’t know why the minister had published the audit compliance information ahead of the court hearing.
Commenting on progress of the MPRDA Amendment bill, which was returned to the South African parliament earlier this year, Teke said it was important to take bold steps and process the legislation.
The CoM negotiated the contents of the amendment bill, especially proposals that mining firms sell their minerals at market discounts to domestic buyers – such as steel producers – in an effort to boost industrialisation.
However, Ramatlhodi appeared to have put so-called ‘developmental pricing’ back on the agenda when he asked for additional discussion of the amendments, ostensibly because the bill did not pass constitutional muster.
Said Teke: “Trying to force mining companies to sell minerals in the domestic market at developmental prices will damage an already strained mining sector, and probably do little to help the downstream sectors”.
During the AGM, deputy director-general of the DMR, Joel Raphela, said the government was conscious of the need for regulatory certainty in order to attract investment. “The MPRDA remains a priority for government. The department will be available for consultation and we believe all stakeholders will be heard,” Raphela said. Ramatlhodi was attending a government Lekgotla at the time of the AGM.
Said Teke: “The key question is whether South Africa is still a preferred mining investment destination globally and in Africa or whether other jurisdictions are taking preference. Botswana, the DRC and Zambia carry attractions for many investors’.
At the AGM, Teke was re-elected CoM president while Graham Briggs, CEO of Harmony Gold, was re-elected as first vice president.
