Cutifani calls on SA to dump Charter, restart talks in 2018

Mark Cutifani, CEO, Anglo American

THE Mining Charter redraft published by South Africa’s Department of Mineral Resources (DMR) on June 15 had to be disregarded and replaced starting with a fresh negotiations, probably only in 2018, said Mark Cutifani, CEO of Anglo American.

“Let me be as clear as a bell … the current document is simply not understandable or workable. It has to be started again and most South Africans know it,” he said whilst responding to questions at a presentation in London today.

Responding to a Miningmx question, Cutifani said it shouldn’t even be called Mining Charter 3. “It is a confused and confusing document. The response of the ANC [at the policy conference] was very constructive in suggesting we go back to the table and start again.”

He added that is was unlikely the government would be in a position to begin that process this year whilst the ruling party decided on a new president. The ANC’s elective conference is in December. “We always knew it would be a noisy year. I think we have to be realistic and it’s likely they [the South African government] will only want to have something to say next year,” said Cutifani.

Cutifani also said that whilst it wasn’t a preferred route, taking legal action against the DMR would continue if a negotiation wasn’t possible.

The Chamber of Mines has applied for two interdicts: one against the Charter redraft and another on proposed legislative changes that would block the grant of new prospecting and mining licences not personally supported by the mines minister, Mosebenzi Zwane. Commenting on the latter, Cutifani said a proposal to sell the firm’s domestic coal mines in South Africa to black empowerment consortium Seriti Resources was unaffected by the licence moratorium, if it was applied.

“It will require the support of new leadership [in the ANC] so it will take a final decision next year, and depending on policy outcomes of new leadership,” he said. “It’s not helpful, the moratorium, and everyone understands it is not a helpful development. South Africa needs all the good headlines it can get so people come in to the country and create jobs,” he said.