DEVELOPED countries trying to impose strict green regulatory requirements on mining companies in undeveloped economies like South Africa were hypocritical and unfair.
“You have so much coal here. Just mine the stuff and use it,” commented Caroline Donnally, managing partner for Canadian resources investment institution Sprott Resource Streaming and Royalty, although she stressed she was speaking in her personal capacity.
“Quote me, not my employer because they will be very unimpressed. The developed world can deal with green. They have lots more money, lots more people and lots more ways of dealing with it. There are base issues that need to be solved here. The coal is there. Mine it and use it.”
Donnally was speaking as part of a panel on investors’ views on the South African mining sector at the Joburg Indaba investment conference being held in Sandton.
Also on the panel was Piet Viljoen, chairman of South African financial institution RECM (Regarding Capital Management), who said mining companies coming under such pressure should look for customers in more accommodating countries.
“For the West to come here – after having the use of cheap oil and cheap coal for more than a century to develop their economies – and then come and impose their new-found green religion on us who are very far behind in development terms – I think that smacks of arrogance,” Viljoen said.
“It’s like – I’m all right Jack now how about you?
“I don’t agree with that at all. I think if we want to be competitive we have to mine at a competitive cost. If we are imposing this outside cost on our mining business to become green and decarbonised at a much more rapid pace than a natural pace would dictate – I think we are imposing extra costs and making our mines less competitive,” he said.
“If you want to sell your product to a European or an American who wants to impose these costs on you then go look for a different market. Maybe there’s a buyer in China or Russia or Iraq or Malaysia,” Viljoen said.
