[miningmx.com] — IN recent interview, Sandile Nogxina, the director-general of South Africa’s minerals and energy department (DME), said mining companies generally under-estimated the importance of the social and labour plans as required by the country’s mining charter.
One case was AngloGold Ashanti which several years ago had its application for mining license conversions returned by government because it had submitted a “one fits all” social and labour plan for its mines. This was despite meeting the letter of the law on all other bases of evaluation.
But in further evidence that Anglo Platinum is making a concerted effort to win mining license conversions, it has announced building a R283m training centre that will see more than 2,000 miners pass through its doors annually. This speaks to everything Nogxina and his team hold dear and is a far better means of liaision with government that threatening legal suites of expropriation, dropped by Anglo American and its subsidiaries last month.
Anglo Platinum looks as if it’s completely changed its tune with government and has adopted a collaborative approach. I bet its mining license conversions are getting warmer by the minute. In July, it meets the DME in a three-day workshop that should provide better scope for its application.
Says Nogxina: “Anglo Platinum could have gone to court if it had wanted to. That is the kind of democratic freedom I fought for. But at our last meeting, it was decided the company would not go to court.
“On a recent overseas trip, I met people who were very edgy about the relationship with Anglo Platinum. But I told them it would get its license if it obeyed the letter of the law.”
But that’s the lawyer speaking – Nogxina is an advocate – and not the politician. And it’s the politician to whom Anglo Platinum is hoping to appeal when its submits its self-styled ‘hybrid’ license application after July.
In terms of the hybrid, Anglo Platinum is hoping to combine an offering to black investors of both production units and ounces in the ground, or future cash flow which is more risky for investors. This hybrid methodology of empowerment is not the letter of the law as Nogxina would deem it, far from it.
Nogxina acknowledges Anglo Platinum is angling for something different. “We are prepared to engage companies like this because we know they’re all unique. If what they’re saying makes sense in the spirit of the law, then we’ll do our best to accommodate them.”
“But if they’re asking the DME to accept ounces in the ground they must also show us something exceptional,” he says.
Impala Platinum was another company to stub its toe against the DME submitting a license application last year that claimed empowerment points already lodged by rival, Lonmin. It’s application was turned down by government last year.
It, too, is enjoying some progress. More recently, Impala brought 20 bursary holders to the DME offices to meet with officials. These were children drawn from heavily disadvantaged communities in Pondoland – from where many miners originally migrate – and Taung in the North West province.
“The best way to use the national patrimony,” says Nogxina, “is to help break the cycle of poverty in South Africa. Those children (Impala’s bursary holders) will be able to get an education and then provide for their families.”
It also happens to be a better way for South Africa’s established miners of securing future metals in the ground.
