[miningmx] — THE Lonmin massacre was the responsibility of “bad elements’ in
South Africa’s society, which had to be isolated from undermining the gains the
country has made, Minister of Mineral Resources Susan Shabangu told an Australian
audience on Wednesday.
Speaking at the annual Africa Down Under mining investment conference in Perth,
Shabangu asked investors to keep faith in South Africa, despite the events at
Lonmin’s Marikana mine earlier this month where 44 people got killed in violence
related to a labour dispute.
She said the country has a tradition “of banding together’ during tough times.
“The President [Jacob Zuma] … established a judicial commission of enquiry to
investigate how a labour dispute between mineworkers and employers rapidly
degenerates into violence and such a tragic national issue,’ she said, according to a
copy of her presentation. “… the people of South Africa are determined to isolate
bad elements in our society that are seemingly committed to undermine the
democratic gains of the country to date.’
Shabangu said the country was ready and open for business. “We are working very
hard to ensure that mining infrastructure requirements are adequately featured in
the presidential-coordinated infrastructure build program to address issues of
maintenance and efficiency.’
She acknowledged the platinum sector was suffering severely, saying a task-team
established to seek “interventions’ was making swift progress.
“While we have the world’s most abundant resources and reserves of platinum group
metals in South Africa, the sector experienced a supply demand imbalance last
year,’ she said. “This resulted mainly from a significant slow-down in demand from
the traditional consumers of platinum, reaching its lowest ebb during the course of
this year. For the mining industry and platinum mining jurisdictions, the
ramifications of depressed demand for platinum are severe, especially at the time
when the cost inflation for production is reportedly high.’
Shabangu said the issue of nationalisation would be put to bed by the ruling ANC
before the end of the year, but that the issue of transformation and mines needing a
social licence to operate won’t go away.
“Let me re-emphasise that the mining industry cannot grow sustainably unless it can
claim its legitimacy to its host jurisdictions, employees and host communities,’
Shabangu said. “The investment in the mining industry cannot continue to demand
unrealistic and perpetual short-termism in expected investment returns, whereas
this is a long-term industry by its very character.
“The continued negligible social investment in communities proximal to mines and
fetid living conditions that most mineworkers are subjected to, whilst rushing for
immediate returns are unfortunately some of the risks to the sustainability of the
mining industry all over the work and require immediate attention.’
