Day two of the Joburg Indaba kicked off with some investor perspective delivered by Jim Rutherford, non-executive director of Anglo American plc and former mining analyst.
Jim’s presentation set the scene for the current challenges the mining industry is facing from an economic perspective. He shared key data on the decline in South African mining equity and highlighted similar themes as on day one, that were identified amongst the requirements needed to move the mining industry forward.
Many of Jim’s observations were highlighted in later sessions. The biggest risk Jim spoke about was that of policy uncertainty, calling for clarity, consistency and certainty in the industry in order to attract and keep investment. Two of the key themes he focused on were modernisation and the need for a sense of realism in the sector and action.
On the recurring theme of modernisation, Jim said, “To my mind, modernisation is a three dimensional issue. On the one hand you have operating costs and technology. You’ve then have labour, community and government relations. Then there is also the strengthening of the supply chain, where I think it makes the most sense downstream.”
The most talked about session was the appearance of Association of Mineworkers and Construction Union (AMCU) leader Joseph Mathunjwa who said, “I see modernisation as the majority of mine workers being skilled. It is easy to retrench workers when you have made no investment in them; workers are a cost, not an investment. Companies need to invest in their workers.”
In the afternoon, before delegates broke away for lunch, the Indaba took on the perspective of youth as it hosted a panel entitled “The Future Generation: The Young Professionals: Fresh Eyes, Bright Young Minds.” Five bursary students with dreams of one day running the industry, shared their view of a sustainable industry.
When asked what he would do as a leader, final year mining engineering student at the University of Pretoria, Tonny Mavimbela said, “I’ll teach my people that mining is a business first.” On the other hand, fellow future mining engineer and student, Vukosi Danisa Baloyi said she would rather “Invest in people and provide skills to carry on after mining.”
Needless to say, with dreams of building a stronger industry, mechanisation was a strong theme among these students.
The highlight of the afternoon was the energy session, chaired by Erik Wandrag. The panellists had different opinions on what needs to be addressed, with the most prominent themes being the need for innovative business models, investment, renewed policy, skills development and collaboration among all stakeholders, in South Africa and across the continent.
Despite the challenges, the panel spoke of the endless opportunities available for private companies to invest in power generation, particularly in renewable energy and technology.
As the conference draw to a close, delegates were left with a lot to think about, and more importantly, a lot to put into action.
As the mining engineering student at the University of Pretoria, Jónatan Jacobs, pointed out, “Mining is and will always be essential.”