Thousands of delegates have gathered at the Cape Town International Convention Centre for Africa’s largest mining event, the Investing in African Mining Indaba. Key industry and related stakeholders are participating in discussions about creating a more sustainable mining industry and finding solutions to current industry challenges.
Monday 6 February
Monday started with three robust sessions, first on the main stage was the Minister of Mineral Resources, Mosebenzi Zwane, who welcomed delegates to the event and spoke about the difficult terrain the mining industry has had to negotiate over the last year. He said the mining sector must remain committed to the principle of shared prosperity and responsible investment and that government was committed to doing its part by ensuring an enabling environment for investment in South Africa.
Next on the main stage was global economist and author, Dambisa Moyo. She provided a snapshot of the world economy and the implications for African mining and mining in general. In addition, she spoke about the geo-political environment, highlighted some of the structural problems the global economy is dealing with and discussed what US policy might imply for Africa and, more specifically, the mining sector.
Anglo American Chief Executive Mark Cutifani also took to the main stage to deliver an address on building resilience and redefining mining today, for tomorrow. “While market watchers were ready to sound a death knell on mining’s prospects, we are still here: stronger than we were before, despite the continuing ebb and flow of sentiment and prices.
“The stage is set: we need to do things differently to find new, safe, responsible and cost-effective ways to mine the ore bodies to meet the needs of a rapidly urbanising global population. But to realise this opportunity, the current global climate requires that we ask ourselves some tough, but necessary, questions about our shared future.”
Mark shared his thoughts on how to redefine the future of mining, in order to build more resilient and successful companies and, collectively, a more resilient mining industry that society better understands and values.
Notably, he said it is clear that innovation holds the key to mining’s future. “This has led us to develop what we think is a unique approach in the mining world: we call it FutureSmart™ mining.
FutureSmart™ is not just about how we’re innovating using technology in mining, but also about how we’re approaching the full set of challenges that face any mining company - from safety, environment, social expectations in our host communities and in terms of our relationships with all forms of government.
Mark also pointed to sustainability as a ‘North Star’ for mining’s future. “Over the next year, we will set out a number of ambitious targets to renew our commitment to sustainability in critical areas, such as safety, education, biodiversity, energy efficiency and job creation.
“When we are better stewards of our natural environment, mine safely and responsibly, operate within thriving communities and have open and co-operative relationships with our stakeholders, the end result is a company that has a competitive edge - a company that will thrive.
“Notably, all community conversations need to start with ‘how might we help you achieve what you want to achieve in the next 20 years?’
“Through our “stretch goals” - many of which are anchored in the global Sustainable Development Goals - we will reinforce how sustainability is at the heart of our decision-making as a business.”
Tuesday, 7 February
Sustainable development, investment and mining legislation were some of the topics to come under the spotlight on Tuesday.
Once again, Anglo American opinion leaders were involved in several high-level discussions with industry peers.
Our Chief Executive, Mark Cutifani, took to the main stage to discuss deleveraging investment risk through sustainable practice – as it relates to water and tailings – with the CEO of Goldfields Limited, Nick Holland; President and Chief Executive Officer of the Mining Association of Canada, Pierre Gratton; and Senior Manager Freshwater Programmes for SA WWF, Christine Colvin.
Mark said water is a major resource for Anglo American’s processes and most of the areas the company operates in are water stressed environments. “It has become a significant imperative for us to reduce our consumption as much as possible.
“In a number of our projects, water has become the limiting factor in developing resource potential and so our strategy today is: how do we go from 64% water recycling to 95%, basically to become a water-less mine? We see it as equal to – if not even more important than – the conversation around energy that has dominated the environmental approach,” he said.
Mark stressed that mining can be part of the solution – in cooperation with government and communities – when planning for the use of water. “As an industry, the awareness is emerging very quickly that it is necessary to work together and coordinate what we do on a regional basis to make sure we have regional water basin solutions.”
Investors’ perceptions relating to the challenges around managing tailings were also discussed.
Mark noted that water and tailings are intrinsically connected. “If you can improve or reduce the amount of water you are putting into the process, then ultimately what you are putting out the back of the process could be a lot drier, which means you have used the water that is available more effectively.”
“We are trying to get to a mine where we have a dry tailings, which means, we don’t have water in the tailings. From an engineering perspective, I think in the next five to 10 years, we will see new solutions for tailings that will help reduce water consumption as well as technology that will help improve the integrity of tailings.”
After Mark’s panel discussion, Anglo American Platinum CEO, Chris Griffith, joined CEOs Steve Phiri of Royal Bafokeng Platinum, Neal Froneman of Sibanye Gold and Gerhard Potgieter, Acting CEO of Impala Platinum, to address negative sentiment around investing in platinum and examine the facts, investment case and opportunities for investors.
In another panel session De Beers Head of Corporate Affairs, Innocent Mabusela, took a close look at diamonds and gemstone projects as well as new developments for 2017. The other panellists included Des Kilalea, Managing Director of Global Mining Research, RBC Capital Markets, and Ian Harebottle, Chief Executive Officer of Gemfields.
The panel discussed how current regulations in South Africa as well as other African countries are affecting business, what the countries need to do to attract diamond companies and, as supply runs low, where the world needs to look for more diamonds and the potential impact of this on the environment. They also discussed the rise of synthetic diamonds and the impact of these on their diamond operations.
To read more about the important discussions at Mining Indaba, make sure you follow the conversation on twitter #MiningIndaba