The mining industry in South Africa has an important role to play in driving socio-economic transformation and redressing historical and social inequality. Against a background of continued commodity-price volatility, with increased stakeholder expectations across a range of fronts, the mining sector recognises the need to work in partnership with stakeholders to ensure that it continues to make a positive, sustainable contribution to society.
Anglo American is a significant contributor to the country’s social and economic transformation. Our contribution addresses key national priorities such as small business development, job creation and supporting domestic investment in the economy by developing and supporting entrepreneurs.
The challenging business climate and growing expectations of communities around our operations, have emphasised the need for innovation in order to deliver greater returns to society in general from lower expenditure. Engaging with our stakeholders in a meaningful way becomes ever more critical under these conditions.
COLLABORATING TO SUPPORT GROWTH AND STABILITY IN THE MINING SECTOR
The sector’s struggles have motivated greater activity to support its revival. A significant current development is the establishment of a new Mining Precinct in Johannesburg. This is a public–private partnership which aims to arrest the current general decline in South Africa’s mining industry through developing new, people-centred technology and techniques that support improved performance and modern mining methods.
A key objective is to develop the local mining equipment manufacturing sector. The Precinct is working with a variety of parties and partners to provide a collaborative and interactive environment in which openness and innovation are encouraged, with the aim of enhancing mining’s economic impact as the country industrialises further and seeks to transform its economy.
Anglo American actively supports mining’s role in promoting local industrialisation, including through our role in downstream-beneficiation sectors, such as the steel industry and fuel cell manufacturing.
LEGISLATIVE AND REGULATORY UNCERTAINTY
Legislative and regulatory uncertainty is an ongoing concern and constrains efforts to revive the sector.
The 2004 and 2010 Mining Charters were products of a multi-stakeholder negotiation process. As a result this accelerated transformation objectives, which industry then implemented. The charter that was published on the 15 June 2017 has deviated from this spirit and approach. We believe that a lasting solution can only emanate from a similar collaborative process as was followed with the first two charters.
LOOKING AHEAD
At the heart of transformation lies a common vision for a better, more equitable and participative society. We believe Anglo American and the broader mining sector have an important part to play in helping to move South Africa to where it needs to be.
We will continue to work proactively in partnership with government, labour and civil society to ensure that mineral wealth is generated more responsibly and its benefits shared more equitably in support of the country’s social and economic transformation imperatives. Underpinning our collective success is the need to strengthen and maintain positive and trusted relationships.
I am confident there is much more we can do together.
We have just released our 2016 Transformation Report. We hope you’ll take a look at it.
Andile Sangqu
Executive head of Anglo American South Africa