• Conflict over water, coal

    SA's leaders have upped their support of the water-intensive coal industry, says Keith Schneider.

  • Cost of doing business

    The world can't afford the $4.7trn a year in environmental costs of business, says Mandi Smallhorne.

  • Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

All data is delayed
See More

Carroll: Every single life lost killed me

Dec 05 2012 09:45
David McKay - Miningmx

Company Data


Last traded 55
Change -1
% Change -2
Cumulative volume 1006001
Market cap 0

Last Updated: 30-05-2016 at 02:06. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 366
Change -5
% Change -1
Cumulative volume 203635
Market cap 0

Last Updated: 30-05-2016 at 02:08. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 146
Change 5
% Change 4
Cumulative volume 307405
Market cap 0

Last Updated: 30-05-2016 at 02:08. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Carroll: Apartheid behind mine violence

Tough times ahead for new Anglo CEO

No easy fix for Anglo

Mixed reponses to Anglo resignation

Carroll had to go - shareholders

Anglo needs a dealmaker CEO


Johannesburg - Speaking at the Gordon Institute of Business Science (Gibs) today, Anglo American's departing CEO, Cynthia Carroll, spoke passionately of her hopes and fears for South Africa as a mining economy.

And while it may not be a swansong - who knows how long it will take to find a replacement for Carroll at Anglo? - her comments did have something of the valedictory about them. First, though, the headline news.

The long-held view that former Amplats CEO, Ralph Havenstein, ended his career at the company following a clash with Carroll over safety was confirmed. In near narrative style, Carroll recounted an exchange between the two prior to shutting the firm's Rustenburg mine for a week in 2008.

Hearing of another fatality, Carroll said she made an instant decision to shut the mine. Havenstein, not named by Carroll, responded that fatalities were a fact of mining in South Africa's platinum sector. It was dangerous. More dangerous though (at least to Havenstein) was his flippancy. "Not under my watch," Carroll shot back.

Havenstein resigned shortly thereafter. Interestingly, the South African government vigorously and broadly adopted Carroll’s procedure of shutting shafts when an accident had occurred. Until that point, it was virtually unheard of; now, it's a law enthusiastically applied.

It's fitting that questions of mining safety should be a highlight of Carroll’s presentation at Gibs. It will be the hallmark of her tenure at Anglo. "Every single life lost killed me," she said. In 2007, Amplats reported 25 fatalities compared to 11 in its 2011 financial year.

Still, safety improvements don't seem to have been enough on their own to keep Carroll at Anglo beyond the current five-year stint. Shareholders, particularly international ones, don't align with the national interest; not really.

So it's poignant Carroll should warn the listening audience at Gibs, which included Nick Holland, CEO of Gold Fields, the view international investors take of the risks posed by regulatory uncertainty, and lawlessness.

"We need more dialogue, we need to say what we're really thinking. We need transparency," she said in reflection of the last four months in South Africa which has seen fatal protest, job losses, and the suspension of production at Amplats' mines at a cost of R3.4bn in revenue.

"South Africa will only succeed if it fosters an environment that encourages business. International investors will not be comforted ... they will make judgements on reality, on what they can see," she added.

The State Intervention in Mining (Sims) report contained good and bad ideas of which a proposed resource rent tax qualified under the latter category. It was a proposal that to Carroll seemed "unnecessary and unwise".

Also considered unwise was any plan to divide the company. In the wake of Gold Fields' unbundling of its South African assets, it is now deemed appropriate for virtually any mining company operating in the country, and with international assets, to adopt a similar strategy.

"It's not on the agenda; we have a commitment to investing here ... This is where the resources are," Carroll said, and made reference to the $2.5 trillion estimate placed on South Africa's unmined resources. The figure comes from a Citi report, if memory serves, and has been criticised as a distortion because it ignores the fact that resources need to be economic.

Carroll should know. Referring to the business review of Amplats' platinum mines, Carroll said some tough decisions would be made; economic reality could not be defied: unfit businesses collapsed and died, she said.

"We will not shirk from telling the tough choices. For the sake of all our stakeholders - we have to create a business that is competitive for the future. A business with the right size and shape to compete successfully in the global market," she said.

For more mining stories go to Miningmx.com



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The upcoming petrol price hike is:

Previous results · Suggest a vote