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Job losses and commodity prices falling through the floor are the reality miners in South Africa are finding themselves in. While a solution is nowhere in sight, it must lie somewhere between government and those running the companies, the mining bosses. In the piece below, columnist Cess Bruggemans looks at the relationship between the two parties, and how it’s all a bit jumbled at the moment, not the words those invested or involved in the sector want to here. – Stuart Lowman
By Cees Bruggemans*
Muffled sounds have started to be heard, along with muddled intentions.
There was the Mexican standoff a couple of months ago, between the Chamber of Mines and government, about future BEE obligations, which traditionally were apparently discussed on a gentleman basis, until the gentlemen finally fell out, and the Chamber decided to turn to the courts to decide the issue.
In recent weeks, before any court could even contemplate this burning issue and give it its fullest attention (with no comebacks….), this route became questioned by Anglo, perhaps not least because some issues around labour and the greater black restitution and compensation demands were becoming too enflamed, at some point this week its main spokesperson taking the view that this political issue should be directly raised with government and resolved as such.
In the same breath, however, the Anglo spokesperson forcefully mentioned that government should do more so that the mining industry might survive and prosper while also saying (certainly not for the first time, hearing the phrase in banking circles at least three years ago) that the “trust deficit” existing between business and government should be addressed.
Another leading mining boss also was willing publicly to call government to account, asking that it turn supportive if it wants the mining industry to continue and be viable, rather than persist with politics as usual during which nothing is achieved (except, apparently, the systematic destruction of the mining industry).
This week, at an emergency forum arranged in apparent haste between government and elements of business, called together to discuss how to move the country forward, given the looming large scale labour layoffs in mining and heavy industry, the Minister of Trade and Industry got the government’s 9-point plan (and most of his ideological hobby horses) reiterated and reinforced, while one business representative, an ex-banker, on being quizzed about the alleged “trust deficit” that might exist, helpfully suggested that such a suggestion by business had at most been most unhelpful. There was allegedly no evidence of such deficit. Instead, reportedly only good faith all around.
You can see what is happening here.
They are all in a pickle. The mining bosses realise that in a confrontation with the biggest bruiser, you may legally win a major battle but are bound to lose the larger war. So rather engage, as they call it in the townships, and hope something can be salvaged from this growing mess where somebody may finally see sense, once they realise the true extent of how far things have gone off the rails, itself an interesting read of just how distant the various parties are from understanding each other, the circumstances and the atmospherics…
Predictably, however, the key government ideologues will not leave a golden opportunity go by to shape the playing field and yield minimal ground while inviting business to twist and turn.
An experienced banker then denies the obvious coming from within own ranks in order to clear the air and claim we are all in this together, like good old boys, with no distrust to be seen, and solutions obviously within reach, with good faith on all sides.
One wonders about all this, and how far it will go, before reality intrudes once more with the next instalment of failures, closures and shrinkage?
* Cees Bruggemans is consulting economist at Bruggemans & Associates
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