Zwane warns mining companies sitting on assets | Fin24
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Zwane warns mining companies sitting on assets

2016-02-08 16:15

Industries that acquire mining rights with the intention of selling them without being productive must give others a chance, says Mineral Resources Minister Zwane.


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Last Updated at 19:58
08 Feb 16:17
Regarding the "use it or lose it" policy, where mining companies could lose their rights, Mosebenzi Zwane said: We can be lenient. If someone has a right and during that period someone had to deal with Water Affairs for water rights, we do take that into consideration. We take tough times into consideration. There are industries that acquire these rights with the intention of selling them. They sit with them. They then come forward when it expires to renew the right. If they are not going to use them, let us give new entrants a chance to use the assets that we have.

08 Feb 16:08
Gideon du Plessis of Solidarity ends with this bombshell: A platinum company awarded a massive bus tender to the local community in line with the mining Phakisa. A union owned another bus company in that community that didn't win the tender. Senior leaders at the mining company are now walking around with bodyguards. That same union says government should not have self interest. As unions, we should also clean up our act! 

08 Feb 16:05
Manus Booysen, Webber Wentzel partner and head of mining practice, said that to ensure that South Africa remains a part of the global community, certain problematic aspects of the mining amendment bill will have to be re-considered. The first issue concerns South Africa’s international obligations. “The Bill will empower the government to force mining companies to sell a portion of their production for local beneficiation,” he said.

08 Feb 16:04

Zwane must reconsider key aspects of mining bill - expert

Mineral Resources Minister Mosebenzi Zwane sent a positive message to mining companies, with an emphasis on policy certainty that fits in with the African mining vision, according to a mining expert. Manus Booysen, Webber Wentzel partner and head of mining practice, told Fin24 on Monday that Zwane’s speech at the Mining Indaba in Cape Town revealed government’s desire to work with business to solve the crisis in the mining industry.

08 Feb 16:01
Mosebenzi Zwane: We will soon conclude a report that shows the low-hanging fruits. We have a mining company that is doing some work. We as government are facing a tough time and have some decisions to make. Buying and selling - we are encouraging stakeholders to open up for transformation.

08 Feb 15:59
Rob Davies:  The question of what happens in localities when mines close. If that question is posed when mines are about to close, what you can do is a lot less, compared if you plan earlier. Some of the candidates for special economic zones in the platinum belt means there will be jobs after the mines close down. There are many reasons why we are looking at some of the areas in the North West. The work has been done on a technical basis. It is viable. It is where the demand for the products can be supplied. Everything we do as DTI, we don't have state owned companies that will run something. We work with the private sector. We offer incentives to private businesses and open doors with international players. Everything we do is based on prior work to create the sustainable basis for these industries.

08 Feb 15:56
Rob Davies: It is difficult in terms of the World Trade Organisation on making conditions on private sector procurement.

08 Feb 15:53
David van Rooyen: Mining houses need to participate in the integrated development of local communities.

08 Feb 15:46

08 Feb 15:39
David van Rooyen: Beneficiation makes business sense, but only if the infrastructure is in place.

08 Feb 15:38
David van Rooyen: We have learned our lessons from Marikana.

08 Feb 15:37

Top platinum producers pleading poverty

The world's top platinum producers, which are losing money as costs soar and prices sink, are pleading poverty in advance of South African wage talks set to start in April.

Anglo American Platinum, Impala Platinum and Lonmin will again be sitting around the table with the hardline Association of Mineworkers and Construction Union (AMCU), which lead a five-month strike in 2014.

"The companies very focused on getting the message across of the dire economic situation that platinum is in," Elize Strydom, the chief negotiator for South Africa's Chamber of Mines, told reporters at an industry conference in Cape Town.

"They are really doing a lot of leg work from CEO level to the investor relations people to share the realities of what is happening in platinum," she said. "The best time to influence the demands is obviously before the negotiations begin. To bring some realism into the whole debate."- Reuters.

08 Feb 15:34

08 Feb 15:33
Fin24 commentator Daniel Silke: Investor protection, ownership, taxes, labour issues are real policy concerns in SA that require assurances not platitudes.

08 Feb 15:28
Mosebenzi Zwane: What has taken too long is the Mineral and Petroleum Resources Development Act amendment bill. We must speed that up.

08 Feb 15:27
Mosebenzi Zwane: Regarding the issue of "use it or lose it", we can be lenient. If someone has a right and during that period someone had to deal with Water Affairs for water rights, we do take that into consideration. We take tough times into consideration. There are industries that acquire these rights with the intention of selling them. They sit with them. They then come forward when it expires to renew the right. If they are not going to use them, let us give new entrants a chance to use the assets that we have.

08 Feb 15:25
Mosebenzi Zwane: There is no love affair between unions and the Department of Mineral Resources. We differ a lot. We have created an environment where we can find solutions to make South Africa move forward.

08 Feb 15:24
Mosebenzi Zwane: The issue of women empowerment is important.

08 Feb 15:22

08 Feb 15:12

08 Feb 15:10
Gideon du Plessis: The mining Phakisa is a wonderful initiative. Going to Davos is also a good goal. But why are mining leaders thinking of leaving, when they talk in safe areas?

08 Feb 15:09
Gideon du Plessis: Eskom's lack of load shedding is excellent, but now they want to increase our electricity tariffs.

08 Feb 15:08
Gideon du Plessis: SA is a very good soccer team. But we score too many own goals. We score a lot of good goals too, but we nullify this with these own goals.

08 Feb 15:08
Solidarity general secretary Gideon du Plessis: We don't win in courts because we are wrong. We have a 95% success rate.

08 Feb 15:06
Franz Stehring: Transformation has been the most successful in the mining industry. 60% to 70% of our members are now black members.  We are not a white dominated union. We are united.

08 Feb 15:05
Franz Stehring, of the United Association of South Africa (UASA), says his members hold the top positions in mines. He says his members are losing their jobs, just as much as Amcu and NUM. “They have the skills to do the mining,” he said.

08 Feb 15:02

Mining minister wants BEE tussle settled

The government wants the black economic empowerment legal battle settled outside the courts to end uncertainty over the policy meant to spread economic wealth to the black majority, the mining minister said on Monday.  "We believe that they will withdraw and give the process a chance to unfold out of court," Mosebenzi Zwane, the Minister of Mineral Resources, told a media briefing.

08 Feb 15:01
When Mark Cutifani took over running Anglo American in April 2013, things were already going from bad to worse. Now, they’re existential. Anglo American, once South Africa’s biggest company, is among the largest and most high-profile victims of the commodity collapse. Weighed down by borrowing and with too many mines that don’t make money, it has become the canary in the coalmine for an industry trying to figure out when it will hit the bottom. - Bloomberg. 

08 Feb 14:59
Mike Teke: The competition has grown. There are new prospective buyers and there are assets for sale. Go out there and compete for those assets. Most of them are listed companies. Investors will ask them ahead of their results what assets they have and what they are doing with them. We will have other billionaires created out of the system.

08 Feb 14:57
The South African government is determined to speed up regulatory and policy certainty in the mining sector, Mineral Resources Minister Mosebenzi Zwane said on Monday.  “We have prioritised the finalisation of the bill as a matter of urgency,” he said at the Investing in African Mining Indaba in Cape Town. “Our stakeholders need regulatory certainty, so we need to close this chapter,” he said.

08 Feb 14:56

08 Feb 14:53
Mike Teke: The big question is how to retain top executives in South Africa.

08 Feb 14:52
Mike Teke: The industry is committed to look after all stakeholders.

08 Feb 14:51

08 Feb 14:51

08 Feb 14:50
Mike Teke: We must strengthen our regulatory environment. There must be a plan, as that creates certainty.

08 Feb 14:48
Mike Teke: We need to expedite the mining legislation as it is affecting investment in South Africa.

08 Feb 14:47
Chamber of Mines President Mike Teke: Most international mining companies used to be led by South Africans because we are a mining country.

08 Feb 14:45

08 Feb 14:45
Do you have views on the Mining Indaba? Tell us now.

08 Feb 14:44
Van Rooyen: As mining communities, we encourage further investment.

08 Feb 14:43
Former finance minister and current Cogta minister David van Rooyen: Mining takes place in a local government space. The issue of development of host communities is a collaborative effort. We have been encouraging businesses to work with municipalities and national departments. Their operations won't thrive if the conditions are not conducive.

08 Feb 14:40
Rob Davies: We must be careful not to promise the people in Rustenburg who have lost their jobs that we can guarantee their jobs in the new Special Economic Zones.

08 Feb 14:39
Rob Davies: Manufacturing doesn't create all the jobs, but it does create value chains that creates a lot more jobs.

08 Feb 14:39
Rob Davies hopes to create a platinum Special Economic Zone this year, but says: "Watch this space, as we will be making some big announcements in the next coming days." This could refer to other dti initiatives.

08 Feb 14:34
Rob Davies: We have a glut of iron and steel in the world - there is an abnormal trade with fierce competition. We want to remain primary steel manufacturers. This is all about finding new uses and more value-added uses.

08 Feb 14:33
Rob Davies: We should not put all our eggs in one basket. If your existing customers are buying less of your product (China) at lower costs, then you should try find other avenues for your product. We need to find ways of more beneficiation of minerals. There is a lot of work on fuel cell (platinum value chain) driven generators in outlying areas to support schools. We will be supporting projects like this year. Two products dti will work on: small generators (cheaper than being on grid) and underground mining vehicles.

08 Feb 14:29

08 Feb 14:27
Mosebenzi Zwane: SA is the number one producer (70%) of platinum. We should turn this into what gold once was. Gold built what we see as South Africa. We are encouraged in the interest in shale gas. We will take full advantage and see how far we can go for economic growth.

08 Feb 14:26
Mosebenzi Zwane: We are engaging to minimise the impact of job losses, which there will be. We have a 10 point plan from my predecessor. We should not sterilise the mines. We should try keep jobs and get people to reinvest so we don't lose a lot of jobs. We can save some jobs going forward.

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