Cape Town – South Africa moved on Tuesday to assure mining executives that the country remains a safe destination for investment in the wake of deadly wildcat strikes, profit plunges and lay-off plans.
“We stand ready to work with all of you to ensure that we build a mining industry that is resurgent, resilient and is able to function successfully to its full realisable potential,” Mining Minister Susan Shabangu told thousands of delegates at the African Mining Indaba conference.
Shabangu’s speech was welcomed by the unrest-weary sector which saw strikes cripple mines last year, but executives present stressed an urgent need for an investor-friendly climate.
“South Africa will only succeed if it fosters an environment that is conducive for business and attractive to international investors,” said Cynthia Carroll, mining giant Anglo American’s outgoing chief executive.
“Creating that environment starts with the need for stable labour relations and the maintenance of law and order,” she said.
More than 50 people were killed last year when production at shuttered mines nose-dived and companies struggled to implement hefty pay hikes.
“Violence and criminality are always unacceptable and they must never be tolerated by society. We must never go back to those days again,” said Carroll.
Anglo American Platinum, the world’s largest platinum producer, on Monday reported a huge operating loss of R6.3-billion for 2012 and the unit was recently slammed over its restructuring plans which could see 14 000 jobs cut and two mines mothballed.
Peter Leon, head of African mining and energy at law firm Webber Wentzel, appreciated the minister’s speech and welcomed South African President Jacob Zuma’s words at the recent World Economic Forum in Davos stressing that South Africa was open for business.
“But of course, what investors want to see now is reality,” said Leon.
“Is government going to not just talk, (but) actually going to walk these issues and deal with them in and effective and substantial way?”








