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tralia and Canada and even other African a vibrant junior sector could contribute at
jurisdictions such as Burkina Faso, Mali least 230,000 jobs to the national economy.
and Cote d’Ivoire. Despite the conviviality, investment
Mantashe’s department is intent on low- growth in the South African mining sec-
ering the barriers to entry for junior explor- tor still remains in negative territory. It was
ers with the new Mining Charter set to re- telling that during his presentation the next
move some BEE burdens and the DMRE day Nick Holland – chief executive of South
and Department of Trade and Industry African-born Gold Fields Ltd – failed to
working on funding programmes for junior mention the company’s one remaining as-
exploration. set in its homeland.
Mantashe said the Government’s aim Gold Fields’ is not alone in distancing Roger Baxter
was to lift exploration spend from its cur- itself from the country it built itself in but
rent low levels. South Africa’s problems extend well be-
“We aim to increase our share of the yond the migration of the old guard. on the world stage.
global exploration expenditure from the A continued lack of exploration spending “What is needed is a four-step approach
current 1% to over 5% in the medium term,” and an almost total absence of develop- to getting South Africa back,” Baxter said.
he said. “To expedite exploration activi- ment projects belie a sector which, despite “Step 1 involves governance – including
ties, we are, through the Council of Geo- several domestic pleadings to the contrary, developing a social pact, cracking down
sciences undertaking a 10-year intensive has taken on the look of a sunset industry. on corruption and re-establishing trust with
mapping programme which will produce Baxter, a long-time sceptic of the Gov- the international investment community.
detailed geological maps on a scale of ernment’s ability to reverse the exploration “Step 2 is about creating a stable, pre-
1:50,000.” and investment trend, said he held hope dictable and competitive policy, regulatory
The Minerals Council of South Africa is for the sector’s future. He said dialogue be- and operating environment that encour-
also throwing more resources at the junior tween government, industry and communi- ages long-term investment in mining while
sector and has signed a MoU with DMRE ty was better than it had been for more than Step 3 is facilitating growth through im-
on collaboration in the junior area. a decade and he welcomed Mantashe’s proved infrastructure and a strategy for an
Council chief executive Roger Baxter willingness to speak and listen to the sec- exploration boom.
said it was imperative that the regulatory tor’s leading chief executives. However, “Step 4 would see national strategies de-
environment encouraged the junior mining he warned considerably more work was veloped for each economy.”
sector. Minerals Council research showed needed to make South Africa competitive
– Dominic Piper

Progressive SA

y his own admission, things did not imposed Reviewed Mining Charter, the In August, the company was awarded
Blook good for Errol Smart and Orion proposed section 49 rights moratorium, a mining right at Prieska, while at the
Minerals Ltd in South Africa two years the non-resolution of the charter owner- time of print another significant milestone
ago. ship issues, imposition of inappropriate was achieved with the completion of its
“It looked grim two years ago, but a section 54 safety stoppages, for exam- BEE restructure.
new Minister shows that you can work ple, have created a major crisis for the “This comes hard on the heels of the
with the DMR. There are lots of arm sector,” Minerals Council of South Africa grant of the Mining Right and shows
wrestles, but it is progressive,” Smart, that we are continuing to tick all of the
Orion’s managing director, said. key boxes required to move the Prieska
“Three years ago we had the idea to project forward as rapidly as possible.
prove that SA could host some great The structure now in place means that
base metals which could be developed all of our key BEE partners are now fully
by the mid-2020s...a lot has happened in aligned with international investors as
three years.” Orion shareholders, while also comply-
Orion’s journey at the Prieska copper- ing with the objectives of Mining Charter
zinc project in SA’s Northern Cape was 3,” Smart said.
just starting to take off when then Min- “Our original BEE shareholders in Repli
ister of Mines Mosebenzi Zwane started are exchanging their shares at the asset
what became a very public stoush with level for Orion shares. At the same time,
industry over a proposed new Mining we welcome the inclusion of top-class
Charter. BEE partners Safika, KNI and Black Star
The situation came to a head at Af- who, through Prieska Resources, will
rica Down Under 2017, with the Miner- Errol Smart fund their proportionate share of Prieska
als Council of South Africa accusing development costs through their 20%
the Government of not consulting in- chief executive Roger Baxter said at Af- shareholding at the asset level.”
dustry on changes to mining law. “The rica Down Under that year. The BEE partners were already Orion
industry does not believe that the ap- The relationship between industry and shareholders after participating in a $4
proach adopted by the DMR is serving government has vastly improved since million share placement at $0.04/share
the national interest of the country and then and Orion is a poster child for min- earlier this year.
the negative impacts of the unilaterally ing in SA.
– Mark Andrews

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