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Mark Cutifani, CEO of the multinational mining company Anglo American (RODGER BOSCH / AFP / Getty Images)
- Despite the challenges facing the mining sector, Cutifani says he is optimistic about the future.
- The latest greenshoots can serve as a growth catalyst for the next decade.
- But South Africa is still scoring own goals, says Cutifani.
Building on the wasted nine years and missed opportunities, Anglo American CEO Mark Cutifani says he is confident that the local mining industry can be further developed to make the country a competitive investment destination and drive growth.
Cutifani spoke at the opening of the Joburg Indaba on Wednesday. The annual meeting of mining leaders and investors focusing on investment issues and developments in the sector was held online for the first time this year due to Covid-19 lockdown restrictions.
In his speech, Cutifani spoke about the uncertainties that have gripped the industry. These include challenges around mining policy and the country’s own goals over the years that have not gone well for the economy and the mining sector.
“If we look beyond the last 10 years, we have missed more opportunities than successes,” said Cutifani, who leads the diversified mining conglomerate with operations in South Africa.
The years under the administration of former President Jacob Zuma are often referred to as the “lost nine years,” in reference to the economic decline, political uncertainty and mounting corruption scandals that characterized his chaotic time in office.
“For example, we have spent the last 10 years desperately trying to get out of an uncertain and unviable political environment for mining.”
Cutifani, who was appointed CEO of Anglo American in April 2013, is a respected veteran in local circles, having led AngloGold Ashanti since 2007, before joining the mining giant. In his speech to delegates at the conference, he spoke about the stagnation of the industry and the current economic trajectory of the country. He noted that while there have been some green shoots of late, including recent public-private partnerships in the fight against the Covid-19 pandemic, the country is “at a crossroads.”
“We have also seen other headlines in the past that tell a different story, about the own goals that South Africa continues to score against itself,” he said.
Encourage greenshoots
He regretted repeated calls for reform by companies and the mining industry, saying that “sometimes it feels like we are repeating the same script, over and over again, eagerly awaiting the change we desperately need.”
The executive noted that large-scale investment in the South African mining sector had stagnated and the country’s mining attractiveness had remained in the lower half of the global mining jurisdiction, but was quick to say that all is not lost.
Despite the challenges facing the country and the industry, Cutifani said: “When it comes to South Africa and the mining industry in particular, I am always optimistic.”
“We had some encouraging greenshoots, these can serve as catalysts for the next decade.”
Anglo American is one of the oldest investors in the country, through its investments in platinum, diamond mining, coal, iron ore and platinum group metals (PGM).
The company announced earlier this year that it was looking to spin off its coal operations in South Africa, a process expected to be completed in the next two to three years, with a primary listing on the JSE for the spun off business.
“I believe the next decade will be crucial for the mining industry and South Africa. We have a unique opportunity to build a modern, inclusive and equitable mining industry … we cannot afford to go through another decade of missed opportunities.”
Cutifani stated that he was nonetheless encouraged by some of the developments that have taken place in the country, including the February National Treasury announcement to facilitate cross-border financial transactions for multinational companies.
He said the decision was an important step in enhancing the country’s attractiveness as an investment destination and provides companies with greater flexibility in managing their cash resource.
It also welcomed the decision of the Minister of Mineral Resources and Energy, Gwede Mantashe, to withdraw his appeal from a court order on a section of the Mining Charter that relates to BEE property transactions. The order established that BEE transactions should continue to be recognized for regulatory certainty purposes for the duration of a mining right, even when the BEE partner has sold or transferred part or all of its capital.
The minister’s appeal had caused unrest among companies.
