Engineering & Mining Journal

FEB 2013

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FROM THE EDITOR Indaba Debates the Future of African Mining As this edition of E&MJ; was going to press, the annual Investing in African Mining Indaba was getting under way. E&MJ; will carry a full report in the March 2013 edition, but suffice it to say the dialogue had taken on a new sense of urgency in light of the Marikana tragedy and the reforms that the mining sector will see in South Africa and subSteve Fiscor/Editor-in-Chief Saharan Africa. Last year's nationalism and anti-mining rhetoric has given way to whether Africans can change the business model quickly enough to remain competitive. Susan Shabangu, minister of mineral resources for the Republic of South Africa, spoke about the transformation her country has made and reminded the audience of the remnants of its historical legacy, a migrant labor system, poor housing and living conditions, high levels of illiteracy, and low skills levels. All of these, she said, inevitably contributed to the Marikana tragedy. Shabangu warned the country could not afford for this to happen again. Similar to many other African nations, the South African government is currently reviewing its legislative framework for mining. An anti-apartheid activist and successful business-woman, Dr. Mamphele Ramphele, criticized the African National Congress. She said South Africa has no choice but to make a fresh start. Ramphele said that black elites have become part of a closed patronage system. Both Ramphele and Shabangu made reference to Dutch Disease when speaking about the South African economy, but that's an economical debate that may or may not hold water. Ramphele took it a step further by suggesting the mining business be restructured and clustered with other businesses, such as agriculture and manufacturing. Mining code changes pose a competitive threat for Africa. Mark Bristow, CEO, Randgold Resources, explains that, while Africa has the advantage of great mineral wealth, its competitors generally had better infrastructure, greater skills pools and more sophisticated economies. The host country, he explained, is already a significant if not the main beneficiary of its mining activities. Bristow is disturbed by subSaharan countries that want more from the mining industry without giving anything back. Even a moderate change in their mining codes will diminish these countries' ability to compete for direct investment, Bristow said. The governments of these countries need to participate in the value creation process. Making what will likely be her final appearance as an Anglo American executive, Cynthia Carroll echoed the challenges facing South Africa: poverty, unemployment and inequality. She reminded the audience that mining lies at the heart of the South African economy. She said the country has to recognize four essential truths before it will become successful: there is no future for any society without law and order; anarchy in the workplace benefits no one; modern businesses operate in a competitive global market; and long-term stability will ultimately attract foreign investment. The South African mining business forms the bedrock to which emerging African mining sectors are anchored. And, last year, the leader stumbled. Weaknesses where exposed before the entire world. How the country and the other sub-Saharan nations handle the situation will ultimately determine their fate. Will they take control of their destiny or will a business-as-usual attitude prevent them from solving the problems they face? ENGINEERING AND MINING JOURNAL www.mining-media.com Mining Media International Editorial Office 11555 Central Parkway, Suite 401 Jacksonville, Florida 32224 U.S.A. Phone: +1.904.721.2925 Fax: +1.904.721.2930 Editor-In-Chief—Steve Fiscor, sfiscor@mining-media.com Managing Editor—Russ Carter, russ.carter.emj@gmail.com European Editor—Simon Walker, simon.emj@btinternet.com Latin American Editor—Oscar Martinez, omartinez@mining-media.com South African Editor—Antonio Ruffini, aruffini@webafrica.org.za Australian Editor—John Miller, john.miller@gotalk.net.au Associate Editor—Gina M. Tverdak-Slattery, gtverdak@mining-media.com News Editor-Mining—Joe Kirschke, jkirschke@mining-media.com Graphic Designer—Tad Seabrook, tseabrook@mining-media.com Mining Media International Corporate Office 8751 East Hampden, Suite B1 Denver, Colorado 80231 U.S.A. Phone: +1.303.283.0640 Fax: +1.303.283.0641 President/Publisher—Peter Johnson, pjohnson@mining-media.com VP-Sales and Marketing—John Bold, jbold@mining-media.com Midwest/Eastern U.S. & Canada, Sales—Victor Matteucci, vmatteucci@mining-media.com Western U.S. & Canada, Sales—Mary Lu Buse, mlbuse@mining-media.com Scandinavia, UK and European Sales Manager—Colm Barry, colm.barry@telia.com German Sales Manager—Gerd Strasmann, info@strasmann-media.de Rest of World, Sales—Peter Johnson, pjohnson@mining-media.com Classified Advertising—Norm Rose, nrose@mining-media.com Classified Advertising—Tanna Holzer, tholzer@mining-media.com Ad Traffic Manager—Erica Freeman, efreeman@mining-media.com Engineering & Mining Journal, Volume 214, Issue 2, (ISSN 0095-8948) is published monthly by Mining Media, Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (miningmedia.com). Periodicals Postage paid at Englewood, CO, and additional mailing offices. Canada Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: circulation@mining-media.com. Current and back issues and additional resources, including subscription request forms and an editorial calendar, are available on the World Wide Web at www.e-mj.com. SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, $82.00, 2 year, $139.00. Outside the USA and Canada, 1 year, $134.00, 2 year, $249.00 surface mail (1 year, $191.00, 2 year, $352.00 airmail delivery). For subscriber services or to order single copies, write to E&MJ;, 8751 East Hampden, Suite B1, Denver, CO 80231 USA; call +1.303.283.0640 (USA) or visit www.mining-media.com. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of selected archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-5210600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com. POSTMASTER: Send address changes to E&MJ;, P.O. Box 1337, Skokie, IL 60076 USA. Steve Fiscor, E&MJ; Editor-in-Chief, sfiscor@mining-media.com REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1.978.750.8400. Obtain further information at copyright.com. EXECUTIVE OFFICE: Mining Media, Inc., 8751 East Hampden, Suite B1, Denver, CO 80231 USA phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com 2 E&MJ; • FEBRUARY 2013 COPYRIGHT 2013: Engineering & Mining Journal, incorporating World Mining Equipment, World Mining and Mining Equipment International. ALL RIGHTS RESERVED.

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