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time, long-pending legislative changes that will have far-reaching implication for the domestic mining scene have languished under her watch, leading to uncertainty and skittishness among investors at a time when the country can least afford it. As in previous appearances at the event, Shabangu repeated a pledge to ease mining license applications that now take up to 18 months to process. In 2010, she promised to create a "one-stop shop" for processing mining-license applications that would award prospecting rights in three months, and mining licenses in six months. This year, she posited an "integrated licensing process" that would take up to 300 days. The announcement was greeted with stony silence from within the conference hall. She also referenced the Mineral and Petroleum Resources Amendment Bill, which is supposed to institute a suite of changes that will bring more certainty and investment to the mining sector. The bill has been in the making for four years, and in her speech, Shabangu promised it would be finalized before the end of the current parliamentary term. "We are confident it will be concluded during the tenure of the current legisla- ture," she said, adding that the bill would strengthen mining and end uncertainty around legislation. Shabangu noted that the Mining Charter—legislation that governs obligatory black participation in the industry—was now in its 10 th year, and up for review. The charter currently sets targets that include the 26% sale of equity in mining compa- nies to black South Africans, and also sets employment equity targets. Beneficiation is also a pillar of the mining charter. The implementation of the charter has proved one of the most difficult legal requirements for mining houses to comply with. At least one, Gold Fields, is currently under investigation by the U.S. Securities and Exchange Commission for possible corruption related to the structure it used to take on black partners. Shabangu has been a critic of the indus- try's compliance with the charter and said that her department was concluding a detailed audit of their status. The results, she said, would be released toward the end of this year. "By November this year, we will be able to go public," said Shabangu, "We can't go into 2015 without creating uncertainty." She added that mines were, however, showing willingness to meet the charters' requirements. "We have seen cooperation that gives us comfort," she said. "We are doing well in terms of moving toward compliance." She acknowledged that a new round of legislative adjustment could make in- vestors uneasy, but that the process would be handled in such a way that "it does not once more introduce uncertainty." Shabangu turned to the continent's need for investment, and mining's role in development. "Africa remains grossly under-explored for its mineral potential. For instance, the explo- ration expenditure per square meter averages US$65 in Canada, Australia and Latin America, whereas the African equivalent remains below US$5 per square kilometer." In spite of this, the mineral exploration prospects in Africa remained extremely high, requiring both local and international part- ners and investment to unearth, she said. She also touched on a familiar theme of her department: "responsible investment." "As you know, mining is a long-term investment, and not about quick wins. Those who balance Africa's mineral development with growth will ultimately receive the great- est reward in the long-term," she said. The minister did offer some good news for companies. At a post-speech press event, she reassured mining operators that they would not be compelled to beneficiate minerals, a source of concern amongst pro- ducers. Earlier pronouncements from Shabangu's department had suggested companies would be fined for exporting raw ore, or even barred from doing so. However, her department may now be backing away from such a rigidly prescriptive stance. "No mining company is either required to beneficiate or is forced to subsidize the manufacturing industry," Shabangu said. The government is confident the law "pro- vides a predictable, stable and globally competitive mining legislation that pro- motes investment, inclusive growth, devel- opment and transformation." The overall response to Shabangu's statements to the Indaba was unenthusias- tic. "Shabangu's address this morning was overly positive, which surprised me a little, particularly if one considers the dramatic losses that the platinum and gold indus- tries have experienced in the recent past," said Lauren Patlansky, managing director at the global legal firm Grant Thornton's Asia Business Services. "They are losing billions due to strike action specifically." Patlansky said Shabangu's address avoided some of the industry's most press- ing issues. "The minister's positive address failed to mention how labor costs continue to rise while commodity prices are simulta- neously declining—this paints a clear pic- ture that mines in South Africa are not even breaking even." Not much was said of the technical chal- lenges mines contend with either. "I'm con- cerned that the minister failed to mention anything about the issue of power and ener- gy challenges currently being experienced in South Africa, especially when other coun- tries on the African continent—like Nigeria—are privatizing their power indus- tries, which could potentially give Nigeria double digit growth rates in the months and years to come," Patlansky added. MARCH 2014 • E&MJ; 43 www.e-mj.com M I N I N G I N D A B A 2 0 1 4 Nigeria is hoping to use the Indaba to gain interest in its emerging mining sector. Isaac Okorie, assistant director of the Nigerian Geological Survey Agency, mans the country's booth. South African Mineral Resources Minister Susan Shabangu, with aide, arrives at the conference. EMJ_pg42-45_EMJ_pg42-45 2/28/14 9:17 AM Page 43