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thoughts are on how to build a sustainable business." A major factor was that operating costs had increased 20% a year for the past five years. Much of this was attributed to the rise of electricity costs. Consequently, the chamber was fighting attempts by the state-owned power utility Eskom for anoth- er above-inflation increase. Currently around 80% of platinum operations were loss-making, with about half of gold producers in the same position. Even within the context of a global slow- down in mining, South Africa was perform- ing badly, Baxter said. "Our low ranking internationally is also a reflection of politi- cal uncertainty," he added. Zwane Speaks Some of this disquiet follows the surprise appointment of Mosebenzi Zwane as mines minister last September. So unexpected was the move that the name of Zwane's prede- cessor, Ngoako Ramatlhodi, was still on pre- Indaba literature as a headline speaker. The axing of Ramatlhodi was not fully explained by his boss, South African Presi- dent Jacob Zuma. However, published re- ports link the decision to a powerful busi- ness faction close to the president who wanted a more pliant minister in place, one willing to foster their own interests. Zwana is viewed as a political light- weight, but is also within Zuma's circle. For many in the local mining industry, Zwane's appearance at the Indaba was the first time they had heard him speak in public. During his address, the minister said he had spent his four months in office having "taken the time to understand the views of the industry." "After much reflection, I am convinced that during our summer season, as an industry, we have failed ourselves in not preparing better for this winter," he said. He said he was aware of industry concern around the finalization of legislation, in par- ticular the Mineral and Petroleum Resources Development Amendment Act (MPRDA), which has been in the air for some time now. Mining companies fear that if passed as is, the law will give the minister wide powers to intervene in how they run their businesses. At the same time, government would revisit the Mining Charter, legislation that mandates black ownership and participa- tion at all levels of mining. Zwane touched on the concern of mining companies that constant tinkering with laws created an environment in which it was difficult to plan. "You indicated that political stability is necessary," he said. The government was making progress to ensure labor stability, and that events such as the crushing five-monthlong strike in the platinum sector would not be repeat- ed. Zwane added that the ruling party also provided ongoing political stability. "We continue to deliver a stable demo- cratic state, with the fifth consecutive administration ushered in through another free and fair national election, in which the oldest liberation movement, the African National Congress, secured in excess of a 62% majority." Finally, Zwane read a list of mining companies that had made it through the year without any fatalities, a point that stood out for some observers who attended the briefing. "In my view, it is quite rare for a minister to give a list of company names in a public address and I believe that it shows that he will be taking mine safety very, very serious- ly," said Jacques Barradas, mining specialist at Grant Thornton Attorneys in Johannesburg. Barradas said, too, that he was encour- aged by the nod toward stable labor relations. "Zwane reinforced some of the key mes- saging we heard at the 2015 Mining Indaba MARCH 2016 • E&MJ; 45 www.e-mj.com M I N I N G I N D A B A 2 0 1 6