Fading away: South Africa's mining industry falls out of top 40 mining list
The hits just keep coming for South Africa’s mining industry.
The latest annual survey by PwC -- Mine 2015: the gloves are off – revealed South Africa failed to make the Top 40 list of mining companies by market capitalization, the first time since 2004.
“This year saw no companies in South Africa from the Top 40 list – the first time a company from this traditional mining heavyweight has not been part of our analysis, and a far cry from the five companies included in our 2004 first edition of Mine,” said the report.
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The report, which analyzed 40 of the largest listed mining companies by market capitalization, also revealed the Top 40 mining companies in the world lost $156 billion, or roughly 16 percent of their combined market value, in 2014.
More bad news
According to the National Union of Mineworkers (NUM), the South African mining industry has cut roughly 10,000 mining jobs since the start of 2015,
The industry could cut another 20,000.
“As we speak there are approximately 30 companies that have issued us with [the] Section 189 notification, with a minimum of between 15,000 to 20,000 jobs to be lost as per companies’ calculation,” said deputy secretary Tshimane Montoedi.
Mining is one of the biggest private sector employers in South Africa.
Bloomberg reported Wednesday companies operating South African mines are sidestepping regulations in plans for restructuring.
There’s “underlying deliberate circumvention of current regulatory framework,” the National Union of Mineworkers said in a statement.
A number of companies, including commodities trader Glencore, platinum producer Lonmin and mining firm Harmony, have confirmed plans to either close operations or cut jobs in the near future.
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The union is prepared to battle what it believes as a mass retrenchment drive by major companies in the mining industry in the country.
“The NUM declares war against job losses through retrenchments, voluntary severance package and other … concocted means of destroying the lives of many families with dependants in labor-sending areas,” the union said in a statement.
Between 2012 and 2014, more than 35,000 jobs were cut in the mining industry; the majority of these were in the platinum and gold sectors, according to the union.
Ngoako Ramatlhodi, South Africa’s mines minister, said last month that the government was “alarmed at the rate at which retrenchments have been taking place in the industry”.
AngloGold Ashanti establishes BG Umoja JV in Tanzania
AngloGold Ashanti, in line with it s strategy to ensure a sustainable contribution to the economies of host countries, has established the BG Umoja joint venture (JV), in Tanzania.
Awarded a $186m two-year mining contract for the Nyankanga and Geita Hill underground mining projects, the 80/20 joint venture is a partnership between Africa Underground Mining Services (AUMS) Tanzania, a subsidiary of Australia’s Perenti Group, and local drilling services and mining- supply company, Geofields Tanzania Limited.
The partnership is modelled on a similar underground mining joint venture at the Company’s Obuasi Redevelopment Project in Ghana between AUMS Ghana and Accra-based, wholly Ghanaian-owned Rocksure and will help build local specialised mining capacity.
“We’re working with our experienced mining contractors to assist in establishing local joint ventures for long-term transfer of sustainable skills, and to continue building on our sustainable local procurement programmes,” commented Sicelo Ntuli, AngloGold Ashanti’s Chief Operating Officer: Africa.
“AngloGold Ashanti is building sustainable local procurement programmes that will allow it to stimulate economic and social development at all of its operations, evidenced by the significant contribution Geita has made to the fiscus and people of Tanzania.”
AngloGold Ashanti’s annual expenditure with indigenous Tanzanian suppliers has almost tripled to $162mn since 2016. The company’s local team in Tanzania has set itself an ambitious target of 60% to 70% of all expenditures with indigenous Tanzanian companies, by 2025.
Scope 3 Emissions
In addition, AngloGold Ashanti’s Geita Gold Mine has awarded a two-year fuel transportation contract, worth approximately $10.8m a year, to two local contractors - one of which is originally from Geita. This is in line with the mine’s commitment to contribute to the economies of host communities. The Geita-based company was part of Geita Mine’s supply chain capacity building initiative for host community suppliers, a partnership between the Mine and the National Economic Empowerment Council.
To influence Scope 3 emissions, trucks are to be compliant with EURO IV emissions standards, tankers are to be made of an aluminium alloy material to reduce weight and the age of the fleet will be maintained at less than six years.
Diversity & Inclusion
The contractors already employ women fuel tanker drivers, fulfilling the Mine’s requirements for diversity and inclusion. The two contractors both own workshop facilities in Geita town and participate in social initiatives aimed at uplifting the lives of host community residents.
AngloGold Ashanti has been operating at Geita Gold Mine for more than 20 years, with the project initially a single pit mine, evolving now to a predominantly underground operation, employing 5,700 employees and contractors.
Earlier this year, the Government of Tanzania recognized AngloGold Ashanti’s contribution to the economy of the country, awarding it for its outstanding performance in a number of areas, including environmental and safety performance, corporate social investment, the best taxpayer in the mining sector, the runners up in local business content and overall best performer in the mining sector in Tanzania in 2019/2020.
Geita Gold Mine
Geita, one of AngloGold Ashanti’s flagship mines, is located in north-western Tanzania in the Lake Victoria goldfields of Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. It has been in operation as a large-scale mine since 2000.