After rejecting a $39bn (R681bn) takeover bid from Australian giant BHP Billiton earlier this year, the 107-year-old company vowed to focus on premium iron ore, copper and its fertiliser business. It will unbundle Anglo American Platinum and De Beers into stand-alone businesses and exit its steelmaking coal operation by the end of 2025.
Speaking virtually to mining CEOs, investors and regulators at the 12th annual Joburg Indaba in Sandton, Wanblad said Anglo was on a journey of reinvention.
“What it looks like today is not what it looked like 20 years ago, 50 years ago and 100 years ago, and all companies have to do this from time to time. Now is our time. Our constants other than change are our deep roots in South Africa and our unwavering belief in the role mining plays in improving people’s lives.”
He said South Africa was the heart of Anglo's identity. “Once we simplify the portfolio South Africa will still account for something like 30% of its value. South Africa is a strategic partner in our journey of transformation and the support we see from the government is testament to the symbiotic relationship.”
Anglo remains one of the biggest mining companies in South Africa with subsidiaries Anglo American Platinum, De Beers and Kumba Iron Ore contributing immensely to employment and tax collection.
Meanwhile, on the sidelines of the Indaba, Eskom chair Mteto Nyati urged mining houses to find alternative sources of energy to lessen the effect of load-shedding on their operations.
Given the fact that we are all globally moving into renewables, they have decided to form partnerships that help them source those renewables. The reliability of that energy source compared to the baseload Eskom is able to offer is chalk and cheese
“Given the fact that we are all globally moving into renewables, they have decided to form partnerships that help them source those renewables. The reliability of that energy source compared to the baseload Eskom is able to offer is chalk and cheese.”
However, he said the industry was benefiting from Eskom being able to keep the lights on for the past seven months.
“The fact that we have been able to sort ourselves out is welcomed highly by the industry because now they have a reliable source of energy, much cheaper.”
Mineral and petroleum resources minister Gwede Mantashe said the mining industry could not reach its potential without partnering with the government. He said the government, through the department, was doing its part to grow mining investment by addressing policy and regulatory certainty, and with the implementation of the new mining licensing system by June next year.
“The completion of the migration process to the new efficient and transparent mining licensing system, in June next year, is poised to modernise our licensing system and ensure regulatory certainty and sustainability of mining”.
Mantashe said the department was addressing licensing backlogs and had finalised 127 mining rights, 1,527 prospecting rights and 2,313 mining permit applications by March this year.
“Whereas we still have a significant backlog in Mpumalanga, the backlog in the Northern Cape, Limpopo, the North West, Eastern Cape and KwaZulu-Natal has been reduced significantly and there is no backlog in the Western Cape or Free State. We have resolved to publish on the department’s website the quarterly reports of applications processed and finalised.”
South Africa's mining industry has pivoted from mainly deep-level gold mining 140 years ago to the extraction of platinum group metals, coal and iron ore. Based on 2023 statistics, South Africa is the world’s thirteenth-largest and Africa’s fourth-largest gold producer.
“South Africa remains a leading PGM producer; it is leading in manganese and is in the top five in coal. Many say coal will disappear, I say King Coal is around.
“Today in Sasol, we showed President Cyril Ramaphosa that the plant is huge, and it beneficiates coal — how can you wish Sasol away?” Mantashe asked.
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