January 24, 2018

Mining Indaba 2015- Keynote Address

Mr Barradas has submitted the below snippets / comments following the Minister’s insights this morning which may be of interest:

Minister’s comment: “SA is ready for investment despite the current commodity crunch. The weak commodity prices bring with it opportunities to do business.”

“I agree with the minster. South Africa needs to be singing from same hymn sheet particularly between government, business and – most importantly – labour. All three role players need to be included in the investment processes. It is clear from the previous years’ strike action that labour must buy into the process otherwise it could disrupt the business environment completely.”

Jacques Barradas, partner at Grant Thornton Johannesburg

1. Minister’s comment: “Government will arrest and charge lawbreakers and send them to jail.”

“I applaud the minister for his almost militant stance when referring to striking mineworkers that damage and loot the community in which they live and within their place of work too, particularly in terms of the fellow mine workers that they intimidate. I would encourage the minister to follow through on this promise in the coming months.”

Jacques Barradas, partner at Grant Thornton Johannesburg.

 Minister’s comment: “Government is taking note of the mining majors’ restructuring plans.”

 

“Government should play an active part in the restructuring of these mining majors to ensure that the newly setup companies have the necessary plans in place to secure the long term sustainable prospects which these majors inherited.”

Jacques Barradas, partner at Grant Thornton Johannesburg.

Minister’s comment: “The era of the individual BEE deals are over.”

 

“Government should ensure that the companies assigned to create BEE structures include the local communities in these projects at all times, and that this process is not just about well-connected individuals coming together to form these structures.”

Jacques Barradas, partner at Grant Thornton Johannesburg.

Minister’s comment: “There is no mining without energy”

 

“The minister has not given any indication as to how the SA government intends on assisting the mining community during the nation’s current electricity crisis.  There is no doubt that the mining sector is the singular most important industry in SA and Africa, which is directly and dramatically affected by power outages. Elaborating on this topic in particular, was a missed opportunity for the minister.

“South Africa can ill afford an extended load shedding period which we are currently experiencing.  Companies, mines and management, can and have made short term plans to work around the current load shedding crisis. However, if this crisis continues, it will have a serious (and possibly irreversible) long-term negative impact on the economy and South Africa as a whole.”

Jacques Barradas, partner at Grant Thornton Johannesburg, attended this morning’s Keynote Address by the Honourable Minister of Mineral Resources of South Africa, Advocate Ngoako A. Ramatlhodi, at the Mining Indaba 2015 in Cape Town.

 

 

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