Resolute’s resilience in Africa

CEO TALK

Resolute’s resilience in Africa

Resolute Mining owns three gold mines in Africa – Syama (Mali), Mako (Senegal) and Bibiani (Ghana) – with a global mineral resource base of more than 13 million ounces. In addition, Resolute is involved in mine exploration and development projects. Inside Mining interviews John Welborn, managing director and CEO of Resolute Mining.

What makes mining in Africa different compared to the rest of the world?

John Welborn The first thing that makes Africa unique is its massive endowment of geological potential, whether it is gold or iron ore, bauxite or tantalum, or any other FOLLOW THE LINK commodity. A lot of Africa is largely Read the full story: miningnews.co.za/2020/07/28/ unexplored by modern miners, which is exciting. Africa represents a relatively new resolute’s-resilience-in-africa frontier for mining.

John Welborn is the managing director and CEO at Resolute Mining

What is the most challenging aspect about operating in Africa?

Resolute has been mining in

Africa for over 20 years. The challenging aspect for miners in Africa is understanding the cultures and environment in which you operate. With African stakeholders, government and local communities being the obvious ones, recognising differences in mining practices between jurisdictions is important.

How has Resolute dealt with such challenges?

Resolute first entered Ghana in the late 1990s. The company has therefore had 20 years to take its training wheels off. Resolute continues to develop its ability to operate in Africa through experience and relationships. The fundamental relationships are with the host governments, the local communities and, importantly, our workforce. Increasingly, I see an area of opportunity – and an advantage for Resolute – being the ability to train and employ a largely African workforce on African gold mines.

What impact do you think the African Continental Free Trade Agreement would have on mining companies operating in Africa?

It will have a positive effect, particularly on the bulk miners. There is an opportunity to make the free trade agreement advantageous for African countries and the African people, as well as international mining companies.

What would you say is the biggest lesson Resolute has learnt throughout the years operating in Africa?

Resolute is still learning lessons. I think the biggest lessons learned are patience and perseverance. I am a huge believer in the potential of Africa, but it does require commitment. Mining is a long-term commitment. The idea that you are going be able to come into new jurisdictions and exploit resources quickly for immediate benefit is, first, naive and, second, does not reward all the stakeholders. An important aspect of the successful development of African mining is to have a long-term view and be patient.

Where do you see Resolute’s African operations in the future?

Our strategy is to be a multi-mine low-cost African gold producer. We currently have two operating mines, being Syama and Mako. Resolute’s ambition over the next few years is to continue to improve these operations and use that success to develop new gold mines.

CEO TALK

A harmonious approach

Harmony Gold is a gold-focused mining and exploration company and conducts its activities in South Africa and Papua New Guinea. Inside Mining interviews CEO Peter Steenkamp.

What makes mining in Africa different compared to the rest of the world?

Peter Steenkamp I believe that, as a South African mining company, we fully understand the importance of sustainable development and empowering the communities in which we operate

What would you say is the most challenging thing about operating in South Africa?

We understand the importance of creating a sustainable business that benefits all its stakeholders, and believe that more stable and certain regulations that are enforced for longer periods will achieve just that.

How best do you manage such challenges?

Understanding the needs, expectations and aspirations of all our stakeholders enables us to shape our actions in determining strategy, addressing problems, and allocating resources. It underpins the value creation process. Effective stakeholder engagement helps us to better manage risks, opportunities and challenges. It all boils down to collaborative efforts between the various stakeholders.

How has the Department of Mineral Resources and Energy dealt with Covid-19 and what impact did this have on operations?

The leadership displayed by government and particularly the minister is commendable. The president’s initial announcement of the lockdown on 26 March – I believe – was a good pre-emptive move to flatten the curve. It not only allowed government time to prepare for when the number of cases increases, but also allowed us as an industry to ready ourselves and our teams to deal with this pandemic when we start having cases at our operations, as we have just recently seen.

What measures has Harmony put in place to curb the spread of Covid-19 at its operations?

Harmony rolled out a risk-assessment-based Covid-19 prevention strategy across all its operations before the lockdown was announced in March 2020 (see our SENS announcement released on 18 March 2020). The objective of the risk assessment is to identify, evaluate and rank the hazards associated with any exposures to Covid-19 and potential infections. It enables the company to reduce or eliminate the probability of an employee contracting Covid-19 and to limit the severity should an employee be infected.

Where do you see Harmony in the next few years with its African operations?

Harmony aims to grow its ounces to 1.8 Moz by financial year 2021, repay debt, and continue to increase its cash margins generated from its existing operations, organic opportunities and acquisition opportunities in Africa and Papua New Guinea.

We are currently in the process of concluding our acquisition of Mponeng and MWS from AngloGold Ashanti. Once completed, these assets will not only significantly improve our SA reserves (above and below infrastructure), but also support an increased grade profile and boost our cash flow. Our new business development team continues to look for opportunities throughout the continent and in Papua New Guinea – a jurisdiction where we have an existing footprint.

Peter Steenkamp believes that Africa is gifted with a variety of resources

FOLLOW THE LINK

Read the full story: miningnews.co.za/2020/07/28/ a-harmonious-approach