2017 Mining Indaba Show Daily I

Investors Bullish

Streaming, Royalty Deals

Sustainability

26ºC

CAPE TOWN

Connecting Africa

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PRECIPITATION: 10% HUMIDITY: 72%

M I N I NG I Z I N DABA

Daily News

Issue 1 Tuesday 7 February 2017

SA Mining Charter Due in March

By Kudzai Mazvarirwofa Mining Indaba Reporter

A

mendments to South Africa’s mining legislation are to be concluded by June 2017 and the final Mining Charter will be gazetted by March 2017, guarantees SA Minister

of Mineral Resources, Honourable Mosebenzi Zwane.

“We have put efforts in place to ensure amendments to the principal mining legislation, the Mineral and Petroleum Resources Development Act, are processed and finalized as a matter of urgency. We expect it to be

concluded by June 2017,” says Zwane in his keynote address on the first day of the Investing in African Mining Indaba Conference.

He also promises that the new inclusions and revisions of the charter will be “reflective of the views Continue on page 16

▶

They call it Africa.

We call it home.

Connect with us at our hospitality area outside the Westin Grand Hotel from 3pm, Monday to Wednesday.

Corporate and Investment Banking Also trading as Stanbic Bank

Doing Things Differently is the Only Way Forward for Mining

By Wesley Ford Mining Indaba Reporter

T

he time to reinvigorate “the promise of mining” in Africa is now and the stage has been set to do things differently.

This is according to Anglo American Chief Executive, Mark

Cutifani, who underscored the importance of innovation in mining as key to the future, during his presentation at the 2017 Mining Indaba.

“We need to do things differently to find new, safe, responsible and cost effective ways to mine the ore bodies to meet the needs

Mining Indaba™ Mining Izindaba Daily News

of a rapidly urbanising global population,” noted Cutifani.

In addition to innovation, Cutifani also identified building a more resilient mining industry, as well as responsible and collaborative partnerships as instrumental to redefining the future of mining.

Continue on page 16

▶

Mark Cutifani, Anglo American 1

Africa Mining to Weather Global Economic Headwinds

By Siphephelo Kunene Mining Indaba Reporter

D

espite challenging economic conditions globally, Africa has reported a 3% Gross Domestic Product (GDP) increase in 2017 thus far, driven by Nigeria and South Africa.

This is according to world-renowned economist Dr Dambisa Moyo, who delivered a keynote address at the start of the 2017 Mining Indaba. During her talk she touched on key issues affecting the global economy and what this means for Africa, as well as mining in general.

She noted the general expectation among economists – against the backdrop of a new US administration – points towards weak economic growth and even the possibility of a recession in 2018. According to Dr Moyo, key factors that will continue to impact GDP growth and decline include technology, income inequality, natural resource scarcity, productivity and debt burdens.

Investor Community More Bullish on Industry Outlook

By Stef Terblanche Mining Indaba Reporter

W

hile risks and uncertainties remain, mining investment specialists are more bullish regarding the outlook for the industry, compared to last year. This was the dominant view emerging from a panel discussion on the opening day of the Mining Indaba on whether the industry was busy bouncing back.

Moderated by Rick Rule, President and CEO of Sprott U.S. Holdings Inc., the panel looked at three broad themes: commodities, political risk in particularly relating to Africa, and current preferences regarding the value-creation chain.

“The panel was generally bullish on commodities, but there seems to be consensus that iron is not the place to be, although some agreed that iron producers will weather the storm,” said Rule in summing up the discussion.

Given the prevailing economic headwinds, Dr Moyo pointed out that a fundamental question remains unanswered namely: how governments will fund infrastructure development and assist the mining industry to be sustainable.

Charl Malan, Portfolio Manager and Senior Analyst at Van Eck, said from his meetings at the Indaba he had sensed an “underlying current that people are very positive about commodities”. Demand was improving along with more positive indicators, while on the supply side “things were tightening” with stricter regulatory enforcement. He anticipated some disruptions from governments and labour.

She concluded her talk on an optimistic note and pointed to great opportunities for consolidation in Africa and gold as a must-have investment.

Robert Ryan, Vice President at BCA Research, felt with economies again improving, shortterm markets with a 3-6 month outlook are well

TABLE OF CONTENTS

Rick Rule, Sprott U.S. Holdings Inc supported, but was less bullish for the outlook beyond that. He believes US President Donald Trump’s proposed border tax will have profound implications. Increasing dollar costs will drive down demand with uncertainty prevailing over the longer term. The current global populist trends will require people to think differently about commodity markets, he said.

Taking a pragmatic but generally bullish view, the panellists agreed that political risk remains a factor in Africa, but much of it can be managed. They also took a more optimistic view on the valuecreation chain compared to a year ago, indicating considerable preference for opportunities lower down the value chain. Most singled out exploration, but various reservations were raised about the construction and development phases due to problems such as overruns.

TUESDAY HIGHLIGHTS

1

Mining Indaba Keynotes

09:00

World Bank Session

4

Golden Future Ahead for West Africa

09:05

Keynote – Dr. Mukhisa Kituyi, UNCTAD

Main stage

6

Streaming, Royalty Deals Are Here to Stay

09:05

Investment Battlefield Competition

Show Floor

8

Premier Sponsor Listings

12:35

Panel – Battery metals

Main stage

10

Exhibitor Listings A-Z

13:45

African Mining Ministerial Forum

12

Investec: Dramatic Changes in Technology to Impact Mining

14:20

Main stage

12

Transparency a Key Driver of Sustainable Mining

Keynote – Edward K. Brown, African Center for Economic Transformation

14

Newmont Readies for Price Recovery

15:40

Panel: Investing in Platinum

Main stage

15:45

15

Mining Indaba 2017 in Pictures

IDF Panel – Debating Outlook on Investments from Majors Point of View

16

Ethiopia Sets Sights on Unlocking Mineral Resource Wealth

17:00

Panel: Gold ETFs

SHOW DAILY Mining Indaba® | www.miningindaba.com The official daily newspaper covering the 2017 Investing in Africa Mining Indaba® conference and related events, including special activities by sponsors, exhibitors, and attendees.

Mining Indaba® 8 Bouverie Street, London, EC4Y 8AX +44 207 779 8890

Mining Indaba® and Euromoney Institutional Investor PLC assume no responsibility for the validity of sponsor, exhibitor or attendee claims in items reported. ©2015 Mining Indaba®.

All rights reserved.

Mining Indaba™ Mining Izindaba Daily News

Corporate

Alex Grose | Managing Director

Marketing

Phillip LoFaso | Director, Marketing & PR

Advertising

Fred Noce | Director of Sales

Editorial & Production

Mariette du Plessis | Consulting Editor

Auditorium II

Auditorium II

Westin – Grand Ballroom Main stage

Correspondents

David McKay, MiningMx Dominic Piper, Paydirt Jeremy Wrathall, Investec Kudzai Mazvarirwofa, Mining Indaba Luke Folb, Mining Indaba Miriam Mannak, Mining Indaba Oliver Heathman, Metals Focus Robyn Wilkinson, Mining Weekly Shireen Fisher, Mining Indaba Siphephelo Kunene, Mining Indaba Stef Terblanche, Mining Indaba Wesley Ford, Mining Indaba

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We’re both in the business of unearthing potential Investec is a focused and entrepreneurial group of professionals who provide a comprehensive service to the resource sector. These services include debt finance, equity participation, BEE transactions, analytical research and advisory, and are offered out of South Africa, Australia and the U.K. In short, Investec is a diverse finance partner who not only understands banking, but mining too.

Research: Global: Jeremy Wrathall +44 207 597 4180 Investec Global Natural Resources Advisory: South Africa: Willie Hattingh +27 11 286 8486 Investec Commodities and Resource Finance: Australia: Anthony Hawke +61 29 293 2266 Investec Commodity Hedging: United Kingdom: Callum Macpherson +44 207 597 5070

Specialist Bank

Corporate & Institutional Banking, a division of Investec Bank Limited, Reg. No. 1969/004763/06. An authorised Financial Services Provider. A registered credit provider, registration number NCRCP9.

A member of the Investec Group.

Golden Future Ahead for West Africa

By Oliver Heathman Head of Global Supply at Metals Focus

I

n the early 1990s, Ghana was the only major gold producer in West Africa. However, greater political stability and increasingly mining friendly policies in many countries, as well as the region’s extensive favourable greenstone geology, have attracted significant investment over the past two decades. As a result, the region now hosts multiple prominent gold producing nations, including five producing over 650koz of gold per year. And in 2016, West Africa produced over 8.0Moz of gold, or around 8% of the global total.

However, this notable story of growth doesn’t end there. Under Metals Focus’ forecast base case for gold, through to 2021, a period during which global mine production as a whole is set to contract, West African output appears on course to grow by a further 3% per annum.

With further production losses expected in South Africa and other notable gold producing countries elsewhere on the continent, including Tanzania, West Africa’s additions will help the African continent maintain its standing as the world’s second largest gold producing region behind Asia.

Much of this increase will be driven by the continued growth in countries such as Mali, Burkina Faso and the Ivory Coast, which, along with Ghana and Guinea, were key players in driving gold production higher through the 1990s and 2000s.

However, the largest country level gain over the next five years looks set to come from Mauritania, where Kinross is in the process of expanding its Tasiast mine, which initially entered production

AT A GLANCE

DRC

Source: GFMS, Metals Focus

under Red Back Mining’s guidance in 2008.

Construction of Phase 1 of the expansion is expected to be completed in mid-2018, which will see the mine’s output rise to around 410koz/yr (up from an average 210koz/yr between 2010-16).

Furthermore, a potential second expansion could see production climb to 780koz/yr from 2020.

The start-up of two new projects in late-2017 is set to also lift Mali’s gold output. B2Gold’s Fekola will produce some 370koz in 2018, while Hummingbird Resource’s Yanfolia is expected to contribute around 130koz of gold in its first year of production.

AT A GLANCE

Ghana

In Burkina Faso, Endeavour Mining’s Houndé project is also set to enter production in late-2017, while Semafo’s Natougou project will pour its first gold in the second half of 2018. Over the first three years of operations, these mines are each expected to produce over 225koz/yr.

Meanwhile, production from the Ivory Coast stands to benefit from the start-up of Perseus Mining’s Sissingue and Yaoure projects, which together have the potential to produce over 250koz/yr by 2021. Elsewhere, greenfield projects and mine expansion also look set to lift production in Liberia and Guinea.

AT A GLANCE

Mali

Factsheets created by Global Business Reports for the Mining in Africa Country Investment Guide. For more information go to: http://macigindaba.com/ Mining Indaba™ Mining Izindaba Daily News

4

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Because we are not just a telecoms company.

We are your technology partner.

Attending Mining Indaba on 6-9 February in Cape Town?

Come visit us at stand 205.

www.liquidtelecom.com

Building Africa’s digital future

Streaming, Royalty Deals Are Here to Stay

By Dominic Piper Paydirt

Silver Wheaton has built a $9 billion company on the back of its streaming business and chief executive Randy Smallwood believes it represents the best source of capital for companies building projects. “As a source of capital, it is very flexible and covenant-light on the mine operator,” Smallwood said. “At the development stage, a stream qualifies as a non-dilutive equity contribution, and improves the project’s IRR.”

A

lternative financing solutions such as streaming and royalty deals continue to grow in popularity as African miners seek ways to avoid diluting shareholders.

The traditional project financing model has seen mining companies issue endless equity or access debt finance on often fraught terms but as interest returns to the sector, innovative companies are investigating ways to finance development without diluting shareholders or wrecking balance sheets.

Metals streaming deals have emerged as a viable alternative and while its business on the continent is far from the same levels as its North American division, Sandstorm Gold Ltd is beginning to see more opportunity in Africa.

“Most streaming deals have been focused in the Americas and perhaps that is because that’s where the streaming and royalty companies are based, however, Sandstorm has been very active throughout the [African] continent and is keen to continue working here,” Sandstorm senior executive vice president David Awram said. “I can see that Africa is where the biggest growth will be for the mining industry over the medium and long term. I want to work with the best and brightest entrepreneurs on this continent to build good projects that are good for their communities.”

DAVID AWRAM

RANDY SMALLWOOD

Sandstorm

Silver Wheaton

to companies of all sizes. “The whole industry approach to mining finance is changing,” he said.

“We are awakening to the concern from investors about managing the risk of how mining companies are financed. We believe that shareholders are tired of risky debt structures propping up mining companies and are also troubled by serial equity dilution at the worst possible time.”

For Awram, streaming deals can fill the gap which traditional financiers have long neglected.

Smallwood said the Silver Wheaton streaming model of acquiring non-core, by-product streams allowed the operator to “focus on its core franchise”.

Awram said there was little doubt streaming and royalty financing deals were “here to stay” and wouldn’t be cast aside as momentum returned to the sector. “As we have seen over 2015 and 2016, almost all of the largest and most sophisticated mining companies have identified that stream financing has been an economical and crucial part of creating a stable balance sheet,” he said. “Also, smaller developing companies have identified that stream and royalties can provide stable, nondilutive financing which is key to supporting existing shareholders. The smart management teams have figured it out and are approaching the streaming companies about working together. That trend will only increase as life comes back into the industry.”

Royalty and streaming deals allow companies to access finance on competitive terms without onerous debt schedules. While early adopters were small precious metals companies incapable of sourcing traditional debt and equity options, Awram said it was a model which was proving attractive

“Progressive and sophisticated management teams in the industry are frustrated with the unstable traditional methods of financing in the industry and they want to create stable cooperative financing arrangements to access capital,” he said. “The large royalty and streaming companies have begun to direct their business models to accommodate these changes approaching mine finance from a different perspective that helps create that desired stability, but still ensuring that their mining partners are exposed to the upside that equity investors are looking for.”

VIEWPOINT

VIEWPOINT

VIEWPOINT

Mining Indaba talks to Ben Magara, CEO of Lonmin

Mining Indaba talks to Brad Gordon, CEO of Acacia Mining

Mining Indaba talks to Xi Xi, Director, Sailing Capital

Mining Indaba: How do you see the road ahead for platinum? Any predictions to share?

Mining Indaba: What challenges, in your opinion, face the mining industry in 2017?

Mining Indaba: How do you see investments

Ben Magara: Platinum, and PGMs generally, have a growing role to play in the world. The planet’s need to reduce harmful emissions is as critical as ever, perhaps more so. The fastest growing developing countries, and others too, are increasingly adopting tighter emissions standards.

So long-term market fundamentals are strong.

This trend will be supported further by low levels of investment in the past several years in new supply. However, short-term economic prospects in the developed world, particularly Europe, remain subdued. As a consequence, we have to expect that PGM prices will remain subdued too, certainly in the year ahead.

Brad Gordon: The relationship between the mining industry and host countries will be one of the biggest challenges for mining in Africa, as there is a lack of trust of mining across the continent.

We as an industry, together with Governments and our other local stakeholders, need to work to reset these relationships to ensure that the full benefits of the mining industry to Africa can be realised. Mining is more important to Africa than it is to any other continent and yet, from my experience, mutual trust levels are unsustainably low.

XI Xi: I think African mining in the year ahead

Short-term Prospects for Platinum Still Subdued

Mining Indaba™ Mining Izindaba Daily News

Mutual Trust Levels Must be Rebuilt Across Africa

Streaming has so far been largely restricted to heavily traded base and precious metals but Awram envisages a future in which many commodities are subject to such deals. “I see the streaming business eventually spreading out into various different commodities from rarer metals to energy and bulk materials. As the experts in streaming expand their business models, I anticipate that more commodities and thus more companies will be able to access the benefits of stream financing.”

Base Metals Prices Still Not at Right Level

in African mining unfold in 2017?

will be challenging; the regulatory and political environments for mining have not improved and there are changes in regimes such as the DRC. Many base metals have recovered from the lows, but is still not at the right price level to commensurate the risk and costs of going into construction phase. Moreover, bank lending is tighter than before. Then again, Zimbabwe and Sudan, with the lifting of US sanctions, could see lot more capital inflow. We also seem to be moving towards a regime change in Zimbabwe, but we still have our fingers crossed.

6

/10021862

Financing businesses across South Africa’s industrial landscape

The IDC is committed to inclusive and sustainable industrial development. We finance existing or emerging businesses that are set to benefit South Africa’s economy and facilitate the creation of jobs for its people. If you’re an entrepreneur and have a business plan that is relevant to an industry that the IDC supports and require business finance of R1 million or more. Call us on 0860 693 888 or visit idc.co.za to enquire about the financing criteria for the sectors that the IDC supports.

Premier Sponsor Listings Stand No. 1012

our mines and who mine, process and move and market our products.

Stand No. 1302

Stand No. 416

CUMMINS AFRICA

DRA

AECI is Africa’s leading explosives and specialty chemicals company.

Under the strategic pillar of Mining Solutions, AEL Mining Services, Senmin and ImproChem align their processes and strategies to add more value to mining in Africa, Australasia and South America. The main focus areas are explosives, mining chemicals and water treatment.

P.O. Box 61587 Marshalltown, Johannesburg Gauteng, South Africa, 2107 +27 (0) 11 638 91111 http://www.angloamerican.co.za

DRA is a global engineering design and project management group that delivers engineering services from concept to commissioning, comprising feasibility studies, design, construction, and operations & maintenance services for all mining, minerals processing and infrastructure, as well as the energy and water sectors.

Private Bag X21, Gallo Manor Johannesburg, Gauteng South Africa, 2052 +27 (0) 11 806 8700 http://www.aeci.co.za

The Australian Trade Commission (Austrade) is the Australian Government agency that promotes trade, investment and education, and develops tourism policy and research. Austrade and the Department of Foreign Affairs and Trade work together to advance Australia’s economic prosperity and support the Australian Government’s economic diplomacy initiatives.

Cummins, a global power leader is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technology. Cummins products power African mines through world-class diesel engines and preintegrated power systems. Leading mining OEMs specify Cummins products as standard.

AECI LIMITED

Listed: Johannesburg Stock Exchange

Non-Exhibiting Sponsor AFRICAN DEVELOPMENT BANK

The African Development Bank Group (AfDB) is Africa’s premier development finance institution. The AfDB contributes to the economic development and the social progress of its 54 regional member states by mobilizing and allocating resources for investment in Africa and providing policy advice as well as technical assistance.

13 Avenue du Ghana Abidjan, Côte d’Ivoire (Ivory Coast) Côte d’Ivoire (Ivory Coast) 1387 01 +225 5992 4058 http://www.afdb.org

Stand: 1010 AFRICAN MINERALS DEVELOPMENT CENTRE (AMDC)

The Africa Mining Vision (AMV) was adopted by African Union Member States as the continental framework for the development of the minerals sector. The African Minerals Development Centre (AMDC) was established to accelerate the AMV by concerted and strategic efforts to put the framework into operation.

Menelik Avenue Addis Ababa, Ethiopia (+251) 11 544 3094 http://www.africaminingvision.org

Stand No. 812 ANGLO AMERICAN

Anglo American is a global and diversified mining business that provides the raw materials essential for economic development and modern life. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build

Listed: Johannesburg Stock Exchange, London Stock Exchange

Stand No. 224 AUSTRALIAN GOVERNMENT

10th Floor, The Forum Building, Sandton, Johannesburg South Africa, 2146 +27 (11) 911 4500 http://www.austrade.gov.au

Stand No. 1516 CANADA PAVILION

Canada: a leader in innovative, sustainable mineral development, exploring in 30 African countries.

Visit us at Indaba and find out from Canadian companies, associations (PDAC, MAC, CIM and CAMESE) Export Development Canada, the Canadian Council on Africa, the Government of Canada and Export Quebec why Canada should be your global partner in mining.

Building 8, Harrowdene Office Park Western Service Road Woodmead, Johannesburg Gauteng, South Africa, 2054 +27 (0) 11 589 8419 http://www.africa.cummins.com Listed: New York Stock Exchange

Stand No. 716 DEPARTMENT OF MINERAL RESOURCES SOUTH AFRICA

The vision of the Department of Mineral Resources is to enable a globally competitive, sustainable and meaningfully transformed minerals and mining sector to ensure that all South Africans derive sustainable benefit from the country’s mineral wealth. This is achieved within our legislative framework and as the legitimate custodian of the country’s mineral wealth. The mission is to promote and regulate the minerals and mining for transformation, growth, development and ensure that all South Africans derive sustainable benefit from the country’s mineral wealth.

1 Rideau Street, Suite 700 Ottawa, ON, Canada, K1N 8S7 613-565-3011 http://www.ccafrica.ca

Private Bag X59 Pretoria, Gauteng South Africa, 0007 +27 (12)444 3869 http://www.dmr.gov.za

Stand No. 726

Stand No. 1316

CATERPILLAR GLOBAL MINING

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It provides the broadest product line in the mining industry, while the global dealer network provides unparalleled service and support to customers all around the globe.

Postnet Suite 221, Private Bag X121 Halfway House, Midrand South Africa, 1685 +27 (11) 256 8300 http://www.cat.com/mining Listed: New York Stock Exchange

Mining Indaba™ Mining Izindaba Daily News

DEPARTMENT FOR INTERNATIONAL TRADE

The UK is the leading global source of mining finance and possesses a broad range of professional services organisations and companies providing world class solutions to the global mining industry. Through skills, learning and knowledge transfer to local communities and businesses, the UK helps deliver sustainable economic prosperity.

Join us on stand 1316.

Europa Building, 450 Argyle Street Glasgow, United Kingdom G2 8LH +44 (0) 141 228 3626 https://www.gov.uk/

DRA Minerals Park, 3 Inyanga Close, Sunninghill, Johannesburg Gauteng, South Africa, 2128 +27 (11) 202 8600 http://www.draglobal.com

Stand No. 902 ENDIAMA - E.P.

ENDIAMA is an angolan public company and is the exclusive holder of Diamond mining rights.

ENDIAMA contributes to the fast and consistente development of Diamond´s industry in order to increase value in the context of a cluster of mineral resources and the diversification of national economy, as well as contributing to the growth and development of Angola.

Major Kanhagulo Street no.100 Luanda, Angola, 1247 (+244) 222 394 833 http://www.endiama.co.ao

Stand No. 1002 IVANHOE MINES

Ivanhoe Mines Ltd. is a Canadian mining company focused on advancing its principal mine development projects in SubSaharan Africa: the Platreef platinum-palladium-gold-nickelcopper project in South Africa; and the Kamoa-Kakula Copper project and the Kipushi zinc-copper-leadgermanium mine in the DRC. P.O. Box 782078, Sandton South Africa, 2146 +27 (11) 088 4300 http://www.ivanhoemines.com Listed: Toronto Stock Exchange

Networking Lounge NEDBANK CIB

NCIB is the corporate and investment banking arm of Nedbank Group, one of SA’s top four banks. Its Resources Finance specialists provide funding solutions to mining, oil and gas companies. NCIB is Johannesburg based with operational centres in Durban and Cape Town, and offices in London, Toronto, Namibia and Angola.

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Premier Sponsor Listings 135 Rivonia Road, Sandown Johannesburg, South Africa, 2196 +27 (11) 294 3716 http://www.nedbank.co.za Listed: Johannesburg Stock Exchange

Stand No. 916 NEWMONT AFRICA

Newmont, a leading global gold producer with operations in four continents, operates safely and responsibly to create shared value.

In 2015, it held 12.9 million equity ounces of gold reserves in Africa.

A Dow Jones Sustainability Index World member since 2006, Newmont was ranked the mining industry’s global leader in sustainability in 2014 and 2015.

Plot 40 / 41 Senchi Street, Airport Residential Area Accra, Ghana, GH +233 (0) 30 7011852 http://www.newmont.com Listed: New York Stock Exchange

Stand No. 1310 ORICA

Orica is committed to developing tomorrow’s technologies and

solving today’s challenges with our customers. We’re the largest provider of commercial explosives and blasting systems to the mining and infrastructure markets, global leader in the provision of ground support in mining and tunnelling and leading supplier of sodium cyanide for gold extraction.

Cnr Van Acht & Gewel Street Isando, Gauteng, South Africa, 1600 +27 (0) 10 596 3101 http://www.orica.com Listed: Australian Securities Exchange

Stand No. 516 RANDGOLD

Randgold Resources is an African focused gold mining and exploration company listed on the LSE and Nasdaq. The company discovered and operates the Morila, Loulo and Gounkoto gold mines in Mali and the Tongon gold mine in Côte d’Ivoire. A fifth mine, Kibali, is currently being developed in the DRC. 3rd Floor, Unity Chambers 28 Halkett Street, St Helier, Jersey Channel islands, UK, JE2 4WJ +44 (0) 1534 735 333 http://www.randgoldresources.com

Mining Indaba™ Mining Izindaba Daily News

Listed: London Stock Exchange, NASDAQ

Stand No. 312 RIO TINTO

Rio Tinto is a leading global mining and metals group that focuses on finding, mining, processing and marketing the earth’s mineral resources. From our diverse portfolio, we supply the metals and minerals that help the world to grow.

Supporting our world-class assets is a 55,000-strong workforce, located across more than 40 countries.

6 St. James Square, London United Kingdom, SW1Y 4AD +27 (11) 459 1260 http://www.riotinto.com Listed: Australian Securities Exchange, London Stock Exchange

Hospitality Lounge STANDARD BANK ALSO TRADING AS STANBIC BANK

Standard Bank Corporate and Investment Banking – connecting Africa to the world Standard Bank Corporate and Investment Banking aims to be the leading corporate and investment banking business

in, for and across Africa, with a deep specialisation in natural resources. Building on over 150 years’ experience as an African emerging markets bank, and through our on-the-ground presence and local insight, we connect our clients to opportunities across Africa and beyond.

30 Baker Street Rosebank Johannesburg, South Africa +27 (11) 721 9000 http://www.standardbank.com/cib Listed: Johannesburg Stock Exchange

MAIN HALL VEDANTA ZINC INTERNATIONAL

Vedanta Zinc International is custodian of the Southern African and Irish zinc assets of India’s Vedanta group. These comprise Black Mountain mine in South Africa, Skorpion Zinc mine and refinery in Namibia, Lisheen Mine in Ireland (now in active closure), and Gamsberg mine, near Black Mountain, currently in development.

1 Penge Road, Private Bag X01 Aggeneys, South Africa, 8893 +27 (54) 983 9225 www.vedantazinc-international.co.za

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SPONSOR STAND LISTING SPONSOR . . . . . . . STAND NO.

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SPONSOR . . . . . . . STAND NO.

SPONSOR . . . . . . . STAND NO.

ABB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 AECI Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1012 AFRILOG - A CSTT AO Group . . . . 1005 AGGREKO . . . . . . . . . . . . . . . . . . . . . . . . . . . . 610 Alistair Group . . . . . . . . . . . . . . . . . . . . . . . . . 624 ALS Minerals . . . . . . . . . . . . . . . . . . . . . . . . 1124 ALTAAQA Global . . . . . . . . . . . . . . . . . . . . 924 AMEC Foster Wheeler . . . . . . . . . . . . . . . 616 AMIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Anglo American . . . . . . . . . . . . . . . . . . . . . . 812 APR Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 AUC - African Minerals Development Centre (AMDC) . . . . 1010 AUSDRILL . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824 Australian Government . . . . . . . . . . . . . 224 Australia’s Paydirt . . . . . . . . . . . . . . . . . . . . . 528 Aveng Mining . . . . . . . . . . . . . . . . . . . . . . . . . 510 B.C.M.M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 B2Gold Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 607 BCA Research . . . . . . . . . . . . . . . . . . . . . . . 1210 BEAK Consultants GMBH . . . . . . . . . 1418 Behre Dolbear . . . . . . . . . . . . . . . . . . . . . . . 1324 Bibby Maritime . . . . . . . . . . . . . . . . . . . . . . . 619 BME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725 Boart Longyear . . . . . . . . . . . . . . . . . . . . . . . 514 Bollore Logistics . . . . . . . . . . . . . . . . . . . . . . 625 Bourevestnik Inc. . . . . . . . . . . . . . . . . . . . . . . . 17 BRGM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1407 Bridon Bekaert The Ropes Group . . 127 Bruker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 707 CA Mining - Global Recruitment . . . 404 Canada Pavilion . . . . . . . . . . . . . . . . . . . . . 1516 Cardinal Resources Limited . . . . . . . . 522 Carl Zeiss Microscopy Ltd. . . . . . . . . . 1316 Castor Networks . . . . . . . . . . . . . . . . . . . . . . 605 Caterpillar Global Mining . . . . . . . . . . . 726 Centre for Energy, Petroleum and Mineral Law and Policy . . . . . . . . . . . . 1316 Centric Mining Systems . . . . . . . . . . . . . 504 Cenviro Sanlam Santam . . . . . . . . . . . . .206

CGG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1008 Chamber of Mines South Africa . . . . 717 CK Aerial Surveys . . . . . . . . . . . . . . . . . . . . 222 Clarke Energy . . . . . . . . . . . . . . . . . . . . . . . . 1316 Coaltech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Consep Acacia . . . . . . . . . . . . . . . . . . . . . . . 1105 Consolidated Nickel Mines Ltd . . . . . 101 ContiTech . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1523 CopperZone Resources Ltd/ Kalahari Copper . . . . . . . . . . . . . . . . . . . . . . 318 Cummins Africa . . . . . . . . . . . . . . . . . . . . . 1302 Dassault Systemes, Geovia . . . . . . . . . 1016 Dawnus International Ltd. . . . . . . . . . 1316 Department for International Trade . . . . . . . . . . . . . . . . . 1316 Dints International . . . . . . . . . . . . . . . . . . 1316 DMT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714 DRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 DRC - Ministry Of Mines . . . . . . . . . . . 1128 DTP Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 DUO Africa . . . . . . . . . . . . . . . . . . . . . . . . . . 1316 Dupont Sustainable Solutions . . . . . 1207 Elphinstone Pty Ltd . . . . . . . . . . . . . . . . . . 828 ENDIAMA - E.P. . . . . . . . . . . . . . . . . . . . . . . 902 Energold Drilling Corp. . . . . . . . . . . . . . . 403 Engen Petroleum . . . . . . . . . . . . . . . . . . . . . 614 Enrroxs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1211 EPC Groupe . . . . . . . . . . . . . . . . . . . . . . . . . . 316 Export Credit Insurance Corporation . . . . . . . . . . . . . . 928 Extractives Hub . . . . . . . . . . . . . . . . . . . . . . 1316 FLUOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502 Fugro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Galco Transport and Logistics . . . . . 1521 Genesys International Limited . . . . 1316 Genser Energy Africa Inc. . . . . . . . . . . . 629 Geosoft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 702 Geotech Airborne Limited . . . . . . . . . . 710 Gilbert Gilkes & Gordon Ltd . . . . . . . 1316 Gold Fields Limited . . . . . . . . . . . . . . . . . 1006

H-E Parts International Crushing Solutions . . . . . . . . . . . . . . . . . . 1224 High Arctic Energy Services . . . . . . . . 1519 High Commission of Canada in South Africa . . . . . . . . . . . . . 1516 Hitachi Construction Machinery . . . 201 Howden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Hutchinson . . . . . . . . . . . . . . . . . . . . . . . . . . 1202 Hybrid Enterprises . . . . . . . . . . . . . . . . . . . 712 IDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 IGF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1303 IGS International Geoscience Services Ltd . . . . . . . . . . . 1316 iHandover . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1316 Imagemakers Corporate Wear . . . . 1117 ImpactAgri Holdings Limited . . . . . . 1316 International SOS . . . . . . . . . . . . . . . . . . . . 706 IronRidge Resources . . . . . . . . . . . . . . . . . 305 Ivanhoe Mines . . . . . . . . . . . . . . . . . . . . . . . 1002 Japan Pavilion . . . . . . . . . . . . . . . . . . . . . . . . . 602 JBIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 602 JOGMEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 602 Joy Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1316 Jozi Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Komatsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1306 Liquid Telecom . . . . . . . . . . . . . . . . . . . . . . . 205 Lombard Insurance Company Ltd. 805 Maboumine . . . . . . . . . . . . . . . . . . . . . . . . . . . 927 Master Drilling Group Limited . . . . . . . . 1 Maxam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1022 Mbuyelo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 Micromine . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524 Mincon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523 Mineral Production Monitoring Support Project Zambia . . . . . . . . . . . . 1108 Mining Finland – Productivity Through Technology . . . . . . . . . . . . . . . . 1023 Ministère des Mines et de l’Énergie – TOGO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1226 Ministry of Energy and

Mines – Burkina Faso . . . . . . . . . . . . . . . 1204 Ministry of Geology and Mines - Angola . . . . . . . . . . . . . . . . . 1028 Ministry of Industry and Mines – Senegal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1425 Ministry of Industry and Mines, Cote d’ Ivoire . . . . . . . . . . . 1428 Ministry of Mines - Zimbabwe . . . . . 1127 Ministry of Mines and Geology - Guinea . . . . . . . . . . . . . . . . . . . . 1420 Ministry of Mines and Minerals Development - Zambia . . . . . . . . . . . . . 1110 Ministry of Mines, Industry & Technological Development Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . 1527 Ministry of Mines - Mali . . . . . . . . . . . . 1227 Ministry of Mines - Niger . . . . . . . . . . . 1328 Ministry of Petroleum, Energy & Mines - Mauritania . . . . . . 1325 Minova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1416 Mits Corp Mining & Trading . . . . . . . . 808 MMD Mineral Sizing Africa . . . . . . . . 1027 MONTT GROUP . . . . . . . . . . . . . . . . . . . . . 520 Mota-Engil Africa . . . . . . . . . . . . . . . . . . . . . 216 Mott MacDonald . . . . . . . . . . . . . . . . . . . . 1316 Mozambique - MIREME . . . . . . . . . . . . 626 Murray & Roberts Cementation Pty Ltd . . . . . . . . . . . . . . . . . 815 Newmont Africa . . . . . . . . . . . . . . . . . . . . . . 916 Nordgold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811 NSSLGlobal . . . . . . . . . . . . . . . . . . . . . . . . . . 1316 Olympus/Innov-X-Africa . . . . . . . . . . . . 623 ONHYM – Morocco . . . . . . . . . . . . . . . . . 930 Organisation for Economic Co-operation and Development (OECD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Orica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1310 Oryx Energies SA . . . . . . . . . . . . . . . . . . . . . 308 Partners in Performance . . . . . . . . . . . . . . 12 PW Mining International Ltd. . . . . . . . 402 Randgold Resources . . . . . . . . . . . . . . . . . 516

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SPONSOR STAND LISTING SPONSOR . . . . . . . STAND NO.

SPONSOR . . . . . . . STAND NO.

SPONSOR . . . . . . . STAND NO.

SPECIALITY SPONSORS

Raubex Group . . . . . . . . . . . . . . . . . . . . . . . 1311 Redavia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 Redpath Mining . . . . . . . . . . . . . . . . . . . . . . 421 REFLEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422 Republic of Ghana . . . . . . . . . . . . . . . . . . 1203 Republic of South Africa – Department of Mineral Resources . . . . . . . . . . . . . . . . 716 Resolute Mining Limited . . . . . . . . . . . . 526 Rio Tinto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Roads Agency Limpopo (SOC) Ltd . . . . . . . . . . . . . . . . . 1107 Roskill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1102 S&P Global Market Intelligence . . . . 704 SAER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1326 Samsung C&T . . . . . . . . . . . . . . . . . . . . . . . . 125 Sandvik Mining and Rock Technology . . . . . . . . . . . . . . . . . . . . . 107 SAP & RungePincockMinarco . . . . . . 906 Sasol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1024 Satellite Applications Catapult . . . . . 1316 Schramm, Inc. . . . . . . . . . . . . . . . . . . . . . . . 1104 SEF Limited . . . . . . . . . . . . . . . . . . . . . . . . . . 1316 SEMM Logging . . . . . . . . . . . . . . . . . . . . . . . 723 SENET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813 SES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 SFTP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1429 SGS Bateman . . . . . . . . . . . . . . . . . . . . . . . . . 408 SODEMI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1426 SoEnergy International . . . . . . . . . . . . . . 618 SOGUIPAMI . . . . . . . . . . . . . . . . . . . . . . . . . . 129

Solarcentury . . . . . . . . . . . . . . . . . . . . . . . . . 1316 SOPAMIN SA . . . . . . . . . . . . . . . . . . . . . . . . 1525 South African Airways . . . . . . . . . . . . . . . 627 SRK Consulting . . . . . . . . . . . . . . . . . . . . . . . 909 SSG Consulting and Key360 Systems . . . . . . . . . . . . . . . . . . . . . 1424 Stefanutti Stocks Mining Services . . 406 Technical Mechanical Services . . . . 1205 Technip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Teichmann & T3 Drilling . . . . . . . . . . . . 105 Tembo Gold Corp . . . . . . . . . . . . . . . . . . . . 621 Tenke Fungurume Mining SA . . . . . . 302 TGS, Kanu and Elephant Lifting Equipment . . . . . . . . . . . . . . . . . . . . 903 The JSS Empowerment Mining Fund . . . . . . . . . . . . . . . . . . . . . . . . . 1517 The Musangu Foundation . . . . . . . . . . 1316 Thermo Scientific . . . . . . . . . . . . . . . . . . . . 202 thyssenkrupp . . . . . . . . . . . . . . . . . . . . . . . . . 133 Tietto Minerals . . . . . . . . . . . . . . . . . . . . . . . .220 Tiger Resources Limited . . . . . . . . . . . . .322 Total South Africa . . . . . . . . . . . . . . . . . . . . 304 Trimble & Esri . . . . . . . . . . . . . . . . . . . . . . . . 519 Tsebo Solutions Group . . . . . . . . . . . . . . 802 Uganda Chamber of Mines and Petroleum . . . . . . . . . . . . . . . 1029 United Scientific (Pty) Ltd. . . . . . . . . . . 419 Van Vliet Trucks Holland B.V . . . . . . . 117 Vermeer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830 VINCI Construction . . . . . . . . . . . . . . . . . .620

Volvo Construction Equipment . . . . 807 Walkabout Resources . . . . . . . . . . . . . . . . 321 Wearcheck / Set Point Laboratories . . . . . . . . . . . . . . . . . . . . . . . . . . 804 White Rivers Exploration . . . . . . . . . . . . 417 World Bank Group . . . . . . . . . . . . . . . . . . 1305 WorleyParsons . . . . . . . . . . . . . . . . . . . . . . . 503 Xcalibur Airborne Geophysics . . . . . .803 ZCCM Investments Holdings Plc . . 603

Investec Bank Limited Johannesburg Stock Exchange (JSE) Knight-Piesold KPMG Lexpert Lonmin Ministry of Land and Resources of China Nedbank CIB PK Trucks Holland RAW Talks RBC Capital Markets Savannah Resources PLC Sedna Industrial IT Solutions Shumba Energy Sibanye Silver Wheaton South32 Standard Bank also trading as Stanbic Bank Stonewall Resources The MSA Group This is Gold Transnet SOC Ltd TSX & TSX Venture Exchange Uranium One Vedanta Zinc International Vital Metals Weir Minerals Africa World Platinum Investment Council

Mining Indaba™ Mining Izindaba Daily News

SPECIALITY SPONSORS Acacia Mining Plc African Development Bank Alphamin Resources Corp.

Anglogold Ashanti Avnel Gold Banro Corporation Base Resources Black Rock Mining Centamin CIRDI - Canadian International Resources and Development Institute Deloitte DSV Endeavour Mining Eurasian Resources Group Exxaro Resources Ltd. FLSmidth Fraser Alexander GoviEx Uranium Harmony Gold Mining Co. LTD

Dramatic Changes in Technology to Impact Mining We believe that 2017 will afford the mining industry the opportunity to take a deep breath and think about a strategy to go forward.

In a world where China is both the largest consumer and the largest producer of many commodities there is already evidence that many mining companies are thinking about “value over volume” – possibly for the first time.

By Jeremy Wrathall Investec

2

016 was a remarkable year for the mining industry globally. At the start of the year, and after a near five year bear market in commodities, many mining companies felt they were standing on a precipice and that the only way was down.

As the year unfolded, much to everyone’s surprise, the commodity prices improved rapidly and as a result the industry is now in a totally different place.

Costs are being better managed, debt has been paid down, commodity prices have risen and despite fears held only twelve months before, the mining industry has been remade. Now the industry must consolidate by using lessons from the recent past to forge a stronger future.

The commodities that we mine are highly valuable and are integral to our daily lives: Indeed, modern society could not function without them. Surely, now is the right time then to re-asses how such commodities are sold and to question whether mining companies can take control of their destinies like never before.

Over the coming decades, dramatic changes in technology will impact both directly and indirectly on the world of mining. The rapid rise of electric vehicles (EVs) is expected to have dramatic effects on many commodities – such as copper and lithium – and the industry will have to respond to such changes. The average EV uses around four times as much copper as a conventional vehicle, which is expected to have a profound effect on copper demand over the next twenty years. The rise in demand for lithium, as a key ingredient for batteries for EVs and for power storage, promises to stimulate an entirely new extractive industry, with its own challenges and opportunities.

Renewable energy from solar and wind is also changing demand for certain materials such as silver for solar panels and rare-earth metals for wind turbine generators. Technology is also making the discovery and evaluation of mineral deposits easier. Remote sensing technology is one example of this, whereby the presence of many minerals can be detected from satellite imagery, avoiding the need for expensive and time consuming land based survey.

The mining scene in Africa also continues to change. Many countries, which previously relied on oil revenues, are now having to recognise the need to develop other industries to remain competitive and relevant both locally and internationally. This compelled the mining industry to explore areas that have previously been off-limits. Furthermore, African governments and mining companies have increasingly recognise the power of working together to create a better life for citizens - but more can still be done.

All things considered, the years ahead appear brighter for the mining industry than many would have dared hope only a year ago. The industry is slimmer; more fit for purpose and has money in its pocket, but needs to think strategically about the challenges and opportunities ahead. The ability to innovate and drive change is core to Investec as a bank and we pride ourselves on being able to help customers do the same when faced with new challenges.

Transparency a Key Driver of Sustainable Mining

By Miriam Mannak Senior Writer, Mining Indaba

I

n the debate around sustainable mining practices in Africa, transparency and good governance are often punted as two vital ingredients. The idea is that greater levels transparency within the sector and among all stakeholders ensures that revenues are used for environmental sustainability projects and community empowerment.

The Africa Mining Vision, which was signed by all members of the African Union in 2009, plays a pivotal role in this, says Kojo Busia, senior Mineral Sector Governance Advisor at the African Mineral Development Centre (AMDC), an initiative by the United Nations Economic Commission for Africa (UNECA). He is also one of the participants in Thursday’s discussion around how transparency in mining fosters accountability and commitment to the Sustainable Development Goals (SDGs).

“The Vision’s key priority is supporting countries build transparent, accountable, and equitable systems to mobilise greater revenues from the mineral sector and work towards sustainable practices,” says Busia. “It, for instance, states that an efficient and transparent fiscal regime should catalyse social, physical and knowledge infrastructure linkages.”

The Africa Mining Vision’s core principles are aligned with the mission of the SDGs, which were adopted two years ago to tackle some of the world’s most pressing developmental issues.

Targets include better protection and restoration Mining Indaba™ Mining Izindaba Daily News

of ecosystems, halting and reversing land degradation, taking action to combat climate change, fostering human development, promoting sustained and inclusive economic growth, and creating decent employment for all.

This brings us back to transparency, according to Greg Radford, moderator of the above-mentioned panel discussion and the Director of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). This global membership-driven organisation provides governments of mining countries the opportunity to work together to achieve their own responsible and sustainable mining goals.

Kojo Busia, senior Mineral Sector Governance Advisor, AMDC

Policies, initiatives, and campaigns to address issues of transparency and fuel sustainable practices begin with strong institutions and certification schemes, Radford notes. “Developing credible and transparent certification schemes can help guarantee compliance with environmental standards whilst limiting the illegal trade in raw materials. Integrated local and national reforms can also help ensure accountability at the level of government, the private sector, and community.”

Union and the UNECA High-Level Panel on Illicit Financial Flows (IFF), led by former South African President Thabo Mbeki.

Busia agrees, referring to the AMDC’s involvement in boosting transparency and sustainability. “We assist countries to design better revenue-sharing arrangements between host governments and investors, whilst implementing strategies to better manage revenues for the greatest public interest.”

“IFFs occur at various activities relating to minerals, hindering mineral value chain development across Africa. As such, African governments have collectively committed to tackle IFFs in key policy documents including the Africa Mining Vision,” Busia concludes, adding that AMDC also assists decision-makers on strategies to optimise Africa’s mineral revenues in this context.

A key example of the AMDC’s work is its support of the collaboration between of the African

A 2015 UNECA study suggests that the illegal movements of money and capital from Africa stands at $50 billion per year, and that without IFFs from the continent, Africa’s Gross Domestic Product (GDP) would have been at least 16% higher than it is now.

12

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Technology

HALL OF FAME IN ASSOCIATION WITH

THE BROWN PALACE HOTEL, DENVER FEBRUARY 20, 2017 The International Mining Technology Hall of Fame recognises the technical innovators of our industry – past and present.

Hatch is the Industry Associate for the 2015 and 2016 inductions.

Calls for productivity gains and greater efficiency through innovative use of technology and sustainability ring true with International Mining’s efforts to promote those philosophies. Join the great networking opportunities when The International Mining Technology Hall of Fame recognises more of the industry’s pioneers.

Join these sponsors already sponsoring the International Mining Technology Hall of Fame

Three Majors and a Charter

By David McKay MiningMx

C

orporate maneuverings and political intrigue are likely to dominate South Africa’s mining landscape in 2017, with firms such as Anglo American, Glencore and Gold Fields expected to feature prominently and the elusive mining charter set to top the agenda.

Glencore announced it had come to the end of a restructuring in which it lowered debt roughly $10bn to about $16.5bn – a development that opened up the resumption of dividend payments starting with a $1bn payout this year. It also raised the possibility of buying up shares it doesn’t already own in Mutanda, a copper mine in the Congo, soon after it unveiled plans to buy a 19.5% stake in Russian oil company, Rosneft.

These developments alone have had analysts speculating whether this signals the end of the three- to four-year long bear market in commodities, or whether it is just a measure of the strength of Glencore’s own asset base.

As for Anglo American, 2017 is a doubly important year for the SA mining bellwether: firstly, because it turns 100 years old; secondly, the company is due to hive off its coal, iron ore and manganese assets, possibly through a demerger.

The investment opportunity is whether to hold on to shares in the demerged entity should Anglo take this restructuring option (instead of selling its coal and iron ore assets which might raise difficult, head-spinning BEE challenges).

In February, however, all eyes will be on Nick Holland, CEO of Gold Fields, when he unveils new production targets and reserves for the firm’s large SA asset, South Deep. Any downgrade will put a

NICK HOLLAND

NEIL FRONEMAN

CEO, Gold Fields

CEO, Sibanye Gold

new spin on Gold Fields’ somewhat aggressive merger and acquisition strategy of 2016.

The efforts of Gold Fields will be mirrored in some way by Sibanye Gold with its R30bn bid for Stillwater Mining Company. All indications are that Sibanye’s expansion drive is not over (having already bought Aquarius Platinum and Rustenburg Platinum Mines).

CEO Neil Froneman’s corporate odyssey is also partly informed by disaffection with the business climate in SA mining and delays with the mining charter.

The charter, in fact, featured prominently last year, with the much disputed ‘once empowered always empowered’ issue taking center stage. The expectation was that the Department of Mineral Resources (DMR) was to gazette changes to a redraft of the mining charter in the dying days of December, but that did not materialise.

If the markets are improving, it would be a crying shame that SA mining missed out on the opportunities owing to regulatory uncertainty.

Newmont Readies for Price Recovery

By Robyn Wilkinson Mining Weekly

H Guide pricing for tables in 2017 (ten-seat) is $2,500, five-seat $1,350, individual dinner ticket $295

Come and congratulate the 2015 and 2016 inductees Rainer Kahrger Joe Pease and Dr Bill Johnson Dr D.R. Nagaraj Dr John Groom Duncan Crone Dr Terry Wiles Dr Daniel Bongers Ken Lane Morris Medd Hermann Paus Rick Howes

aving responded swiftly to the downturn in commodities prices over the past three years by lowering costs and optimising its portfolios, USheadquartered gold producer Newmont Mining is well positioned to outperform its competitors as the gold price recovers.

This is according to Newmont chief economist Tom Brady, who presented on the key fundamentals of the gold market and their effects on mining operations at Mining Indaba.

Newmont CEO Gary Goldberg points out that the company has also completed various growth projects at its operations on or ahead of schedule, and within or below budget.

“These portfolio improvements set the stage for Newmont to continue generating superior free cash flow, which gives us the means to keep investing in profitable growth, retiring debt and returning cash to shareholders,” he says.

“We have worked hard to survive the headwinds Mining Indaba™ Mining Izindaba Daily News

ALWYN PRETORIUS Regional Senior VP Newmont Africa

that have confronted the mining industry for the past three years. Over this period, we’ve had to take tough decisions and resort to innovation to keep our heads above water,” says Newmont Africa regional senior VP Alwyn Pretorius.

He add: “Although we are not yet out of the woods, we are excited that the dedication of our employees with regard to driving superior performance and advancing our purpose of creating value and improving lives through sustainable and responsible mining has won us recognition,.”

Newmont was named the Mining Company of the Year for 2015 by the Ghana Chamber of Mines.

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African Mining Connecting with the World...

...at Mining Indaba 2017

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2015/11/12 3:16 PM

Ethiopia Sets Sights on Unlocking Mineral Resource Wealth

Continued from Page 1

By Shireen Fisher Mining Indaba Reporter

of stakeholders, in the interests of South Africa and provide for investor certainty”.

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Government also hopes to entice investors to the country who will “engage us frankly as we move towards transforming our economy,” says Zwane.

According to him, moves are underway to improve regulatory efficiency through the integration of the applications of the mining and related rights, water use and environment permits, as well as establishing an “investment one-stop shop”.

conomic growth has doubled in the last 10 to 12 years in Ethiopia, making it one of the fastest growing economies in Africa. This, in turn, has encouraged a greater commitment from government to work with large and small companies, in a bid to develop the country’s resources.

Minister Motuma Mekassa, from the Ministry of Mines, Petroleum and Natural Gas in Ethiopia, says the country is on a solid growth track, owing to the country’s vast, untapped mineral resources.

Going forward, there will be a greater focus not only on economic diversification, but also the people of Ethiopia, according to Mekassa. The country’s economy has largely been based on agriculture, creating urgency for economic reform and a move to a more industrial-oriented future.

Mekassa alludes to government’s plan to unlock the full potential of developed resources with the intent to realise a 10% contribution from minerals by 2025.

Minister Motuma Mekassa

He adds that the sector will be focused on increasing foreign currency influx, importing raw materials from abroad and creating job employment. “We can also accommodate the youth in this area through micro-enterprises,” he notes.

The Ethiopian government is currently trying to work on Opal value addition. This underscores the importance of involving micro and small enterprises in order to more create jobs, Mekassa concludes.

SA Mining Charter...

This one-stop shop will work to improve efficiency by providing multiple services in a ‘Nine Point Plan’. The latter will focus on crosscutting issues, such as infrastructure and research development and innovation, as well as sectoral plans including mining and mineral beneficiation.

He concludes with looking towards the future of mining, noting that the focus has shifted to promoting investment in small to medium mining enterprises. “We are of the firm view that a new era of junior-sized mines is upon us. We believe most job opportunities lie with small to medium companies.”

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Continued from Page 1

Doing Things Differently...

As for Rio Tinto, people as a strategic resource and worker safety were the top priorities. Said Bold Baatar, Chief Executive, Energy and Minerals of Rio Tinto: “Safety is a top priority and all employees who go to work must return home safely.”

Both mining majors singled out sustainability as pivotal to all decision-making as a business with mining’s contribution to the Global Sustainable Development agenda of critical importance.

Mining Indaba™ Mining Izindaba Daily News

Sustainable, Responsible Mining – The Key

By Luke Folb Mining Indaba Reporter

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cacia Mining CEO Brad Gordon and Clive Johnson, CEO and president of B2Gold, outlined their vision for mining accountability at the start of the 2017 Mining Indaba on Monday.

“We don’t just want to be seen as a mining company,” said Gordon. Acacia, according to him, was looking towards increased social responsibility and already implemented programmes in this regard in Tanzania where they operate. Acacia has allocated between

US$10-15 million in funding towards helping the development of these communities, he added.

B2Gold’s Clive Johnson went on to echo similar sentiments saying: “We want accountability.” He pointed out that his company is promoting a philosophy of fairness, respect and transparency throughout the world. This approach has also seen B2Gold building a large mining community in Namibia, which included small business owners.

Both agreed that a commitment towards sustainability by all will be key in the effort towards greater economic growth in mining.

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