How is SA doing on transformation in the mining sector?

The transformation of South Africa's mining sector has been a hotly debated issue for years, with various revisions to the mining charter sparking controversy and discussion. The Minerals Council, in an effort to shed light on the progress made in this area, commissioned a research project to assess the transformation efforts of its member companies. Tebello Chabana, Executive of Public Affairs and Transformation at the Minerals Council, recently sat down with CNBC Africa to discuss the findings of the report. The research project focused on the latest data submitted by members to the Department of Mineral Resources and Energy (DMRE) in March 2019, reflecting the progress made in line with the 2010 mining charter, which concluded in 2018. Chabana highlighted that the sample of members represented approximately 79% of the mining industry on a headcount basis. The report revealed substantial compliance from the industry across various elements of the charter. Key points of progress included strong ownership representation at 39% black economic empowerment (BEE) ownership, procurement of goods and services exceeding targets, and employment equity meeting or surpassing the set goals. In particular, community development initiatives stood out with significant investment exceeding international norms. Despite these accomplishments, areas for improvement were also identified, such as the need for better gender representation within the sector. The report indicated that women accounted for only 20% of the mining workforce with a lack of representation at managerial levels. While most members met the 26% BEE ownership target, there were exceptions within specific metal groups, particularly clay producers and limestone companies. Furthermore, the report emphasized that the mining sector continues to face challenges in maintaining employment levels. Although commodity prices have improved, input costs and other factors have hindered significant growth. Looking ahead, Chabana highlighted the need for increased exploration and prospecting to expand the project pipeline and unlock the full potential of the country's mining reserves. Despite South Africa's vast mineral wealth, the lack of exploration investment remains a barrier to fully realizing the sector's contribution to the economy. Chabana stressed the importance of addressing these challenges to ensure the sustainable growth and development of the mining industry, a cornerstone of the country's economic history and potential. As the report provides valuable insights into the progress and challenges facing the South African mining sector, stakeholders and policymakers are called upon to work collaboratively to drive meaningful transformation and sustainable development in the industry.