Mining Charter has not derailed mining investment - Absa

The 2020 Mining Indaba in Cape Town, South Africa has brought together local and global investors, all displaying a sense of cautious optimism towards the country's mining sector. One of the key themes dominating discussions at the event is the impact of the Mining Charter on mining investment in the country. In an exclusive interview with CNBC Africa, Shirley Webber, Head of Natural Resources at Absa, shared insights on the renewed interest in South Africa's mining industry. Webber expressed Absa's optimistic outlook on the increased activity levels within the sector. She noted that both large and small mining companies have been expanding their operations, not just focusing on mining output but also investing in expansionary capex and other related activities. This positive momentum is seen as a significant driver for economic growth and job creation in the country. The value chain in the mining industry plays a crucial role in ensuring the sustainability and inclusivity of economic benefits. Webber emphasized the importance of considering the entire value chain, including beneficiation and related activities, to maximize the positive impact on the economy. She commended the government's willingness to review and amend the Mining Charter in response to concerns raised by industry stakeholders, ensuring that regulations support sustainable economic growth. Despite initial criticisms of the Mining Charter, Webber highlighted that the industry has not experienced any significant disruptions, with mining operations continuing as usual. The cautious approach taken by industry players reflects a collective commitment to ensuring long-term sustainability and broad-based economic development. Amidst discussions about the cyclical nature of the mining industry, Webber stressed the industry's role as a key economic driver for South Africa. She echoed the government's commitment to supporting the sector and emphasized Absa's dedication to funding sustainable projects that contribute to the growth of the mining industry across the continent. By fostering a supportive environment for mining investments, Absa aims to position Africa as a leading destination for mining activities, driving growth and development across the region.