Minerals Council report reflects on mining industry challenges

The Minerals Council recently held its 134th Annual General Meeting, marking the end of Nolita Fakunda's three-year term as President. To delve into the key issues discussed during the meeting, CNBC Africa sat down with Mzila Mthenjane, CEO of Minerals Council South Africa. The AGM covered a range of critical topics affecting the mining industry, including electricity challenges, logistics issues, and concerns about crime and corruption. Mthenjane highlighted the progress made in addressing these challenges and emphasized the importance of collaboration between the mining sector and the government. Reflecting on the past year, Mthenjane noted that it has been a year of bold action for the Minerals Council. One of the main challenges discussed was the availability of electricity, with improvements seen in the reduction of load shedding days. However, logistics performance, particularly of Transnet Freight Rail (TFR) across mining corridors, remains a significant concern, impacting the transportation of key commodities like coal, iron ore, chrome, and manganese. The reliance on trucks due to TFR inefficiencies has posed additional challenges for the industry. The issue of crime and corruption within institutions was also acknowledged, with efforts underway to address these through the establishment of committees and enhanced security measures by member companies. Mthenjane praised the collaboration between the private sector and the government in tackling these issues, emphasizing the need to sustain this partnership under the new administration. When asked about the type of Mines Minister South Africa needs, Mthenjane stressed the importance of continuity and a minister who understands the challenges and opportunities in the mining sector. He highlighted the vital role of the minister in supporting industry growth and contributing to the country's economic development. While mentioning the positive working relationship with former Minister Gwede Mantashe, Mthenjane expressed openness to any minister who can effectively address the industry's needs and drive performance. Overall, the AGM provided a platform for stakeholders to discuss critical issues affecting the mining industry and underscored the importance of collaboration and strategic leadership in overcoming challenges and harnessing the sector's potential for growth and development.