• Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Index & Interview Directory
04 Section 1: Introduction
05 The Road to Recovery
06 ABSA Group Interview
07 PwC Interview
08 Regional Trends
09 Sustainability & ESG Gaining Momentum
10 SRK Consulting Interview
11 Nafasi Water & ZN Geo Services Interviews
12 Section 2: Production, Development and Exploration
13 Precious Metals
14 Gold Fields Interview
15 Harmony & Pan African Resources Interviews
16 Base and Energy Metals
17 Lepidico Interview
18 Trevali Mining Interview
19 Orion Minerals Interview
20 Vedanta Zinc International Interview
21 Kumba Iron Ore Interview
22 Diamonds
23 Lucara Diamond Interview
24 Debswana Interview
25 Section 3: South Africa
26 South Africa
27 Ministry of Mineral Resouces and Energy SA Interview
28 Minerals Council SA Interview
29 Seriti & Exxaro Resources Interviews
30 NSDV & ENSafrica Interviews
31 Insights on South African Mining Industry's Health
32 Section 4: Namibia
33 Namibia
34 Chamber of Mines Namibia Interview
35 RMB & Standard Bank Namibia Interviews
36 Walvis Bay Salt Holdings Interview
37 Insights on Namibia as a Mining Investment Destination
38 Section 5: Equipment and Services
39 The Journey to Modern Mining
40 Murray & Roberts Interview
41 Kal Tire Interview
42 Eazi Access Interview
43 METC Engineering Interview
44 Insights on Digital Mining Revolution in Africa
45 MEMSA Interview
46 Fabchem Mining Interview
47 Insights from Local Manufacturers
48 Energy
49 juwi Interview
50 Engie Impact & Vivo Energy Interviews
51 Howden Interview
52 Section 6: Sponsored Company Profiles
53 Trevali Company Profile
54 Murray & Roberts Company Profile
55 Concluding Remarks
56 Credits

Shirley Webber, Coverage Head of Natural Resources & Energy,

ABSA GROUP

"Many investors have a strong sustainability focus and capital will follow this route now."

Can you give an overview of Absa Group and the company’s role in the South African mining industry?

Absa Group Limited is listed on the JSE and is one of Africa’s largest diversified financial services groups, with a presence in 10 countries across the continent, representative offices in Nigeria and Namibia, as well as international offices in London and New York. We offer a wide range of products such as investment banking, corporate banking and risk solutions, with strong execution capabilities and access to critically important relationships.

Absa understands the complexities of the mining sector across Africa. We believe that investors will be looking at diversified portfolio investments with a clear strategy in decarbonisation, with transparency on economic impact, communities and the environment. Capital will follow sustainability.

How did the pandemic impact the Southern African mining industry, and to what extent are countries on their journey to recovery?

Although Covid and the lockdown regulations have had adverse and far-reaching effects for many sectors, it has accelerated the energy transition from fossil fuels to greener, more sustainable energy, particularly across Africa. As a continent we are rich in natural gas and energy minerals/metals such as copper and cobalt and these deposits will ensure that economic growth continues for Africa and that more governments will promote the use of greener energy technologies.

Many African countries had a lockdown period where the mines physically closed, and production was halted. However, the mining industry recovered rapidly and precious and base metals held their own when it came to price levels.

What are your recommendations for South Africa to regain its title as the mining giant of the region?

A stable political environment, regulatory certainty, labour peace and democracy are important to ensure that South Africa remains an attractive investment destination. The recent mining charter in South Africa was a positive regulatory turning point for the mining industry. This stability should continue with the country’s monetary and fiscal policies. Investment will also be dependent on the government’s behaviour during election years. Many investors now have a strong sustainability focus and capital will follow this route now. Protecting the environment and ensuring that rehabilitation happens will be crucial.

How is Absa assessing opportunities in the renewable energy space?

There are significant renewable energy investments in Africa. South African legislation has changed in terms of power generation, and mining companies can now apply to put up their own power plants with increased power production capacity limits. We have seen a surge in these types of requests, where Absa either considers balance sheet funding to the companies or funding via an Independent Power Producer with an offtake agreement. Water reuse is also essential for green mining, and most mining companies are recycling to ensure that extraction happens sustainably.

In September 2019, Absa signed up to the United Nations Principles for Responsible Banking, thereby undertaking to align business strategy with society’s goals. The key to unlocking growth in Africa is for all stakeholders, such as communities, corporates, financial institutions and governments, to collaborate responsibly and support environmentally, socially and economically viable projects.

Which countries pose the highest and lowest risks regarding mining investment?

The ratings methodology adopted by rating agencies for African countries places the continent at a scale that is relatively high. Absa is comfortable lending in countries where we have a physical presence, with us considering more aspects when lending in countries where we do not. Adequate electricity supply will impact the extent of investments as well. Financiers will have to start considering the non-traditional commodities such as most of the energy minerals and metals to ensure we assist with the energy transition. In terms of commodities, I believe that platinum and palladium have excellent prospects for the future, together with the rise of energy minerals and metals.

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Interview: PwC