How current environment is affecting mining companies' strategy - Financial Mail

Chris Griffith, CEO of Anglo American Platinum, said one thing that was within the platinum industry’s control, unlike other precious metals producers, was to invest in marketing to grow demand. In the past couple of months it seemed government was listening and could help by issuing platinum coins.

Barton said marketing was particularly important in the diamond industry. De Beers’ long-term strategy was to increase consumers’ desire for diamonds. But the luxury goods market was experiencing continuous volatility. He said DBCM management in all its jurisdictions — SA, Botswana, Canada — spent a lot of time on partnerships and relationships, on safety and on motivating employees.

Executives said SA’s mining sector had some enduring strengths. ARM CEO Mike Schmidt identified the quality of local orebodies while Mike Teke, chairman of Masimong, identified SA’s strong infrastructure and expertise.

Charles Walters, CEO of Assore, said SA needed to focus on matters within its control, in particular its global cost competitiveness, and this should not only be a priority for the mining industry but also for Eskom, Transnet Rail and Transnet Ports, in the services they provide to the industry.

Schmidt said a lot of SA’s resources were still lying in narrow tabular deposits and the application of innovation and talent to mechanisation would help to unlock them.

The Joburg Indaba audience, representing largely mining managers and investors, indicated in a poll they thought the most exciting opportunity for SA’s mines lay in mechanisation and modernisation. They also believed mining executives’ first priority should be to deliver inclusive economic growth.