SA must 'improve' mining investment image

SA has no option but to radically improve its image as a mining investment destination

Reid's comments follow an announcement by the South African Institute of Race Relations (SAIRR) earlier this week that SA had become significantly less attractive as a mining investment destination since 2006.

"The results of the research done by the SAIRR echo the sentiments being expressed by a number of local and international resource clients. SA's slide to 67th out of 79 countries surveyed last year by the Fraser Institute annual survey of mining companies should come as no surprise. The year before, SA was ranked at 61 out of 72 countries surveyed, but there was at least industry optimism that matters would improve," Reid said.

He noted that this optimism had been based on the expectancy that the consultative process between government, organised labour and industry players through the mining industry growth, development and employment task team would help to resolve issues such as the reform and consistent application of legislation, violent and frequent labour unrest, labour supply and skills, the delays experienced in the processing of applications for mining and prospecting rights and the implementation of the policies adopted in the 'strategy for the sustainable growth and meaningful transformation of SA's mining industry' document.

"Regrettably, the mining industry growth, development and employment task team does not appear to have had much tangible success. Mining companies frequently find themselves at loggerheads with the unrealistic demands of the regulator.

The amendments to SA's mining legislation and regulatory framework were anticipated to have been finalised by late last year. This target is now late 2012, resulting in continuing uncertainty in certain significant areas of the law."

Reid added that the nationalisation debate had still not been resolved, although it was hoped that greater certainty on government's stance on the issue would be forthcoming at his year's Mining Indaba due to take place in February.

"The list of negative factors continues to grow," Reid remarked.

"To an ever increasing extent, SA finds itself competing for mining investment with other African destinations.

"In addition, investment resources are becoming scarcer due to the ongoing Euro crisis. Alternative markets in Canada, Australia, Asia and South America are expanding."

SA had no option but to radically improve its image in the mining sector.

"The mining industry can only do so much. The burden for reform lies squarely on the shoulders of government," Reid concluded.

• Having read all that, do you believe that "Nationalization of Mines in SOUTH AFRICA" is the correct way to go in averting the the loss of investors in South Africa??!
• If not what can be done in S.A to increase investments in the mining field??!
• And if NATIONALIZATION is the way to go then what effect will it have on the average South African looking to invest in the country??!