Page 49 - 100 years of Anglo American

Norman Mbazima

New rules,

NEW CHALLENGES

Anglo American determined to
help find a resolution to the
current regulatory impasse,

writes Jade Davenport

he mining sector in South Anglo American ownership schemes and facilitated community
Africa is being marred by an participation.
unprecedented state of wants to be part “Some of these ventures have been more
regulatory uncertainty, which is ’’ of the success of a successful than others, although this has mostly
not only forcing it to question been determined by the underlying success of
Tits short- to medium-term country because the asset,” says Mbazima.
investment decisions, but, more significantly, While Anglo American has also transformed
is jeopardising the very investible future of that engenders its board and management to more accurately
the broader mining industry. the success of the reflect South Africa’s demographics, it has
At the heart of this uncertainty is the focused most of its effort on external
question of how best to empower black South company itself. empowerment strategies to help historically
Africans in an industry that is still seen to be You cannot be disadvantaged black people get a leg up in the
owned and operated by the white minority. mining industry.
Since the middle of June, the department of successful in the “It is for that reason that it is very difficult
mineral resources has been attempting to force middle of chaos for us to ever be seen as an empowered
an empowerment structure where every company. Despite all that Anglo American has
company with an existing mining right is achieved, its image is still very historically
required to have at least a 30% black completed more than R67 billion worth of entrenched,” says Mbazima.
shareholding. empowerment transactions. In achieving this, Dealing with this conundrum requires Anglo
However, if Anglo American’s empowerment Anglo American has pursued six different American to apply its resources to assisting the
legacy has demonstrated anything over the past strategies – each of which have suited the resolution of the current regulatory impasse in
20 years, it is that a one-size-fits-all approach particular time, environment and situation. which the industry finds itself.
cannot work. South Africa’s mining industry is As South Africa’s largest holder of mineral Mbazima believes that at the heart of this
highly complex – from the nature and financing rights and assets, Anglo American, from the impasse is the fact that, at no time, has anyone
of the assets to the communities within which early 2000s, relinquished control of some major envisioned what South Africa’s mining
an operation is situated – so every mining rights to empowered companies to landscape should look like once empowerment
empowerment transaction has to be nuanced. facilitate their participation in the mining space. has been completed.
Norman Mbazima, Anglo American’s deputy It has also actively financed the development of “We need to be able to say our country will
chair for South Africa, has played a key role in a range of small mines for black individuals and be successful and happy if the mining industry
the company’s empowerment initiatives since companies, an example being the Imbani Coal looks like this. But we are not there yet.”
2003. operation in KwaZulu-Natal. He says that Anglo American is presently
“When we started undertaking these The company has entered into joint ventures applying its mind to this fundamental question.
transactions in the 1990s, there were no with empowered companies such as African “Mining Charter III is not the end state for
guidelines stipulating what empowerment Rainbow Minerals to run operations in a 50-50 the industry. So we are in the process of
should look like. We had to pioneer the process, partnership. It has also relinquished majority determining what that end state should be and
not only from the perspective of structure and shareholding in some key assets, which has how best we can contribute to that process.”
implementation, but also by determining what facilitated the emergence of powerful Driving this approach is the company’s
the fundamental spirit of empowerment should empowered companies such as Exxaro. century-old philosophy to be a profitable and
be,” he says. Conversely, empowered companies, such as good corporate citizen.
Since negotiating one of South Africa’s first Inyosi Coal, have invested in the company to “Anglo American wants to be part of the
empowerment deals in 1996 – the sale of Anglo increase its level of empowerment. success of a country because that engenders the
American’s stake in Johnnic to the National In every commodity in which Anglo American success of the company itself. You cannot be
Empowerment Consortium – the company has is involved, it has implemented employee share successful in the middle of chaos.”
ANGLO AMERICAN 100 YEARS 49