MINERALS COUNCIL SOUTH
MINERALS COUNCIL SOUTH AFRICA A catalyst for South Africa’s economic development Minerals Council South Africa CEO Mzila Mthenjane outlines his vision for how mining can transform South Africa. From playing a role in supplying the materials needed for infrastructure development to helping the country transition to a greener future, mining can play a primary role in putting South Africa on a path to prosperity. How have your first months in office been? I completed my “First100 days” at the end of November 2023 with, among other things, board approval of our strategic goals and a budget for the following year. I was pleased with the outcome. The transition was seamless given the extensive support that I received from my predecessor (he really helped me a lot in the process before I formally took over on 21 August 2023), the board, management team and family. Overall, it has been a “no-regret” and I remain extremely excited about the role and the prospects for the industry and the country. From a governance perspective, we have a board of directors selected from the members and five Office Bearers consisting of the President and four Deputies who are selected from the board. What are your goals as CEO? Firstly, my vision considers where we are as a country and the role that I believe the mining industry can play. As a primary industry, I maintain that it can be a catalyst for South Africa’s economic development, treated with intentionality to instil change and progress. We have a country that needs significant infrastructure development, not only in current terms relating to Eskom and Transnet, but beyond that in terms of road infrastructure, human settlements, communication and the need to connect our cities through all modes of mobility. That is going to need materials which mining is best positioned to provide. I have a vision of growth in mining output across several commodities, which can really transform South Africa in terms of the economy and social progress to a modern, culturally diverse and naturally beautiful country. At the same time, given the imperative for an energy transition, mining has an important role to enable the country to transition to a low-carbon future. Firstly, in terms of the production of the minerals required for light and resilient materials and green technologies. More importantly, in terms of the “Just Energy Transition”, the economic stimulus from mining will provide economic opportunities that create the foundation for a transition to a better life. It’s an industry that I am very passionate about in terms of the positive social, economic and environmental impact that it can have on the lives of South Africans. 16 | www.opportunityonline.co.za
Going beyond extraction? Absolutely, it is more than just about digging holes in the ground. It really is carrying the soul of people and transporting to a new future. What will tell us that a Just Energy Transition is in fact occurring? That expression, “Just Energy Transition”, requires elaboration. From an energy perspective, a Just Energy Transition first and foremost considers the fact that our current energy systems are largely based on coal. More than 75% of our electricity is coal-based and that remains a valuable energy and economic resource for South Africa. The whole value chain of electricity generation from coal mining to coal burning cannot be immediately abandoned. The potential negative impact of rapidly reducing coal inputs without consideration of the social and economic impact, would be unjust. How we adopt and adapt to new energy systems is important and a Just Transition would be occurring where we plan for continued (albeit declining rate of) use of coal but at the same time, we also plan to install renewables much more aggressively than we’re doing currently. In terms of generation capacity, we must be clear on what is viable and what is not. What are the possibilities of renewables? We should be ambitious and bold in terms of our renewable energy goals across a range of technologies, considering the constraints in terms of grid-scale storage, transmission limitations, sentiments towards nuclear energy and the pace of regulatory changes towards further democratisation of electricity management. The second part on the Just Transition is to look at the social aspect, ie how the shift in energy technologies is going to cause a shift to new skills and capabilities as well as livelihoods. We should not abandon people in current employment and in locations where coal-based mining and energy activities are based. We need to apply our minds to the social setting where coal is and how that is going to change (and needs to change). What are the alternative livelihoods? What are the new economic opportunities that we can create and invest in that will sustain livelihoods? Are you still engaged in the work of the Impact Catalyst? I have been Chairman of the Impact Catalyst for the past three years. The entity was created from the vision and anticipation of livelihoods beyond mining. Mines are transitionary by nature. What alternative economic opportunities can be developed when the mineral resource has been exhausted? This consideration must start while the current mines are functioning and generating a source of revenue to invest in future economies. In addition, future mine sites must be developed in a manner that will have minimum impact on livelihoods compared to today. The Northern Cape is attracting mining investment. Credit: Vedanta Zinc International Anglo Platinum’s hydrogen truck is the result of collaborations which are likely to increase within the sector in the years ahead. Credit: Anglo American Is there within the Minerals Council a desk dealing with the Just Energy Transition? The Just Energy Transition is multi-faceted and it can never be located in one place, so each one of us, in different ways contributes to the conversation and activities related to the JET. One of our senior executives is a commissioner on the Presidential Climate Commission. What is the potential for South Africa to help the world transition to a lower-carbon future? The significance of South Africa’s mining industry to the domestic and global socio-economic setting remains unquestionable. It starts with the role it can Richards Bay Coal Terminal is a key component of the logistics chain that ensures South Africa’s minerals can be exported. Credit: RBCT
