Mineral Resources Minister Susan Shabangu on Tuesday heaped praise on Anglo American CEO Cynthia Carroll, hailing her as a mining model, and the Anglo head later flayed mine nationalisation and threw her corporation’s full weight behind South Africa.

Shabangu, who addressed a packed Mining Indaba of a record 5 700 delegates, followed the public Indaba praise that former Minerals Minister Buyelwa Sonjica similarly heaped on Carroll a couple of years ago.

Carroll, in her speech given a little later, said that the false prophets of the nationalisation of South Africa’s mines were “advocating a road to ruin”.

Carroll added that the current mining investments that Anglo American was making and considering in South Africa would not only benefit the next generation of South African children, but also their children’s children.

In mining, lead times were long, she said, and the investments worth billions of dollars and companies needed to be able to plan with confidence 20, 30 and 50 years ahead.

“Mining companies simply will not invest if they cannot be assured that the assets they create will be secure.

“In ignoring this truth, the false prophets who argue for nationalisation, are advocating the road to ruin, a path we must not follow,” Carroll said.

In an address aimed at reaching out to the investor community, Shabangu recognised the obligation of the government to provide the energy and logistics infrastructure essential for the mining industry to function optimally and heralded the going online of an electronic mining cadastre to streamline minerals licensing and to reduce turnaround time.

Shabangu’s few stern words were directed towards those sitting on assets without taking timeous steps to develop them, and she said that many instances were compelling her to apply the “use it or lose it” principle to speed up development.

She also reiterated the need to take full account the interests of near-mine communities around which most far-flung mines are built.

“The future lies in communities and the mineral wealth of the country. Cynthia, thank you for the role you have played. I appeal to all other role players to follow suit. I appeal to all other role players to follow suit,” Shabangu said, without spelling out the details of Anglo’s community contribution.

Shabangu appealed to all to respond to the needs of near-mine communities.

Carroll said her company aimed to benefit all stakeholders “and above all local communities”.

She believed in the creation of partnerships based on honesty, trust and transparency.
The role of government included ensuring the rule of law, a strong regulatory framework and to uphold the judiciary.

Taxes must not be subject to unpredictable change and government should resist introducing protectionism in difficult times.

Integrity and transparency, Carroll said, were the cornerstones of sound government and sound business.

For both individuals and companies, the knowledge that property rights would be respected and protected and companies needed to be able to plan with confidence.

Wherever corruption was allowed to flourish, the economy and the civil society as a whole would ultimately wither.

This was a lesson that was being learnt time and time again across the world.

“It would be a tragedy if the lesson ever needed to be learnt here in South Africa.”

The rule of law went hand-in-hand with the protection of individual liberty and of property rights.

It was critical that governments ensured that nations had a capacity to enjoy economic growth.

“Together we can succeed in building a bright future that South Africa and her amazing people so richly deserve,” Carroll concluded.