Johannesburg - South Africa’s mining houses lead the world rankings in the sector for the number of women on their boards, but the industry still has fewer women directors than any other major industry, including oil and gas.
A new report by PwC, titled “Mining for talent 2014: A review of women on boards in the mining sector”, shows that South African mines have the highest proportion of women in executive management, followed by Canada.
The study focused on the top 100 and top 500 companies in the industry ranked by market capitalisation on any recognised stock exchange.
Women make up 23.8 percent of the boards of South African members of the top 100 listed mining companies, and 21.4 percent of those in top 500.
Of the 106 women directors in the top 100 mining companies globally, three hold more than one directorship. Of the top 500 listed mining companies reviewed, 14 had reached the critical mass of 30 percent of women on their boards, with six of these in the top 100.
The study also found a correlation between having more female managers and directors with improvements in areas such as governance, social and environmental performance as well as financial returns.
For example, earnings a share for companies in South Africa with all-male boards on average increased by 87.64 percent between 2009 and 2012, while companies with at least one woman on the board delivered a 168.49 percent increase.
Also, the dividend yield of local firms with all-male boards rose by 34.8 percent between 2009 and 2012, while that of companies with at least one woman on the board grew on average by 52.92 percent.
South Africa’s complex regulatory environment has been credited for the high representation of women on boards.
The Mineral and Petroleum Resources Development Act requires that opportunities be extended to previously marginalised individuals, while the mining charter stipulates that companies must comply with their transformation targets.
Of the 11 South African companies that were evaluated, only two did not have any women on their boards.
Commenting on the study yesterday, Cheryl Carolus, the chairwoman of Gold Fields, said being one of the few women executives in mining pushed her. “It makes me more determined to improve diversity. Gold Fields is making progress in its workforce with respect to women. I also have an eye on people with disabilities,” she said.
Nolitha Fakude, an executive director at Sasol, wants more women to sit on the boards of mining companies.
“I also want to see the sustainable transformation of this industry, which can be achieved through visible leadership where women are appointed in key decision-making positions within the company’s operations as executives rather than as non-executives,” she said.
The study collected data on gender diversity at the coalface and in senior levels in the industry, and assessd the impact of the women on the company’s performance.
It was conducted by PwC in the UK and sponsored by the three biggest mining companies, Rio Tinto, Anglo American and BHP Billiton.