Mining companies are often criticised for not doing enough for the workers and communities they mine in. Often one is confronted with the sad reality of mining heads living in luxury while employees and the community don’t. Another worrying factor is the sustainability of the industry. We cannot ignore the revenue it brings to the country.
I was pleased to learn about the Mining Sector National Consultative Forum’s objectives. The forum, which was convened by President Jacob Zuma, has outlined plans that will, once implemented, improve and sustain the industry. The forum, also led by Deputy President Cyril Ramaphosa, was attended by government, labour and business.
It is reassuring to learn that all parties who attended recommitted themselves to the Framework Agreement for a Sustainable Mining Industry and to finding lasting solutions to challenges facing the industry.
The department of mineral resources, I believe, will play a pivotal role in ensuring that we as a country continue to sustainably benefit from the mineral wealth we have. I always find pleasure in reading about this department’s continued effort of promoting and regulating minerals and mining.
We as a country must work together with this department. Mining communities, especially, will benefit from advocate Ngoako Ramatlhodi’s leadership. He has shown that he is capable of leading the country’s minerals and mining agenda.
I truly hope that we realise the commitments made at the forum. This will create and maintain an equitable balance between socio-economic imperatives and investment objectives. South Africa continues to tell the good story.
Neliswa L. Chiloane
Pretoria North
Who are true victims of legacy issues?
Hell will freeze over before a mining executive team and the directors of a mining company take full responsibility for environmental and social issues that arise as a consequence of and a direct result of mining. When it suits mining executives, they spurn arguments of legacy issues, such as the migrant labour system and housing of mineworkers.
When it suits mining executives, they proffer the argument that they are “victims” of legacy issues.
Ferdi Dippenaar, chief executive of Village Main Reef, claims he and his fellow directors are without culpability regarding contravention of environmental legislation (Business Report, October 6). The environmental issues facing the directors of Village Main Reef are legacy issues facing all mining companies today, he says. Therefore, how can a director of a mining company be held responsible for not complying with environmental legislation.
Now this is an interesting public relations spin on the part of the charismatic Dippenaar. It is standard practice that when a mining company acquires a mine from another mining company, a comprehensive due diligence is undertaken. As part of this due diligence the full extent of any and all environmental liabilities are investigated and quantified. There is no way that the board of Village Main Reef would have approved the transaction to acquire and/or take over Blyvoor without full knowledge of the environmental risks. From a purely accounting point of view, it is considered to be bad practice and high risk to have unfunded liabilities on the company’s balance sheet.
It is clear in all of the applicable environmental legislation that directors have fiduciary responsibilities to ensure that all risks and liabilities are recorded and provided for.
Principal among these risks is the management of environmental impacts in order to obtain a closure certificate when the mine is no longer being operated.
Unless and until a closure certificate is obtained the responsibility and contingent liability remains the company’s and its directors. In addition, many acquisitions of mines (gold, coal, platinum etc) are not concluded owing to environmental fatal flaws that have been quantified in the due diligence process.
That experienced executives with many years in the industry can try to cop out by hiding behind legacy issues is tragic. It puts fuel on the slow burning fires that executives are paid too much for doing very little. This begs the big question: when all the gold is mined out and dividends and bonuses have been paid, who will foot the bill for all the environmental destruction? It is the government and the taxpayer, and all those poor communities surrounding mines.
Who are the true victims of legacy issues? Certainly not Dippenaar who will, no doubt, have retired to his game farm by the time the true cost must be paid.
Fleur Honeywill
Robertsham
Overpopulation is major problem in SA
A topic of great importance in this country is that of overpopulation. How is it possible to “create” jobs? The “law of attraction” determines the sway of the job market.
Only jobs that are available can be offered. No more, no less.
The truth of the matter is that, if the majority of the uneducated population did not breed thoughtlessly and irresponsibly, there would be economic freedom for everyone. Just look at the demographics and ask yourself – why?
Why is there so much poverty and unemployment in this country – too few jobs for too many people? Overpopulation is the problem and what is of paramount importance is that this, more than anything else, needs to be addressed urgently!
The government should be focusing on an aggressive programme to address the mindset of those who can ill afford to pro-create without fear or favour, thus adding to the black pit of despair caused by poverty.
H. Lodetti
Durban