Tom Albanese, CEO of Rio Tinto, said that said the company was “underinvested” in Africa. This hot on the heels of the announcement recently that Rio Tinto sold a large part of their stake in Palabora Mining and a large proportion of their prospecting and mineral rights.
Rio Tinto does not stand alone. In the past week Xstrata announced a huge expansion project in Mauritania. A company holding some of the best ferrochrome assets in the world right here in South Africa find Mauritania less risky than South Africa? Surely something is wrong?
The Xstrata decision is better understood when we read that Mark Bristow, South African CEO of Randgold Resources, prefers to invest in a DRC project rather than a South African project. If that is not enough, Harmony Gold announced that a project to sink a new shaft has been canned.
Why this nonsensical decisions? I’ll tell you why;
In SA your mineral rights could be stolen by the family and close connections of the President – Sishen, ICT (Zuma, Gupta)
In SA the labour is expensive and uncompetitive, their laziness being insttutionalised by government and legislation
In SA management are vilified and threatened.
In SA, what is not stolen by the connected has to handed over to connected politicians in BEE deals
In SA there are no skills, the skilled manager’s work abroad for the big mining houses
It is because of this that we have fly-by-nights such as Khulubuse Zuma and Kodwa Mandela starting up companies like Aurora Mining; companies designed to destroy value whilst filling the pockets of their principals with money from “investors” with dark agendas.
It is no wonder then that people with “Ubuntu integrity” like Lazarus Zim – Chairman of Kumba and closely connected with the crowd who effectively stole the Sishen Mineral Rights from Kumba – the failed Tokyo Sexwale and Mzi Khumalo replaced people like Marius Kloppers (BHP), Mick Davis (Xstrata) and Jan Du Plessis (Rio Tinto) as the great South African Magnates. In the modern and transforming South African, mining magnate is understood to be someone like the crooked swindler and ANC darling, Brett Kebble. How much further shall we fall.
No wonder then that whilst the rest of Africa has to fight of Chinese investors, eager to get their grubby little hands on their mineral resources, Jacob Zuma has to make speeches in Beijing in a tone of voice one would normally associate with that coming from a beggar, urging the Chinese to invest in our resources.
Perhaps Zuma will still learn that mining requires huge investment and investors, no matter how rich, will not invest in business that could be stolen or driven into bankruptcy by a workforce that does not know the meaning of the term, work ethic