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MINERALS COUNCIL AGM

Energy Minister Mantashe takes a swing at mining execs who ‘insult the State’

Mineral Resources and Energy Minister Gwede Mantashe’s thin skin was on full display on Wednesday. In prepared remarks at the AGM of the Minerals Council South Africa, he complained about mining bosses who ‘insult the State’ – a thinly veiled reference to Sibanye-Stillwater boss Neal Froneman.
Energy Minister Mantashe takes a swing at mining execs who ‘insult the State’ Neal Froneman, chief executive officer of Sibanye. (Photo: Waldo Swiegers / Bloomberg via Getty Images) | Energy Minister Gwede Mantashe. (Photo: Gallo Images / Jeffrey Abrahams)

It seems that Sibanye-Stillwater CEO Neal Froneman has pushed Energy Minister Gwede Mantashe’s buttons – and not for the first time. 

“We have observed a growing temptation to insult the state by strong and powerful mining executives. Such executives have no regard for the industry’s international ratings and its relations with government, which makes it difficult to process industry issues,” Mantashe said in his address on Wednesday at the AGM of the Minerals Council, the main body representing South Africa’s mining sector. 

“The industry must further discuss the role of business associations who also find it fashionable to insult the government and the governing party – the ANC – projecting them as speaking for the sector,” he said. 

Pointing out the obvious faults of a state and a ruling party that have become bywords for corruption is not the same as “insulting” – a point we will return to shortly.

https://www.dailymaverick.co.za/article/2022-05-26-how-low-can-they-all-go-mr-president-the-case-of-the-still-unbreakable-mr-mbalula/

Mantashe did not name “the powerful mining executives” who got under his paper-thin skin, but Sibanye’s blunt-edged Froneman immediately comes to mind. 

Among many examples, in an interview with Business Maverick in March, Froneman said:

“My view is now that we are practically a failed state. It starts with inequality and poverty. This is not a mining issue; this is a national issue. This is a lack of leadership. 

“This is a lack of people at the highest levels taking proper action against lawlessness, against crime, and it filters all the way down through the system.” 

https://www.dailymaverick.co.za/article/2022-03-07-failed-state-sibanyes-froneman-paints-bleak-picture-of-sa/

“Whether it’s a simple thing like implementing an exploration policy, the government can’t do it; it can’t even fix its bloody admin systems to sign off mining licences. It’s a pathetic state of affairs,” Froneman said. 

One person’s insults are another person’s facts, and the fact of the matter is that South Africa in many ways does resemble a failing state.  

The Minerals Council alluded to this in a more diplomatic kind of way.

Procurement mafia, self-serving gangs stirring up community unrest, extorting supply and employment contracts from our members or participation in expansion or renewable energy projects. This has the effect of stifling investment and delaying projects to the detriment of the mines, communities and national economy. 

“This is an area that we need to see concerted efforts to arrest and convict the perpetrators,” the council's CEO Roger Baxter said in a statement after the AGM. 

Insecurity, lawlessness and Soprano-style shakedowns are facts of life for the South African mining industry. And they point to a failing state, whether the minister likes it or not. 

This list could go on, including the DMRE’s dysfunctional Samrad system for mining rights and prospecting application and its ongoing failure – for that’s what it is – to replace it with a functional cadastral system. 

Then there’s Eskom’s inability to keep the lights on; the shambolic mess that is Home Affairs; the collapse of public hospitals; roads littered with gaping potholes; wider service delivery failures – there’s that word again – and a host of other state breakdowns. 

Is it an insult to point out transparent facts? Or does the minister believe that the South African state under the ANC has a passing grade? 

If so, it must be based on a 30% pass requirement. DM/BM

 

[hearken id="daily-maverick/9562"]

Comments (10)

Confucious Says May 26, 2022, 08:35 AM

Let's put it this way Gwede; if you were not in government, you would not get through the first round of any job application anywhere in the world, for any job other than a menial, entry-level function. You and your team are so absolutely useless at anything that creates value. The biggest barrier to entry in SA inc is your incompetence and corruption. You forget... the public can tell you what they think!

Old Man May 26, 2022, 08:48 AM

The best form of defence is attack. Deflect and deny. Tried and tested by you. 100% behind Neal Froneman once again. Even Andre de Ruyter, after months of treading on eggshells, has to eventually say we have loadshedding also because Gwede has not delivered delivered on his IPP promise. As per today's article on the useless Fikile Mbalula we hope a similar article can also be written about Gwede and Bheki.

anton kleinschmidt May 26, 2022, 09:08 AM

@ Neal. If you are reading this, allow me to tip my hat to you. You are exactly whet South Africa needs. It would be great if more of the private sector CEOs could scrape up the courage to do the same. Instead we have craven obeisance.

Alan Watkins May 26, 2022, 10:14 AM

As the ultimate measure of Mantashe's incompetence and just plain stupidity, dont forget his address, as minister of mining etc, at a mining conference in Australia in September 2019, when he punted a newly discovered mineral called hazenile. All great except that this mineral was fictitious and was first mentioned in an Aprils Fool article. Which makes mantashe the fool I suppose. Consider further that there were hundreds of mining professionals at that conference; as Mantashe spouted about hazenile, they must have been looking at each other, thinking and probably saying WTF. And then Mantashe has the gall to complain about mining executives insulting the state, his state!

Alan Watkins May 26, 2022, 10:54 AM

An exerpt from EyeWitnessNews page. "Trade union federation Saftu has warned that South Africa is on a fast march to becoming a failed state. Acting president of the federation Nomvume Ralarala told delegates at the organisation's elective conference that the state was dysfunctional. "Today, you hear a minister announcing a R22 million flag and the next day you hear the president joking about the matter as if he was not part of the cabinet that approved the project. Tomorrow, you hear two ministers contradicting each other on the price of energy," Ralarala said. The federation's congress has now been wrapped up, with general secretary Zwelinzima Vavi voted back to the post" Now lets hear Mantashe complain about SAFTU insulting the state. Nevah!

Hermann Funk May 26, 2022, 11:02 AM

Mantasha, Mbalula & Co use their big mouths' to cover their insufficiency and personal insecurities. They should be fired and replaced by persons who can do the job.

Penelope Meyer May 26, 2022, 04:32 PM

So, we the people who you nominally serve, who pay you to manage our country and at whose pleasure you remain in that position, are not permitted to criticise you? Hold on, I must remember this for the next time my boss has a problem with me (although he NEVER does). I suppose we shouldn't be surprised at this attitude though, seeing as no amount of malfeasANCe, corruption and arrongANCe seems to put off the voters. Has Jesus been sighted yet?

Peter Oosthuizen May 27, 2022, 01:14 PM

Insult the State? In God's name, how can one insult this sorry mess?

Dragan KostaKostic May 27, 2022, 07:57 PM

All these mining companies do is to exploit workers pollute the enviroment ans corrupt the politicians Look at the history of South Africa. Capitalism was introduced to South Africa by the British especially Rhodes. This involved wars of conquest, land dispossession (1913 Land Act) and the introduction of wage slavery. Rhodes was not a racist he despised working people but supported the British policy of creating a native elite who would support British imperialism. The native elite generally welcomed such a policy at first for example Ghandi. The Afrikaners refused to work for slave wages (As reactionaries demand of the working class in every country today) also they feared economic competition from British Monopoly Capital. This is why Apartheid was invented. This involved massive state intervention in the economy and high taxes to support a welfare state for the whites. Big business was happy with this as the government oppressed the black working class and banned trade unions. However by the 1980s things were going badly the black working class was revolting and had forced the government to legalise trade unions. Big business then set about befriending the native elite who had become antagonistic to capitalism as result of the apartheid policy. Globalisation has destroyed the countries industrial base and the only way for the elite to make money today is by fraud and corruption .

Anesh Govender May 28, 2022, 08:30 AM

Where’s the insults? All everybody is doing is pointing out the obvious. We are a failed state where a small % of the population are taxed to poverty to make the ANC govt moola to fritter away and steal and enrich the bourgeoise class… then you get Kieswetter blowing his horn how SARs collected a a trillion rands of the backs of those taht actually work, put energy to turn the wheels of the economy that this govt has a history of botching… can’t wait for a new dispensation with govt working for the people.. ??