Despite significant progress over the last twenty years, the mining industry still faces many challenges in terms of employment diversity, corporate transparency and community involvement. This was underlined by a number of industry leaders at the Investing in African Mining Indaba, held this week in Cape Town.
At a round table discussion entitled "Are we on the right track for future-proof African mining", four senior executives from the sector shared their observations on how the industry has evolved since they began their careers.
Sinead Kaufman, CEO of Rio Tinto's Minerals Division, testified to the profound change that has taken place over the years. "Twenty years ago, when I started in the mining sector, it was difficult to find inspirational female role models. Today, the situation has changed considerably," she said.
In particular, she cited the example of the Richards Bay Minerals rare earths mine, where 55% of employees are women and there are no expatriates among the workforce, illustrating the progress made in terms of inclusion and empowerment of local workers.
The leaders also discussed the need for mining companies to reconcile immediate objectives with a long-term vision. It can take between 10 and 20 years for a deposit to become operational, while shareholders expect returns on their investment in the shorter term.
According to Kaufman, an imbalance in favour of short-term objectives can affect not only the profitability but also the reputation of mining companies. "The wrong balance could undermine the sustainability of operations and hamper efforts to create a more responsible industry," she warned.
While progress has been made, many challenges remain. Improved transparency and greater involvement of local communities in mining projects are among the priorities. The experts agree on the need to continue working towards a fairer and more sustainable industry that benefits both companies and local populations.
The Investing in African Mining Indaba continues this week with further discussions focusing on innovation, regulation and future prospects for the African mining sector.