The legal risks for mining companies operating in conflict-affected areas are increasingly complex.
Mining is, by its very nature, a global business. Unlike most other industries, the mining industry has little scope for choice about where to locate – it goes where the minerals are located. Today, many of the most exciting under-explored and under-developed projects are located in conflict-affected areas. While mining projects in these countries can do tremendous good for local economies, companies operating in these jurisdictions assume a great deal of risk. Continue reading
Securing community and government support will require careful management of water resources.
Mining projects will find it increasingly difficult to secure community and government support if they fail to manage impacts on surface water and groundwater – not only during the life of the mine but in the post-closure phase.
This warning from SRK Consulting (SA) partner and principal hydrologist Peter Shepherd comes as African countries follow global trends in clamping down ever more strictly on water pollution from a range of sources. Mining is the second largest industrial user of water, using between seven and nine billion cubic metres each year – the equivalent of the combined water usage of Nigeria and Malaysia. Continue reading
Insecurity of electrical supply forces a move towards greater private sector participation.
CAPE TOWN, SOUTH AFRICA: Africa’s largest economy faced yet another critical power crisis earlier this month, the first since the devastating rolling blackouts South Africa encountered in 2008 when the country’s largest mines halted production for five days and were placed on a rationed supply of electricity there afterwards. The result was a loss of billions of rands as South Africa failed to capitalize on the global commodity supercyle coupled with significantly diminished output and a loss of worldwide investor confidence in the mining sector, one of the greatest contributors to the nation’s GDP. Continue reading
MAC Consulting helps businesses operate more effectively and efficiently.
Could you provide us with a brief introduction to MAC Consulting?
MVW: MAC Consulting was established in the mid-1990s with the aim of assisting mining companies to improve operational performance. As with the Indaba, we will be celebrating our twentieth birthday in 2014! Over the past two decades MAC has expanded its services and deepened its capabilities. We assist Continue reading
Greater collaboration between Africa and Australia is forthcoming, but what is ignored?
PERTH, AUSTRALIA – In the midst of the Africa Down Under conference, held at the end of August, West Australian Premier Colin Barnett declared that Western Australia is now prepared to extend its expertise in the development of regional mining law, tax structures, and environmental and safety standards. As highlighted in the Australian, “Barnett has made a landmark offer to work formally with African governments to help boost their mining industries, dismissing long-held fears that the continent’s emergence as a resources powerhouse poses a genuine threat to Australia.” Continue reading
The risk of under- and overestimating difficulties in Africa.
JOHANNESBURG, SOUTH AFRICA – The African extractive sector is back in the global spotlight. With 12% of global oil reserves, 40% of the world’s gold and up to 90% of chromium and platinum group metals (as estimated by the United Nations Economic Commission for Africa), it is not hard to understand why. The continent’s vast wealth in mineral resources coupled with impressive growth figures averaging at 5% annually over the last two years has given rise to great expectations in foreign investment flows. However, each of Africa’s 50 plus economies face challenges, both unique and general, raising the questions about the permanency of its new title of being the world’s second fastest growing economy.