MARK CUTIFANI: Scratching beneath the surface

For much of SA’s history mining has been at the heart of the country’s economic progress. It’s an industry that has played an immense role in the country's development, from the formation of the JSE — which was built off the back of the gold mining boom in the 1880s — to the development of Johannesburg city itself. In many significant ways mining has spurred growth in SA over about 150 years.

It has certainly not been without its challenges, and I for one would never want us to pretend it’s an industry without a complex history. But it’s this complex history, in my view, that has also helped spur the industry’s dramatic transformation. Today, mining in SA is far safer, more inclusive and connected to society’s evolving expectations. Despite this, an ongoing misconception about the industry seems to still fester — that ours is an industry that “takes more than it gives”.

The essential role SA’s miners have played in buoying the economy and providing a vast range of essential services — from water and electricity to healthcare and education — during Covid-19 has been discussed in the press and across  government, yet too few truly understand the real scale and extent of the role we play — day in, day out.

The numbers tell the story. Mining has a multiplier effect: for every R1m spent on mining production R1.3m is added to SA’s GDP and the government gains R330,000 in revenue. As SA works to stabilise its revenue and expenditure framework, mining has been at the forefront of delivering economic and fiscal value through its operations, providing the room for government to deliver on increased social expenditure.

In 2021, Anglo American’s total economic contribution in SA amounted to R135bn, almost 50% more than the prior year, reflecting the easing of the pandemic and the improved markets for the metals and minerals we produce. This substantial sum contributes to SA in many ways — including to the fiscus directly, through jobs, and supporting host communities and local businesses to thrive. When we do well, SA does well.

As a company that’s committed to our purpose of reimagining mining to improve people’s lives, our total economic contribution to SA goes beyond just paying wages, royalties and taxes. We have enabled local companies to thrive and grow through being very deliberate about procuring from local suppliers in our host communities and those owned by black South Africans and by women and young people. In 2021 this equated to R47.5bn spent procuring from local suppliers in SA. Furthermore, just under R1bn was directed towards social investment in the communities where we operate.

The value we add and share as an industry comes in many forms. Simply put, we are one of the few industries that truly shares the value we create — with our employees, governments and host communities, suppliers and our shareholders.

It is clear to me why mining matters. It matters to the close to half a million people directly employed by the industry in SA, whose lives and livelihoods have been mainly safeguarded during this time of upheaval. It matters to the thousands of small, medium and large businesses that have continued to benefit from mining procurement, even with the challenges we have faced in the last two years. It matters to the communities across the length and breadth of SA, who have benefited from the immense social and infrastructure investment from mining companies at a time when many other industries were scaling back their commitments.

This is an industry that continues to act with a fervent purpose to do more and do better. The more we deliver enduring value, the more we can share it with society in its broadest sense. Some still seem to hold the fallacious belief that mining companies are owned by “Randlords” or the magnates of yesteryear. That could not be further from the truth. In the real world the actual owners of SA’s publicly listed mining companies are millions of ordinary South Africans across the public and private sectors who are invested in mining through their savings, pension schemes and other investment mechanisms.

This is why I am passionate about the contribution we make as an industry, and the necessity to continue transforming ourselves for the benefit of all South Africans — who ultimately have a stake in this industry.

We also don’t turn a blind eye to the need to find continued ways to transform SA’s mining industry. A thriving economy that unlocks value for all its people is a non-negotiable, and this is why we are committed to supporting existing and new black-owned and controlled companies of all sizes. Anglo American has proudly been at the forefront of this empowerment charge for over three decades. We’ve helped establish many black-owned and controlled companies, from African Rainbow Minerals, Royal Bafokeng Platinum and Exxaro to Seriti Resources and many others that are extremely successful. We believe — and have demonstrated — that mining is everyone’s industry and not just for a select few.

Anglo American’s roots are proudly in SA. With a leading five-year investment programme of more than R100bn, we will continue to play our part to help chart an inclusive and more prosperous industry, now more than ever, so that we may edge closer to the promise of 1994.

As I prepare to hand over the reins at Anglo American I am confident that the company — and the industry as whole — will continue to work, every day, to ensure mining continues to transform. We owe it to the millions of South Africans who entrust us with their pensions and savings, and future generations, to lift ourselves above our narrow individual interests and work to serve better the needs of the modern economy and SA society.

• Cutifani is CEO of Anglo American.