Modern Mining February 2016

EVENTS

as continuing its rehabilitation of the his- toric Kipushi copper-zinc mine, also in the DRC). The company’s Chief Executive, Robert Friedland, a regular – and popular – speaker at the Indaba gave his normal upbeat presen- tation, arguing that there was a (relatively) positive outlook for PGMs, copper and zinc and describing Ivanhoe’s African assets as world class. Friedland – who last month was inducted into the Canadian Mining Hall of Fame – said the Platreef underground mine in South Africa, already under construction and due for ini- tial production in 2019, would be the biggest platinum mine in the world, which would eventually exceed in size even its near neigh- bor Mogalakwena. He also noted it would be a highly mechanised and automated operation and said – with characteristic hyperbole – that workers at the mine would be professionals who would never have to lift anything heavier than a pen. Anglo American’s Cutifani gave some inter- esting facts on the parlous state of the mining industry, pointing out that the aggregated market cap of mining stocks in the FTSE All- share index had declined from US$555 billion at the start of 2013 to just US$169 billion on 1 January this year, adding that global mining stocks had lost US$1,4 trillion of market value since 2011 – more than the combined value of Apple, Exxon/Mobil and Google. He put forward the view that – at least on the supply side – the industry was largely to blame for its predicament, particularly in the case of certain commodities, having failed to adjust supply to align with decreasing demand growth. “There is no doubt that the downturn in min- ing commodities is having a major detrimental impact on people, supply chains and govern- ments at every level. From Western Australia, to South Africa, to Brazil, Chile and the US, resource-rich countries had grown used to the fruits of healthy taxes and royalties in all their planning and budgeting. They now have diffi- cult choices to make, as they’ve squeezed the pips dry on mining’s golden goose – if you’ll allow an Aussie miner to horribly mix his meta- phors,” he said. “Moreover, we can’t rely on a reversal of this price slump any time soon. For many of us in the industry, 2016 is already shaping up to be the most challenging yet. Opinions are divided on whether we have reached the bottom of the cycle … so things may still get worse before they get better.” Wrapping up his presentation, Cutifani said tremendous changes were taking place in the

theme, of course, was the commodities collapse and the changing role of China as a driver of world mining. Rio Tinto’s Davies, for example, who heads its Diamonds and Minerals busi- ness, while acknowledging all the negatives of the present mining environment, expressed confidence that China would remain “an engine of demand in our sector” in the longer term. “I visited China many times last year and I’m optimistic about the long-term economic story: consumption is contributing to about 60 per cent of China’s economic growth and new areas of growth are emerging,” he said. Davies also reaffirmed Rio Tinto’s com- mitment to Africa, telling delegates that the global drivers of long-term demand in Africa all pointed in the right direction. “That is why Rio Tinto, which currently has nearly 5 000 employees and contractors in Africa, continues to invest and explore the continent for future opportunities,” he said. “In particular, our exploration team is looking at potential projects in Botswana and Namibia.” He noted that even in the face of lower commodity prices, Africa remained a global growth hub. Another believer in Africa is TSX-listed Ivanhoe Mining, which is pressing ahead with its Platreef project in South Africa and its Kamoa copper project in the DRC (as well

Anglo American’s Mark Cutifani at the podium. The theme of his presentation

was ‘Making the right choices in the face of accelerating change’.

32  MODERN MINING  February 2016