South Africa needs to modernize its rail and ports and provide reliable electricity supplies to boost growth in mining, said Anglo American Plc Chief Executive Officer Mark Cutifani.
The government must tackle unresolved issues in the mining charter and “bring stability” to Eskom Holdings SOC Ltd., the struggling state-owned power utility, Cutifani said in a speech to reporters in Johannesburg.
Mining was “once the bedrock of the South African economy, and now its flywheel,“ he said. Clearing uncertainties would create an environment in which “the rich ore that sits beneath our feet can be exploited for the benefit of all South Africans, affordably and efficiently.”
Anglo, founded in Johannesburg more than a century ago, is exploring options to boost production of platinum-group metals as prices soar. Its Kumba Iron Ore Ltd. is also also weighing options to extend the life of its giant Sishen iron ore mine by another 20 years from the current life of 13. The company is also spending $2 billion to build an underground operation at its Venetia diamond mine in Limpopo province.
Anglo’s platinum mining unit this year donated 270 hectares of land for housing in South Africa. Anglo is also working on a comprehensive initiative through its local businesses for further contributions to land reform, Cutifani said.