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Is Mantashe up for the mammoth mining task

President Cyril Ramaphosa has appointed Gwede Mantashe as the new Minister of Mineral Resources in the President’s highly anticipated cabinet reshuffle, which was announced Monday evening.

Mantashe who replaces controversial minister, Mosebenzi Zwane, who was implicated in state capture, will have to attend to an unstable South African mining industry, caused mainly by two contentious mining policies, the Mineral and Petroleum Resources Development Amendment (MPRDA) Bill (B15-2013) and the Mining Charter III.

According to the Fraser Institute’s Annual Survey of Mining Companies, in the Policy Perception Index (PPI), South Africa’s ranking declined by more than 14% since the introduction of the MPRDA Bill in 2013, and almost 5% following the publication of Mining Charter III.

As a consequence, South Africa now ranks 81st out of 91 mining jurisdictions globally, with a score of 42%, placing it in the third lowest position in Africa, together with the Democratic Republic of the Congo (87/91 with a score of 35 %) and Zimbabwe (89/91 with a score of 29%).

However, on the Investment Attractiveness Index, South Africa substantially improved its ranking from 74th out of 104 global mining jurisdictions to 48th out of 91 and a score of 62%. This new optimism was shared among delegates during the Investing in Africa Mining Indaba, earlier this month.

Tony Leon, Co-Chair and Partner, Herbert Smith Freehills’ Africa said, “If South Africa wishes to move out of the bottom league of African mining countries, it will have to re-set the direction of its mineral regulatory regime.”

He added, “While President Ramaphosa’s recent intervention in the Mining Charter III litigation is an important first step in addressing the country’s endemic regulatory issues, South Africa will have to do a lot more to catch up with its African peers. Re-formulating the Mining Charter in consultation with labour, business and communities and withdrawing the MPRDA Amendment Bill should be priority items in Minister Mantashe’s inbox.”

Full list of new and shifted ministers

Communications: Ms Nomvula Mokonyane

Energy: Mr Jeff Radebe

Higher Education and Training: Ms Naledi Pandor

Home Affairs: Mr Malusi Gigaba

Human Settlements: Ms Nomaindia Mfeketo

International Relations and Cooperation: Ms Lindiwe Sisulu

Mineral Resources: Mr Gwede Mantashe

Police: Mr Bheki Cele

Public Enterprises: Mr Pravin Gordhan

Public Service and Administration: Ms Ayanda Dlodlo

Public Works: Mr Thulas Nxesi

Rural Development and Land Reform: Ms Maite Nkoana-Mashabane

Science and Technology: Ms Nkhensani Kubayi-Ngubane

Social Development: Ms Susan Shabangu

Sport and Recreation: Ms Tokozile Xasa

State Security: Ms Dipuo Letsatsi-Duba

The Presidency: Planning, Monitoring and Evaluation: Dr Nkosazana Dlamini-Zuma

The Presidency: Women: Ms Bathabile Dlamini

Tourism: Mr Derek Hanekom

Transport: Dr Blade Nzimande

Water and Sanitation: Mr Gugile Nkwinti

With respect to Deputy Ministers, Ramaphosa said he had made the following changes:

Agriculture, Forestry and Fisheries: Mr Sfiso Buthelezi

Communications: Ms Pinky Kekana

Finance: Mr Mondli Gungubele

Public Service and Administration: Dr Chana Pilane-Majeke

Small Business Development: Mr Cassel Mathale

“The positions of Deputy Minister of Public Enterprises and Deputy Minister in the Presidency for Planning, Monitoring and Evaluation will remain vacant,” said Ramaphosa.

Pending the completion of their swearing-in as Members of the National Assembly, he said he intended to further appoint:

Mr David Mabuza as the Deputy President of the Republic

Dr Zweli Mkhize as Minister of Cooperative Governance and Traditional Affairs

Mr Nhlanhla Nene as Minister of Finance

Ms Reginah Mhaule as Deputy Minister of International Relations and Cooperation

The new Ministers and Deputy Ministers will be sworn in in Cape Town tomorrow.

“I wish to express my appreciation to all outgoing Ministers and Deputy Ministers for their service to government and to the people of South Africa,” Ramaphosa added.

The full list of ministers who have been fired:

Mosebenzi Zwane (mineral resources)

Lynne Brown (public enterprises)

Joe Maswanganyi (transport)

Des van Rooyen (cooperative governance and traditional affairs)

Faith Muthambi (public service and administration)

David Mahlobo (energy)

Hlengiwe Mkhize (higher education)

Fikile Mbalula (police)

Nkosinathi Nhleko (public works)

Bongani Bongo (state security)

 

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