Resurging commodity prices and tight fiscal environment will most likely re-energise calls for increased mining tax as the country draws closer to the elections. As a countermeasure, mining bosses may want to share gains with employees, writes Eddie Rakabe.
Mining bosses should cut the policy uncertainty scarecrow and enjoy the windfall profits – not forgetting the hefty bonuses, because for many people, including the very mine workers, uncertainty is an unending daily livelihood struggle.
Sibanye Stillwater's CEO Neal Froneman was recently quoted lamenting an unfavourable investment climate in South Africa after the company amassed a record R20 billion profit over a three-month period – benefitting from the surge in global commodity prices. For Froneman, the investment atmosphere is impinged by uncertainties around legal tenure of ownership (presumably expropriation without compensation process), labour disturbances, BEE re-transactions and energy supply constraints.