Appointment of new Mining Minister will not solve the problems in the industry
23 September 2015
The appointment of former Free State MEC Mosebenzi Zwane as Minister of Mineral Resources is unlikely to solve the mining industry’s problems.
Zwane is unknown in the mining industry – and his two previous major appearances in the national media have been as a result of his involvement in the financially disastrous Vrede dairy project, which continues to lose money, and the invitation to South Africa by his Free State department to some of the Gupta wedding guests.
Zwane has, at best, been a mediocre MEC in the Free State Provincial government. Since the last election he has attended only one of two of the meetings of his Economic Development, Tourism and Environmental Affairs portfolio committee and has a bad track record of ignoring questions asked of him in the legislature.
There were allegations in the dairy project scandal of involvement by the Gupta family. That project continues to run at a loss and has cost the Free State some R190 million.
The Gupta family is involved in coal and uranium mining and have attracted allegations that their companies have flouted regulations. Zwane’s appointment will throw a spotlight on his relationship with them.
The departure of outgoing minister Ngoako Ramatlhodi comes shortly before the start of the mining Phakisa, a vital stakeholder meeting designed to find ways to put South Africa’s ailing mining industry back on track. This appointment may signal a change in approach by the Zuma administration.
The question then becomes: What can Zwane deliver that could not be delivered by other ANC heavyweights who know something about mining? Deputy Minister Godfrey Oliphant comes to mind.
Zwane does not appear to have any track record of involvement in the mining industry. What he does have is a record of following the orders of Free State premier Ace Magashule, himself a key political ally of President Jacob Zuma.
The appointment of lacklustre public officials in key economic sectors of government bears profound ramifications on employment and sector performance within the economy. The already depressed mining sector needs a mining minister with more experience than Zwane is offering and fewer ties to the controversial Guptas.
Statement issued by James Lorimer, DA Shadow Minister of Mineral Resources, 23 September 2015
