Endeavour’s ex-CEO paid miner $1.35 million settlement after firing
The London-listed company removed Sebastien de Montessus in January amid a probe into an “irregular” payment.
South Africa’s mining sector is a key player on the global stage, holding some of the world’s largest gold reserves and leading in the production of platinum group metals.
The sector employs nearly half a million people and contributes about 7% to the country’s GDP.
The country recently experienced a shift in its political landscape, resulting in a new Government of National Unity (GNU). Notably, this was the first time the African National Congress (ANC) lost its parliamentary majority since coming to power in 1994.
According to mining analyst Peter Major, the mining sector has faced significant challenges since the ANC took over the government, particularly with the implementation of the Minerals and Petroleum Resource Development Act (MPRDA) in 2004.
“It’s been pummeled, beaten up, kicked,” said Major.
“It was able to survive the last twenty years because we were in a supercycle of metal prices. Had it not been for that, I really don’t think our mining sector would be even a quarter of today’s size. But because we’ve had twenty years of great metal prices, it was able to sustain itself but not grow.”
Major believes there is potential for the government and the mining industry to collaborate on new mining regulations.
“We’re cautiously optimistic,” Major told MINING.COM’s Devan Murugan.
Watch the full interview:
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