BBQ editor Dr JJ Tabane was in conversation with Nolitha Fakude, the president of the Minerals Council South Africa and the chairperson of Anglo American’s Management Board in South Africa, about the challenges of transformation in the country
Nolitha Fakude has been appointed as the first female president of the 131-year-old Minerals Council in South Africa and talking to a leader of her exalted stature and experience, predictably led to a fascinating discussion about the state of our mining industry, including the transformation of mining.
We spoke about her role at Anglo American and, now, also at the Minerals Council. Most importantly, we also looked at the transformation of our economy. She is no stranger to dealing with difficult issues of transformation in a manner that makes her a trailblazer in this regard. It’s worth highlighting that she was the first woman president of the Black Management Forum—which turns 45 this year, and now she is the first woman president of the Minerals Council. Quite the legacy she is building.
She believes that there is no doom and gloom despite all the challenges that are faced by the South African economy in general, and the mining industry, in particular. She believes that the attitude towards change in the industry has changed. However, she concedes that a lot has to be done to hold each other as players to a gold standard in the council. This stood out for me, for I know that anything that is not measured will not be done in any significant way.
We conducted this interview on the ninth anniversary of the Marikana Massacre—a big blot on the name of the industry. One of the criticisms against the industry is that it leaves poverty and destruction in its wake. Fakude believes that in her work at Anglo, they have emphasised sustainability of the industry and deliberately sought to empower disadvantaged communities. You will see in her verbatim engagement below her strong views on sustainability and a scorecard of her and Anglo American’s track record on this question. She is proud of the existence of successful companies like Exxaro as a direct off-shoot of Anglo American’s contribution to BEE, making sure that the company’s success trickles down to a variety of players in the industry.
Fakude’s work at Anglo has been focused on creating sustainable partnerships with all stakeholders. She believes that this is the way to go to achieve any success, especially when dealing with transformation. She is a leader who is more open and leads with a purpose, as well as striving to lead with values. This is evident when Fakude says: “The people and values are at the heart of our strategy.”
The criticism levelled against big business is often that they ignore small business. This talks to the pillar of BEE that focuses on enterprise development. Fakude is proud of what Anglo American has done to establish and support small business. The key example here is Anglo American Zimele’s work in Limpopo and the North West, as well as in the Northern Cape.
Finally, Fakude concedes that the COVID-19 pandemic has amplified issues such as gender-based violence (GBV) and she is committed to getting on top of all issues surrounding women empowerment. In her tenure as president of the Minerals Council, she is committed to this agenda of women empowerment. She believes that corporates must do what is necessary to make sure that workspaces become safe spaces for employees, while the government must strengthen the justice system—which fails women when they are most vulnerable. It must be jacked up to respond to the pandemic of GBV. Fakude believes that there must be firm action to deal with issues such as sexual harassment through solid policies. She believes that a firm partnership with labour and other civil society bodies must be cemented. I wondered out loud whether this would be possible, but I suppose we will see this when we assess the impact she would have made at the end of her new tenure.
The criticism levelled against big business is often that they ignore small business
Fakude acknowledges that there are no easy answers to questions of change, but made a point of saying to me that she is a glass half-full and not a glass half-empty kind of leader. She approaches issues of transformation from a good place. Clearly, with the terrible statistics in corporate South Africa on issues such as employment equity, safety in mining, as well as general attitude towards change, she has her work cut out for her, but with this positive outlook she is clearly equal to the task.
Nolitha Fakude: In her own words
What can you tell me about the attitude towards transformation in the mining industry?
“The transition and the rebranding of the organisation from the old ‘Chamber of Mines’ has been a conscious and deliberate positioning of the organisation, which happened about four or five years ago. The Minerals Council has gone through its own journey as an organisation to understand its broader vision, which covers not only contributing as an industry to the economy that you are operating in, but also your credibility as a partner with the government and other stakeholders within that sector. Issues that have a broader social impact also stand high on our list.”
She explained that in order to achieve that, they had to change their positioning and even their name, because the concept of ‘a Chamber’ seems to be too narrow, whereas ‘Council’ suggests a broader perspective within the South African landscape.
On the issue of transformation in the mining sector, she points to the fact that the mining industry, as we know it today, is over 100 years old. It has its own history and out of that history we continue to look at the positive role of this sector and how it has been at the core of growing industrialisation in Southern Africa. Obviously, when we think about the contributions of mining in any community, or society, you cannot have a mine operating in isolation. The infrastructure that comes with building the mine covers a wide area: the roads it needs to construct, the water and the energy that it uses, and so forth. But key to all of it, is the engagement with the communities around it.
On her role at Anglo American, she says: “I joined Anglo American as Chairperson of the Management Board in South Africa in 2019, after having previously served on the global board of Anglo American from 2017. It was an exciting experience to come into an organisation which has got a positive history–when you look at how we have driven transformation and change in the last 20 years, and the difference we made on the issue of black ownership in the mining industry. You can see from our track record since 1994 that we have had more than 40 transactions on Black Economic Empowerment, creating new black-owned South African companies such as Exxaro, Sereti, Royal Bafokeng, and many other organisations along the way.
“Over and above that, we have seen a significant shift in leadership representation; from business to business. Where we sit today as an organisation in South Africa, in the three business units that we run, two are led by women. Natascha Viljoen leads Amplats and Mpumi Zikalala leads De Beers. Themba Mkhwanazi leads the third unit, Kumba Iron Ore. I am excited about what can be done to further the agenda of transformation! And, yes, we still have to deliver, especially with regard to the socio-economic transformation agenda. The issues are deep and broad in many respects in terms of some of the challenges that the industry still faces on the issue of transformation, specifically. Gender and economic empowerment are issues that all of us in the industry are significantly connected to and we hope we can do something about it.”
Let me get to the Minerals Council first. What’s your colleagues’ sense of appetite for transformation? Also, we are seeing in the media that communities feel nothing much has changed?
“I’m pleased that you are reacting to the role of sustainable mining with communities as a point of reference, and see that mining has an impact on various communities. It’s obviously one of those areas where we probably have a better leverage to do something positive as companies operating within the Minerals Council. It has really been about our Social Labour Plans (SLPs) which, in a way, stipulate that as much as mines have licences to operate, we have to work with stakeholders in that area. This often means your communities there, your executive mayor, and any other people who are decision makers there, to decide what the community’s priorities are—whether it is a road, a clinic or a school or any other social project. We do know that many companies go beyond just spending only on their SLPs. They do more to contribute to community issues, including education. We are at a level where we, as an industry, are working towards using best practices. But, for me, having been around for the last two years within the Minerals Council, just seeing how we have responded to the COVID-19 situation as an industry, is a demonstration of our commitment and goodwill.
“Most of our organisations during this period have continued to employ people, even in the Level 5 Lockdown period. In some instances, I know our colleagues were paying people even when they were not going to work. We also contribute towards projects within the communities that support education, issues of access to water, and health. You know, the mining industry has always owned clinics or hospitals around the areas where they operate and those have been used as healthcare centres for communities to access. There is a clear commitment from the leaders in the Minerals Council that the future of mining in South Africa, even globally, must be aligned to deal with the Environmental, Social, and Governance (ESG) issues. These are at the core of our strategies. When we talk about environmental issues, all companies have rehabilitation budgets that they put in place, working with the Department of Mineral Resources and Energy and even the Department of Environmental Affairs.
“It is also encouraging for me to see that there is more collaboration amongst like-minded companies within the mining industry on what we refer to as ‘regional development coordination platforms’. For example, the water situation, when there is an area with water scarcity, it must be empowered to provide water not only for the industry but also around agricultural development for the communities there. We’ve got another regional collaboration partnership in Limpopo, and again we are working with the Premier, and also with the community and business leaders. We look at what the development requirements are for those areas. If we partner and pull our resources together, we should be able to see a significant impact.
“As an industry, we are deeply aware that we have to continue this journey of change. You spoke about Marikana earlier, and the reality is that the Marikana tragedy is still very much with us. While a lot has been done, nine years later, since this terrible tragedy–we cannot ignore the hurt and pain the tragedy brought for many people in the country.
“Some of the things that have been looked at, for instance, have been the economic participation of the local communities in the procurement opportunities that are made possible by the businesses there. The lessons from Marikana are many and we continue to make sure that we deal with them. I think each and every one of us is clear that community and employee engagements are a key to the successes of this business.”
Would you say, with all that you have mentioned, that the Minerals Council has a monitoring mechanism, where you hold members accountable?
“We are accepting more and more that the council should be the standard bearer for best practices in whatever we do—whether it’s safety, community engagement, women empowerment or gender-based violence. Yes, it always includes protocols that are globally accepted around how you engage with communities. South Africa is not unique in operating with communities where issues are continuously contested; either with the company or even the regulator, for that matter. But what is important is how those engagements are actually managed. A platform that is being utilised is called, ‘Courageous Conversations’. This is an engagement with faith-based leaders who encourage conversations. It is led by Archbishop Thabo Makgoba. I do know that some of the companies I have mentioned do have bilateral engagements through the facilitation of the Archbishop and how we work to become good corporate citizens. So, we are not only looking at mechanisms to hold each other accountable, but we are also employing peer pressure. We are setting up standards by which we can operate fairly and equitably.”
You are saying that you are the ‘standard bearer’. But, at the moment, are you fully there yet? In other words, if I went looking, would I find, for example, a survey on transformation? Is it in your plans to conduct a survey that says, ‘Let’s have a look at transformation, in, for example, women empowerment’, things of that nature, that would then force all the other mining industries that have been lagging behind and who are slightly indifferent to these issues, to pull up their socks?
“There is an annual report about how the industry is performing in line with the pillars of the mining charter. You’ll see in the report how, by and large, the industry is doing. I think there is also a huge focus through the leadership of the council.
“And to the point where you may be suggesting that you have not seen any new transactions, Seriti, which was established in 2019, operates six large-scale, opencast and underground thermal coal mines, predominantly supplying Eskom power stations. It is a significant operator. And, recently, we have seen the setting up of Thungela Resources by Anglo American, which got listed on the JSE in July. I think what you are asking, JJ, is if we are comfortable enough with what is happening? I think it is a question we should all continue to ask ourselves: ‘What is enough and are we going beyond mere basic compliance?’ Many of us in the Minerals Council do believe that we should be going beyond mere compliance and do the best that we can—and many are doing that. Exxaro are doing great work, the platinum people are doing a lot of work, and, also, there is Anglo American. It’s not only about ownership. It’s also about on-going surveys about issues; things like safety, what is best for women empowerment, best practices, and procurement. We do know that, in some areas, we still have to catch up. So we have to be able to pivot, to come in line with the future.”
What is your term of office?
“Up to three years. But every year the AGM has got to decide if my leadership should continue.”
What are some of the things that we must judge your leadership against—two or three things that you are going to focus on?
“For me, it’s about the economic inclusion of women within the broader opportunities that come from the mining industry—and I’m saying ‘broader’, because it’s not only around our roles as professionals, but also about opportunities around procurement. The mining industry spends billions on procurement and we do know, by definition, that most of those procurements do go to the broader, historically disadvantaged communities. But when we actually start drilling and look at the women who are participating in that equally, the numbers are low. So, we have got to look into that. The second one is for us to continue as an industry to play the catalyst role for change in growing the economy and also pointing the way to how businesses can be positive contributors to the development of society and the economy.
“You know, we have got a challenge in job creation. We also have a challenge around creating new industries that are able to absorb the skills of the future. We believe that mining will be at the forefront of that, because we are at the forefront of introducing innovation and technology. That must extend the life of mining in such a way that we can continue to mine safely and, also, in a way that creates more job opportunities outside of the mine gates; even beyond the life of that particular mine. Economic development around those mining areas where we operate is crucial for us—hence this regional collaboration partnership process, using the SLPs as a lever to start funding some of those initiatives.”
Let’s move back to Anglo. Is there anything you want to share with our readers about what we can expect from your tenure at Anglo for the next 12 to 24 months?
“The one that links to the theme around economic empowerment in support of women is that over the last 12 months, and in the next 12 months, we are extending our programme over sustainable mining planning. How do we engage with communities? How do we contribute, again, economically, and create more jobs in those communities—not only by creating them, but by becoming a catalyst for creating more jobs by leveraging on the opportunities that we have in those areas?
“Besides the fact that we are still one of the largest capital investors in the country, as Anglo American, if you look at what we announced at the Presidential Economic Summit, we said we will spend R85 billion in new projects in various areas in a period of five years.
“Last year, we announced that it will now be R100 billion over the five years and we are now on year three. So far, we have spent R62 billion. That, for us, is about extending the life of mines and making sure we create different technologies that will also bring more sustainability to the ESG issues that we spoke about earlier on.
“We will be looking at furthering private partnerships to help us to rebuild the economy, because we do know that even pre-pandemic, the economy was challenged.
“One of the areas that Anglo American, and the Minerals Council, is looking at is to have increased exploration happening in the country. The role of mining going forward is still going to be crucial in making sure that mining, using innovation and technology, can help economies. Not only that, but the need for South Africa to transition better to the low carbon economy that we need to see, because that’s very important for the future.”
What about beneficiation? Is it a big discussion, at all, within the industry?
“Not specifically within the industry at this point, JJ, but it is a discussion that is being held by the Department of Trade and Industry, as we are talking about renewable energy and a low-carbon future. The discussion is around making sure that we have manufacturing happening in South Africa.”
Any final words on economic growth?
“As an industry, we still believe that there are more opportunities for us to grow and to help the economy of South Africa—especially if we can see opportunities unlock, for example, exploration. The opportunities that come with mining exploration can grow to trillions of dollars if they can be opened up. We have also seen, with the unlocking of energy and core generation, just in the mining industry alone, projects that have been in the pipeline and waiting for that 100 megawatt to come about. That is about R30 billion worth of projects.
“However, we do know that no industry works in isolation. As I mentioned, we have the rail infrastructure that needs to be fixed, energy security, which is your Eskom, and, also, we need inclusive economic growth to make sure we are clear with what we are talking about. As a country moving forward in a way that will still give all of us a voice and a role to play, we are going to require a lot of social partnerships and compacts.”
How is your relationship with the labour unions? Is there something on your desk that is going to mend those fences?
“Yeah! Social compacts are the way of the future, but, specifically, our relationship with labour unions is just as crucial for our industry. We could never have done the things that we have done, even in the last two years, without partnering and supporting each other as stakeholders. So the issue of ongoing engagements, while nurturing and working through those relationships, is important. It doesn’t mean that labour relationships will always be robust. But what is important is that we all work towards a common purpose and a future for the industry. At this point it is a healthy relationship and it is one thing I inherited from my predecessor.”
Finally, is there any particular area of concern that you think the industry is battling with?
“There are a lot of ongoing issues that we have to work on, like the one that I also mentioned, earlier, about gender empowerment and the involvement of women in the economy. It covers a whole lot of things, including gender-based violence and the exclusion of women from participating fruitfully. The other one, is how do we make sure that we work together collaboratively with the communities in making sure that there is more social impact in terms of how we develop and grow with the communities around us? Those issues do not allow one to grow to one’s fullest potential. So, those are the issues that we will continuously work together on with all the stakeholders. It’s not rosy, but it’s healthy and very encouraging to see that we are on the right trajectory.” 
Dr JJ Tabane is the editor of Black Business Quarterly.
Who is Nolitha Fakude?
Nolitha Fakude is the chairperson of Anglo American’s Management Board in South Africa, as well as the group director responsible for South Africa on Anglo American plc’s Group Management Committee (GMC). Nolitha has recently joined the Anglo American Platinum Board as a non-executive director and previously served on the board of Anglo American plc from 2017 to 2019. She has worked in and held senior executive positions in various industries and sectors, including retail, financial services, mining, and oil and gas. Until 2016, Fakude served as an executive director at Sasol Limited and executive vice-president (EVP) of Strategy and Sustainability. Fakude was the president of the Black Management Forum (BMF) from 2003 to 2006 and its managing director between 2000 and 2003. She now serves as a member of the Council of Elders, and is a respected authority on transformation and empowerment in South Africa. Currently, Fakude serves as the president of the Minerals Council of South Africa (MINCOSA), and as a non-executive director of the JSE Limited, Discovery Bank Holdings, and International Women’s Forum South Africa (IWFSA). She is a Patron of Guild Cottage home for girls. Her previous board roles include serving as deputy chair and lead independent director of Datacentrix Holdings Limited, chairperson of Sasol Mining, and non-executive director of Harmony Gold Mines and Woolworths Holdings, amongst others. Her accolades include; the 2004 ‘Most Influential Businesswoman’ by Financial Mail, Impala Platinum Young Entrepreneur Award, and the National Honor by the Golden Key Society of the University of Johannesburg. Fakude is an author of a book titled, ‘Boardroom Dancing – Transformation stories from a Corporate Activist’, which was published in 2019. She holds a bachelor of arts (Hons) degree in Psychology from the University of Fort Hare and completed the senior executive programme at Harvard Business School in the United States.
Nolitha Fakude
