Investor confidence is no longer a standalone in the South African context, where it includes other key confidences.

In delivering 51% higher headline earnings of R4814-million in the 12 months to June 30, accompanied by a hefty R1.7-billion cumulative dividend payout, African Rainbow Minerals (ARM) executive chairperson Patrice Motsepe gave a view on investor confidence that goes beyond the norm.

In describing the need for ongoing domestic and global investment in the South African mining industry and the South African economy as being “critically important”, Motsepe added more ‘confidences’ to the key issue of investor confidence – the confidence of the poor in the future of the country and the confidence of black and white South Africans in the future.

It was a thought-provoking addendum to the facts and figures that were being put forward in a way that demonstrated South Africa’s high level of corporate excellence.

Motsepe repeatedly emphasised his own absolute personal confidence in South Africa’s future and singled out Anglo American Platinum, Assore, Impala Platinum, Norilsk Africa, Glencore, Vale and Zambian Consolidated Copper Mines for special mention, in light of the contributions these top companies have made to the success of ARM.

Mining Weekly can attest to Motsepe’s assertion that South Africa does have world-class corporate management. Its top companies not only do excellent work for their shareholders but also embrace their particular South African lot with vigour.

Another wonderful source of private-sector inspiration was last week’s Electra Mining Exhibition, at Nasrec, in Johannesburg, which was another prime example of the resilient spirit of South African business. The exhibition halls were humming with activity and demonstrated the confidence in South Africa of hard-working black and white South Africans and South Africans of all language groups.

The way South Africa’s mining industry problems are being addressed as the country’s economy finds itself in a recession is exemplary.

A mine like Impala Rustenburg, for example, has been losing money hand over fist because of the low platinum price and rising costs and the manner in which it is now working hand in hand with government, the community and labour to preserve the majority of jobs and limit minority job loss is exemplary.

The planned closure of five of the eleven shafts at Impala Rustenburg may now change into the commercial sale of those five lossmaking shafts to lower-cost buyers.

There have been many transactions in South Africa that involved the sale of mining assets to emerging companies with far lower overheads than the long-standing majors.

Motsepe himself entered mining by taking on gold mines that the owner no longer saw as fitting his high-level criteria. The upshot was that the lower-grade gold mines were turned to extremely positive account and the ongoing investment of ARM in Harmony Gold is a wonderful continuation of that early start.

Sibanye-Stillwater also rocketed into top-level contention by taking on the gold mines Gold Fields no longer wanted, as well as Anglo American Platinum’s discard platinum mines.