SAfm’s radio anchor Udo Carelse speaks to Martin Creamer, publishing editor of Engineering News & Mining Weekly. Reported here is this Friday’s At the Coalface transcript:

Carelse: The biggest Electra Mining Africa show ever will be taking place in Johannesburg next month, from September 2 to 6.

Creamer: That's right, this is a show that is coming at the right time. There are going to be more than 30 000 people and 850 exhibitors, six huge halls and also outside exhibits and a lot of new technology being displayed. The mines, at the moment, are trying to really cut costs, because some of the commodity prices are not so good currently and this will be an opportunity to boost efficiency and to find ways of cutting costs. We are seeing the inflation rate in mining is being much higher than the normal that we experience in the CPI. So, I think that the timing is right, because we see that there is a possibility of cheaper money. A lot of people are predicting that the interest rates will come down and also that inflation will come down. You have got a better economic situation and you have got an opportunity with South Africa changing its mining outlook and bringing in the cadastre and all sorts of other mining advances. Everybody is really wanting to be there from 2 to 6 September.

Carelse: A gold mine in the DRC will be operating with clean, green energy for half of next year.

Creamer: I think that sets an example to the world. I mean, you have a lot of these mines throughout the world saying they are going green. They want to make sure they don't emit any more carbon, and they are taking steps to be net zero. Net zero is around not putting carbon into the air, but here you get Kibali Gold Mine in the DRC, where Africa is not associated with really trying to be clean and green, and Kibali will be up with extra solar power and hydro power to such an extent that for six months next year, they will be completely 100% clean and green energy users. I'm sure that there will be more solar coming in future, and  that they will be permanently 100%. At the moment they will be up to 85% but certain months of the year, six months of the year, they will be 100% green. Kibali is a very big gold mine. It is an example for the rest of the world, really, as to how mining can do it. We see that in South Africa, Exxaro will also, next year, have 68 megawatts of solar power at their Grootegeluk mine in Limpopo. So, South African mining is moving in the cleaner direction, but not as fast and as comprehensively as Kibali in the DRC.

Carelse: Major mining companies are expecting the interest rates to fall before the end of this year.

Creamer: This was interesting. There were so many comments, all coming this week at events that the media were attending ,where reference was made to cheaper money being on the way and that it is not only the interest rate cut that will be made in South Africa by South Africa’s Reserve Bank, but Reserve Banks just about throughout the main centres of the world are expected to cut their rates before the end of this year, and that will make a big difference to people's attitude to investment. Also, the inflation that was caused by the interest rates being lifted was high, and the hopes are now that there will be less cost aggression and more opportunity for investment through the fact the the money that you go out to acquire, to do things, to invest, will be cheaper. So a nice sort of setup coming, and hopefully will also benefit South Africa to move ahead at this time of multi-party government.

Carelse: Well, I tell you what those retail numbers were up year-on-year, which means that South Africans, even in difficult times, are still going out there and consuming, buying.

Creamer: Absolutely. So, I think South Africans are resilient. They do things, whether it is difficult or not. They overcome the difficulties, but if they make it more easy, I'm sure we will have a faster growing economy, which we absolutely need. I mean, we need 2% to cover the unemployment and if we don't get that, at least that, we are going backwards.

Carelse: Thanks very much. Martin Creamer is publishing editor of Engineering News & Mining Weekly.