Bheki Sibiya: CEO of the Chamber of mines

Chamber chief says target of 26% black ownership by 2014 isn't mission impossible, writes Chris Barron

As head of the Black Management Forum and Business Unity South Africa, Bheki Sibiya lost no opportunity to drive transformation.

He talked tough, criticising black directors for not pushing change aggressively enough and relentlessly chivvying white companies for not meeting targets.

So his recent appointment as CEO of the Chamber of Mines is particularly interesting. It comes at a time when the government, judging by the belligerent comments of minister of mining Susan Shabangu, has lost patience with the slow pace of transformation.

Remarking recently that the industry had failed to meet last year's target of 15% black ownership, she threatened to stiffen punitive measures, which were too "benevolent", give her inspectors more powers and rescind mining rights.

She has given mining companies "a second chance" - by meeting the 2014 target of 26% black ownership stipulated in the 2002 mining charter.

Is that why Sibiya took the job? Because he agrees with the minister that the industry needs a good kick in the backside?

"It is a membership-driven organisation, so it is important that I report to the needs of the members," he says delicately, perhaps loath to ruffle feathers prematurely.

"And the stakeholders," he adds. "Because beyond the members, there are stakeholders."

He leaves no doubt that, by stakeholders, he means the country at large.

"Mining is so important to the economy that if mining transforms fully, the economy moves forward in its transformation. So, yes, it is part of the challenge that caused me to accept this appointment."

The minister has questioned the industry's commitment to change. Does he share her scepticism?

"If I did not believe there was a commitment to transformation in the industry, I would not have taken the job. If I believed transformation had been achieved, I would not have taken the job."

As leader of Business Unity South Africa, he said it was pointless to set unrealistic targets that had no hope of being achieved.

Does he believe a target of 26% black ownership by 2014 is realistic, given the failure of the industry to achieve more than 9% (according to Shabangu) in the seven years between 2002 and 2009?

"Three months ago, people thought it impossible we should stage the World Cup, but we did it because leaders said, 'Yes, we can.'

"It is a difficult goal, but it is an achievable goal. I certainly would not say it is mission impossible."

What is his reaction to the hostile tone the minister so often assumes?

"She is a patriot who wants to see her ministry contribute to the transformation of the country."

He believes there is a healthy spirit of "partnership" between the department, the unions and the industry through the chamber.

"You may find that it is a robust partnership," he adds. But if this makes for a better outcome, then he's all for it.

The department's hostility seems to many observers to be more appropriate to an adversarial relationship, with the industry seen as the enemy, rather than a partner.

Is he concerned that this might create a discouraging atmosphere for potential investors?

He recalls the catastrophe a few years back when a draft report about the government's BEE expectations was leaked and "the industry and investors took a pounding. Anything that gives us that kind of an experience would be a concerning development."

He concedes that "trust levels" between the government and industry need to be "improved".

The industry, through the chamber, needs to "highlight to the minister the benefits of working in partnership and point out how her department can win, and unions and employees can win, if investors are saying there is an environment of certainty and confidence, and they will continue to invest more."

Offering Sibiya, 53, the top job was an astute move by the chamber and its member companies. On one hand, he is likely to be a hard taskmaster when it comes to pushing for transformation; on the other hand, his record in business leadership and credentials as a champion of empowerment make him the kind of person the minister might listen to.

"We need to engage. There is no other way."

A softly-softly engagement?

"Co-operation will yield better results than any alternative I know of. But it's not going to be a case of, 'Tell us how high we should jump.'"

Political interference has been blamed for the industry's under-performance in the past 15 years relative to its competitors, but Sibiya is not so sure.

"This is the mystery I am wanting to understand as well. We need to learn from our failure to capitalise on the commodities boom."

He does not buy the argument that black ownership through pension funds should be taken into account when assessing the achievement of the 26% ownership target.

The goal is not only ownership, he says. It is managerial control.

He also rejects the argument that the primary goal should be profitability, rather than ownership, because the redistribution of the wealth of mines through taxation is a more effective means of transforming the lives of black people as a whole than transferring ownership, which benefits only a few.

"Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime. Taxes to the government are a fish for the year. Giving ownership to the empowered is the skill of fishing, which will feed them for a lifetime. But there must be a balance between profitability and transformation. If the mines are profitable, it will allow blacks to pay for their BEE equity so it is unencumbered by debt."

There is a growing fear in the industry that politics is taking precedence over the rule of law, with possibly damaging consequences for future investment in the industry.

The latest example is the government's award of prospecting rights to Imperial Trading Company, which has no track record but has close connections to the ANC and President Jacob Zuma.