You are 15 months into your current job [as deputy CEO], did you expect the top job so soon?
There were no guarantees when I started. I was brought in to learn about the business, the culture, the people and strategic issues.
You are 15 months into your current job [as deputy CEO], did you expect the top job so soon?
There were no guarantees when I started. I was brought in to learn about the business, the culture, the people and strategic issues. The agreement was that when the time was right, I would make the move. The timing for me is perfect.
You have held executive roles at MIH and MTN. How have these prepared you for this job?
The MIH group did a couple of things for me. Firstly, I was constantly thrown in at the deep end, given challenges that brought out the best in me. I also learnt to run businesses operationally: to understand the people and legal implications.
Because my time at MIH started at the same time as the new South Africa, it also taught me the importance of government relations in business. MIH also taught me the importance of doing business in Africa.
I was privileged to be part of the team that led the group to Africa; I did not lead the process though. My small contribution was to help grow Nigeria as an area of focus and lead the listing of M-Net in the Nigerian Stock Exchange. And then MTN taught me that everything is possible. When we went to Nigeria, people said it’s going to fail. But we had a team, and worked at it and the results came.
How would you characterise your relations with the government?
They are pretty good. We have had one incident [the political risk debate imbroglio between Tony Trahar and President Thabo Mbeki] and [people took that to be] the sum total of our relations with the government. The most important thing is that we see it as a symbiotic relationship between the country’s largest company and investor as well as government with a role in areas like the provision of infrastructure investment and development.
What is your assessment of political risk in South Africa?
Let me answer that by saying there needs to be a distinction between political and country risk. In South Africa there is no political risk because we have moved radically from where we were. Country risk — which is what Trahar was talking about — is not an invention of Anglo American. Every country has [such risk].
So what is your assessment of South Africa’s country risk?
My assessment of South Africa is that it is a great place to do business. We have gone through a rocky time, with things like the leaked mining charter, but we have moved beyond [that]. We are now [in a position] where we are looking at exploring opportunities presented by the country’s mineral resources. You do not invest R124-billion in a place you do not believe in.
Let’s talk operations. Two weeks ago Anglo Platinum released what one analyst called a “negative trading statement” suggesting, among other things, that 2006 production forecasts will be revised downwards. How much of a headache is platinum to you?
It is not a headache. They have gone through a painful period with the currency and a strike. But it’s a good business, with a focused management, and we are getting on top of things.
Gold seems to be suffering the most from rand strength. What is the future of gold mining in South Africa?
Although it is true to say that there are fewer reserves than there have ever been, we must also look at what it has done, including building us the biggest inland city in the world, Johannesburg, which contributes significantly to South Africa’s gross domestic product. That is why we have deals like AngloGold Ashanti, to ensure that as [gold production] falls in South Africa we can grow it elsewhere.
What is your vision for transformation in South Africa?
Transformation is an important strategic initiative and I hope my appointment is an affirmation of the broader transformation agenda in the country. My role at the centre is to create mechanisms and policies for the group’s transformation.
I view it at a number of levels. Ownership and employment equity to ensure that we bring in [blacks and females] and that do not have a revolving door policy. I see procurement as a key driver of transformation because small business is where real business happens and where jobs are created.
You are investing R24-billion over the next five years, a quarter of what you invested over the past five, and you are drawing a declining share of profits from South Africa. How are you going to keep South Africa on Anglo’s global radar?
South Africa is important as Anglo’s country of origin and a significant contributor to profit. But it is also important for its mineral wealth, especially platinum, iron ore and coal. Those mineral deposits dictate that South Africa will remain an important part of the Anglo family.
The important thing is that as we grow the business here, we should also grow it elsewhere to diversify.
You have held executive roles at MIH and MTN. How have these prepared you for this job?
The MIH group did a couple of things for me. Firstly, I was constantly thrown in at the deep end, given challenges that brought out the best in me. I also learnt to run businesses operationally: to understand the people and legal implications.
Because my time at MIH started at the same time as the new South Africa, it also taught me the importance of government relations in business. MIH also taught me the importance of doing business in Africa.
I was privileged to be part of the team that led the group to Africa; I did not lead the process though. My small contribution was to help grow Nigeria as an area of focus and lead the listing of M-Net in the Nigerian Stock Exchange. And then MTN taught me that everything is possible. When we went to Nigeria, people said it’s going to fail. But we had a team, and worked at it and the results came.
How would you characterise your relations with the government?
They are pretty good. We have had one incident [the political risk debate imbroglio between Tony Trahar and President Thabo Mbeki] and [people took that to be] the sum total of our relations with the government. The most important thing is that we see it as a symbiotic relationship between the country’s largest company and investor as well as government with a role in areas like the provision of infrastructure investment and development.
What is your assessment of political risk in South Africa?
Let me answer that by saying there needs to be a distinction between political and country risk. In South Africa there is no political risk because we have moved radically from where we were. Country risk — which is what Trahar was talking about — is not an invention of Anglo American. Every country has [such risk].
So what is your assessment of South Africa’s country risk?
My assessment of South Africa is that it is a great place to do business. We have gone through a rocky time, with things like the leaked mining charter, but we have moved beyond [that]. We are now [in a position] where we are looking at exploring opportunities presented by the country’s mineral resources. You do not invest R124-billion in a place you do not believe in.
Let’s talk operations. Two weeks ago Anglo Platinum released what one analyst called a “negative trading statement” suggesting, among other things, that 2006 production forecasts will be revised downwards. How much of a headache is platinum to you?
It is not a headache. They have gone through a painful period with the currency and a strike. But it’s a good business, with a focused management, and we are getting on top of things.
Gold seems to be suffering the most from rand strength. What is the future of gold mining in South Africa?
Although it is true to say that there are fewer reserves than there have ever been, we must also look at what it has done, including building us the biggest inland city in the world, Johannesburg, which contributes significantly to South Africa’s gross domestic product. That is why we have deals like AngloGold Ashanti, to ensure that as [gold production] falls in South Africa we can grow it elsewhere.
What is your vision for transformation in South Africa?
Transformation is an important strategic initiative and I hope my appointment is an affirmation of the broader transformation agenda in the country. My role at the centre is to create mechanisms and policies for the group’s transformation.
I view it at a number of levels. Ownership and employment equity to ensure that we bring in [blacks and females] and that do not have a revolving door policy. I see procurement as a key driver of transformation because small business is where real business happens and where jobs are created.
You are investing R24-billion over the next five years, a quarter of what you invested over the past five, and you are drawing a declining share of profits from South Africa. How are you going to keep South Africa on Anglo’s global radar?
South Africa is important as Anglo’s country of origin and a significant contributor to profit. But it is also important for its mineral wealth, especially platinum, iron ore and coal. Those mineral deposits dictate that South Africa will remain an important part of the Anglo family.
The important thing is that as we grow the business here, we should also grow it elsewhere to diversify.