Zuma’s new minister raises eyebrows

The appointment of the little-known Mosebenzi Zwane to the Mineral Resources portfolio has been met with surprise.

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Johannesburg - The appointment of the little-known Mosebenzi Zwane to the tricky Mineral Resources portfolio in President Jacob Zuma’s latest cabinet reshuffle has raised eyebrows.

Zwane replaces Ngoako Ramatlhodi, whom Zuma moved to the Public Service and Administration Ministry that was left open after the death in March of Collins Chabane.

He takes over the Mineral Resources portfolio in the midst of a mining slump, thanks to rising production costs, work stoppages, sinking commodity prices and labour unrest, which have resulted in retrenchments and closures.

Mining lawyer Peter Leon said it was a surprise development, while the Association of Mineworkers and Construction Union (Amcu) said Ramatlhodi’s removal was a strategic move to make way for mining companies who felt Ramatlhodi’s tough stance against non-compliance with the mining charter hampered their corrupt dealings.

“Ramatlhodi had taken a pragmatic, rather than idealistic, stance in the mining industry. Zwane is relatively unknown, so it comes as a surprise,” Leon said.

Amcu president Joseph Mathunjwa told The Star on Wednesday that Ramatlhodi had been a “hands-on” minister who not only stabilised the industry by ensuring the five-month platinum strike by Amcu was resolved, but dealt with corrupt officials and boosted investor confidence.

“During the five-month strike, Ramatlhodi intervened and he was recalled (from negotiations) by (ANC secretary-general) Gwede Mantashe when they held their conference and he was publicly humiliated. Ramatlhodi was embracing all stakeholders, in particular Amcu, and he was on record saying he was not going to play party politics but would embrace Amcu.

“Subsequent to that, he was pro-active in terms of compliance (with the) mining charter and the Mineral and Petroleum Resources Development Act. He was challenging these companies… why they don’t comply,” said Mathunjwa.

Ramatlhodi’s removal was “political” as he was an impediment “to the issuing of licences to a few connected people”.

“There’s a possibility he was… (saying) you can’t just get a licence because you’re connected… you need to comply,” he said.

The government was “not sensitive in terms of foreign investors” when considering Zwane.

“You cannot change such a ministry when we are faced by a global economic meltdown. It’s quite a strategic position.

“This person who’s coming in hasn’t led any department… his appointment will affect investor confidence. But Ramatlhodi was hands-on in terms of investments and saving jobs,” Mathunjwa said.

 

Ramatlhodi was criticised by some for his handling of the platinum strike crisis, especially the suspension of coal miner Glencore’s licence over planned retrenchments - a move he subsequently reversed.

Last month the government, mining firms and labour thrashed out a deal to stave off job losses and to make the sector sustainable.

 

The government and mining firms are also locked in a dispute over the interpretation of the empowerment clause in the mining charter, making for a difficult introduction to the job for Zwane.

Mining accounts for much of the country’s export earnings and also supports related industries, though its role in the economy has been on a long decline.

This is Zuma’s first reshuffle in his second term. There were four such moves in his first term.

 

Zwane was sworn in as an MP earlier this month and will be sworn in as a minister at the Union Buildings this afternoon.

He filled the seat in Parliament left vacant by fellow Free Stater Jonas Ramokhoase, who was redeployed back to the province.

Zwane was 11th on the ANC’s Free State list for last year’s elections and subsequently served as that province’s Agriculture and Rural Development MEC.

He had also been Free State MEC for Economic Development, Tourism and Environmental Affairs, as well as Co-operative Governance and Traditional Affairs, after a stint as mayor of the Thabo Mofutsanyana municipality, which was placed under administration.

craig.dodds@inl.co.za

anna.cox@inl.co.za

The Star