This conference chatter rounds up some of the more interesting remarks made during the first days of Mining Indaba in Cape Town, South Africa.
• Blackrock's global commodities head, Evy Hambro, on dividends and reinvesting capital:
"I think shareholders have been through a terrible downside. [In] the mining sector right now, if you are lucky, many of the share prices are trading at half of where they were at their height. That is not a great situation to be in. Patient shareholders who have been supportive of companies need an element of reward. Dividends make up a component of that reward." He said some companies had been better than others at paying dividends. "I think there is a chance that this needs to be corrected, and we are optimistic that it might happen starting this year."
"We absolutely understand that mining businesses deplete their assets every single day. Without investment, they will decline in time. Getting the balance right between the amount that is reinvested versus the amount that is returned is essential."
• Vedanta Group Chairman Anil Agarwal on his investment in Anglo American:
The metals tycoon and head of the Vedanta Resources Plc group of companies reiterated his appreciation for Anglo American Plc but said his holdings in the company are of a personal nature, not a strategic move.
"I realized that the company is very good. I always thought that ... Anglo American can perform much better [than it did at the time I invested]. I was not wrong. The [share] that I bought has gone up by 50%. It is an investment," he said.
However, he said he is not an activist shareholder and kept tight-lipped about potential shifts in his stake.
"I have no other plan except to remain as an investor. I am always very supportive. The management are very good. We support them and like them."
Agarwal holds a 20% stake in Anglo American through his Volcan family trust.
• Anglo American Deputy Chairman Norman Mbazima on the need to restart talks over the South African mining charter:
"We need to get back to the table and talk about a [South African mining] charter that we can both work with. There is definitely urgency from [the perspective of] the mining industry, and increasingly I see the urgency from a political side as well."
Mbazima said he was "very hopeful that with the improvement in the political environment that we have seen since December, we can now find the reset button and get back around the table. I cannot wait to participate."
He also urged a better understanding of the investor perspective and commitments by mining companies.
"Very large amounts of capital are needed to start a mine. Your capital is deployed over a very long period of time before it can be recouped. It is for this reason that investors require a clear, concise and consistent regulatory environment to justify investing."
