#MiningIndaba2020: MD of Menar, Vuslat Bayoglu on realising investment opportunities in African mining

The Managing Director of Menar, Vuslat Bayoglu, discussed the various investment opportunities in the African mining sector at the African Mining Indaba in Cape Town. Bayoglu highlighted the importance of sustainable technology and the need to address the climate change crisis facing Africa. He emphasized the significance of optimizing growth and investment in the digitized mining economy. The key to success, according to Bayoglu, lies in identifying promising opportunities in the mining sector and converting them into profitable ventures. In a conversation with CNBC Africa's Chris Bishop, Bayoglu shared insights into Menar's current investments and plans for diversification. Menar currently operates steam coal mines, enter sites, and manganese in the Northern Cape of South Africa. Additionally, the company has a Nickel-Cobock project in Turkey and a gold project in Kyrgyzstan. Menar is actively seeking projects in Zimbabwe, such as Crom, and in the DRC, such as Copper-Cobot. Bayoglu acknowledged the challenges facing the coal industry, with banks and financial institutions increasingly hesitant to invest in coal due to its controversial nature. He emphasized the complementary relationship between renewables and fossil fuels, noting that until a cost-effective energy storage solution is found, fossil fuels like coal will remain relevant. Bayoglu discussed the need to diversify into other minerals to minimize risk and adapt to changing market dynamics. He highlighted the investment opportunities present at the Indaba, with various African countries seeking investments and investors from Canada, Australia, and the UK expressing interest in the region. However, Bayoglu acknowledged the uncertainty in the market, with factors like the coronavirus outbreak and China's dominance affecting commodity prices. Bayoglu also reflected on the upcoming deadline for compliance with the new mining charter in South Africa. He expressed Menar's preparedness for the deadline, citing the company's proactive approach in giving shares to communities and workers at their operations in Piterative. Bayoglu mentioned that mining charter three presents opportunities for mining companies to enhance sustainability through community and worker empowerment. While acknowledging the potential challenges posed by certain provisions in the charter, such as the once empowered, always empowered issue and the recent amendment to the Labour Relations Act regarding retrenchment, Bayoglu highlighted the importance of maintaining an attractive investment environment in South Africa. He cautioned against overly burdensome legislation that could deter investors and increase the cost of operations, particularly during processes like retrenchment. Bayoglu shared insights from Menar's experience in Canada, where lengthy consultation and legislative processes around retrenchment proved to be costly and challenging for investors. He emphasized the need for a balanced regulatory framework that supports investment while ensuring fair treatment of workers. Overall, Bayoglu's interview shed light on the critical role of sustainable technology, diversification, and regulatory compliance in realizing investment opportunities in the African mining sector.