ARM CEO discusses elements for successful JV partnerships
Considering its long and successful history with joint ventures (JVs), diversified miner African Rainbow Minerals (ARM) CEO Phillip Tobias has noted the importance of mutual respect and transparency in JV partnerships.
Speaking to London Indaba chairperson and South African mining luminary Bernard Swanepoel on the second day of the indaba on June 26, Tobias noted that, as a partner in JV operations, it is important to consider the best interests of the JV.
“There’s different personalities . . . different philosophies, so [there is] the need to really make sure that we take our partners along, [as] they take us along,” he said.
He explained that, as a partner, long-term decisions need to consider the best interest of the JV, adding that JV’s call for an influential, as opposed to a positional, form of leadership.
He noted that this meant that, if there are disagreements between the JV partners, the parties must engage with each other. He said that, perhaps after a few engagements, one would be able to convince the partner to agree on a particular stance or matter.
“And at times, you may not necessarily land where you want to land and then you have to regroup and say, how do we move forward from there.”
Regarding capital allocation in the JV space, Tobias noted that ARM has a comprehensive capital allocation framework, whereby the company prioritises investing proceeds into the business, ensuring that operational growth is taken care of.
“So when we have to make an investment decision, you also need to. . . present your case . . . So I think what this calls for …[is] more work . . . one has to do his homework thoroughly, make sure that when you come up with an investment case, you know that you've considered all the scenarios such that when you present it, it must be a very palatable . . . for your partners.”
Tobias noted that ARM was keen to drive mechanisation at its Bokoni platinum mine, in Limpopo.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation