In the mix of hard assets, human resources and entrepreneurial skill required for business success, the choice of leader is crucial and changes at the top can be traumatic experiences.
This was especially true for the diversified mining houses last year.
Likewise, changes in corporate strategy can have painful consequences for countries on the receiving end - like Zambia when Anglo American decided to pull out of Konkola Copper last year - and for the corporations themselves when competing strategies clash.
The largest resources groups listed on the JSE, Anglo American Plc and BHP Billiton, are now under new leadership, but the hand-over of power went far more smoothly at Anglo when Tony Trahar was appointed CEO in 2001.
The Australian financial media were still speculating furiously five months later over the real reason for the ousting of BHP Billiton CEO Brian Gilbertson. His exit did a lot of damage to BHP Billiton's investment profile despite the good impression made so far by his successor, Chip Goodyear.
After years in the doldrums, Randgold shares were one of last year's outperformers, soaring from R12 to R39 and then holding up well against the resources share squeeze of early 2003.
That can be attributed to the action of controlling shareholders Brett and Roger Kebble in lowering Randgold's stake in London-listed subsidiary Randgold Resources (RRL), combined with a decision to list on the Nasdaq exchange.
Junior mining group Metorex suffered as a result of its venture in Zambia and last year took a R112,4m impairment charge on the Chibuluma South mine, which it mothballed. But Metorex intends bouncing back and this year will start resuscitating Chibuluma South.
Metorex CEO Simon Malone is also doing his best to take advantage of the opening up of the SA mining industry through the new mining legislation.
Metorex teamed up with Cyril Ramaphosa's mining operation, MCI Resources, to buy the Eastern Transvaal Consolidated (ET Cons) gold mine from Avgold in February for R300m.
Metorex and MCI subsequently negotiated that price down to R225m at the end of April because of the deteriorating financial situation facing the gold mines.
But the hottest corporate activity of the past year has centred on the Northern Cape and the future of that region's iron ore business. Anglo has been crossing swords with the Industrial Development Corp, which bitterly opposed Anglo's attempt to buy 34,5% of Avmin and an initial 10,5% stake in Kumba.
The reason is still unconfirmed but it appears the IDC is unhappy about the prospect of the entire iron ore business in the Northern Cape being controlled by one player. Instead, it wants two separate players, which will require a rationalisation and carve-up of the existing operations controlled by Kumba and Assmang into separate "north" and "south" mines.
Anglo backed off on Avmin selling the 34,5% stake to the Harmony/ARMgold joint venture.
Assuming it eventually gets competition tribunal approval for its purchase of the initial 10,5% stake, Anglo will control 29,4% of Kumba.
Kumba is now the key player in what happens next in the Northern Cape.
The IDC holds a 14% stake in Kumba and an 8,8% stake in steel producer Iscor. IDC CEO Khaya Ngqula is the nonexecutive chairman of Iscor, into which the IDC has ploughed billions of rand and which will source 6,25 Mt/year of iron ore for its steel blast furnaces from the Northern Cape.
What is at stake is the future of a business that now exports 26 Mt/year of iron ore, will increase to 38 Mt/year by 2006, and could subsequently be pushed to 80 Mt/year.
Kumba and Assmang could both be radically affected by the eventual outcome. Iron ore is Kumba's most important asset, accounting for 60% of turnover and 74% of operating profit in the six months to end-December.
The faster Kumba can grow that business, the better for its shareholders. It's unfortunate that global markets are crying out right now for the extra iron ore and Kumba and Assmang are losing market share because they cannot supply it.
The second string to Kumba's bow is the potential Hope Downs iron ore mine in Western Australia, which is closer to the group's largest customer, China.
At this stage Kumba holds 49% of Hope Downs and Australian partner Hancock Prospecting, holder of the mineral rights, has the balance. A mine to produce 25 Mt/year of iron ore could be built for A$1,6bn, which would include a dedicated railway line and load-out facilities at the port chosen to handle the exports - if all goes to plan.
The latest word is that Kumba and Hancock are "evaluating funding options" for the project and these could include bringing in a third partner to share the cost.
Assmang finds itself in an interesting situation. It is the junior player in the Northern Cape, producing about 5 Mt/year of iron ore from its Beeshoek mine. The company is owned 50,3% by Avmin but Avmin does not have absolute control of the operation. Instead Assmang is run in terms of a joint agreement with the other large shareholder, Associated Ore & Metal (Assore).
Assore is controlled by chairman Desmond Sacco and his family interests. Avmin cannot do anything at Assmang without Sacco's approval and Sacco does not approve of what Avmin has been suggesting in relation to Assmang's role in the Northern Cape consolidation.
Events of the past year have also underscored the importance for many world commodities of the phenomenal growth in China's economy.
The growth in Chinese demand has more than offset the declines in countries like France, Germany and the US and kept prices of various commodities higher than expected.
Ferrochrome is one of them. Ferrochrome and nickel are what put the "stainless" into stainless steel and SA Chrome is reaping direct benefits from growing Chinese production of stainless steel. In March, SA Chrome formed a joint venture with China's Jiuquan Iron & Steel (Jisco) to double its ferrochrome production from the current level of 235 000 t/year.
The share price of diamond producer Trans Hex has taken a clubbing this year, dropping 43% to a 12-month low of R15 by late April. That's due to the strength of the rand against the US dollar and the impact of the draft royalty bill, which proposes an 8% royalty on turnover for diamond mines.
That's unfortunate, as Trans Hex is about to transform itself through expansion in Angola. It has apparently gained preferential treatment there through the political and business contacts of chairman Tokyo Sexwale.
In late April Trans Hex officially opened its Laurica alluvial diamond mine, which should produce about 200 000 carats/year at full output. Trans Hex has only a 35% equity stake in the mine but it still represents a quantum jump in growth, given that Trans Hex produced only 201 000 carats in total from its land and marine operations in SA in the year to end-March.
Trans Hex intends rapidly developing a second alluvial mining operation in Angola which will also produce around 200 000 carats/year and Sexwale indicates there's more to come after that.
As developments at Palabora Mining (Palamin) show, the old proverb about there being "many a slip 'twixt cup and lip" still holds plenty of truth.
This is SA's largest copper producer, which for the past seven years has been involved in development of a new underground mine to take over from the opencast pit which reached the end of its economic life last year.
Palamin shares are also at a 12-month low because of the strength of the rand and a nine-month delay in ramping up production from the new underground mine. That has put a strain on finances to the extent that Palamin's dividend drought could continue for another two years.
