Programme Director
Ms Daphne Mashile-Nkosi, Executive Chairperson of the Kalagadi Manganese Mine and Members of the Board
MEC Block and other leaders of this Province
The Executive Mayor of the District and other councillors
Members of various financial entities
Ladies and Gentlemen
The last time I set foot on these premises was almost a year ago, on the 17 May to be precise. I was here to see for myself and get a sense of the progress that was made by a group of women who had the courage to enter the mining industry, which to this day is still dominated by males.
In the past it was dominated exclusively by white males and now – to paraphrase President Mandela - it is sadly beginning to be dominated by black males. I am very proud, once again, to be here at this mine and to join its band of female leaders as they celebrate yet another set of milestones.
Firstly, may I pay tribute to Ms Mashile-Nkosi and her team for inviting us to share this moment with them.
We are here to prove wrong critics who think we can reduce the achievements of women to a footnote, only deserving special mention during women’s month. Achievements by women and for women should instead become part of our DNA.
Those of us who are entrusted with the responsibility to do something to champion the cause of women will support these initiatives and do everything in our power to ensure that the commitments of the founding fathers and mothers of the post-apartheid mining jurisprudence are realised.
I remember vividly strolling, gambolling and frolicking in this exceptionally hot area. Those were the formative years of this mine. The mine had just started, and you were almost a third of the way. There were two separate channels with a depth of about 80 meters on the main shaft which was about 120 meters from the ventilation shaft.
As I understand it, you were worried about mining through clay with all the dangers that usually accompany such operations. You were also rightly concerned that you may encounter a lot of water, also, with all its problems. Finally, there were sprawling structures above ground as you were busy with the design phase of the civil engineering work. I am pleased that we can now see, with our naked eye, steel structures that symbolise the remarkable progress that has been made by Daphney and her team.
Whereas writer Thomas Friedman talks about the effect of information technology on India’s Silicon Valley in his famous book The World is Flat, we are here to talk about the impact that the pioneer women of our country are working hard change the male domination of our mining industry.
This ground-breaking operation is projected to have about 2 200 employees on completion. With 1 300 jobs already created, of which I am told 73% are from nearby communities, you are on the right track; let this be the model for other mining companies.
You have chosen a strategic mineral value chain in which to operate. South Africa’s ferrous minerals sector plays a significant role in the domestic mining industry, contributing over R60.6 billion, or 20 % of South Africa’s total primary minerals sales.
We are the second largest producer of manganese ore after China, contributing 16 % to the global output. We are also home to the second largest known deposits of ore in the world, which are concentrated right here in the Northern Cape.
The financial sector crisis and the subsequent recession of 2008 saw a sharp decline in global demand for steel, steel products and the inputs to steel production from traditional markets of the North. This, however, was partially offset by the high and rising demand from emerging economies in the East, driven mainly by China and India, and the rising impact from the ashes of the African phoenix.
Economic growth outlooks project a continued growth of steel demand and production of between 5 and 7 %. This augurs well for manganese production, as scope for further increases in the efficiency of manganese application is limited and there is currently no potential substitute for manganese in steelmaking. So manganese has a bright future ahead of it indeed.
In his State of the Nation Address, President Zuma, outlined government’s massive infrastructure development drive. Government has developed a comprehensive package that will see South Africa make a definitive break from the years of under-investment and skewed allocation of infrastructure.
The President also announced the launch of Transnet’s Market Demand Strategy, which entails over R300 billion in capital investment over the next three years, to increase availability efficiency and competitiveness of rail and logistics infrastructure. This includes the phased development of a new 16 million tons per annum manganese export channel through the Port of Ngqura in Nelson Mandela Bay. These are the building blocks that we are laying, brick by brick, to unlock the minerals potential of the Northern Cape with reference to its significant manganese endowment.
These investments will lead to the opening of new mines, increased export earnings, as well as community development, job creation and skills development from source to port.
Those of us who come from the Congress movement have since the days of the Freedom Charter bemoaned the lack of beneficiation by the mining industry. We have always argued that we need to do this in order to ensure that our resource endowments are exploited effectively to maximise the growth, development and employment potential embedded in those assets - and not just for profit maximisation.
We are here to give further impetus to this project as we believe that it will bring enormous benefits to the people of this province which remains largely poor despite the prevalence of the rich mineral endowment. The surge in demand for steel by China and other emerging economies is another window of opportunity that we must seize strategically to lift our people out of the triple evils of poverty, unemployment and inequality.
In this regard it is encouraging that Kalagadi Manganese aims to produce 3 million tons of Run of Mine Ore for the first level of beneficiation at the sinter plant here in the Northern Cape. This will be transported to Ngqura in the Eastern Cape for further beneficiation. This is a step in the right direction and is very much in sync with our overall beneficiation imperatives. I am sure that you will continue to search for other creative ways continuously to support value addition and industrial development linkages.
So you have demonstrated your ability to mine and to mine safely without major injuries. When you started, there were sceptics who gave these largely black and emerging women leaders no chance in a male dominated environment.
The feat of achieving 3.9 million man hours without fatalities deserves to be commended in a world where people continue to lose their lives particularly in hard rocks in an environment where profit margins seem to be driving business imperatives. Mbongeni Ngema, in one of his major plays, talks about the fact that defending something may not always be as easy as attaining it.
Of course he was referring to the freedom struggle but I want to suggest that you must guard against complacency. In fact, this is the most dangerous period where you must not lose concentration and be caught up in the euphoria of excitement about achieving milestones.
Women who make up about 37% of the workforce here have an obligation to lead the way and preserve life. This you owe to the memory of the martyrs such as Pinky Mosiane who was sexually violated and murdered in what should be safe underground workings.
In the midst of the gloom in the financial services market and downgrading in credit ratings, it is encouraging for South Africa and the mining industry in particular to receive positive ratings. This confirms the appropriateness of the policy and regulatory interventions which we are adopting to make South Africa a preferred investment destination for mining.
Although the government has its reservations about ratings research, the Frazer Institute’s report, made public on 24 February and showing higher competitiveness in our mining industry, is encouraging.
So as further to strengthen transformation and address some of the challenges associated with licensing, I announced at the Mining Indaba that a Government Gazette was issued on 6 February 2012, inviting representations from interested parties on a proposal to auction various categories of rights, that are either revoked or lapsed.
We have received submissions from parties and are interrogating these. These inputs will be taken into account and will inform our approach towards improving the quality of applications and transformation. The enforcement of compliance will continue, and right holders who are not complying may lose their rights. The culture of compliance with the terms and conditions of the rights must continue.
Finally, we take pleasure in joining Kalagadi Manganese in reaching these milestones. They have graduated from being a group that was not, as we say in the ANC, tried and tested. You are now entering a different league in this industry and I wish you well.
Congratulations and Aluta continua!
Address by the Minister, Susan Shabangu (MP), Minister of Mineral Resources on the occasion of celebrations on reaching shaft development milestone, Kalagadi Manganese Mine Umtu Shaft, Hotazel, Northern Cape
