I convened the Mining Sector Consultative Forum in Pretoria today, 8 September 2015, with the aim of receiving progress on the implementation of the Framework Agreement for a Sustainable Mining Industry.
We had a fruitful, productive and successful meeting as compatriots, in the quest for solutions to challenges facing the mining sector.
The revitalisation and rebuilding of distressed mining towns and labour sending communities is one of our key priorities in this term of government.
The meeting took place at a critical time when the global as well as the local economy broadly and the mining industry in particular are confronting major challenges.
The global economy is experiencing a downturn which is posing a challenge for South Africa’s economy, which is a net exporter of key mineral commodities.
Recent Gross Domestic Product figures released by Statistics SA show that the economy contracted by 1,3% in the second quarter of the year.
It is our collective responsibility to resolve the challenges as the mining sector is strategic to the South African economy.
The Forum received a progress report on the implementation of the five objectives of the Framework Agreement.
With regards to ensuring the rule of law, peace and stability, the stakeholders agreed to continue to strengthen the monitoring capacity of any strike and protest action in affected mining communities, and to support initiatives to deal with illegal mining.
The multi-stakeholder Mine Crime Combating Forums have handled four thousand and fifty nine (4 059) reported incidents, which have resulted in arrests of 761 perpetrators. Sixty one cases are currently on the court roll. Ninety two cases have been finalised with a guilty verdict and six with not guilty verdicts.
Stakeholder Forums have been established to deal with illegal mining in Mpumalanga, Gauteng and the Free State, with a Forum set to be operational by November 2015 in the Northern Cape.
The forums consist of mining companies, unions, and Government through the SAPS, South African National Defence Force, Departments of Mineral Resources and Home Affairs as well as Municipalities.
The Department of Mineral Resources has initiated a programme to close and rehabilitate mines without owners to address the issue of illegal mining.
With regards to strengthening labour relations, a protocol for the verification of union membership has been developed and is being used currently.
Disputes over membership status, verification of membership figures, and recognition agreements are also fast-tracked for speedy resolution.
Stakeholders have agreed on the need to strengthen the full functionality of Future Forums which have been formed to mitigate the negative impact of downscaling.
In terms of the management of retrenchments, mining companies are required to submit notices to the Department of Mineral Resources and the Department of Labour, in respect of Section 52 of the Mineral Petroleum and Resources Development Act and section 189 of the Labour Relations Act.
Stakeholders have recommitted to implement the Declaration signed on 31 August 2015 to save jobs and alleviate the impact of job losses in the industry.
With regards to improved living and working conditions of mineworkers, in the 2014-2015 financial year more than four hundred and nineteen million rand (R419m) was spent of the ring-fenced budget for informal settlement upgrading.
This has been done in prioritised mining towns in the Free State, Mpumalanga and North West provinces. Overall over 5 000 units have been delivered in the 15 prioritised mining towns.
For the 2015-2016 financial year, the Department of Human Settlements has aimed to improve this delivery figure and has ring-fenced one billion rand (R1 billion) that is anticipated to deliver approximately nineteen thousand housing opportunities in mining towns.
The Departments of Trade and Industry, Economic Development and Small Business Development are facilitating both large and small scale industrial projects in the 15 mining towns and in the labour-sending areas.
In the North West and Limpopo, interventions are ongoing in Bojanala and the Greater Tubatse local municipalities respectively for the establishment of a Platinum Group Metals Special Economic Zone.
In the Eastern Cape, the agro-processing Special Economic Zone in the labour sending area of OR Tambo District Municipality has been established.
A second project in the Eastern Cape is the Vulindlela Industrial Park Revitalisation initiative in King Sabata Dalindyebo Municipality.
On matters of health and safety, the Department of Health, together with the Departments of Labour and Mineral Resources have been collaborating in establishing One-Stop Service Centres to assist former mineworkers with compensation, UIF and pension fund payments.
Centres have been established in Mthatha in the Eastern Cape and Carletonville in Gauteng.
The Mthatha centre is fully funded by government. Approximately three thousand former mineworkers have already made use of the services. Over one thousand five hundred former workers have made use of the services in Gauteng.
More centres will be established in other provinces, beginning in the Northern Cape and Limpopo in the current financial year.
Stakeholders have also agreed on the need to expand economic opportunities in the labour sending areas, and to fast-track economic development and economic diversification projects in mining towns and labour sending areas.
It has also been agreed that mining companies will work with government in the delivery of houses as well as water and sanitation infrastructure.
With regards to short to medium-term measures to support growth and stability, stakeholders continue to engage with the international and local investment community.
This will be done, for example, through investor road shows and participation in international and local conferences.
Plans are in place for joint participation at the Prospectors and Developers Association of Canada conference, one of the world’s largest mining conferences, in March 2016.
The Mining Charter Assessment for 2014 targets was completed and enforcement is taking place.
To date, a total of four hundred and sixty three (463) orders have been issued in respect of the non-compliance with the Mining Charter, while a total of 204 orders have been issued in respect of non-compliance with Environmental Management Plans.
With regards to long term measures to support growth and stability, the Mining Phakisa will be convened next month and will seek to position the industry as a catalyst for development.
The objective is also to maximise the development of the industry across all value chains in the country and to find win-win solutions for mineral beneficiation.
This effort will contribute to one of the nine priority interventions that I announced earlier this year to grow the South African economy through among other things, advancing beneficiation or adding value to our mineral wealth.
Stakeholders agreed that they will continue to encourage adherence by their respective constituencies to the commitments made in the Framework Agreement, including respect for the rule of law, denouncing violence and intimidation and ensuring that the industry remains sustainable into the future.
We have had a successful meeting.
We call on everyone in the sector to work together and play their part in building a sustainable mining industry and growing the South African economy.
I thank you.
