The President of the Chamber of Mines, Mr Mark Cutifani Chief Executive of the Chamber of Mines, Mr Bheki Sibiya,
Council members and Executives of Member Companies,
Distinguished guests,
Ladies and gentlemen.
It gives me great pleasure to address you this morning, at your Annual General Meeting (AGM) for the year 2013, the 123rd AGM of the Chamber!
We meet today at an interesting time in the mining industry. We have short- term challenges which necessitate that we look at things differently. The global economy is also experiencing a tough time. I have no doubt, however, that the future of South Africa’s mining industry remains bright.
It has indeed been a challenging year since the last AGM. The events which unfolded in Marikana in August 2012, mean it cannot be business as usual for the industry. I’m sure we all agree that we cannot let another Marikana happen in our lifetime. The spotlight is firmly on the industry, and it is up to all of us in this room to demonstrate how we are going to turn the situation around.
I have indicated on previous occasions that contrary to popular sentiment, the mining industry is not in ICU. This is an industry that is in the long-term a thriving one, and one that will most likely outlive all of us in this room. We therefore need to be responsible in the decisions we make for its long-term sustainability. What type of industry are we bequeathing to the next generation? What legacy are we leaving?
As government, we have led from the front in trying to resolve the current challenges in the mining industry – through the Peace and Stability Framework ,spearheaded by the Deputy President, Mr Kgalema Motlanthe, and the Presidential Package, led by his Excellency, President Jacob Zuma - focusing on housing conditions and living conditions of mineworkers.
We have demonstrated the seriousness with which we view the mining industry and its contribution to the South African economy, and our commitment to ensuring that it is stabilised and poised for further growth.
The Mining Industry Growth Development and Employment Task Team (MIGDETT), established in 2008 to deal decisively and jointly with issues in the industry, has contributed significantly in addressing challenges that the industry is facing, and we need to continue to ensure that it remains relevant and contributes to the broader objectives of the country. This partnership has served us well, and we must continue to nurture, strengthen and optimise its efficacy to deliver desired outcomes.
This 123rd AGM also coincides with the centenary of the Land Act of 1913. The passing of this Act marked an important milestone in the process of actively excluding the majority of our people from harnessing the country’s abundant natural resources, including mining, and unleashing the sum total of our human potential, culminating in the adoption of a raft of pieces of legislation that formed the anchors of the unjust apartheid system.
Whilst it has been nearly 20 years since the dismantling of apartheid, the system still casts a long shadow on the present. Its effects in the mining industry are still in place, shown by the continued existence of the migrant labour system and large disparities in pay distribution. We also need to ensure we increase beneficiation and skills development.
The century-plus history of the Chamber of Mines is indicative of the resilience and adaptability of this organisation, even in the most untenable of situations. The Chamber should do more to embrace the transformational and developmental objectives of the State.
We need to meet one another halfway as we continue to create a conducive environment for investment shown by the phenomenal growth of the sector post the promulgation of the MPRDA in 2004.
We need to remember the commitments we made as stakeholders in 2010 and the strategy for sustainable growth and meaningful transformation of South Africa’s mining industry we collectively developed, which are now yielding fruits in the form of, albeit not limited to, the Mineral and Petroleum Resources Amendment Bill of 2013, an electronic application system (SAMRAD), improved performance in health and safety, and the inclusion of key mining infrastructure requirements in Strategic Infrastructure Projects of the Presidential Infrastructure Coordinating Commission (PICC).
The Amendment Bill was developed with the objective to streamline legislative processes, remove ambiguities in the legislation, and improve administrative efficiencies amongst others. It also seeks to support the mineral beneficiation strategy which was adopted as policy by Government.
Next year is the major milestone in the assessment of the Mining Charter. The Department has commenced with the process of assessing industry performance in this regard. I would like to request the Chamber to cooperate in the process, for which the country is eagerly awaiting the outcome.
It is encouraging to note that there has been an improvement in terms of the health and safety of mine workers in the sector. However, it is of great concern that workers still continue to lose their lives. It is with regret that six workers died last week at the Ingula Pumped Storage Scheme as a result of an accident. Also, the safety of women still requires serious attention in the mining sector, as a female worker was recently allegedly murdered underground at platinum mine.
Although we have made modest strides on safety, it is unacceptable that the mining industry is still reporting a significantly high number of occupational diseases more specifically TB, silicosis and noise-induced hearing loss despite advances in technology, available leading practices and the immense research that has been done.
It is of outmost importance that as social partners we continue collaborating in implementing effective programmes which assist the sector in achieving the goal of zero harm. In this regard, I would like to compliment the sector on the CEOs’ Special Team which was established to eliminate fatalities and occupational diseases.
Without the appropriate skills development programmes, we will not move forward as a sector and as a country. Hence, the continued collaboration of stakeholders through the Mine Qualification Authority (MQA) is of outmost importance to ensure that relevant skills programmes are developed. The MQA has initiated a process to ensure that a skills audit is conducted to adequately identify skills needs for the sector.
Also one of the biggest challenges identified, is to find positions for students to get work-place experience which, in many instances is actually compulsory in order to qualify. If we are to expand the pool of skills in our country we have to ensure that every student in a vocational programme at a college or university of technology has the opportunity for workplace training.
It is essential that there should be partnerships with employers in both the public and private sectors so that they can be effectively involved in providing training spaces to young trainees – either as apprentices, learners or interns. In this regard the Chamber can play a major role.
The MQA has also established regional offices in partnership with rural FET colleges to ensure that learners in rural areas have access to the MQA without them having to travel to Johannesburg. The regional presence will also assist with the revival of the FET system and increasing the number of artisans in response to our economy’s needs through the appropriate support by the SETAs.
Last year, the National Development Plan, was adopted as the country’s long term socio-economic development vision for the country. The NDP is therefore an anchor framework for Government policies and programmes whose two broad goals, amongst others, is to eradicate poverty, reduce unemployment and inequality and to expand the economy and distribute its benefits.
To realise this vision, we would have to put our economy on a more inclusive, production led and export orientated trajectory which can only be achieved through industrialisation, into which minerals form a key input.
Ladies and gentlemen, I hope the discussions today by the members will not be inward-looking but directed to the broader national imperatives of ending unemployment, income inequality and poverty to realise an accelerated normalisation of society consistent with the democratic norms and principles, as enshrined in the Supreme Law of South Africa, the Constitution.
As a resilient Chamber that has transcended the most difficult of times in our history, I have an expectation of genuine partnerships as we jointly forge optimal contributions of the industry to development. I have every faith in the competence and leadership credentials of this leadership to work with government in devising such “win-win” mechanisms for all.
To conclude, I would like to congratulate the outgoing President, Mr Cutifani for steering the ship so excellently during his tenure. I would also like to wish you success as you deliberate over the course of the day, and wisdom as you prepare to elect your new President.
As a department we look forward to more fruitful engagements with the Chamber, through the various structures and platforms we have established and strengthened over the years.
I thank you!
