Minister of Mineral Resources Budget speech & responses by ANC and EFF

Minister of Mineral Resources , Mr M Zwane gave his Budget Vote Speech on 19 April 2016.
__________________________________________________________________________

Honourable Speaker of the National Assembly,
Deputy Minister of Mineral Resources, Cde Godfrey Oliphant,
Former Ministers of Mineral Resources,
Chairperson and Members of the Portfolio Committee on Mineral Resources,
The Chief Whip of the ANC Study Group, iNkosi Mandela,
Honourable Members,
Distinguished guests,
Members of the media,
Ladies and gentlemen

Madam Speaker, we appreciate the opportunity to table before this House the policy statement of the Department of Mineral Resources.

This policy statement will allow us to execute our mission, which is to promote and regulate the mining, minerals and upstream petroleum sectors for transformation, growth and development; and to ensure that all South Africans derive sustainable benefit from the country’s mineral wealth.

Let me also take this opportunity to acknowledge the good work that has been done by my predecessor Cde Ngoako Ramatlhodi and all his predecessors since the dawn of our democratic dispensation. The foundation they laid through enabling instruments for the growth and transformation of the industry have restored the wealth beneath the surface as a national heritage vested to State. 

This foundation has led to gross fixed capital formation in the mining industry increasing from R18 billion in 2004 to R87 billion in 2014. Foreign direct investment in the mining industry grew considerably, from R112 billion in 2004 to R377 billion in 2014. Employment in the mining industry grew from 448 909 in 2004 to 495 592 in 2014.

As we take this baton, we are reminded of the importance of the month of April in the South African calendar, a month which ended almost four centuries of racial segregation and oppression and ushered in this young democracy. We honour all our fallen heroes in the struggle for liberation – from King Sekhukhune to King Bambata; from Ruth First to Victoria Mxenge; from Makanda Nxele to Solomon Mahlangu and Chris Hani – both of whom were killed during the month of April.

Our main priorities in the year ahead are as follows: enhancing regulatory and policy certainty, health and safety, as well as meaningful economic transformation. We remain resolute on these objectives, and today’s engagement provides us with a platform to outline how we will strive to achieve them, while mindful of the challenges posed by the global economy. Given the cyclical nature of the industry, spring will come, and we must develop material conditions for a greater portion of the population to benefit. In this regard, the State of the Nation Address has provided us our marching orders. All the issues pertaining to the Department which were highlighted in the SoNA are receiving our attention.

The Department has been allocated a budget of R1.669 billion in the year under review. The bulk of the Department’s budget is transferred to our entities, who are undertaking important work in the fields of research and development, beneficiation as well as community and enterprise development, to ensure the sustainability of the sector. I will later share some of their initiatives.

Madam Speaker, we will continue to deliver on our mandate to the people of South Africa - to create an enabling environment for inclusive economic growth and for decent work, in line with the Nine Point Plan and the National Development Plan.

To contribute further to the ease of doing business, Government has created a One-Stop-Investment Committee of Ministers.

The Social and Labour Plan (SLP) programme has gained some traction towards community development in both mining towns as well as major labour sending areas. We have enabled the construction of roads, schools, clinics and other critical infrastructure for our people, in areas such as Marikana, Lephalale and Mbizana to mention but a few. The implementation of SLPs continues to make an impact on improving the lives of communities. 120 SLP projects were implemented in the last financial year as a driver of local industry in mining and labour sending areas, and are due to be completed in this financial year. Through these and other initiatives over 7000 jobs will be created over the medium term.

One of our areas of focus in the current cycle of delivery is to substantially boost the community development impact from mining through better implementation of SLPs.

Partnerships between government and mining companies in the implementation of human settlement projects, as part of the Special Presidential Package, are yielding visible results.

In the past three years, 83 mining rights were approved by the Department, with the potential to create an estimated 22 000 jobs. We envisage that as we continue to grant approval for compliant mining projects to take place, we will be able to contribute further to the creation of jobs.

The economic situation has resulted in some companies in the sector, as in other sectors of the economy, announcing their intention to shed jobs. A Declaration was signed by stakeholders in August 2015 to save jobs and ameliorate the impact of job losses. Retrenchments must remain the last option used; after all other measures to save jobs have been explored.

Health and safety is the responsibility of employers, workers and Government alike, and we must therefore continue to adopt a collaborative approach in dealing with this matter. A lot has been done to ensure that the safety of our workers comes first, hence the statistics for the period ending 2015 show the lowest ever fatalities.

A critical factor in ensuring the sustainability of the mining industry is the health and safety of all mineworkers. It is thus regrettable that so early in 2016, a total of 21 fatalities have occurred as a result of mine accidents. A quantum leap in commitment is needed to stem the tide of mine accidents and to make our mines safer and healthier. In this regard, we recently engaged with CEOs in the sector to see how we can ensure a sustainable improvement in matters of health and safety in the remainder of the year. They have reaffirmed their commitment to the goal of zero harm and implement measures to ensure all workers return home unharmed every day.

We are saddened that on the 5th of February 2016, an accident occurred at Lily Mine in Mpumalanga. At the time of this accident there were three employees inside the container who were on duty - Mr Solomon Nyerende, Ms Yvonne Mnisi and Ms Pretty Nkambule. We have given our assurance to the families that we will do everything in our power to support efforts by the mine of ensuring that the container is retrieved.

The Department also continues to be greatly concerned about the health and safety of women workers, including the inhumane treatment they are sometimes subjected to by fellow workers in some of the mines.  All the stakeholders need to ensure that   there are effective interventions implemented at all mines to prevent intimidation and harassment of all mineworkers.

Later this year, we will also be hosting the Mine Health and Safety Tripartite Summit to review the state of health and safety at mines and reflect on the progress made to date in the achievement of milestones from the previous Summit.

We welcome the progress made in processing the Mineral and Petroleum Resources Development Amendment Bill. The National House of Traditional Leaders has considered its contribution, as a precursor to the processing of the Bill through both the National Council of Provinces and the National Assembly respectively. My Department stands ready to provide all necessary support to enable this House to process the Bill as seamlessly as possible.

The African Exploration, Mining and Finance Corporation (AEMFC) Bill has been concluded and was published in the Government gazette for public comments. The Bill will be presented to Parliament for processing during the course of this year.

Radical economic transformation remains central in the quest to normalise South Africa. Lessons learnt from implementing the Mining Charter are the basis for sharpening tools of implementation. The Mining Charter has been reviewed in order to further strengthen its efficacy. It was published in the Government Gazette for comments last week. Robust engagements with all stakeholders will commence during this consultation period.

Madam Speaker, South Africa has world-class mineral resources with a wealth of such minerals as manganese, Platinum Group Metals and chrome. Our mineral wealth is estimated at R50 trillion, excluding energy commodities and exploration potential. We are working with key stakeholders to develop a plan focused on the development of these minerals in a manner that benefits investors, workers and communities alike.

The current economic downturn has had a negative impact on the beneficiation of diamonds, gold and platinum. We have analysed the decline in diamond production as well as diamond cutting and polishing activities over the years. The cutting and polishing industries have not been performing to our expectations in recent years.

As a remedy to this situation, the State Diamond Trader has entered into a partnership with the Mining Qualification Authority to facilitate business growth and support for 25 youth in training in Italy. These young South Africans commenced with training in Italy in September 2015 and will complete the training in 2017. As part of the initiative, the students will be enrolled in the watchmaker programme in Switzerland to further their learning and exposure in watch-making. The Mining Qualification Authority has also developed a watch-making curriculum which is currently awaiting approval from the South African Qualifications Authority. This will be a ground-breaking programme taught for the first time at South African institutions.

Stability within the mining industry remains imperative to ensure its sustainable growth and competitiveness. The importance of healthy relations between mining companies as well as communities and local government, cannot be overstated. For mining to be sustainable, mutual respect and cooperation are critical. Right-holders must also engage continuously with the relevant communities, for the duration of their right, in order to pre-emptively address issues as they arise. We call upon our communities to also work harmoniously with right-holders.

The Department continues to engage various community structures, where discontent between mining companies and some host communities – often characterised by violence and destruction to property - has become more pronounced. While employment of people living close to the mines remains important, South Africa belongs to all who live in it, and opportunities from mining cannot only be limited to those residing nearer mining operations.  Mineral resources must be used to benefit the country as a whole.

The Department continues to provide support to the implementation of the Framework Agreement for a Sustainable Mining Industry.  As Government we continue to call on stakeholders to respect and implement the Agreement. I am aware that wage negotiations are about to start within the platinum sector and urge stakeholders to draw lessons from previous experience in this regard.

The future of the mining industry is dependent on research and development underpinning its sustainable growth and meaningful transformation. In this regard, Government is coordinating all the research initiatives across the mining value chain to ensure that its impact is optimised.

The Council for Geoscience (CGS) is focused on pre-competitive exploration activities, including high resolution mapping. This will ensure that we continue to attract investment into the sector and the economy broadly.

The Mine Health and Safety Council has commenced with the implementation of the Centre of Excellence (CoE) which has gained momentum and is expected to be fully-functional during 2017. Stakeholders have identified quick-win research projects which seek to address pertinent health and safety issues including developing devices that could assist in locating missing people underground, as well as enhancing dust suppression systems to reduce exposure to dust at mines, amongst others.

We continue partnering and working with all stakeholders in the sector, through the Mining Qualification Authority, to ensure that our skills development programmes target the unemployed youth, women, mineworkers, and people from various communities. The Mining Qualification Authority skills development programmes include artisan training and issuing of bursaries. For instance, 1000 bursaries were issued to learners mainly in the engineering fields.

Furthermore, in enhancing our capacity to evaluate and monitor compliance with health and safety issues at mines, 38 learner inspectors from the Department’s capacity development programme were recently employed after successfully completing a two-year training programme – 42% of these inspectors are women.

We are delighted with the state of South Africa’s petroleum exploration potential with frontier basins both onshore and offshore. This potential includes oil and gas. We have also noted the concerns of some members of the community on the potential impact of shale gas extraction on both the environment and water. We have accordingly taken measures to mitigate the risks inherent in the future.

Madam Speaker, we are a unique member of the global village, and ready for investment to move South Africa forward. South Africa is gearing up to host the International Geological Congress – simply known as the World Cup of earth sciences - from 27th August to 4th September 2016. This is the first time the Congress is being hosted by a member of the African Union, and will take forward objectives of the African Mining Vision. With over 100 years’ experience in the field of geoscience, we are indeed excited to welcome members from over 120 countries and 50 scientific associations.

Madam Speaker, we remain resolute and steadfast as we aim to maximise on delivering on our mandate, as our people expect no less from us. Working together, we are equal to the task and remain committed to effective service delivery.

More than ever before in our country’s history, we share a common destiny of a united, non-racial, non-sexist, mining industry. We can transform it only if we work together.

Let me take this opportunity to thank my organisation, the African National Congress – ANC Lives, ANC Leads.

My sincerest gratitude goes to the President for the opportunity given to me to serve in this capacity, and my Cabinet colleagues for their continuous support. 

I wish to extend my appreciation to those who wake up every morning to serve the people of South Africa - to the former Director-General Dr Thibedi Ramontja, and the acting Director-General Mr David Msiza, and all the staff of the Department of Mineral Resources; the Chairpersons and CEOs of our entities, as well as all those in Government who continue to support us. We wish to thank all those who continue to criticise us objectively, in an effort to develop the mining sector sustainably.

I would like to thank the staff in my office, my chief of staff as well as my advisors.

Most importantly, I would like to say thank you to my mother and my family for their unwavering support and prayers.

As I conclude, I would like to thank you all for your attention. The Department is honoured to be working with you in moving this industry, and indeed South Africa, forward.

Let me table the Budget for Vote 29 for the 2016/17 before this House and urge members to please support it.

I thank you.

______________________________________________________________

Responses

 

EFF Deputy President Floyd Shivambu’s Mineral Resources Budget Vote Notes

19 April 2016

These are the Speaking Notes by EFF Deputy President and Chief Whip Floyd Shivambu during the Parliament Budget Vote for the Department of Minerals and Energy, headed by Minister Msebenzi Zwane.

– We want to start by welcome the minister of mineral resources from his trip to Switzerland where he had gone to negotiate a deal for a criminal organization called Tegeta Reaources, owned by the Gupta family, where they were negotiating with another criminal enterprise called optimum coal, owned by Glencore, a known tax avoider in the world.

– We also want to welcome both the minister of mineral resources and ex minister of finance des Van Rooyen from their recent trips to Dubai and remind them that we are still waiting for the response on what were they doing in Dubai where the Gupta family is.

1. Now When the MPRDA was enacted into Law in 2002, Section 100. (2) (a) of the ACT categorically stated that “To ensure the attainment of Government’s objectives of redressing historical, social and economic inequalities as stated in the Constitution, the Minister must within six months from the date on which this Act takes effect develop a broad-based socio-economic empowerment Charter that will set the framework, targets and time-table for effecting the entry of historically disadvantaged South Africans into the mining industry, and allow such South Africans to benefit from the exploitation of mining and mineral resources.

2. In 2004, a Mining Charter was adopted with a set of key achievable and targets which were supposed to be achieved by 2014.

3. 2014 has come and gone and none of those targets were achieved. You have placed on the government gazette a new mining charter which just shifts the goal posts.

a. BY 2014, the all mines were supposed to have Achieved a minimum target of 26 percent ownership to enable meaningful economic participation of HDSA by 2014:

b. By 2014, all mines in South Africa were supposed to Procure a minimum of 40% of capital goods from BEE entities by 2014;

c. By 2014, all Mines were supposed to Procure 70% of services and 50% of consumer goods from BEE entities.

d. By 2014, the Ministry and department of Mineral Resources was supposed to have plan on beneficiation and industrialisation of mineral resources.

4. All these have not happened, and many other targets of the Mining Charter have not been achieved, and when the due date of the Mining Charter arrived, the ANC Government did not have the revised Charter.

5. We do not agree with the principles that underpin the Mining Charter because we believe that instead of giving shares to individuals, these shares must be given to workers and communities and the State must additionally own and control other strategic mines for developmental purposes.

6. The ANC Government also does not have the amended MPRDA because collectively and individually they have failed to make sure that the amended MPRDA is passed into Law by this Parliament.

7. In 2015, the ANC Caucus wasted a lot of time in useless and unconstitutional ad-hoc committees defending one individual, and failed to pass legislation.

8. Without proper and adequate legislation and decisive Charter, we cannot allocate any amount of money to the ministry that does not have a transformation compass.

9. If we do so, we will allow a family that has captured the State to decide the agenda, form and content of minerals regulation in South Africa.

10. We also do not trust that the recently appointed minister of mineral resources possess the necessary political capacity to be custodian of our country’s mineral resources.

11. This Minister’s first official trip after being appointed Minister was to Switzerland to meet with a criminal organisation called Glencore, alongside the Gupta family to negotiate family deals.

12. This Minister’s 2nd visit to a country was to Dubai, where the Guptas have escaped to after looting State resources.

13. This Minister of Mineral resources is the one who signed the letter inviting Guptas to land in a national key point.

14. This Minister in his previous responsibility as MEC appointed Guptas for a dairy project in the Free State.

15. In fact, Minister Zwane is a puppet of the Gupta family and he is sent around by them to secure private business interests.

16. Entrusting our mineral resources in the hands of Mr. Mosebenzi Zwane is like employing rats and rodents to be security guards of a cheese factory.

17. It is on this basis that the EFF stands to resoundingly and categorially reject the budget vote of the department of mineral resources.

18. Because even when you give the Mineral Resources Ministry money, they still leave the mining sector to be a lawless and unguided, as mining companies continue to loot our natural resources.

Address by Honourable S Luzipo (ANC) Chairperson: PC On Mineral Resources, on the occasion of the Budget Vote 29: Mineral Resources

19 April 2016, National Assembly, Cape Town

Honourable Speaker of the National Assembly,
Deputy Minister of Mineral Resources, Cde Godfrey Oliphant,
Former Ministers of Mineral Resources,
Chairperson and Members of the Portfolio Committee on Mineral Resources,
The Chief Whip of the ANC Study Group, iNkosi Mandela,
Honourable Members,
Distinguished guests,
Members of the media,
Ladies and gentlemen

Madam Speaker, we appreciate the opportunity to table before this House the policy statement of the Department of Mineral Resources.

This policy statement will allow us to execute our mission, which is to promote and regulate the mining, minerals and upstream petroleum sectors for transformation, growth and development; and to ensure that all South Africans derive sustainable benefit from the country`s mineral wealth.

Let me also take this opportunity to acknowledge the good work that has been done by my predecessor Cde Ngoako Ramatlhodi and all his predecessors since the dawn of our democratic dispensation. The foundation they laid through enabling instruments for the growth and transformation of the industry have restored the wealth beneath the surface as a national heritage vested to State.

This foundation has led to gross fixed capital formation in the mining industry increasing from R18 billion in 2004 to R87 billion in 2014. Foreign direct investment in the mining industry grew considerably, from R112 billion in 2004 to R377 billion in 2014. Employment in the mining industry grew from 448 909 in 2004 to 495 592 in 2014.

As we take this baton, we are reminded of the importance of the month of April in the South African calendar, a month which ended almost four centuries of racial segregation and oppression and ushered in this young democracy. We honour all our fallen heroes in the struggle for liberation - from King Sekhukhune to King Bambata; from Ruth First to Victoria Mxenge; from Makanda Nxele to Solomon Mahlangu and Chris Hani - both of whom were killed during the month of April.

Our main priorities in the year ahead are as follows: enhancing regulatory and policy certainty, health and safety, as well as meaningful economic transformation. We remain resolute on these objectives, and today`s engagement provides us with a platform to outline how we will strive to achieve them, while mindful of the challenges posed by the global economy. Given the cyclical nature of the industry, spring will come, and we must develop material conditions for a greater portion of the population to benefit. In this regard, the State of the Nation Address has provided us our marching orders. All the issues pertaining to the Department which were highlighted in the SoNA are receiving our attention.

The Department has been allocated a budget of R1.669 billion in the year under review. The bulk of the Department`s budget is transferred to our entities, who are undertaking important work in the fields of research and development, beneficiation as well as community and enterprise development, to ensure the sustainability of the sector. I will later share some of their initiatives.

Madam Speaker, we will continue to deliver on our mandate to the people of South Africa - to create an enabling environment for inclusive economic growth and for decent work, in line with the Nine Point Plan and the National Development Plan.

To contribute further to the ease of doing business, Government has created a One-Stop-Investment Committee of Ministers.

The Social and Labour Plan (SLP) programme has gained some traction towards community development in both mining towns as well as major labour sending areas. We have enabled the construction of roads, schools, clinics and other critical infrastructure for our people, in areas such as Marikana, Lephalale and Mbizana to mention but a few. The implementation of SLPs continues to make an impact on improving the lives of communities. 120 SLP projects were implemented in the last financial year as a driver of local industry in mining and labour sending areas, and are due to be completed in this financial year. Through these and other initiatives over 7000 jobs will be created over the medium term.

One of our areas of focus in the current cycle of delivery is to substantially boost the community development impact from mining through better implementation of SLPs.

Partnerships between government and mining companies in the implementation of human settlement projects, as part of the Special Presidential Package, are yielding visible results.

In the past three years, 83 mining rights were approved by the Department, with the potential to create an estimated 22 000 jobs. We envisage that as we continue to grant approval for compliant mining projects to take place, we will be able to contribute further to the creation of jobs.

The economic situation has resulted in some companies in the sector, as in other sectors of the economy, announcing their intention to shed jobs. A Declaration was signed by stakeholders in August 2015 to save jobs and ameliorate the impact of job losses. Retrenchments must remain the last option used; after all other measures to save jobs have been explored.

Health and safety is the responsibility of employers, workers and Government alike, and we must therefore continue to adopt a collaborative approach in dealing with this matter. A lot has been done to ensure that the safety of our workers comes first, hence the statistics for the period ending 2015 show the lowest ever fatalities.

A critical factor in ensuring the sustainability of the mining industry is the health and safety of all mineworkers. It is thus regrettable that so early in 2016, a total of 21 fatalities have occurred as a result of mine accidents. A quantum leap in commitment is needed to stem the tide of mine accidents and to make our mines safer and healthier. In this regard, we recently engaged with CEOs in the sector to see how we can ensure a sustainable improvement in matters of health and safety in the remainder of the year. They have reaffirmed their commitment to the goal of zero harm and implement measures to ensure all workers return home unharmed every day.

We are saddened that on the 5th of February 2016, an accident occurred at Lily Mine in Mpumalanga. At the time of this accident there were three employees inside the container who were on duty - Mr Solomon Nyerende, Ms Yvonne Mnisi and Ms Pretty Nkambule. We have given our assurance to the families that we will do everything in our power to support efforts by the mine of ensuring that the container is retrieved.

The Department also continues to be greatly concerned about the health and safety of women workers, including the inhumane treatment they are sometimes subjected to by fellow workers in some of the mines. All the stakeholders need to ensure that there are effective interventions implemented at all mines to prevent intimidation and harassment of all mineworkers.

Later this year, we will also be hosting the Mine Health and Safety Tripartite Summit to review the state of health and safety at mines and reflect on the progress made to date in the achievement of milestones from the previous Summit.

We welcome the progress made in processing the Mineral and Petroleum Resources Development Amendment Bill. The National House of Traditional Leaders has considered its contribution, as a precursor to the processing of the Bill through both the National Council of Provinces and the National Assembly respectively. My Department stands ready to provide all necessary support to enable this House to process the Bill as seamlessly as possible.

The African Exploration, Mining and Finance Corporation (AEMFC) Bill has been concluded and was published in the Government gazette for public comments. The Bill will be presented to Parliament for processing during the course of this year.

Radical economic transformation remains central in the quest to normalise South Africa. Lessons learnt from implementing the Mining Charter are the basis for sharpening tools of implementation. The Mining Charter has been reviewed in order to further strengthen its efficacy. It was published in the Government Gazette for comments last week. Robust engagements with all stakeholders will commence during this consultation period.

Madam Speaker, South Africa has world-class mineral resources with a wealth of such minerals as manganese, Platinum Group Metals and chrome. Our mineral wealth is estimated at R50 trillion, excluding energy commodities and exploration potential. We are working with key stakeholders to develop a plan focused on the development of these minerals in a manner that benefits investors, workers and communities alike.

The current economic downturn has had a negative impact on the beneficiation of diamonds, gold and platinum. We have analysed the decline in diamond production as well as diamond cutting and polishing activities over the years. The cutting and polishing industries have not been performing to our expectations in recent years.

As a remedy to this situation, the State Diamond Trader has entered into a partnership with the Mining Qualification Authority to facilitate business growth and support for 25 youth in training in Italy. These young South Africans commenced with training in Italy in September 2015 and will complete the training in 2017. As part of the initiative, the students will be enrolled in the watchmaker programme in Switzerland to further their learning and exposure in watch-making. The Mining Qualification Authority has also developed a watch-making curriculum which is currently awaiting approval from the South African Qualifications Authority. This will be a ground-breaking programme taught for the first time at South African institutions.

Stability within the mining industry remains imperative to ensure its sustainable growth and competitiveness. The importance of healthy relations between mining companies as well as communities and local government, cannot be overstated. For mining to be sustainable, mutual respect and cooperation are critical. Right-holders must also engage continuously with the relevant communities, for the duration of their right, in order to pre-emptively address issues as they arise. We call upon our communities to also work harmoniously with right-holders.

The Department continues to engage various community structures, where discontent between mining companies and some host communities - often characterised by violence and destruction to property - has become more pronounced. While employment of people living close to the mines remains important, South Africa belongs to all who live in it, and opportunities from mining cannot only be limited to those residing nearer mining operations. Mineral resources must be used to benefit the country as a whole.

The Department continues to provide support to the implementation of the Framework Agreement for a Sustainable Mining Industry. As Government we continue to call on stakeholders to respect and implement the Agreement. I am aware that wage negotiations are about to start within the platinum sector and urge stakeholders to draw lessons from previous experience in this regard.

The future of the mining industry is dependent on research and development underpinning its sustainable growth and meaningful transformation. In this regard, Government is coordinating all the research initiatives across the mining value chain to ensure that its impact is optimised.

The Council for Geoscience (CGS) is focused on pre-competitive exploration activities, including high resolution mapping. This will ensure that we continue to attract investment into the sector and the economy broadly.

The Mine Health and Safety Council has commenced with the implementation of the Centre of Excellence (CoE) which has gained momentum and is expected to be fully-functional during 2017. Stakeholders have identified quick-win research projects which seek to address pertinent health and safety issues including developing devices that could assist in locating missing people underground, as well as enhancing dust suppression systems to reduce exposure to dust at mines, amongst others.

We continue partnering and working with all stakeholders in the sector, through the Mining Qualification Authority, to ensure that our skills development programmes target the unemployed youth, women, mineworkers, and people from various communities. The Mining Qualification Authority skills development programmes include artisan training and issuing of bursaries. For instance, 1000 bursaries were issued to learners mainly in the engineering fields.

Furthermore, in enhancing our capacity to evaluate and monitor compliance with health and safety issues at mines, 38 learner inspectors from the Department`s capacity development programme were recently employed after successfully completing a two-year training programme - 42% of these inspectors are women.

We are delighted with the state of South Africa`s petroleum exploration potential with frontier basins both onshore and offshore. This potential includes oil and gas. We have also noted the concerns of some members of the community on the potential impact of shale gas extraction on both the environment and water. We have accordingly taken measures to mitigate the risks inherent in the future.

Madam Speaker, we are a unique member of the global village, and ready for investment to move South Africa forward. South Africa is gearing up to host the International Geological Congress - simply known as the World Cup of earth sciences - from 27th August to 4th September 2016. This is the first time the Congress is being hosted by a member of the African Union, and will take forward objectives of the African Mining Vision. With over 100 years` experience in the field of geoscience, we are indeed excited to welcome members from over 120 countries and 50 scientific associations.

Madam Speaker, we remain resolute and steadfast as we aim to maximise on delivering on our mandate, as our people expect no less from us. Working together, we are equal to the task and remain committed to effective service delivery.

More than ever before in our country`s history, we share a common destiny of a united, non-racial, non-sexist, mining industry. We can transform it only if we work together.

Let me take this opportunity to thank my organisation, the African National Congress - ANC Lives, ANC Leads.

My sincerest gratitude goes to the President for the opportunity given to me to serve in this capacity, and my Cabinet colleagues for their continuous support.

I wish to extend my appreciation to those who wake up every morning to serve the people of South Africa - to the former Director-General Dr Thibedi Ramontja, and the acting Director-General Mr David Msiza, and all the staff of the Department of Mineral Resources; the Chairpersons and CEOs of our entities, as well as all those in Government who continue to support us. We wish to thank all those who continue to criticise us objectively, in an effort to develop the mining sector sustainably.
I would like to thank the staff in my office, my chief of staff as well as my advisors.

Most importantly, I would like to say thank you to my mother and my family for their unwavering support and prayers.
As I conclude, I would like to thank you all for your attention. The Department is honoured to be working with you in moving this industry, and indeed South Africa, forward.

Let me table the Budget for Vote 29 for the 2016/17 before this House and urge members to please support it.

I thank you.

Address by the Honourable Nkosi ZMD Mandela, MP (ANC) delivered at the Mineral Resources Budget Debate, Vote No 29, Parliament of the Republic of South Africa

19 April 2016

Honourable Speaker,
Fellow Members of Parliament;
Ladies and gentlemen;

It is an honour to participate in the Debate on Vote 29: Mineral Resources. Let us begin by paying tribute to the brave women and men from all over Africa whose sweat, blood and tears laid the foundations of mining industry.

On 9 February 1942 the Secretary of Native Affairs wrote to the Gold Producers Committee, which replied: "It is the opinion of the Committee that in the present state of development, the overwhelming majority of Native mine employees are insufficiently advanced to understand the principles of Trade Union organization. Native mine employees as a class are, as you are aware, less advanced than many detribalized and partly industrialized Native urban residents!!! It appears to the Committee that Native development in this matter must be a gradual process, not less in the interests of the Natives than in the interests of Europeans. The nature and extent of the damage to national interests and to Native interests which might result from any false step needs no emphasis".

Today, 21 years into our young democracy, we cannot continue to perpetuate such a bifurcation of national interest. We cannot perpetuate a tale of two economies, or economic apartheid in any guise. We cannot tolerate one South Africa for the rich and wealthy and a second, inferior South Africa for those who eke out a living off dumps or who place their lives at great peril by going into derelict and ownerless mine shafts to feed their families. Mining houses and their shareholders and owners, cannot enjoy living off the fat of the abundant years while workers continue to bear the burden of pain.

We cannot perpetuate the narrative of the Great African Mineworkers Strike of August 1946 when on the eve of the strike a worker said in frustration and I quote: "When I think of how we left our homes in the reserves, our children naked and starving, we have nothing more to say. Every man must agree to strike on 12 August. It is better to die than go back with empty hands".

Honourable Speaker; allow me for a moment to digress. This weekend we woke up to the horror of the death of five illegal miners who died a horrific death trapped underground in a disused mine at Klipwal near Pongola, KZN. Rescue workers were unable to reach them. The only sign of life was the call of one person on Friday afternoon but by Saturday afternoon all hope was lost as there was no further indication of life. All five men were reportedly from Lesotho and we send our heartfelt condolences to their families, His Majesty King Letsie III and the entire BaSotho nation.

This house has addressed this matter of illegal mining on a number of occasions and following portfolio committee oversight visits we have made public pronouncements. Yet, every few months we learn of accidents and deaths in the old derelict and ownerless mines, many of which are not properly closed off or rehabilitated. It is estimated that there are some 6000 such mines. Many of the "illegal" miners of today lost their jobs on the mines - some with no compensation and nowhere to go.

This is the tragic history which we must work together to obliterate because the loss of a single life through desperation, neglect or criminal intent is an indictment on all of us. To those families who regardless of circumstances now will experience a gap at home, the painful loss of a breadwinner and the ensuing litany of hunger, starvation and poverty that drive people to desperation, we pass our heartfelt condolences. We must all work together to address and put an end to the deaths deep down in our disused mining shafts and we must work together as one to build a brighter future for our country and our continent.

I am reminded of the words of my grandfather His Excellency President Nelson Mandela on the occasion of the 104th AGM of the Chamber of Mines in1994, when he said, "The mining industry, by virtue of the place it occupies in our economy, is in a position to make a special contribution to the transformation of our society, which should have as its central objective, improving the quality of life of all its citizens". This was true in 1994 and most certainly remains true in 2016.

Honourable Speaker; we are reminded that notwithstanding that our formal mining industry is older than a 100 years it still has vast potential of at least another hundred years plus of continuous mining given our country`s estimated R50 trillion of non-petroleum untapped resources. His Excellency President Zuma in his State Of the Nation address reminded us that "a resilient and fast growing economy is at the heart of our radical economic transformation agenda and our National Development Plan (NDP)."

Whilst we pursue the imperatives of the Mining Phakisa and the need for massive beneficiation, we must focus on how we leverage the knowledge economy to assist towards achieving our goals. We must address as a collective how to utilise our knowledge, experience, lessons of history and mining expertise to approach the next century of mining differently. Working together on this front we should be able to push back the frontiers of our triple challenges of poverty, unemployment and inequality.

Honourable Speaker; whilst mining companies may have made significant strides in their contribution to improving the lives of their employees, their families, communities living around mines, and the wider population much still needs to be accomplished. This requires that we intensify the monitoring of compliance levels and ensure that companies fulfill the full spectrum of its obligations in terms of its mining rights allocations. It is encouraging that some have indeed heeded the Stakeholder Declaration and have not chosen retrenchment as the first option especially given the recent bleak prospects within the sector. We commend the DMR for their efforts in ensuring the promotion of job creation as well as saving jobs and we look forward to getting feedback in this august house on progress in this regard.

Finally, allow me to welcome the draft reviewed Charter that seeks to, inter alia, strengthen the efficacy of the Mining Charter developed in terms of section 100 of the Mineral and Petroleum Resources Development Act, 2002 (Act No 28 of 2002) (MPRDA) as one of the tools for effecting meaningful transformation of the South African mining and minerals industry. I call on all stakeholders in the industry, and all who are impacted by the Charter, to take ownership of this roadmap that will guide us over the next few years.

In conclusion, we have come a long way and covered a great deal of ground since Madiba described his brief job at Crown Mines as a 22 year old mine security guard in 1941 in these words: "Everywhere I looked I saw black men in dusty overalls looking tired and bent. They lived on the grounds in bleak, single-sex barracks that contained hundreds of concrete bunks separated from each other by only a few inches".

Let this sombre reminder of the inhumane and undignified way we were, spur us on to collective action to continue building on the legacy of the past 21 years of democracy.

I thank you!!!

Address by the Honourable Mafolo (ANC) , member of the Portfolio Committee on Mineral Resources, on the occasion of the Budget Vote 29: Mineral Resources

19 April 2016, National Assembly, Cape Town

Honourable Madam Speaker,
Honourable Minister and Deputy Minister of Mineral Resources,
Former Ministers of Mineral Resources,
Honourable Chairperson and Members of the Portfolio Committee on Mineral Resources,
Honourable Members of Parliament,
Officials of the Department of Mineral Resources,
Distinguished guests,
Ladies and gentlemen,
Good afternoon

Ke mo tlotlo go tsaya karolo mo tekenyetsong kabo e. tekenyetso kabo e e tla ka nako e re ketekeng dingwaga di le somamarataro tse bomme ba rona ba ile ba e tshwara ka fa bogaleng ba gwantela union building ka nako ya puso ya tlhaolele.

The 52nd National Conference of the ANC that was held in Polokwane committed to make sure that the empowerment of women should be at the center of development. Mining has historically been characterized by a gender imbalance in favor of men.

The celebrations of this month would not have been a reality, had it not been through the translation of the Freedom Charter into reality, whose expression was found in the Mineral and Petroleum Resources Development Act (MPRDA) and the entire regulatory framework, notable of which is the Mining Charter, that true to tradition, the "mineral wealth belongs to all" and as national patrimony should be available and shared by all. On the 60th anniversary, we must celebrate progress being made in advancing the course of women participation in mining, although more must still be done.

For us, women participation in the empowerment transactions represents a necessary normalisation of society and removal of the shackles of discrimination of people on the basis of gender, especially in mining.

Over the past twelve years of the MPRDA, this has taken many forms including the formation of various women groupings and companies some of whom are companies of note today. We can count in the mining sector amongst these, the emergence of WIPHOLD, Nozala, Northern Cape Rural Women, South African Women in Mining Investment Holdings (SAWIMIH), and many others.

Ke tlotlomatse bomme ba e leng gore ba tsaya karolo e botlhokwa thata mo mining jaaka Mme Brigdette Radebe, Daphne Mashile-Nkosi, Khanyisile Kweyama, Smangele Mngomezulu, Angelina Nevholvodwe. Anna Mokgokong, Nonkululeko Nyembezi-Heita, Yoli Balfour, le ba bangwe.

Ke tla be ke dira phoso e kgolo ke sa tlotlomatse di ministera tsa bomme tse di tlile tsa e telela lefapha le kopele ke bua ka ministera, Shabangu, Sonjica, Hendricks and Mlambo-Ngcuka, for their contribution towards the struggles of women, in mining and society broadly. All this would not have been possible without the policies and able leadership of the African National Congress, and it's Women's League in particular.

The Mining Charter, continue to be strengthened with various amendments making specific provision for the inclusion of women and the youth in core mining activities. Since the compliance with the Mining Charter is part of the licence condition, significant number of women have been able to participate, over a period of time, but more must still be done in the creation of women black industrialists.

Also, the Mine Health Safety Act of 1996 as amended, provided an enabling environment for women to work at underground level, most often than not, women are still employed in non-underground work in the main. In this regard, the first black women to qualify in blasting and as a winding engine driver was Ms Xoliswa Vanda at Western Deep Level in 1995, who is still in mining, and many others.

Madam Speaker, the continuous employment of women within the Department of Mineral Resources (DMR) in critical positions as well decision making at levels such as Deputy Directors General, Chief Directors, Directors, CEOs of SOEs, and Board of Directors also make our country proud. It is also noteworthy that three (3) of the Department's regions are headed by women, with one being a Principal Inspector of Mines.

Honourable Minister Zwane, we are encouraged but more must be done to achieve 50/50 parity. We need many more, and in particular the next generation of women to taken the baton and run with it. Mentoring and skills development of young women in mining remain central to ensuring sustainable transformation.

Transformation should address fundamental areas that are critical in advancing socio-economic development in empowering women, local communities, communities in labour sending areas, as well as mineworkers. It is very important that going forward women must own and control mines, as well as other means of production. Fronting remains a challenge within the industry, and it must be tackled decisively. I call on women not to allow themselves to continue to be used, in fronting for men in mining, as this is not taking our country forward.

The Mining Charter is very specific that procurement is one of the key pillars of the transformatory trajectory. Despite this being key, we remain dissatisfied with the extent of women participation in the procurement of capital goods and services in the mining sector. We call on the Department to prioritise this area, even in the amendment of the Mining Charter, which was released for public comment last week.

Access to finance still presents one of the major challenges facing women and BEE companies in general, in the mining sector. For transformation to succeed, this must be tackled. We hope that the recently launched African Rainbow Capital will also take our country forward, in contributing towards assisting women to grow their businesses.

Madam Speaker, it should also be applauded that the Department of Mineral Resources is developing a women in mining strategy, which aligns itself with the United Nation's protocols and standards which seek to ensure that responsibility for implementing the women empowerment strategy is system-wide and rests at the highest levels of structures, as well identification of issues and barriers across all areas relating to gender parity remain in the forefront.

The employment of women in the mining industry has been steadily increasing since the promulgation of the Minerals and Petroleum Resources Development Act. However, it is with regret that a female mineworker was fatally injured at one of the platinum mines earlier this year. Our heartfelt condolences go to her family and her loved ones. It has also been noted with great concern during our mine oversight visits that some women are employed in occupations without recognising that women are physically and physiologically different from their male colleagues.

Also, it remains disturbing that we have in the recent past noticed an increase in reported cases of harassment and discrimination against women in the workplaces. We are encouraged that at least in all recent incidents against the women mineworkers, our law enforcement agencies have apprehended and in some cases sentenced to life imprisonment the alleged perpetrators. We will continue to support the victims of these atrocious deeds and also encourage all mining companies to take appropriate measures in ensuring that women have a safe and dignified working environment at all times.

We are aware that in dealing with such important matters involving women mineworkers, the Department through the Mine Health and Safety Council has developed a guideline and awareness materials to assist the industry in dealing specifically with issues of sexual harassment and discrimination against women mine workers.

It is further encouraging that women health and safety issues have been prioritised by all stakeholders. In this regard, for the first time in the history of mining the Department hosted the Women in Mining (WIM) Conference which was held during August 2015. The theme of this Conference was "Prioritising the Health, Safety and Security of WIM" and this will from now on be an annual event to coincide with the most important month in the South African calendar. A committee has been established within the Mine Health and Safety Council to monitor the implementation of the Conference resolutions and this will contribute to creating a conducive environment for women in the sector.

In conclusion, the ANC supports the Budget Vote 29 - Mineral Resources.

I thank you.