ATC110908: Report on Oversight visit to Sekhukhune, Limpopo Province from 05-08 September 2011, dated 30 November 2011

Mineral Resources and Energy

DRAFT REPORT OF THE PORTFOLIO COMMITTEE ON LABOUR ON ITS OVERSIGHT VISIT TO THE EAST CAPE (EAST LONDON), DATED

REPORT OF THE PORTFOLIO COMMITTEE ON MINERAL RESOURCES ON ITS OVERSIGHT VISIT TO SEKHUKHUNE, LIMPOPO PROVINCE FROM 05-08 SEPTEMBER 2011, DATED 30 NOVEMBER 2011

 

The Portfolio Committee on Mineral Resources, having undertaken an oversight visit to Sekhukhune, Limpopo Province reports as follows:

 

1. Introduction

 

Parliament derives its powers from the Constitution of the Republic of South Africa . Section 42(3) bestows oversight of executive action function to the National Assembly. Section 55(2)(b) empowers the National Assembly to provide for mechanism to maintain oversight of the exercise of national executive authority, including the implementation of legislation and any organ of state.

 

Section 56 empowers the National Assembly or any of its committees, inter alia , to:

· Summon any person to appear before it to give evidence on oath or affirmation, or to produce documents;

· Require any person or institution to report to it;

· Receive petitions, representations or submissions from any interested persons or institutions.

 

The above-mentioned powers are further expatiated upon on the Rules of the National Assembly. In addition to these powers, the rules empower the parliamentary committees to conduct public hearings.

 

One of the functions of oversight listed in the Oversight and Accountability model is to ensure that policies announced by government and authorised by Parliament are actually delivered. This function includes monitoring the achievement of goals set by legislation and the government’s own programmes.

 

In accordance with all the above, the Portfolio Committee on Mineral Resources decided to undertake an oversight visit to the Limpopo province to monitor the implementation of the mining related legislation. The committee interacted with all relevant stakeholders, including the communities surrounding the mines, mine managers and organised labour representatives.

 

2. Background
 

The oversight visit formed part of the Committee’s responsibility of assessing compliance of mining companies with Mining Laws of the country and to conduct public hearings with people living where the mining activities are tak ing place with a view of ascertaining the extent to which the people have benefited or been affected by such mining activities. Three broad indicators were to be used by the committee in assessing whether the mining companies were complying, these were;

· Compliance in terms of putting in place Social and Labour Plans

· Compliance with the Mining Charter

· Compliance with Mine Health and Safety laws and regulations

· General compliance to the Minerals and Petroleum Resources Development Act (MPRDA)

 

The Committee went about its business by conducting meetings with mining companies to measure their compliance, in addition, community meetings with local residents were also called to hear from the people themselves how they related to the mining companies and whether their lives were being affected in a positive way.

 

3. Composition of Delegation

 

3.1 Parliamentary Delegation

 

The delegation comprised of Mr MF Gona, the Chairperson of the Committee and Leader of the delegation, Ms FC Bikani (ANC), Mr EJ Lucas (IFP), Mr EJ Marais (DA), Ms DH Mathebe (ANC), Ms LN Mjobo (ANC), Mr MR Sonto (ANC) and Ms B Tinto (ANC).

 

Support staff

Ms N Skaka (committee secretary), Mr P Gwebu (stand-in committee secretary), Ms A Nkwandla (committee assistant) and Mr S Ngcobo (committee researcher).

 

3.2 The Department of Mineral Resources

 

The Department of Mineral Resources was represented by Ms V Mangcu (Parliamentary Liaison Officer).

 

3.3 Limpopo Provincial Legislature

 

The Limpopo Legislature was represented by Ms J Matshoge (Chairperson for Local Government and Housing), Dr HE Mateme (Chairperson for the Portfolio Committee on Economic Development), Ms LM Lubengo (MPL), Mr TM Ravhuanzwo (MPL), Ms J Matshoge (MPL), Ms GT Nethengwe (MPL) and Ms NP Mahlo (MPL)..

 

3.4 Greater Tubatse Municipality

 

The Municipality was represented by Ms KE Nchabeleng (committee secretary), Mr SS Mphego (Public Participation Manager), Ms MMY Lingwati (LED Manager), Mr MT Lesina (Ward 11 Councillor), Mr DM Magane (Ward 12 Councillor), and Ms SO Serothwane (ELD Chairperson).

 

3.5 Modikwa Platinum

 

The Modikwa Platinum was represented by Mr FB Nkoana (Community Liaison for ARM), Mr VA Vilakazi (NUM Branch secretary), Ms PM Zimande (NUM Deputy Chair), Mr S Mbethe (HR Leader), Mr DMKgwete (Section 21 Director), Ms K Mohafa (Manager in Anglo Platinum), Mr DG Negri (Engineering Manager), Mr PH Le Roux (Finance and Information Leader), Mr LB Boshielo (ARM Corporate Affairs Executive) and Mr CBM Nxumalo (Business Leader).

 

3.6 Bokoni Platinum

 

The Bokoni Platinum was represented by Mr K Mbewe (HR Manager), Mr AB Wessels (General Manager), Mr DW Labuschagne (SHE Manager), Mr KA Letlapa (Relationship Manager), Ms PJ Motlupa (SMME Executice Member), Ms O Lebese (FIH &SR), Mr MP Mokgotho (FTH & ER), Mr TM Maditsi (NUM representative), Mr MF Selepe (NUM Chairperson), Mr I Mathonsi (SMME Development), Ms ML Maphutha (Wellness Co-ordinator), Mr TT Monaiwa (Chairperson for Atok Branch), Ms ML VAN Staden (UASA representative) and Ms MS Phasha (SMMEs Chairperson).

 

3.7 Smokey Hills Platinum

 

The Smokey Hills Platinum was represented by Ms S Coetser (SHE Co-ordinator), Mr MM Motimele (Stakeholder Relations Manager), Mr W Smart (General Manager), Mr EJ Ferguson (CEO), Ms P Mohlala (HR Manager), Mr R Wallis (General Manager), Mr DM Kgwete (MCCF Member), Ms NP (NUM representative), Mr KL Marobola (Miner Assistant), Ms SS Moime (Engineering Safety representative), Ms PJ Makola (Invoice clerk), Mr F Magubane (Health and Safety representative), Mr E Moela (Health and Safety representative), Mr A Oldknow (Director for Human Resources and Organisation Development), Ms TP Sekhukhune (Senior ER Officer), Mr SN Makhunga (HR Manager)a and Mr T Fikizolo (General Manager for ER/Transport).

 

3.8. Other representatives

 

Other representatives were, from the Baroka Ba Ga-Nkwana Royal House (Ms M Phasha, Ms TM Phasha and Mr MNE Phasha), Mr FK Lesuf (Community delegate), Mr M Mabula ( Baroka Interim Councillor), Ms NL Manotwane (Clerk of Maesela Manotwane Traditional Authority), Mr DA Selepe (Roka Selepe Chief), Mr JM Selepe (Roka Sepe Councillor), Mr MV Kgasago (AUC Atok Unemployment Committee Chairperson), Mr GK Makgopa (Atok Community Engagement Forum), Mr KT Mokgotho (Community Chairperson), Mr DA Selepe (Khoshi for the Tribal Authority), Ms TE Mosamedi and Ms PE Matheba (Secretariat for Atok Stakeholder Engagement Forum), Mr ME Makgoga (Chairperson for the Modikwa Section 21 company), Mr MP Leshabi (secretary for the Modikwa Section 21 company), Ms CK Manyaka, Mr ML MAGABANE, Mr T Senage, Mr MC Kgwete (Maandagshoek Community Forum), Mr MD Moroamoche and Mr MS Sekhukhune (Bapedi Kingdom),

 

4. Meeting with the community surrounding the Modikwa Platinum Mine and Smokey Hills Platinum Mine (Maandagshoek Community)

 

4.1. Issues raised by the Community

 

The Community raised the following issues:

· Cracks on houses as a result of blasting in the mines. The mines were made aware of this issue and they sent people to take pictures of damaged houses. It is alleged that nothing has happened since then.

· It was alleged that Modikwa Platinum mine has been in operation for almost 10 years but only constructed the road recently and the road was already reported to be full of potholes.

· Lack of community amenities such as the library was mentioned as evidence of lack of compliance to the Social and Labour Plans (SLP).

· The Maandagshoek community complained about the lack of assistance from the municipality regarding their complaints.

· The authority of mine security was reported to override the South African Police Service’s authority at Smokey Hills mine.

· Smokey Hills mine’s dismissal of 600 employees without allegedly following proper procedures in terms of the labour law.

· The Smokey Hills Platinum mine was suspected of operating without a mining licence and was accused of disrespecting the traditional leaders.

· The community member complained of being recruited by the Smokey Hills mine to register a company so as to do business with the mine but there has been no progress since then.

· The Modikwa mine was accused of using the traditional leaders as buffers between it and the communities.

· The Maandagshoek Community that the trenches were dug to lay down water pipes but there has been no progress. The community reported that it still does not have portable water.

 

5. Visit to Modikwa Platinum Mine

 

5.1 Presentation by the Modikwa Platinum Mine

 

The Business Leader, Mr Mandla Nxumalo made the presentation which covered, among other things, the following issues:

 

· Mine Health and Safety

The mine achieved 10 million Fall of Ground (FOG) free fatality shifts and 8 million free fatality shifts in August 2011. This covers a period of six years. The cases that were treated and discharged at the clinic came down from 339 in 2005 to 57 in 2011. Lost time injuries were down from 152 in 2005 to 20 in 2011. Reportable cases (two weeks hospitalisation) came down from 59 to 8. There was only one fatality between 2005 and 2011.

 

· Mine Ownership

The community owns 8.5 per cent of Modikwa Platinum Mine through the section 21 company.

 

· Community Engagement Structures

The community is engaged in business of the mine through structures such as Moshate meetings, section 21 board meetings, section 21 executive committee meetings, ARM mining consortium steering committee and Joint Venture executive committee meeting, which meets quarterly and is chaired by the executive chairperson of ARM.

 

· Community Investment

Investments in communities since 2002 amounts to R483,8 million, which is split as follows: socio-economic development-R94,5 million, expenses paid in establishment of community and development companies-R17 million, funding provided by ARM for community 8.5 per cent shareholding-R286,6 million (R134m still outstanding), funding provided by Anglo Platinum for community shareholding-R19,3 million (full amount outstanding), expenses for section 21 directors-R4,4 million and value of transactions with DEVCO-R61,8 million. The socio-economic development projects include education (renovation and construction of class rooms and bursaries), water provision (village water boreholes and agricultural projects), business development (DEVCO management and directors’ fees) and community infrastructure development (roads and community halls construction).

 

· Local Economic Development (LED) Projects

LED projects include a road project valued at R63 million, which created 82 local jobs and subcontracted work valued at R7,1 million. Unfortunately the road was used before it was ready and as a result has been damaged and needs to be resurfaced. A total of R3,2 million was spent on renovation of schools. A total of R600 000 was spent on water project. A clinic project valued at R4 million was completed. Two tribal offices were completed to the value of R4 million. Other completed projects were the sewing factory valued at R4,8 million and a bakery at R4,7 million.

 

· Employment Equity Statistics

The mine achieved a compliance target of 44 per cent HDSA in management and a total of 93 per cent HDSA in the mine. The mine reported that 13 per cent of its employees are women, of which 11 per cent are in core disciplines.

 

· Recruitment and Training

The mine reported that it recruited 31 per cent and 51 per cent of its employees from the local communities and Sekhukhune district respectively. A total of R46,9 million was spent on skills development. The mine provided mine related learnerships to employees and local communities. The mine also provided loans for its employees to further their studies. Bursaries were also provided for external students and a total of 20 interns were accommodated. Currently 16 of these learners are in the recruitment and appointment process.

 

· SMME and Procurement

In 2010 the mine spent R331 million and R186 million in 2011 to date in HDSA procurement. Of this amount R91,7 million in 2010 and R65,1 million in 2011 was spent on local HDSAs. It was reported that six local SMMEs are currently providing services to the mine, generating earnings in the order of R2,1 million per month. Together they created 282 employment opportunities for local communities. The services rendered include transportation of employees, air conditioner services, catering services, cleaning services, housing maintenances services and salvage yard services. All tenders awarded on the mine have a 20 per cent local empowerment rule. The local SMMEs that are awarded tenders are linked with Anglo Zimele for funding, which is an initiative to fund business opportunities.

 

· Challenges encountered by the Mine

o High expectations of communities from the section 21 companies (Matimatjatji and Mampudima) as a result of using the Royal Bafokeng as a bench-mark. According to the Articles of Association the mandate of these two companies is to carry out the social and economic upliftment and development of the seven communities.

o Lack of capacity in section 21 companies and Community Development Companies.

o Conflict between different groupings in the communities resulting in difficulties to identify the legitimate community representatives.

o Low literacy levels and lack of skilled people for critical positions.

o Mine is regarded as the only place of employment.

o Communities lacking understanding of the relationship between the Social and Labour Plans (SLP), Mining Charter and Integrated Development Plans (IDPs).

o Lack of health and social amenities in the communities.

 

· Mitigating Strategies

o The mine is in the process of reviewing the Articles of Association to improve the functionality of the Section 21 Companies (focusing on accountability to communities).

o The mine is also planning capacity building initiatives for the community representatives liaising with the mine.

o Implementation of continuous improvement with regards to communication with local stakeholders.

o To collaborate with neighbouring mines on community development.

o To sign off the local employment and procurement agreements.

o The mine is in the process of identifying ring fencing and set aside opportunities.

o A local community database of SMMEs is to be established and maintained by the Transformation Department.

 

5.2 Responses by the mine management to issues raised by the members of the Committee

 

5.2.1 Portable Water :

 

It was reported that the mine drilled boreholes throughout the seven villages and is maintaining them. The trenches were dug and water pipes were laid to draw water from the dam to the communities. For this project to be successful, cooperation with other companies and relevant municipalities is required. Currently, there is a forum between the mine and the municipality but no formal agreement.

 

5.2.2 Mine Safety :

 

The commendable safety record was achieved through providing risk identification training to employees and by making employees aware of their right to refuse dangerous work without repercussions.

 

5.2.3 Cracked houses :

 

The mine has not received complaints recently of cracking houses. However, the mine conducted a scientific study to determine the level of seismicity as a result of blasting and found the level to be within the acceptable norm.

 

5.2.4 Support for Local Economic Development (LED) Projects :

 

The mine is going to support the Matimatjatji Sewing Factory by buying its uniforms from the factory and the buying bread from the Bakery. The mine is also going to assist the LED projects with the marketing plan.

 

5.2.5 Twenty per cent local empowerment rule :

 

The mine conceded that the 20 per cent local empowerment quota was insufficient. Hence it is in the process of identifying, ring fencing and “set aside” opportunities for local companies.

 

5.2.6 Monitoring and evaluation of empowerment projects :

 

The Social and Labour Plan targets are used as benchmarks in monitoring and evaluating project performance. All learnerships are accredited by the Mining Qualifications Authority. More than 10 women have already qualified to be miners through learnerships. The challenge experienced by the mine is the retention of staff after qualification from learnerships.

 

5.2.7 Community Trust instead of Section 21 Company :

 

The African Rainbow Minerals advised the community to consult with commercial lawyers on a model for the community empowerment company. A decision to establish a section 21 company was taken after extensive consultations. The community representatives were involved in drafting the Articles of Association in 2002. Notwithstanding the above, the model is subject to review on request by the community.

 

5.2.8 Appointment of Community Representatives :

 

Directors of Section 21 companies are elected by communities at mass meetings. The mine sources the services of an independent elections monitor in consultation with the communities. The mine provided training on cooperative governance to the directors.

 

5.2.9 Roadmap to push the frontiers of poverty :

 

The communities were asked to identify development projects and the projects were consolidated into the Integrated Development Plan. The plan was on course until it was derailed by the economic downturn of 2008.

 

5.2.10 Ownership of the Section 21 companies :

 

Modikwa Platinum Mine is owned by Rustenburg Platinum Mines (50%) and ARM Mining Consortium (50%). The ARM Mining Consortium is owned by ARM Platinum (83%), Matmatjatji Sec 21 Company (5%) and Mampudima Sec 21 Company (12%). Therefore, section 21 companies own 17 per cent of the ARM Mining Consortium and 8.5 per cent of the Modikwa Platinum Mine. African Rainbow Minerals (ARM) provided R300 million to the section 21 companies to fund the shareholding. The section 21 companies now owe R134 million to ARM. It is therefore correct to say that the section 21 companies are still servicing the debt.

 

5.3 General observations

 

5.3.1 Mine Health and Safety

 

· The mine has an impressive health and safety record, especially in terms of fatalities as a result of Fall of Ground (FOG).

· The mine has a fully equipped and adequately staffed clinic.

· There is no problem of silicosis in the mine.

· The biggest challenge in terms of occupational health is Pulmonary Tuberculosis (TB).

· There is no machine in the mine that is emitting more than 110decibells. The high noise machine produces 103decibells.

· The Voluntary Counselling and Testing (VCT) side of the clinic is open to communities. HIV treatment is available to employees and their spouses.

 

5.3.2 Social and Labour Plans

 

· The projects were identified in consultation with the communities and were registered with the Tubatse Municipality Integrated Development Plan (IDP).

· R50 million was approved for low cost social housing project for next year (2012) and has therefore no yet been spent..

 

5.3.3 Mining Charter

 

· There is still a challenge regarding the ownership element of the Charter.

· The communities are still not benefitting from shareholding since the dividends are channelled towards servicing the debt.

· The mine employment equity statistics classify women as a single group and it will be useful to disaggregate the statistics by race and gender.

 

5.3.4 Procurement Spend

 

· Only services are procured from the HDSA owned companies. The challenge, as reported by mine managers, is the unavailability of companies that sell capital equipment used in the mine.

 

6. Visit to Bokoni Platinum Mine

 

6.1 Presentation by the Bokoni Platinum Mine

 

Bokoni Platinum Mine reported that it had made significant progress towards achieving transformation objectives as envisaged in the MPRD Act. The ownership structure and BEE component and Community stake in the operations was cited as testimony to the company’s commitment. The Company’s presentation further reflected a strict commitment towards a zero rate target of fatalities and injuries, an effort to eliminate silicosis, and the elimination of noise produced from the mine to within specified limits. On Health matters, the company had a comprehensive strategy to combat lung diseases, including TB. Regarding social and labour plans, there were programmes aimed at empowering company workforce. These included training and various other skills development initiatives. Through engagements with the Community Forums, a number of projects had been undertaken, among those, a bridge, bakery, primary school, crèche and a community hall. The company further reported a pro-SMME/BEE procurement policy for capital goods, services and consumables.

 

6.2 General observations

 

· While the Committee welcomed the presentation and the progress made, there were concerns that women were not adequately represented particularly at senior management level.

· There was lack of clarity regarding the recruitment of learners who were brought in to do learnership programmes. The Committee would have wanted to know more about where the learners came from, including the terms of the contracts they signed.

· There were concerns from the Community regarding rehabilitation of the environment. Some Community members complained that they were made to drink contaminated water as a result of mining activities.

· Some residents had raised concerns that their residential homes had developed cracks due to mining related activities and they were not receiving any compensation.

· The committee was critical in the manner in which some of the achievements on the Social and Labour Plans had reflected work done before 2009 and yet Bokoni Platinum Mine started operating in 2009.

· A general concern of disregard to the plight of the disabled was a cause of concern.

· The Community had raised a concern that levels of HIV were rising due to contracted labour from outside the local communities.

· The state of a breakdown of relationship and the use of courts and the premier’s office to resolve conflict was deemed regrettable.

· The rehabilitation plans had not been properly explained to the committee and there were valid environmental concerns emanating from life after closure of the mine.

· The figures reflecting the number of foreign nationals hired seemed too high and questions were raised as to whether labour laws were observed in hiring such a seemingly large contingent of foreign labour.

 

7. Visit to Phokathaba Platinum Mine

 

7.1 Presentation by the Phokathaba Platinum Mine

 

The briefing gave an overview of the Company’s investment in the South African mining sector. It covered an overview of the mine health and safety policy, labour disputes that were ongoing, the ownership structure of the company and importantly compliance with laws in terms of alignment with the mining charter and the status of the company’s social and labour plans. The company claimed to have done relatively well in terms of its mine health and safety policy. This was reflected through statistical information provided, which highlighted a fatal-free record since November 2007 to present, achieving an admirable 3403 production fatal free shifts.

 

The ownership structure of Phokathaba Platinum Ltd reflected a 15 percent stake belonging to Limpopo Platinum Holdings, 5 percent stake to Maandagshoek Community and 80 percent being owned by Platinum Australia (78.75%) and Twin Peaks Platinum (21.25%). The Maandagshoek Community had a further 10 percent stake in the 15 per cent interest of the Limpopo Platinum Holding and 15 per cent interest in the affairs of Twin Peaks Platinum, making the Community have a total 9.05 percent direct interest in the Phokathaba Platinum Mine project. The further statistics given by Phokathaba gave a picture that the company had a preferential recruitment and procurement policy towards the community of Maandagshoek.

 

7.2 Observations

 

7.2.1 Poor or lack of harmonious company-community relationship

 

The Committee was of the view that the relationship between the mining company and the community was nearly non-existent. Many of the problems that came up had been exacerbated due to a lack of strong bond between the two parties and that had contributed to such a break-down of trust from both parties. The mine management was asked to develop a strategy that will improve relations with the community as a matter of emergency.

 

7.2.2 Lack of consultation

 

The Committee observed that because of divisions and issues of legitimacy of the community forums, development projects did not receive endorsement of the entire community, something which was highly regrettable.

 

7.2.3 Lack of sensitivity with regard to labour unrest

 

The Committee was of the view that the issue of dismissed workers could have been handled better through mediation processes rather than rushing the matter to court. The continued unrest and violence as a result was both costly and unsustainable.

 

7.2.4 Delaying tactics employed by the mining company

 

The committee felt the pace of implementing social and labour plans was moving at a very slow pace, something which prompted the committee to think this was a strategy from the mining company since it had a very short mining life-cycle and it would make business sense if it did little or nothing for the community during its five-year tenure.

 

7.2.5 Community ownership stake too little

 

The Committee, having heard that the Community had been given a stake of 5-9% in the company, felt this was way too little compared to the benefits which were to be realised by the main shareholders.

 

7.2.6 Lack of detail about the Community Company

 

Having learnt that the share transfer agreement provided for the establishment of a community company that would hold up to 9.5% interest in Smokey Hills mine on behalf of the Maandagshoek community, there was lack of detail on the nature of the company, and how it will utilise the proceeds from the mine.

 

7.2.7 Concerns over the mediation role from the office of the premier

 

There were concerns about the manner in which conflicts between the company and the community were resolved. The frequent use of the office of the premier was highlighted as one of the probable causes of continued tensions.

 

7.2.8 Presence of too many foreign nationals employed in the mine

 

The Committee was of the view that the number of foreign nationals employed by the mine as provided in its presentation was unacceptably high. Questions were raised as to whether labour laws of the country governing hiring of foreign nationals had not been breached. The committee was not convinced that the issue of lack of skills from the locals could be used to justify the hiring of foreign nationals as most of the work done did not require high level of skill.

 

7.2.9 Unsatisfactory rehabilitation plans

 

The Committee noted, with concern, that the presentation given did not fully explain how the company would go about its rehabilitation programme after closure of the mine. The DMR requirements on rehabilitation were very clear and needed to be fully complied with.

 

7.2.10 raining and development

 

The Committee was not convinced that the company had done enough to develop skills of its employees. This was evident from the lack of participation of woman and black people in influential positions within the mine. The state of affairs with regard to training and development contradicted the objects of the mining charter.

 

7.2.11 Compliance with the law in terms of reducing injuries at work

 

The Committee was pleased that the company had put in place sound measures to prevent injuries at work. However, there were gaps in the presentation in terms of prevention of occupational diseases.

 

8. Conclusion

 

The General feeling with regards to Bokoni Platinum Mine was that the Committee was satisfied with the Social and Labour Plans put in place. However, the disjuncture of information provided, in terms of projects that began being implemented before a change of ownership could not entirely be attributed to be the efforts of the present administration. With regard to health matters, there were gaps in terms of what was presented, which highlighted the need to do more. The lack of sufficient skills development programmes for the young people in the surrounding communities was noted as something which could have negative rating for the company.

 

The Committee raised concern about poor relations between the Smokey Hills mine and its former employees who were dismissed allegedly without following proper procedures in terms of labour laws. The mine has resorted to a militarised approach to mine security. The Committee also felt that Smokey Hills mine had not displayed commitment to long term investment. The evidence of this was the mine management’s reference to the short life span of the mine, which they estimated to be about five years. The physical evidence of the lack of long term commitment was the prefabricated structures and containers that the mine was using to administer its operations.

 

The Committee was impressed by the Health and Safety record of the Modikwa Platinum mine and its responses to the issues raised by the communities. The Committee also appreciates the mitigating strategies developed by the mine to address the challenges that have been identified.

 

The Committee pleaded with the mining management to double efforts of providing skills to the young people in communities where they operated. The excuse that many had no skills required was not well-received as many of the jobs could be learnt while a person was on the job. The representation of women in leadership positions was highlighted as a cause for concern. In overall the mining companies had sound plans with regard to Social and Labour Plans but more engagement with community structures was critical to avert conflicts and divisions.

 

9. Recommendations

 

The Portfolio Committee on Mineral Resources, having heard evidence from all stakeholders listed above, recommends that the Minister of Mineral Resources should ensure the following:

 

9.1 That mining companies (mentioned in this Report) strengthen stakeholder participation through proper use of community forums;

9.2 That mining companies (mentioned in this Report) do more in terms of skills development, empowerment of women and provision of training for young people who come from the community.

9.3 That leaders of communities (mentioned in this Report) play a role in resolving conflicts and bridging the gap between mine management and mining communities.

9.4 That mining companies (mentioned in this Report) consult all relevant stakeholders when intending to roll out social and labour plans as in some instances, pressing community needs such as water shortage did not receive adequate attention.

9.5 That the Smokey Hills Mine does its level best to re-hire most of dismissed employees.

9.6 That the Smokey Hills Mine mobilises all relevant parties to meet and discuss social issues in order to promote social cohesion.

9.7 That management of the Modikwa Platinum Mine promotes good relations between traditional leaders and their communities regarding empowerment processes.

9.8 That the Modikwa Platinum Mine provide the Committee, within two months after the adoption of this Report by the House, with its employment equity statistics for females in terms of race, namely: African female, Coloured female, Indian female and White female.

9.9 That the Department of Mineral Resources pays more attention to the Smokey Hills Mine in terms of compliance inspections.

 

 

Report to be considered.

Documents

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