ATC241029: Report of the Portfolio Committee on Mineral and Petroleum Resources on the Stakeholders’ Engagement Workshopdated 29 October 2024

Mineral and Petroleum Resources

REPORT OF THE PORTFOLIO COMMITTEE ON MINERAL AND PETROLEUM RESOURCES ON THE STAKEHOLDERS’ ENGAGEMENT WORKSHOPDATED 29 OCTOBER 2024.

 

The Portfolio Committee on Mineral and Petroleum Resources having considered the Stakeholders Engagement Workshop, reports as follows:

 

1. Background

 

On 17 September 2024, the Portfolio Committee on Mineral and Petroleum Resources (hereafter, the Committee) held a workshop with mining and petroleum stakeholders including organised labour. The purpose of the Stakeholders Engagement Workshop was for the Members of the Committee to know the Stakeholders that are within their portfolio; to hear the challenges the stakeholders are experiencing in the sector and what are the stakeholders’ expectation from the Committee during the current administration.

 

About eighteen (18) Stakeholders, including organised labour were invited to participate in the workshop. These stakeholders were the Fuels Industry Association of South Africa (FIASA), South African Oil and Gas Alliance (SAOGA), Sasol, Green Connection, Women in Oil and Energy South Africa (WOESA), Minerals Council South Africa, South African Mining Development Association (SAMDA), Junior Mining Council (JMC), National House of Traditional Leaders and Khoisan (NHTK), Mining Affected Communities United in Action (MACUA), Aggregate Sand Producers Association of South Africa (ASPASA), South Africa Diamonds Producers Association (SADPO), United Association of South Africa (UASA), Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAU), Solidarity, National Union of Mine Workers (NUM), South African Chemical Worker's Union (SACWU), and Association of Mineworkers and Construction Union (AMCU).

Of the eighteen (18) stakeholders that were invited, ten (10) participated, namely, SAMDA, Minerals Council South Africa, JMC, Green Connection, WOESA, SAOGA, FIASA, MACUA, NHTKL, and Solidarity. Some of the stakeholders that did not participate tendered an apology, stating that their absence was due to unforeseen circumstances. The following section provides details on the submissions made by the stakeholders.

 

2. OVERVIEW OF THE COMMITTEE ENGAGEMENTS WITH STAKEHOLDERS

 

As alluded to above, this section of the report provides a summary of the stakeholders’ engagement with the Committee held on 17 September 2024. The subsequent section summarises the submission of each stakeholder as listed above.

 

2.1. South African Mining Development Association (SAMDA)

 

Ms Bridget Motsepe-Radebe took Members through the SAMDA presentation. The presentation touched on SAMDA’s mandate, its work and how it has assisted communities affected by mining operations. Ms Motsepe-Radebe stressed the need for more discussions to address the concerns of mining communities and how Parliament can use its resources to prevent their neglect. She expressed hope that Parliament will begin to apply pressure and act against entities that are not fulfilling their responsibilities.

 

Memberes were concerned about the difficulties and barriers to entry into the mining industry, especially for black South Africans from previously disadvantaged backgrounds. Guidance was sought on which policies could help ordinary South Africans break into these industries and improve their economic conditions. Additionally, Members wanted to know how SAMDA established trust within the community, and seeking details about its board of trustees and other relevant information. In response to how SAMDA can best assist other communities in achieving the same, Ms Motsepe-Radebe replied that there was previously a strong ministerial advisory board, and stakeholders within the mining sector also took part, which led to the Junior Mining Fund, among other successes. There was an emphasis on the need for robust oversight on the implementation of the Social and Labour Plans. Ms Motsepe-Radebe implored the Committee to look into how well the Marula Mine is or has implemented its Social and Labour Plans. The Committee Chairperson, Hon Mahlaule, informed stakeholders that the Committee had taken a decision to focus on implementation of the Social and Labour Plans. Thus, an investigative oversight on the implementation of Social and Labour Plans will be conducted by the Committee during the Seventh Parliament.

 

2.2. Minerals Council South Africa

 

Mr T Chabana, Executive Manager of the Mineral Council South Africa introduced his team and took Members through the presentation, which provided an overview of the Council's work. The Council is the primary advocate and representative of the South African mining industry. Its purpose is to co-create an enabling environment for mining to thrive.

 

Below were the discussions between the Committee and the Minerals Council:

 

• A point was raised by the Members that the Department of Health complains that it has money belonging to sick workers from various countries within the Southern African Development Community (SADC).  In responding as to how Minerals Council was assisting the Department in paying the families of these workers or helping them receive these monies, Mr Tabane explained that the Department of Health's access to files and data for former mine workers resulted from a historical issue. He stated that, before 1994, mine workers' employment was arranged through Teba, a labour brokering organisation. The company did not have the employees' records; a third party, Teba, managed these records. Teba considered access to this data a competitive advantage and initially wanted to charge ex-mine workers a fee to obtain their records. However, after engagement with Teba, it was agreed that no mineworker would have to pay any fee, and the Council would cover the costs.

 

Mr. Chabana added that  the Medical Bureau for Occupational Diseases, which was meant to maintain records of employees exposed to occupational diseases in the mining industry, needs to be fixed. He stated that investments were needed to improve its efficiency. To this end, the Council was currently funding various initiatives at the Medical Bureau, including funding for personnel. The Treasury contribution was minuscule for the Bureau to carry out all its duties. The Council needed someone at the Chief Financial Officer (CFO) level to manage the Compensation Fund's R5 billion . It was added that the organisational structure can only have someone at the Deputy Director (DD) level. It is impossible to find a charted accountant employed at a CFO level but paid at the DD level. So, the Council covers those costs. Furthermore, the bureau's business processes were paper-based and outdated and needed to be overhauled and improved. The Council then invested about R35 million to introduce a new Information Technology (IT) system that would make it accessible for any worker anywhere in the country to be identified and get medical aid benefits when needed. The system was in place and was funded continuously for about R5 million annually, with an initial investment of R35 million. The Council provides the Department of Health with medical examinations, certifications, payments, and payments of about R60 million annually for the last five years. Although fewer workers are coming through, the system was in place, and there is continuous work to make it sustainable.

 

•  In response to how the Council rates South Africa regarding exploration investments compared to other countries and the continent, the Council felt that South Africa is not on par with other countries in terms of mining investment. One challenge is missing out on the commodity upswings because of the logistics value chain. Mining investments take a long time to mature, so investors need to understand all requirements before investing. Ownership must make financial sense for investors who are often keenly aware of the policy/political issues in the country of interest. It is also important to provide some sense of security to investors so they are encouraged and do not feel like their ownership will be questioned every five years for political expediency. Social investments should be regularly reviewed to ensure they do not discourage further investments. Members expressed concerns about the level of investment in exploration and new mines, noting that only R400 million has been invested in junior miners despite the mining companies generating a total revenue of R8 billion, with a commitment to spend 1% of this amount. The Council indicated that exploration spending was considered risk capital, and it's vital to help potential investors find financially viable projects. The R400 million capital spending is minimal compared to the sector's annual revenue. While the Mining Charter does not specify targets for enterprise development, provisions are in place for compliance. Mining companies also spend significantly on social development projects, but optimisation is necessary. Additionally, amendments in the Mineral and Petroleum Resources Development Act will allow subdivision of mining rights, enabling companies to extend permits to smaller entities.
• It was reported that the industry spent R7 billion on training, health and safety, and other employee requirements. In 2023, about R100 million was spent on bursaries from 12 surveyed mining companies, benefiting not only mining and engineering students.
• The Council was requested to provide detailed demographic information about its 40 members. It was emphasised that there is an urgent need for genuine transformation in the South African mining industry and the lack of progress in this area is a significant threat.
• Members inquired about the non-implementation and expiration of the Mining Sector Charter and asked for an assessment of the sector's achievements over the past five years. The Council indicated that the 2018 Mining Charter five-year period had expired in December 2023, thus a review of the Charter is due. Additionally, the Council stated that, in respect of the Mining Charter, the Department had no standardised reporting template, companies reported as they wished.
• Members sought information on the industry's efforts to train young people as mining engineers, the funding allocated to train engineers in various institutions, the budget for research and development, and the amount of money allocated for community development in mining communities from the R800 billion generated by the industry.
• Members questioned the challenges preventing women's employment within the sector. Additionally, the presentation mentioned R2 billion for social projects and mining houses and they inquired about the amount spent on social responsibility compared to the sector's annual revenue. In response to the lack of representation of women on the board, the Council indicated that the Mining Charter targets 20% women's representation for senior and executive management, while the overall target of 50% for all women, regardless of race, was achieved. Only 18% of the 20% target for senior and executive management was achieved. Most mining companies have a dual reporting framework, which poses a challenge in assessing compliance. Having a scorecard or template would assist in accessing this information. In response to the amount spent on social projects, the Council stated that billions have been spent by mining companies on social and labour plans, however, the projects do not seem to be impacted. The Council suggested that the approached to the social and labour plans should be reimagined, such as ensuring that projects invested on are impactful.
• Members inquired about the plan to divide the reserves into sections to support the development of emerging companies and grant them permits to mine sterilised or abandoned areas. The Council stated that it was in discussions with the Department of Mineral Resources and Energy on what to do regarding marginal mines, and mines under care and maintenance.
• Members inquired about the Council's strategy for companies with potential mines and suggested that the Council review the list to ensure that no inactive companies had been granted permits.

 

2.3. Junior Mining Council (JMC)

 

Mr Fred Arendse, Founding President of the JMC, introduced his team members and led Members through the presentation, which covered JMC’s ethos, organisational profile, services offered, and membership profile.

 

Adv T Mokoena, Board Member said there was a lot of work to be done to address inequality and transformation in the mining industry. They believe that the mining industry is strategically placed to assist in this, but access continues to become a central issue. This matter has been discussed with stakeholders in the sector regarding what can be done. Many companies have a lot of money, but they need to spend it. Parliament should properly audit mining rights in the pipeline. Instead of idling and not allowing companies not to use those mining rights, they can be utilised to address the high unemployment rate and socio-economic conditions. He further stated that there is a need to apply the use it or lose it principle as provided for in the Mineral and Petroleum Resources Development Act. He added that is unfair for the companies to keep the rights that they are not using.

Adv Mokoena stated that there is a policy for artisanal and small-scale mining, and it is within the Committee’s prerogative to demand progress in implementing it. If the policy comes into effect, it will change the sector. The policy states that those who have mining rights but do not use they must allow junior miners access. The Committee must ensure it oversees the Department and assesses or conducts an audit on the mining rights issued.

It was stated that South Africa's regulatory environment provides certainty for many investors interested in mining in the country. It compares well with some other countries. Any mining right is subjected to thorough assessment for compliance. The financial provisions are one such measure. Companies lacking financial muscle will not get the rights or permits.
 

2.4. Green Connection

 

Ms Liziwe, Mcdaid and Ms Lisa Makaula presented on behalf of Green Connection. They presented the organisation’s profile, core mission on green energy, and various projects undertaken.

 

Below were the discussions between the Committee and Green Connection:

• The Committee Chairperson stated Green Connection’s intention is to build an economy based on renewable energy sources. Renewable energy technologies such as wind turbines and solar panels require mined minerals for production. Therefore, to sustain renewable energy production, increased mining activity is necessary. However, heightened mining contributes to carbon emissions. Additionally, addressing climate change cannot be confined by borders. The Chairperson added that there are proposals to phase out coal or fossil fuels, even though the country export coal overseas daily. Carbon emissions does not adhere to national borders.
• While wind turbines are often transported and installed, they are typically situated in large farms where they may impact grazing animals. The jobs generated by these turbines are often located elsewhere and are not directly created within the local value chain in South Africa. This threatens job creation, especially in a high unemployment environment like South Africa.
• Members wanted to know whether Green Connection was working with researchers to find sustainable ways to address oil spills.
• There has been doubt on the technology,  whether it was developed enough to move South Africa to a Just Energy Transition. The material used for solar panels and its batteries has a limited lifespan, about 10 to 15 years. It was queried what would happen to all those used now in 15 years, and where will they be disposed of when they are no longer operating?
• Members wanted to know if the wind turbines were killing birds. When the turbine materials come to the end of their life, where is that material disposed of? Does nuclear energy have any emissions? A Member stated that nuclear is the safest and most effective energy source, although the disposal of its material becomes an issue in the end. The Member argued that since 1995, the amount of nuclear material that has not been disposed of cannot fill the size of the venue where the meeting was held. The Member stated that it was stored safely in Koeberg, and that it can still be used to generate more electricity.
• It was stated that Germany, and the United States failed to meet their Paris Agreements for climate change. To appease their conscience, they gave South Africa R10 billion. Lobbyists do not confront the hypocrisy that keeps them in perpetual poverty and fail to address the need for the economy to grow. It is surprising how coal was not good enough. These countries must look at the mirror first, and Africa is not emitting much. South Africa meets their targets, but the developed countries are forecasted to fail.
• Many indigenous areas are being polluted, which negatively impacts the medicinal and indigenous knowledge present in their communities. Has any assessment been conducted to determine how much mining has affected this area?
• Green Connection stated that it receives funding from international and local funders, all of whom are listed on their website. It is registered as an NPO (Not for Proft Organisation) and takes all necessary measures to ensure that the funding received is channelled towards the intended areas.
• The Green Connection representative emphasised the importance of the Integrated Energy Plan (IEP) in addressing various issues such as social, economic, and environmental sustainability. The plan must outline potential scenarios from now until 2050 if the country is transitioning to renewables and reveal the associated costs such as social, economic, and health impacts. Green connection stated that some of the litigations between various players and the DMRE stem from the fact that there is no roadmap for the energy sector in South Africa, the IEP. Public participation will play a vital role in further engaging on these matters. The IEP needs to address the questions that arise from transitioning to renewables and present an opportunity to tackle these issues.
• The Green Connection representatives stated that the challenge lies in finding a balance between people and profit, such as how does one ensure that the economy supports and uplifts people without compromising the well-being of future generations? Many issues in the mining sector stem from past generations failing to consider the impact on future generations, resulting in sickness and broken communities. Responsible mining practices must be established to ensure community benefits and funds for rehabilitation and other concerns are addressed. A particularly shocking incident was witnessed during a mine visit in KwaZulu-Natal, where a bulldozer was clearing people's graves, raising questions about how such an event could occur in a democratic South Africa. While beneficiation is important, the future lies in recycling and achieving zero waste. South Africa's zero-waste policy could potentially lead to the development of new industries.
• A question was asked, would South Africa take a loan to build renewable energy plants to produce hydrogen for export to the European Union (EU) to aid decarbonisation? It was responded that South Africa has yet to fully engage in climate change negotiations. South Africa was experiencing the impacts of climate change, which knows no borders. There was a lack of belief in the current negotiators' efforts to fight for South Africa.

 

2.5. Women in oil and Energy South Africa (WOESA)

 

Ms Khumo Ntlha, Group CEO, WOESA, led Members through the presentation, which covered the company's background, services and activities, membership, skills development, and corporate social initiatives. Ms Ntlha said the entity also has an NPO because communities may need more capacity to address some issues. They are willing to go to those communities with some of their members. At one point, they partnered with BP to uplift the communities and provide them with business, management, and entrepreneurship training. They also ensure that the companies they are partnered with protect women, even those in shipping.

They also take young graduates into their companies to find a foot in the sector. They conducted a study with one of its members looking at the best time to catch engineers. They started a STEM (Science, Technology, Engineering and Mathematics) programme as a pilot in Soweto. They had about 80 children taken from grade five (5) until grade eleven (11) to empower them through maths and science. Unfortunately, due to COVID-19, they lost some graduates who volunteered as teachers. However, this programme has been revisited to be resuscitated.

They had a programme where people were trained on carbon capture, carbon audit, and other value chain aspects of acquiring skills in the carbon and renewable energy space. The organisation will also contribute to ensuring that they assist in legislation to craft provisions that speak to creating these jobs for women.

2.6 South African Oil and Gas Alliance (SAOGA)

 

Mr Craig Morkel took Members through the presentation and emphasised how South Africa was heading for a gas crisis. They echoed their concerns about how their multiple parliamentary and governmental platforms are not being taken seriously.

Mr Morkel stated that, according to the International Energy Agency (IEA), Africa currently contributes less than 4% of global energy-related carbon dioxide (CO₂) emissions and has the lowest emissions per capita of any region. Even if Africa utilises all its known gas resources, it will only add 1% to global CO₂ emissions. In 2021, approximately 43% of Africa's population (around 600 million people) still had no electricity access, with 590 million living in sub-Saharan Africa.

SAOGA also called for promoting offshore and onshore upstream exploration and argued that gas is viable for energy security and environmental sustainability. It was emphasised that resources can be extracted in environmentally friendly manner, and the country cannot rely imported fuel. SAOGA does awareness workshops to demystify the impact of oil and gas on the environment. SAOGA was willing to engage with environmental organisations to better align on impacts. SAOGA also offered to train the Committee on the full value chain of the oil and gas industry.  SAOGA said they had lost an opportunity to create 1000 direct and 4000 indirect jobs. Depleting gas reserves by December 2027 in Mozambique will result in 70,000 direct job losses.

 

2.7. Fuels Industry Association of South Africa (FIASA)

 

Mr Avhapfani Tshifuḽaro, Executive Director of FIASA, presented FIASA profile, services offered, membership and its footprint.

 

Mr Tshifularo raised a point that implementation of Cleaner Fuels 2 (CF2 - Euro V enabling fuels) can play a significant role in reducing noxious tail pipe emissions and fuel consumption – both important in the fight against climate change. The CF2 set to be implemented by 1 July 2027 and has implications for the petroleum industry, especially the refineries as they have to be converted to this standard by 2027. Mr. Tshifularo stated that initial objective of the DMRE was for implementation by September 2023. Following engagement, it was agreed to extend this to 2027 –during this engagement, the DMRE refused to consider incentives maintaining this was the preserve of National Treasury. Thus, it is critical that the issue of incentives by the government in respective of the CF2 implementation date of 2027 is addressed.

 

Mr. Tshifularo engaged the Committee on the issue of illegal mixing of paraffin and diesel that has recently been reported in the country. He said this could be stopped overnight by taxing paraffin at the same level as that of diesel, that is apply to paraffin the full duties and levies accruing to diesel. To offset the effect on indigent households who use paraffin for heating or cooking, receipts from this taxation could be via the South African Social Security Agency (SASSA) grant to these indigent households to offset the increased cost of paraffin. The state will also benefit in recovering up to R2.9 billion, the amount presently loss due to the volume of paraffin estimated to be blended into diesel which does not accrue taxes and levies.

 

He said, in 2006, paraffin sales were at 400 million litres per year. However, by 2022, the sales have increased to over a billion litres per year.  According to FIASA, this is not normal because with the increased rate of electrification, the volumes should decrease. These significant increases in sales are likely going towards illegal or unregistered usage or sales, which is puzzling. The excess litres of paraffin that can be provided to indigent people could be funded through the R3 billion. Some Members were opposed to the proposal of taxing paraffin and stated that broader consultation would be needed with the paraffin users amongst other stakeholders.

 

Illegal activities were also reported in Liquified Petroleum Gas (LPG) industry such as illegal importation of LPG Cylinders and appliances, illegal LPG Operations, illegal filling and exportation of cylinders, illegal and unregistered practitioners.

 

The FIASA requested the Committee to:

• Engage relevant portfolio Committee (PC) regarding its request to amend the Customs and Excise Act based on the changes since 2004. The Act has not kept up with developments which relate both to the import of product and removals to Custom Union countries
• Nudge the Minister of Transport on solution to the National Port Authority (TNPA) lease regime at Island View to ensure security of tenure to bring necessary back of port infrastructure investment which can assist in debottlenecking bulk liquid infrastructure at the port.
• Nudge the National Treasury on financial support on upgrading of refineries to meet CF2 requirements. PC to consider FIASA proposal on taxing paraffin to stop Illegal mixing of diesel and paraffin and discuss with relevant PC.

 

2.8. Mining Affected Communities United in Action (MACUA)

Mr Christopher Routledge highlighted the challenges of raising issues affecting mining-affected communities.  He said, they have been trying to address these issues since the Fourth Administration. He lamented that Parliament and the government’s focus is often on investors and said many of these companies were only interested in the mines, neglecting the welfare of the communities. Visiting these areas revealed the pervasive smell of unemployment and poverty. In one community, a mine was operating without a license, and despite efforts to address this with the Department of Mineral Resources and Energy (DMRE), no action has been taken. Meaningful consultation with the communities is lacking, and MACUA has attempted to engage the DMRE through workshops to express the communities' need for protection.

 

The mining companies are not adequately investing in upskilling, training, or giving back to the communities. The High-Level Panel Report exposed collusion between officials and businesses, a failure in checks and balances, and insufficient engagement with communities. MACUA calls for Parliament to intervene, as the Minister of Mineral Resources and Energy allegedly favours businesses over communities. MACUA called on the Committee to push back on the Minister, stating this was wrong.

 

The Committee represents the minority of voters and has a role to play in ensuring that the voices of the minorities are heard. They asked the Minister and DMRE not to allow the legislation to be railroaded through Parliament. In some communities, they are prepared to put lives on the line. In the Free State, some communities are upset with Harmony Gold, which does not listen to communities. People in power only listen to the business people.

He indicated that there was an unwillingness to engage with the communities. There was widespread non-compliance by mining companies. The Department had been informed of this and provided with proof. It said there were 579 social labour plans valued at R1.2 billion, which differs from the Mineral Council's numbers and independent research. He believed that either the Department is lying or something was significantly wrong. He indicated that MACUA had written to the Committee that they were prepared to open a case against the DMRE for misleading Parliament in terms of the reported number of SLPs.

 

The Committee understood the frustration of MACUA and reminded MACUA that it was important to note how issues were raised, and they must not be done in a manner that makes Members stubborn to hear their issues well.

 

MACUA said that from 2013 to date, they had yet to receive any constructive engagement or feedback from the DMRE. The frustration has been mounting. They went further to the Human Rights Commission and felt the legislation needed to be amended. They also went to court, which ruled in their favour for a meaningful consultation.

MACUA apologised if their frustrations were misdirected or misplaced. They seized the opportunity to express this frustration with the new Committee. However, they emphasised that it was a real frustration because they were trying to highlight real problems people were experiencing on the ground.

 

MACUA recommended the following to the Committee:

 

1. Ensure the inclusion of mining-affected communities, as well as civil society partners on multi-stakeholder law/ policy and regulatory engagement structures that directly affect them.
2. Ensure communities are provided opportunities to input throughout the law/ policy-making cycle (before the written comments stage) as a core and equal stakeholder; and 
3. Provide enhancements to the way broad public participation processes are conducted by the DMRE and the PC – to ensure equal outcomes.
4. Instruct the DMRE to ensure that the process aimed at amending the MPRDA must bring it into alignment with communities’ right to Free Prior and Informed Consent as affirmed in international law, the Constitution, the Interim Protection of Informal Land Rights Act and judgments such as Maledu and Baleni. 
5. The inclusion of specific targets and elements for women within the transformation objectives of the MPRDA. 
6. Demand urgent accountability from the Minister of Mineral and Petroleum Resources for his lack of oversight of the DMRE in advancing the transformation of the mining sector and for his lack of engagement with affected communities.
7. Demand urgent accountability from the Department of Mineral Resources and Energy for its failure to uphold the law and to hold mining companies to account for their failure to deliver on the licence obligations.
8. Criminally charge officials who provide false information to the Portfolio Committee.

 

2.9. National House of Traditional and Khoisan Leaders (NHTKL)

 

Kgosi Seatlholo, Chairperson of the NHTKL, emphasised that the state of rural mining communities was still reminiscent of apartheid, characterised by violence, exploitation, and poor living conditions.

According to Kgosi Seatlholo, the government and Parliament favoured businesses. When communities approached the Department and ministry to compel businesses to comply, their pleas often went unanswered. He also noted that those responsible for implementing the laws often needed to do so. Many members of the Sekhukhune community had raised concerns about mining activities and urged the President to address the situation. It was highlighted that only a small fraction of companies complied, while the majority did not. However, certain mining companies were recognised for their contributions to the community, such as constructing an auditorium by a mining company in Kuruman and building schools by mining companies in Rustenburg. He stressed the importance of acknowledging and building on such initiatives.

Given the challenges faced under the current dispensation, he expressed concern that people would suffer even more as the country moved towards the Just Energy Transition. The NHTKL had previously worked closely with Parliament in the previous administration and proposed continued collaboration with the current Committee.

The mining companies had committed to various initiatives, such as roads and other infrastructural projects, and it was suggested that Parliament visit active communities to assess these initiatives and ensure businesses' compliance.

Kgosi Seatlholo also suggested inviting MACUA to the same meetings, as they represented similar constituencies. He emphasised the need to review the Act (Mineral and Petroleum Resources Development Act) and assess the issue of beneficiation, which could create secondary business opportunities from mining. He stressed the importance of creating opportunities to make it easier for companies and other community residents to benefit from mining operations.

He also suggested regulating artisanal mining to reduce the involvement of illegal mining and limit criminality. In the North West, there were issues of overlapping pockets of land for mining activities and the Department of Rural Development and Land Reform must address this. Natural resources like gas, coal, and oil are not location specific. These resources affect the nation, and they must be made national when they are discovered. They must not be kept away from the public. These should be regarded as commodities that affect everyone in the country.
He proposed that, the SLPs become public knowledge. They must be publicised with their achievements and failures so that everyone knows that mining companies are delivering on their SLP commitments.

 

2.10 Solidarity

 

Mr Gideon Du Plessis, Secretary General of Solidarity led Members through the presentation. The presentation touched on the challenges in the petroleum sector, how the Just Energy Transition poses skills shortages and job losses, and the challenges in the mining sector, which included job losses and health and safety.

 

Mr Du Plessis said that the organisation would be happy to assist the Committee with the research work it has done in the past. He mentioned the sexual abuse of women underground, and intense discussions with human resource executives have been taking place. Mine companies should consider having a lot more space and fewer people in a cage to prevent these incidents, as initiatives have not been responded to at the desired rate. A lot of things happen in that cage, he said.

Mr Du Plessis said that Solidarity has been active about the issue of Personal Protective Equipment (PPE) for women underground, but there seems to be nothing happening in the mines. It recently came to their attention that they seem to have gone backwards with this issue even though they have been engaging the mines on this matter for some time. Recently, they had a meeting with women and some shocking things were revealed about the difficulties women experience in the sector.

 

3. OBSERVATIONS

 

The Portfolio Committee on Mineral and Petroleum Resources, having engaged with the stakeholders in the mining and petroleum sector, made the following observations:

 

• There is a need for a workshop to empower members on the legislation that will soon be introduced to Parliament, such as the Mineral and Petroleum Resources Development Amendment Bill.
• The Committee need to take a more robust and active approach to SLPs. There is a need to reimagine SLPs – investing in impactful and sustainable projects.
• Linked to the above, the ineffectiveness of the community trust as reported is concerning.
• The issue of mining charter scorecard needs to be addressed as it was revealed by the stakeholders that the DMRE does not have a standard reporting template. It is also noted that the 2018 Mining Charter period ended in Dember 2024. If a charter is formulated, then it must be accompanied by a scorecard.
• It was noted that some stakeholders were disappointed with the DMRE and the Minister, accusing them of prioritising business interests over communities.
• It is concerning that South Africa is a net importer of crude oil. There is a need to invest in the upstream petroleum industry and address the declining refining capacity.
• Upgrading of refineries to clean fuels 2 standard by 2027 will have a further impact on South African refineries and the petroleum industry at large.
• Delays in finalising key policies might be the reason for some of the objections to development of the mining, oil and gas by the Non-Governmental Organisation (NGOs). Such key policy document is the Integrated Energy Plan (IEP) which is meant to be a roadmap for South Africa’s Energy Industry.
• The offer by SAOGA to train Members on full value chain of the petroleum industry was welcomed.
• The issue of mine health and safety in mines must be urgently addressed.
• The Department must hold mining right holders accountable for environmental damage and pollution in the area.

 

4. RECOMMENDATIONS

The Portfolio Committee on Mineral and Petroleum Resources having engaged with the stakeholders recommends to the Minister as follows:

• The Department should brief the Committee on its plans regarding the Mining Charter, including on the reporting scorecard template that should accompany the Charter.

• In consultation with the Minister of Electricity and Energy, ensure that the Integrated Energy Plan is finalised, to avoid some of the litigation against the Department.
• Ensure that the review of the Mineral and Petroleum Resources Development Act considers the need for meaningful community participation.
• Review the implementation of the SLPs and the issue of the community trusts.
• Monitor implementation of programmes and projects aimed at benefiting women both in the mining and petroleum industries.
• The Department should be stern with companies that obtain permits or licenses and do not use them. The use or lose it principle must be firmly implemented.
• The Department should strengthen its support for small scale and artisanal mining.
• In consultation with the Minister of Finance, explore ways of incentivising the petroleum industry in respect of the upgrade of refineries to clean fuel 2 by 2027.
• Ensure that the new cadastral system includes the legacy/database of existing allocated rights and permits to ensure that the cadastral is transparent.
• Minster should consider the non-sterilisation of the minerals, particularly coal.