Honourable Chairperson (Speaker)
Minister of Mineral Resources and Energy, Mr Gwede Samson Mantashe
Chairperson and Members of the Portfolio Committee on Mineral Resources and Energy
Honourable Members
Invited Guests
Allow me to observe all protocol, ladies and gentleman
Introduction
It is an honour to address this house on this budget vote speech as the Deputy Minister responsible for the Department of Mineral Resources and Energy. The Minister has taken the house through 7 priorities for the year ahead as sona ,of which 5 direct affects DMRE . The intention of this address is to further highlight some of the areas and take parliament to greater detail on the plans of the department.
The Department of Mineral Resources and Energy falls within the economic cluster of departments, by virtue we are expected to be central and lead in the transformation agenda, and ensure that government is able to derive value economically in the activities of the Department. the Department is in a merging process, for the next few until March 31,2020. Whilst this is the case, The Mineral Resources Budget Vote and Energy Budget Vote is done Separately.
The intention to be the leading mining hub demands that extra ordinary activities be conducted by the department i.e.
Economic Overview
Delivering the State of the Nation Address in this House, President Cyril Ramaphosa cited mining as one of the sectors where government needs to move with urgency.
South Africa has a long history of formalised mining in excess of a century, roughly about 120 years with over 50 commodities mined. As recently indicated by the Minister of Mineral Resources and Energy during the State of the Nation Address debate, the country remains highly attractive for investment in mining, as a results this would be high potential area for growth and job creation. Which is priority number per SONA.
In contrast mining naturally depletes, as you mine, hence there is decline in gold and PGMs mining resulting in job losses. This necessitates that Department of Mineral Resources and Energy explore other mineral resources that are in abundance in the country for instance
Exploring and mining such can see to an increase in job creation, and mining activity itself.
A meaningful contribution in improving lives of South Africans will mean Department drives changes through increasing a number of locals owning mines, and ensuring that mining charter’s call for 30% black ownership and that industry procure its goods and services locally as per the charter. We will be working with business, labour and communities to identify short and medium to long term interventions to address the challenges that hinder the growth of the sector.
We wish to particularly bring to the attention of the House our commitment to proactively engage communities Intending to educate about mining, valued add and assist them conclude and determine whether to mine or not, a case in point Xholobeni, Kokstad(what community believes to be gold is scientifically proven not to be gold), Karoo etc. As indicated on numerous occasions by Minister Mantashe, the Department is paying more attention to engagements with affected communities across the country because their inputs are crucial for the growth, development and sustainability of this industry as well as licensing. Our offices are open to assist our communities so that they benefit from the country’s mineral wealth.
Social labour plans, - quality and ensure implementation as well as consequence management.
Beneficiation
We will also implement the beneficiation strategy as we believe beneficiation has the potential to assist marginalized communities, and it is for this reason that the MQA and Mintek will continue to provide value-added training on beneficiation that is not only relevant to marginalized communities, but also enables them to operate small-scale manufacturing enterprises. The department is planning to invest money in a project to train youth in diamond finishing that is aimed to be completed by the end of this year.
an affordable energy source is central to attracting investors, who particularly have an interest in beneficiation and support job creation.
For mining to be sustainable and globally competitive, it requires the meaningful participation of youth, women and disabled people be realized. These sectors have been greatly excluded in mining from the side of ownership and employment.
Youth
We need to strike a balance between the knowledgeable old guard and young innovators who can further advance the sector. The involvement of young people in the sector can place the country on a more sustainable growth path by supporting industrialization and embrace as well as skill ourselves for the imminent 4th Industrial Revolution. As a young person myself, I look forward to relooking at all policy, regulations and legislation to enable young people to access mine ownership and benefit in job creation and opportunities. (mining charter, no youth involvement)
We will continue to develop policies that make it possible for youth, women and disabled people to contribute meaningfully to our economy, policies like the Mining Charter, draft BBBEE scorecards etc. are already calling for and enforcing the involvement of youth, women and people with disabilities.
The Charter has dedicated provisions focused on youth and requires mining companies to set aside prescribed percentages of their procurement spend for both goods and services on youth and youth owned and controlled companies. Mines are required to spend 5% of their total services budget on services supplied by young people (which is insignificant given that the country has 66% of its population being 35 years and younger).
Youth, women and people with disabilities can also meaningfully participate individually or collectively as BEE entrepreneurs, members of a mine community, host communities in order to benefit from the mineral wealth in our country.
Women
The women in South Africa have always been left out and prohibited by apartheid laws from participation in mining through South African Minerals Act of 1991. Thanks to introduction of mining charter in 2002, mining companies were forced to have 10 percent of their workforce being females. The recent years have seen some improvement, seeing the mining work force being about 45 percent being women. The mining charter 2018 has attempted to address the issue of ownership by calling for 5 percent in the 30 percent of BBBEE to be women. This is too small and continues to exclude 51 percent of our population. Further agitation and lobbying is still needed
Thomas Sankara…
Mine Safety and Health
In order for mining to better coexist with other sectors of the economy, we are also looking at issues pertaining to the care of the environment, viable agriculture, to ensure that mining continues to sustainably benefit our people. Although South Africa has been mining for more than 100 years, mine rehabilitation enforcement only became an integral part under Mine Rehabilitation Minerals Act 50 of 1991.
Mining plays a central role as a supplier of feed stock in different industries
In the absence of mine environmental legislation as well as the lack of proper coordination of all relevant pieces of legislations made it impossible to implement the polluter pays principle for many years. When the ANC government took office in 1994, we inherited a sector that had not developed and was not implementing a strategic approach to environmental sustainability hence a liability estimated at R49 billion as at 31 March 2019 of approximately 6000 Derelict and Ownerless (D&O) mine sites is inherited by government. Some of the mines still have value, however 4IR should be employed to assess their safety, and they be earmarked for the small miners programme. And some are in a dire state with all sorts of challenges i.e. unstable ground as well as legacy of Acid Mine Drainage that was created due to the lack of coordination and clear mandates from legislations. Pretty Nkambule, Yvonne Mnisi and Solomon Nyerende are victims that have not be found yet. The department is committed in ensuring that their bodies are recovered.
The Minerals and Petroleum Resources Development Act (MPRDA) of 2002 effectively introduced a sustainable approach to the development of mineral and petroleum resources in South Africa, in line with the Supreme Law of the nation, the Constitution. The MPRDA, amongst other things, sought to effectively address all mining environmental issues, with one of its key objectives being to give effect to the environmental right, as contained in section 24 of the Constitution.
Mine Rehabilitation
A legal opinion on the State’s liability on abandoned mines and mine openings has been sought, with a preliminary indication that the direct State liability exposure is limited to abandoned mines that are located on State land. The liability of abandoned mines that are located on privately owned land remains the responsibility of the owners of the land - accordingly, the State must institute appropriate regulatory instruments to ensure that the environmental effects of such mines are appropriately dealt with. This will be concluded in the current financial year in consultation with the Department of Environment, Forestry and Fisheries as well as other interested and affected stakeholders.
The Department is now enforcing a strict measure for the closing of mines as we would not want more derelict and ownerless mines. We do not issue any closure certificates unless the full rehabilitation requirements are met.
In the period 2014 to 2019, a total of 9 mines were rehabilitated: three mines in the Northern Cape, four in Limpopo and two in KwaZulu Natal. Mintek, an entity reporting to the Department, has started rehabilitation work at four sites: three in Limpopo and one in Mpumalanga. This rehabilitation work will be completed in this financial year. We have also managed to rehabilitate 27 asbestos mines and sealed 268 dangerous mine openings.
In addition to these achievements the Department has recently developed a new strategy focusing rehabilitation efforts in one or two areas/regions to maximise the impact of the rehabilitation programme as oppose to the previous way of rehabilitating or sealing shafts over a number of areas with small visible impact. We will continue to assess and change rehabilitation methods and/or strategies to better address the negative effects of Derelict and Ownerless mines.
Honourable Chairperson
We have, through the Mine Health and Safety Council, commissioned a project to design a feasible methodology for sealing off entries to abandoned and non-operational mines. The project to seal off entries into abandoned mine-related workings is necessitated by ongoing illegal mining activities and their associated unfavorable consequences. These illegal mining activities are an occupational health and safety risk and an environmental risk to the mining industry, the communities and the illegal miners themselves.
The Council of Geoscience, through the mine water management programme, has developed a portal which assists in the identification of potential areas of mining and biodiversity co-existence. The CGS has also concluded an extensive study on environmental impacts of marine and coastal mining, which marks the beginning of a scientific based approach to emphasize the mutually reinforcing nature of the two.
The development of a low-cost but strong geopolymers from mine residues and coal fly ash as alternative liner materials for mine dumps has been finalized and piloted. This research is scheduled for large scale implementation in the current financial year in order to secure remediation of polluted mine water.
Ladies and gentlemen
While mining provides considerable economic benefits, it has long been recognized that mining is naturally dangerous and requires labour in considerably harsh conditions. In addition to the inherent risk of injury, mine work is also strongly associated with several chronic occupational diseases.
Silicosis, due to the significant concentrations of crystalline silica dust in the mines, is a major health concern for mineworkers worldwide. Chronic inhalation of this silica dust can result in significant fibrosis (scarring) of the lungs and the destruction of lung tissue as well as lowering of the immune system. In South Africa, the problem of silicosis is particularly sizeable due to the high concentration of silica dust from gold mining, which has long been one of the dominant resources extracted in the country.
Additionally, many of the gold mines located in South Africa are some of the deepest in the world. Mineworkers who suffer from silicosis are especially vulnerable to TB infection, as the lung damage incurred provides an easy access point for bacterial infection. Evidence for the interaction between silicosis and TB has been well-established, with current estimates suggesting that mineworkers with silicosis have an annual rate of TB twice as high as workers without silicosis. A R5 billion project to compensate ex mine workers, is currently underway in partnership with department of health.
We believe that prevention is better than cure and that compensation should be a last resort. The prevention interventions for occupational lung diseases especially that of dust control are core to the Department’s legislative framework to promote health and safety. The Mine Health and Safety Council, working with mining stakeholders, has developed and reviewed guidelines on the prevention of occupational lung diseases. We, as part of the occupation health and safety tripartite, remain committed to reduce occupational lung diseases and lower occupational exposure levels by 2024.
Compensation for mining-related diseases has had some form of legislation in South Africa since 1911. Currently this compensation is regulated under the Occupational Diseases in Mines and Works Act (ODMWA), enacted in 1973. The Act governs the management (through compensation) of work-related lung diseases, including silicosis and TB, among mineworkers only. All other workers’ compensation circumstances are governed by the Compensation for Occupational Injuries and Diseases Act (COIDA), which includes lung diseases acquired in non-mining sectors.
The Department has led five technical teams to deal with the proposed integration of the two compensation systems. The technical teams have recommended that we look at covering new infected mineworkers under COIDA in the Department of Labour while current and ex-mineworkers continue being compensated under the Occupational Diseases in Mines and Works Act (ODMWA) over the next 30 years. The recommendation by the technical team will require further work across the Departments of Health and Labour.
Honourable Chairperson, as I conclude, I wish to applaud Minister Mantashe for the leadership they have provided to the Department. I also wish to thank Team DMRE led by Director General Advocate Thabo Mokoena for serving all stakeholders with dedication and pride. As we table our plans for the 2019/20 financial year, I call on the new Team DMRE to work harder to better the lives of all South Africans.
I thank you.