Programme Director,

The Premier of Gauteng Province, Mr Panyaza Lesufi

Members of the Portfolio Committee on Mineral Resources and Energy led by the Chairperson, Honourable Sahlulele Luzipho 

Captains of Industry

Leadership of Various Trade Unions

Members of various Business Forums 

Members of Research Institutions and Academia

Government Officials                                                                           

Distinguished Guests 

Members of the Media

Allow me to take this opportunity to greet and welcome you to this important gathering. 

We believe your participation will not only solicit inputs on vital lessons learned in the history of mining in South Africa but also help us shape the future prospects of our mining industry.

Ours is a mining industry that spans over a century. Throughout these years, the sector made an immense contribution to the country’s economic development. However, I must hasten to say, this contribution largely happened on the back of an unequal society in which black people in general were oppressed and marginalised. 

For example, the 1913 Natives Land Act and many other aligned laws of the apartheid regime introduced the prohibition of black people from purchasing, renting, or acquiring land, thus excluding the majority of South Africans from owning the means of production and mineral rights. Basic human rights were disregarded, and black people were prohibited from participating meaningfully in the mainstream economy. Discrimination and inequality were not imaginary; they were lived experiences of the people of South Africa, black people in general, and Africans in particular.

The mining industry had adopted the pit-to-port approach, where raw minerals would be mined and transported to the ports for exportation. This architecture was not designed to benefit the local economy through value added local beneficiation. The working and living conditions of the mineworkers and communities were disregarded in favour of profits. Communities were simply regarded as labour reserves without any consideration of social license to operate. All this formed part of the then government’s engineered society which systematically concentrated wealth in the hands of a few. 

The 1994 democratic breakthrough reignited hope for the people of South Africa, who went on to entrust the democratic government with the responsibility to redress the historical injustices of apartheid and grow our economy.

To fulfil this mandate, the democratic government could not ignore the historical socio-economic inequalities, hence the introduction of the new dispensation founded on the values of our democratic Constitution through the Mineral and Petroleum Resources Development Act of 2002 (MPRDA).

At the centre of this regulatory framework was the need to address the basic human rights of the people of South Africa as enshrined in the Constitution, in particular the mineworkers and communities. For us, this intervention was unavoidable; hence, the MPRDA bestowed the ownership of minerals beneath the South African soil under the custodianship of the State on behalf of the people as a whole.

Another great shift in the regulatory regime and pursuant to Section 100 of the MPRDA, was the introduction of the Mining Charter in 2004 to effect socio-economic transformation in the mining industry. A major issue in this regulatory framework is the need to achieve transformation that would set the country on a path to inclusive and sustainable growth. Through this regulatory framework, government intended to expand opportunities for historically disadvantaged South Africans to enter and actively participate in the industry.

Despite government’s optimism that social partners in the mining industry will embrace these regulatory instruments as appropriate tools for transformation, it is regrettable that, 20 years after the enactment of the MPRDA, the industry has not fully embraced these regulatory instruments. This is evidenced by the sustained legal battles on transformation which depicts the industry’s resistance to the transformation agenda. 

Notwithstanding this resistance, government is heartened by the improvements in the working and living conditions of mineworkers and communities as compared to the years preceding this regulatory shift. 

In recognition of the value of mineworkers who convert investments into wealth, the reviewed Mining Charter has made even bigger strides by ushering in 10% free-carried shareholding for the workers and communities.  

Another milestone that has been heralded by the introduction of these regulatory instruments, is the recognition of women in the industry who were previously not allowed to work in the mines. Today, over seventy-two thousand (72 000) mineworkers are women, with some holding Executive positions in big mining companies.  

It is also heartening to note that the industry is beginning to deliver impactful projects in communities as part of their social license to coexist with communities. This is yet another important principle that is enshrined in our existing regulatory framework. 

The health and safety of mineworkers at mines is yet another important aspect of the work which we must prioritise in the industry. The incremental improvements in this regard are welcomed, however, the industry must double its efforts to achieve the goal of Zero-Harm.

This is not the time for complacency; hence, the Department of Mineral Resources and Energy (DMRE) remains relentless in its noble cause of transforming the industry, and subsequently, the economy. We must always guard against the reversal of the gains we have made to date.

It is against this backdrop that the Department convened this summit to frankly engage with our social partners and ensure that we collectively identify legislative gaps that will further improve the implementation of our regulatory framework. 

Government has over the years developed new policies, reviewed, and amended existing regulatory and legislative frameworks to ensure optimal development of our natural resources. At the centre of this is the need to enable the development of the country’s natural resources in a way that benefits the people of South Africa, workers, and investors alike. 

There is absolutely no reason why the development of these resources cannot embrace the notion of “shared value” from which all stakeholders can sustainably benefit. The need to balance the interests and benefits of investors and the people of this country can neither be over-emphasised nor treated as mutually exclusive.

In an effort to bring stability and security to the Upstream Petroleum sector and enable our nation to participate meaningfully in oil and gas developments, government developed the Upstream Petroleum Resources Development Bill to separate petroleum provisions from the MPRDA. Key to this regulatory shift is the need to accelerate exploration and production of petroleum resources, ensure an inclusive upstream sector, and provide much needed legislative and regulatory certainty. The Bill is currently undergoing parliamentary processes, which we hope will be finalised soon.  

Allow me to conclude by reminding you that the South African mining industry remains a sunrise industry that provides impetus for the development of various sectors of our economy, while playing a critical role in the country’s endeavours to significantly reduce poverty and eliminate unemployment and inequality. I am confident that your wisdom will help us transform this industry for the benefit of all the people of South Africa and the economy. 

I thank you.