"The ACDP is interested to see Hon Minister that you may be consideringthe idea of auctioning our mining reserves, particularly where there are lapsed mineralrights and revoked mineral rights, or where you know there is a lot of value in the ground, rather than giving them away on a first come, first served basis. We see Liberia has done this and now Mozambique is embracing the concept.

In India however, their Supreme Court’s decision to distribute scarce natural resources only by public auction is said to be contrary to their Mines and Minerals Development and Regulation Act, which prescribes that mining rights should be granted on a priority basis. Before committing ourselves to another debacle like the far-from-transparent road tolling exercise, the ACDP hopes, that you will be cautious and thorough in laying the ground work to avoid legal hindrances, constitutional challenges and wasted expense in general.

The ACDP, whilst aware of the huge contribution made by mining to the economy, is also aware of the 'special treatment' that has been reserved for mining on land not zoned for it. We do not condone breaking the law with impunity by an industry. The Executive Director of the Centre for Environmental Rights, (CER) Melissa Fourie has saidthe consequences of decisions made on mining operations without proper regard for other authorities and other legislation, are severe; they have aggravated the detrimental impact mining operations have on the environment and have not benefitted the country, the mining industry, mine workers or communities. The Constitutional Court judgement that holders of mining rights cannot mine until the land has been zoned for mining, marks the beginning of the end of decades of special treatment for the mining industry.

The ACDP supports calls for government to establish a commission to investigate, how South Africa's mineral rights were, I quote, "recklessly given away" after attaining freedom from apartheid. Commentators say giving away the nation’s mineral resources to new owners without tendering has cost the country jobs and they are optimistic that this will lead to more responsible stewardship of mines and miners. They use the Aurora Empowerment Systems disgrace where about 6,000 miners have gone unpaid for many months, with their families, living in terrible conditions, as an example. The mineral rights conversion process - during which the state became a custodian of all mineral rights – is said to have been "fraught with irregularities".

On the tricky question of nationalisation of mines, the chairperson of Gold Fields, Dr Mamphela Ramphele has said, and I quote, “I think that anyone with anunderstanding of the mining industry will know that no government has the capacity to mine.

Even the mining industry is struggling to find the mining skills, capital and equipment to sustain it, so how could a government struggling with major issues in the education sector, the health sector and even state-owned enterprises hope to run the mining sector? What does make sense is for government to rather make sure the mining industry lives up to its responsibilities, cleans up its mines, compensatesworkers and their families who are injured and reduce the number of injuries and fatalities.” The ACDP agrees with this sentiment.

In this regard the ACDP notes Minister Shabangu’s statement that “there has been a significant improvement on health and safety since the department intensified enforcement measures at the mines". A safety crackdown on the South African mining industry is said to have reduced the number of fatalities in the country's mines to three in April, from an average of 11 or more a month. We hope this trend continues.

The ACDP will support this budget vote which has a crucial role to play in helping us move toward a prosperous future for everyone living in South Africa."