Date: 06/02/2003
Source: Department of Minerals and Energy
Title: Mlambo-Ngcuka: NUM policy conference
SPEAKING NOTES FOR THE MINISTER OF MINERALS AND ENERGY, MS P MLAMBO-NGCUKA, DURING THE NUM POLICY CONFERENCE, Pretoria, 6 - 8 February 2003
Topic: Key Challenges Facing The Mining And Energy Sectors
To begin with, I would like to stress the importance of the mining sector to South Africa's economy:
Despite a declining trend over the last two decades, sales of primary mineral products still accounted for 34,3 percent of South Africa's total export revenue during 2001.
Although some 256 000 mineworkers lost their jobs over the ten-year period from 1992 to 2001, the mining industry still employed 2,7 percent of South Africa's economically active population in 2001.
Gold mining, with 50,0 percent of the mining industry's labour force, was the largest employer in 2001, followed by PGM mining, with 24,0 percent, while the coal industry employed 12,0 percent.
Challenges facing the Mining Industry
We in government do accept that as mining is a finite industry, job losses are inevitable. But how do we cope with the resulting financial strain suffered by those so affected and how then can we ensure that when the time comes for retrenchments, the effects are not as devastating as they have been? To counter these effects, from our side, we have established a social plan which seeks to ensure that industry adheres to the notion of a triple bottom line, that is, more specifically - profits, the people and the planet. The industry will no longer be allowed to consider profits only. Plans which detail how the employees will be looked after, after the operations have ceased will have to be in place before operations start.
The mining industry was one of the sectors that was rendered fully impenetrable to Black people.
To counter this intractable situation and thus create solutions to these barriers, government has now put new mineral legislation in place which establishes an enabling environment for all South Africans regardless of colour, creed or gender.
The President signed the Mineral and Petroleum Resources Development Bill in October last year, which turned it into an Act. The Act intends to break up barriers for participation and open up doors in the mining industry.
The other challenges facing the industry are to be addressed by the charter, a document recently negotiated between government, organised labour, industry and affected communities. This charter is called the broad-based socio-economic empowerment (BBSEE) charter to reflect its intention of transforming the South African mining and minerals landscape into one that amongst others, facilitates meaningful and sustainable change in the ownership profile/equity.
Human resource development
Mining companies are to provide basic adult education so that everyone working at mines is literate and numerate within five years.
Employment equity
The industry is striving for a baseline of 40 percent historically disadvantaged South Africans (HDSA) to participate in junior and senior management within five years. Women should have 10 percent representation in the mining industry within the same time frame.
Procurement
Stakeholders have agreed that HDSAs will be given preferred supplier status in the mining industry.
Ownership and joint ventures
The mining industry has committed itself to transferring 26 percent of its assets to HDSA's within 10 years.
Community upliftment
Mining firms must also help develop labour-sending areas, the traditional home ground of mine employees.
Hostels and migrant workers
The charter demands that mining firms improve housing standards and ensures that foreign migrant workers are not discriminated against.
Beneficiation
The beneficiation of South Africa's minerals and development of mineral-based high value good industries is considered strategic and will be promoted.
Possible Funding sources
Solicited and unsolicited funding proposals have been received from various financial institutions.
The following are some of the financial institutions that are in the process of putting together various combinations of funding instruments:
Nedcor Investment Bank
Standard Corporate Merchant Bank
UBS-Warburg
The Industrial Development Corporation is leading Government's efforts to provide a creative funding package.
HEALTH AND SAFETY
Large sections of the mining sector need guidance and such guidance should be captured within the body of legislation.
Through our tripartite structures we managed to produce some regulations and guidelines during year 2002. These include regulations on Self Contained Self Rescuers, Medical Surveillance and Occupational Hygiene.
Capacity in the Tripartite Committees
A major concern affecting all tripartite committees is the absence of a quorum at many meetings due to limited capacity in the labour grouping.
Tripartite commitments also continue to affect the enforcement capacity of the Inspectorate negatively.
Review
Fieldwork on the review of the MHSI and the industry was completed at the end of November 2002.
Fatalities
The fatality rate for the 2002 is 0.74 per 1000 people at work per annum and corresponds to 288 deaths during the year. This is small improvement on the previous year's rate of 0.75 (also 288 deaths).
Inquiries
Due to the unavailability of magistrates or judges to preside over inquests, the Mine Inspectorate is convening inquires to at least capture the evidence on record timeously and to ensure that remedial actions are identified as early as possible.
Mponeng: The Inquiry is nearing completion with 3 weeks set aside in March 2003
Beatrix 1: The inquiry was reconvened on 27 January 2003 for a continuous period of 3 weeks that would see the completion of the formal evidence.
Beatrix 2: The Beatrix II inquiry is scheduled soon after completion of the Beatrix 1 inquiry. The next step is to appoint the presiding officer and assessor.
Hartebeesfontein: The inquiry has been completed and forwarded to the public prosecutor. The inquiry, consisting of about 1800 pages, is currently being studied.
Great Noligwa: The inquiry is schedule to be re-opened to obtain more evidence.
Maintenance
The following areas have been identified as priority and focus areas for the prevention of machinery related accidents:
The maintenance of track work to prevent derailment
Traffic control system to prevent collision of vehicles
A clearance of at least 500 mm between rolling stock and any object to allow sufficient space for pedestrians.
ENERGY
Hydrocarbons and Energy Planning Branch
Strategic Priorities
To achieve security of supply and diversification of energy sources in line with the White Paper.
Deliverables and Resources
Petroleum Pipelines Act and regulations - single registration
Poverty Alleviation: regulation of Paraffin and LPG prices, VAT exemption review
Implement Basic Fuels Price
Coal and Gas
Set up Gas/single energy Regulator
Finalise Gas Infrastructure Plan
Coal reserve resource investigation
Low-Smoke Fuel Programme implement
Discard Coal use recommendations
Gas appliance safety & efficiency regulations
Renewables
Implement White Paper (R8 mil required)
Renewable Energy Strategy - long term choice
Source: Department of Minerals and Energy
Title: Mlambo-Ngcuka: NUM policy conference
SPEAKING NOTES FOR THE MINISTER OF MINERALS AND ENERGY, MS P MLAMBO-NGCUKA, DURING THE NUM POLICY CONFERENCE, Pretoria, 6 - 8 February 2003
Topic: Key Challenges Facing The Mining And Energy Sectors
To begin with, I would like to stress the importance of the mining sector to South Africa's economy:
Despite a declining trend over the last two decades, sales of primary mineral products still accounted for 34,3 percent of South Africa's total export revenue during 2001.
Although some 256 000 mineworkers lost their jobs over the ten-year period from 1992 to 2001, the mining industry still employed 2,7 percent of South Africa's economically active population in 2001.
Gold mining, with 50,0 percent of the mining industry's labour force, was the largest employer in 2001, followed by PGM mining, with 24,0 percent, while the coal industry employed 12,0 percent.
Challenges facing the Mining Industry
We in government do accept that as mining is a finite industry, job losses are inevitable. But how do we cope with the resulting financial strain suffered by those so affected and how then can we ensure that when the time comes for retrenchments, the effects are not as devastating as they have been? To counter these effects, from our side, we have established a social plan which seeks to ensure that industry adheres to the notion of a triple bottom line, that is, more specifically - profits, the people and the planet. The industry will no longer be allowed to consider profits only. Plans which detail how the employees will be looked after, after the operations have ceased will have to be in place before operations start.
The mining industry was one of the sectors that was rendered fully impenetrable to Black people.
To counter this intractable situation and thus create solutions to these barriers, government has now put new mineral legislation in place which establishes an enabling environment for all South Africans regardless of colour, creed or gender.
The President signed the Mineral and Petroleum Resources Development Bill in October last year, which turned it into an Act. The Act intends to break up barriers for participation and open up doors in the mining industry.
The other challenges facing the industry are to be addressed by the charter, a document recently negotiated between government, organised labour, industry and affected communities. This charter is called the broad-based socio-economic empowerment (BBSEE) charter to reflect its intention of transforming the South African mining and minerals landscape into one that amongst others, facilitates meaningful and sustainable change in the ownership profile/equity.
Human resource development
Mining companies are to provide basic adult education so that everyone working at mines is literate and numerate within five years.
Employment equity
The industry is striving for a baseline of 40 percent historically disadvantaged South Africans (HDSA) to participate in junior and senior management within five years. Women should have 10 percent representation in the mining industry within the same time frame.
Procurement
Stakeholders have agreed that HDSAs will be given preferred supplier status in the mining industry.
Ownership and joint ventures
The mining industry has committed itself to transferring 26 percent of its assets to HDSA's within 10 years.
Community upliftment
Mining firms must also help develop labour-sending areas, the traditional home ground of mine employees.
Hostels and migrant workers
The charter demands that mining firms improve housing standards and ensures that foreign migrant workers are not discriminated against.
Beneficiation
The beneficiation of South Africa's minerals and development of mineral-based high value good industries is considered strategic and will be promoted.
Possible Funding sources
Solicited and unsolicited funding proposals have been received from various financial institutions.
The following are some of the financial institutions that are in the process of putting together various combinations of funding instruments:
Nedcor Investment Bank
Standard Corporate Merchant Bank
UBS-Warburg
The Industrial Development Corporation is leading Government's efforts to provide a creative funding package.
HEALTH AND SAFETY
Large sections of the mining sector need guidance and such guidance should be captured within the body of legislation.
Through our tripartite structures we managed to produce some regulations and guidelines during year 2002. These include regulations on Self Contained Self Rescuers, Medical Surveillance and Occupational Hygiene.
Capacity in the Tripartite Committees
A major concern affecting all tripartite committees is the absence of a quorum at many meetings due to limited capacity in the labour grouping.
Tripartite commitments also continue to affect the enforcement capacity of the Inspectorate negatively.
Review
Fieldwork on the review of the MHSI and the industry was completed at the end of November 2002.
Fatalities
The fatality rate for the 2002 is 0.74 per 1000 people at work per annum and corresponds to 288 deaths during the year. This is small improvement on the previous year's rate of 0.75 (also 288 deaths).
Inquiries
Due to the unavailability of magistrates or judges to preside over inquests, the Mine Inspectorate is convening inquires to at least capture the evidence on record timeously and to ensure that remedial actions are identified as early as possible.
Mponeng: The Inquiry is nearing completion with 3 weeks set aside in March 2003
Beatrix 1: The inquiry was reconvened on 27 January 2003 for a continuous period of 3 weeks that would see the completion of the formal evidence.
Beatrix 2: The Beatrix II inquiry is scheduled soon after completion of the Beatrix 1 inquiry. The next step is to appoint the presiding officer and assessor.
Hartebeesfontein: The inquiry has been completed and forwarded to the public prosecutor. The inquiry, consisting of about 1800 pages, is currently being studied.
Great Noligwa: The inquiry is schedule to be re-opened to obtain more evidence.
Maintenance
The following areas have been identified as priority and focus areas for the prevention of machinery related accidents:
The maintenance of track work to prevent derailment
Traffic control system to prevent collision of vehicles
A clearance of at least 500 mm between rolling stock and any object to allow sufficient space for pedestrians.
ENERGY
Hydrocarbons and Energy Planning Branch
Strategic Priorities
To achieve security of supply and diversification of energy sources in line with the White Paper.
Deliverables and Resources
Petroleum Pipelines Act and regulations - single registration
Poverty Alleviation: regulation of Paraffin and LPG prices, VAT exemption review
Implement Basic Fuels Price
Coal and Gas
Set up Gas/single energy Regulator
Finalise Gas Infrastructure Plan
Coal reserve resource investigation
Low-Smoke Fuel Programme implement
Discard Coal use recommendations
Gas appliance safety & efficiency regulations
Renewables
Implement White Paper (R8 mil required)
Renewable Energy Strategy - long term choice
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