Programme Director,
Convenor of the Mining Lekgotla, Ms Khanyisile Kweyama,
Chairperson of the African Union Commission, Dr. Nkosazana Dlamini- Zuma,
Ministers and Deputy Ministers,
Chairperson and Members of the Portfolio Committee on Mineral Resources,
Representatives of traditional leadership Leadership of organised labour,
Office bearers of organised business, the Chamber of Mines and SAMDA,
Captains of industry,
Members of the Diplomatic Corps Representatives of the academic community Honoured guests,
Delegates,
Comrades and friends.

I am honoured to deliver my inaugural address at this third annual Mining Lekgotla.

The 1956 march of over 20 000 women of all races to the Union Building is a poignant reminder of the strength and resilience of women. It is fitting that this Lekgotla coincides with women’s month; a Month that reminds us all of the abiding national duty to do all we can to contribute to the struggle for the emancipation of women. Accordingly, I take advantage of women’s Month to salute all the women of South Africa – Malibongwe!

Context

The Mineral Resources Act of 2002 returned Mineral Resources to the people of South Africa as a whole; they are administered by the state on their behalf. As a result my department issues Licenses to whoever wishes is to harvest our Mineral which attendant Conditions. Last year the Constitutional court upheld the validity of this principle. The 53rd National Conference of the ANC further reaffirmed this policy position. Simply put our Mineral must be used to benefit majority of our people.

In this regard government has recently made public the Medium Term Strategic Framework for 2014 to 2019, which is a comprehensive plan aimed at implementing the National Development Plan and the ruling party’s election Manifesto. The NDP which sets out our broader developmental objectives as a nation, has also identifies mining as a key contributor to the realisation of South Africa’s socio-economic goals.

Mining is recognised as one of the key tradeable sectors with vast potential to contribute to economic prosperity, job creation and transformation, consistent with the Government’s objectives of higher and more balanced economic growth. With the marked increase in the number of operational mines and quarries, employing over half a million people directly, it remains a significant contributor to gross fixed capital formation and foreign earnings.

In addition, South Africa remains the world’s largest reserve base of a vast non-energy mineral wealth, estimated at 2.5 trillion US dollars, using 2010 figures.

Policy Framework and Transformation

The theme of this year’s Mining Lekgotla aptly captures the essence of critical areas of focus over the next two days, namely “Building on the contribution of mining since the advent of democracy – the past we acknowledge and the future we build together”.

Having spent time listening to stakeholders, and taking cognizance of the fact that under our Constitution, a Bill before the President can only be referred back to Parliament if it cannot muster a Constitutional test, I am ready for any eventuality. In the event the current Bill is assented to in its current form, I commit to a rigorous and transparent engagement with stake holders, on draft regulations.

In the mining industry in particular, this year represents a particularly significant moment in the country, marking the 10th year since the introduction of major regulatory reform through the Mineral and Petroleum Resources Development Act No. 28 of 2002 (MPRDA), as well as the trailblazer sector-specific transformation tool, the Mining Charter.

The country has huge expectations on how far we have come in the implementation of the promise we made a decade ago. In this pursuit, we have a collective duty and responsibility to recognise our ugly and unhappy past, and to act in concert to shape our common future. To do this properly we must engage candidly about the state of mining industry in South Africa.

As matters stand the transformation project has delivered varied results. Whilst the review process on the implementation of Mining Charter is still underway, initial results suggest that whatever compliance we may have achieved, much more work still need to be done. If anything, the restive mood among our key stakeholders, such as workers, Communities, and population at large, must give us reason to double effort with regards to transformation. We shall regain their confidence only when they feel improvement in their material conditions. This and only this can guarantee the long term stability and sustainability of the Mining Industry in the country.

Rising tension between mining companies and communities where mining takes place; unprecedented and protracted labour relations challenges that plagued the mining industry in recent years, most notably in the platinum sector, bear testimony to the urgent need to do things differently.

The department pledge is to support all progressive initiatives aimed at making black South Africans real stakeholders not only under the law but in actual reality. Where there is resistance to move decisively in this direction we shall insist that such movement happen. At the heart of transformation, Is the imperative to promote inclusive growth that also benefit workers, Community and the economy at large.

The Charter commits us to provide decent accommodation to workers among other things. In the long term we should examine possibilities of ending the Migration labour system in its current form. In this context, we remain fully alive to the natural imperative of keeping the geese that lays the golden egg alive.

Having said that, I must also salute those companies that have not just embraced transformation as a compliance matter, but recognised it as a tool for reconciliation, the restoration of dignity, and social cohesion. These companies have understood that transformation is not just a cost burden, but a business imperative, which delivers good business results.

In June 2010, mining industry stakeholders signed a Declaration on the “Strategy for Sustainable Growth and Meaningful Transformation of the South African Mining Industry”.

The strategy delineates a long-term path that seeks to position the mining industry along a trajectory of sustainable growth and meaningful transformation, recognising the need to grow and transform the mining industry in a sustainable manner. The strategy further illuminates the prevailing constraints that require an integrated approach to resolve.

These include, but are not limited to: infrastructure, limited innovation, research and development, paucity of skills, the mineral regulatory environment and limited beneficiation. The Strategy further recognised lack of transformation as a constraint to sustainable development. It made specific stakeholder commitments and further recommended a set of integrated solutions. The department will review the Strategy in the current Medium Term Strategic Framework (MTSF).

I believe this platform will be critical to assist us to see how best we can position the industry going forward, looking critically at what has been achieved and what challenges still remain. One of the critical areas that also need our full attention is skills development – this remains a key priority of Government. Moreover, it is crucial in propelling the sustainable development of industries such as ours.

In this regard, the department will enhance collaboration with the Department of Higher Education and Training (DHET) and other stakeholders through the Mining Qualification Authority (MQA), to improve skills development of the youth and mineworkers. In partnership, we will place bursary-holders, interns and students at various universities and mining companies, to train future engineers, environmental scientists, surveyors and geologists. We urge industry to continue to do the same, to assist in the skills shortage in the mining industry.

Ladies and gentlemen, as I conclude, this is the time to renew the industry’s commitment to make real and meaningful contributions to the resolution of socio-economic struggles unfolding in the country. We have a unique opportunity to change this industry for the better, and to ensure that it better represents our ideals and developmental objectives as a country.

I thank you!