Minerals and Mining Policy - White Paper continued

Chapter Two:
Participation in Ownership and Management

Past legislation and practices have inhibited black ownership of assets, in mining as in other of the country’s principal producing sectors. While various initiatives are under way to introduce black investors into the industry, ownership of the main mining companies remains as yet essentially unchanged.A long-term perspective is needed because of the difficulties of raising the large capital sums involved.

Similarly, workplace discrimination (legislated in some cases) obstructed the advancement of black people into middle and senior management positions in the mining industry. Progress has been made in recent years, both on the mines (notably via apprenticeship and other training programmes) and in head offices. But the impact will take some years to start being really visible because of the long periods needed for employees to acquire the practical experience required for promotion.

Black participation in ownership and management of the mining industry will have special political significance for South Africa’s development as a market-based democracy.

2.1 Background

Government is unshakeable in its commitment to removal of racial discrimination in the workplace, in mining and elsewhere, through the bill of rights entrenched in the Constitution, as well as other supportive legislation.
In similar spirit, Government believes that it will be profoundly in the interests of the economy for the mining industry to have a wider spread of ownership and to be regarded with pride by South African society in general.
The Labour Relations Act (LRA) and other relevant legislation will assist in eliminating racially discriminatory practices at all levels within the mining industry. Mining companies have also taken steps to remove barriers to the advancement of black people and women in the industry. It will, nevertheless, require a considerable period of time before previously excluded groups can gain the technical and academic qualifications and experience that are required for the exercise of high level management and technical responsibilities in the mining industry. Government will continually monitor progress in addressing the racial and other imbalances and review whether intervention targeted at the mining industry is required.
The Government has decided not to embark upon a programme of nationalisation to reverse ownership patterns in the mining sector.
The Labour Market Commission has recommended that steps be taken to facilitate worker participation in the organisation of work, as provided for in the LRA. These measures should create smooth industrial relations and facilitate workplace efficiency.
The Mine Health and Safety Act, 1996 embodies a commitment to building a culture of co-operation in the workplace by establishing a range of tripartite structures. At mine level, health and safety committees consisting of employee and management representatives will promote workplace democracy as well as mine health and safety.

2.2 Intent

Government will encourage changes leading to equity of opportunity in respect of access to ownership and management of the mining industry.

2.3 Policy Requirements

2.3.1 Views concerning previously disadvantaged groups

The State should take a constructive interventionist role in altering the patterns of ownership in the industry and promoting black ownership at all levels.
There should be a Workplace Anti-Discrimination Act that provides for an official audit of the extent of racial discrimination at every mine and puts in place a procedure, backed by law, to remove racial discrimination.
The South African mining industry is heavily dominated by a small number of mining houses, all of which are white owned. Business ownership and control in the country in general, and particularly in the mining industry given its complexion should be deracialised. The mining industry needs to demonstrate rapid, visible and significant transformation in line with the rest of South African society.
By virtue of their contribution to insurance and pension funds, mine employees and black people in general already have significant financial interests in the industry. Such financial interests should be used to secure significant participation in the control of mining companies through exercising governance rights of shareholders.
Changes in ownership to achieve a broader spread as well as greater participation in managing mining companies on the basis of ownership should be promoted through the development of Employee Share Ownership Participation Schemes (ESOPS). Criteria used in developing ESOPS in the mining industry need to provide for genuine participation in managing operations, be of sustained value rather than linked to operations with a short life and be tailored for low income workers. Corporate initiatives around ESOPS are hampered by Income Tax laws and the Companies Act which should be amended so as to remove obstacles to such schemes.
Due to the concentrated ownership that characterises the mining industry and in recognition of the long time that will be required for deracialisation of ownership to occur through market forces, specific initiatives are required to achieve effective deracialisation. A new form of corporate governance is required that will create conditions for effective employee participation through a system of co-determination.
Development of the small-scale mining sector resulting from companies disposing of unwanted properties to black-owned companies or through the State purposefully allocating its mineral rights to black-owned companies will not produce genuine economic empowerment as this will be confined to small deposits or to future mining and will not address the inequity in the present distribution of mining industry ownership.

2.3.2 Views of the investment community and mining companies

Participation and ownership issues are of general application and should not be at the core of mining and minerals policy.
Market forces dictate ownership of mining companies. Investment in public companies is open to everyone. Principally via insurance and pension funds, people of all races already have significant financial interests in the industry.
The evolution of a wider spread of ownership will take place through market processes. Over the past few years a number of black-led financial companies have emerged with the resources to get involved in the large-scale sector, and various transactions are under consideration in the small-scale sector too. Some large corporations are actively facilitating these processes. It is only a matter of time before such developments come to fruition on a meaningful scale.
Removal of discrimination is already well advanced via legislative and regulatory change supplemented by education, training, work reorganisation and other corporate initiatives.
In general, especially given the country’s demographics, effective participation by blacks in ownership and management will be far better achieved by encouraging investment and growth rather than by directives and controls.
Consequently, while greater such participation is both essential and welcome, there is no case for government intervention to achieve it. Radical changes to the system of corporate governance are similarly unwarranted: generic reforms are already well under way in the light of the 1995 report of the King Committee on Corporate Governance.

2.4 Government Policy

Government will continuously promote a wider spread of ownership and seek to facilitate acceleration of the changes that are already under way.
Consequently Government will consider the introduction of specific initiatives such as those set out below:
1. Employee Share Ownership Participation Schemes are a practical vehicle to promote a broader spread of ownership and participation in industry. Government will facilitate such changes by adjusting the administration of tax and company law to reduce obstacles to establishing ESOPS for low income workers. (The third Interim Report of the Katz Commission "very much supports the objective of greater employee share ownership in South Africa, " and states that ESOPS should include "the entire labour complement of a company ... particularly employees at the lower level of the organisation").
Government will encourage real worker participation in the management of all mines.

Chapter Three:
People Issues

The mining industry provides jobs for over half a million people directly, and for many more when both up- and down-stream multiplier effects are taken into account. The industry has created towns and nodes of economic development throughout the country. Because of the nature of the work, especially in the very deep mines, the industry has provided large numbers of employment opportunities for less skilled workers, from South Africa itself and from the region.

The labour situation in mining has been associated with the most controversial aspects of colonial and apartheid rule. These include pass laws, compounds, the migrant labour system, the reservation of skilled work for white people, and the denial of trade union rights to black workers up until 1982. The special control of mine labour and application of racial domination in the industry pre-dates the apartheid era by three-quarters of a century.

Reform began, slowly at first, in the early 1980s. While the process of change has accelerated in the past few years, the legacy of decades of discriminatory practice cannot be eradicated overnight - indeed the impact of some reforms will take a good many years to be fully visible.

Across the labour market as a whole, Government has embarked upon a programme of legislation that will ensure that the momentum of change is maintained. The tripartite approach embodied in the National Economic Development and Labour Council (NEDLAC) and other relevant statutary bodies should help underpin the process of constructive engagement among the concerned parties.

Improving relationships between people in the industry, allowing opportunities for human development and addressing the need for a safer and more healthy working environment are essential if the mineral wealth of the country is to be used to its greatest potential. At the same time, the industry has shed almost a third of its jobs in the last eight years and this trend of shrinking employment levels, in the gold sector in particular, is likely to continue, although its timing and scale cannot be accurately anticipated. A major challenge lies ahead in managing the social consequences of downscaling in the industry - which extends to linked industries and to urban and rural communities all over Southern Africa.

3.1 Mine Health and Safety

3.1.1 Background

The current fatality, injury and disease rates in the South African mining industry are unacceptably high.

Following the 1995 report of the Leon Commission of Inquiry into Health and Safety in Mines, Parliament has passed the Mine Health and Safety Act, 1996. It is hoped that this will lead to a significant improvement in the health and safety profile of the South African mining industry.

At national level, tripartite institutions have been established in terms of the Act. These institutions will continually influence policy development and law on matters relating to health and safety in line with the provisions of the Mine Health and Safety Act:

The Mine Health and Safety Council will advise the Minister of Minerals and Energy on health and safety at mines.

The Mining Qualifications Authority will advise the Minister of Minerals and Energy on education and training policy in the mining industry, in line with the Mine Health and Safety Act of 1996 and the South African Qualification Act of 1995.

The Mine Health and Safety Inspectorate has been restructured as a separate branch under the Chief Inspector, within the Department of Minerals and Energy.

At mine level, the manager is required by the Act to develop and implement a health and safety policy, based on the officially approved policies set at national level and in consultation with health and safety committees at the mine which include management and employee representatives.

The health and safety policies that are developed at national level and mine level are implemented within a context that is laid down by the Act:

In pursuance of a health and safety culture each mine must establish a policy that will incorporate the employees’ rights set out in the Mine Health and Safety Act:

the right to representation and participation;
the right to education and training;
the right to health and safety information;
the right to leave a dangerous working place.

All employees have the responsibility to:

take care of their own health and safety and safety of others who may be affected by their activities;
use and take proper care of protective clothing, and other health and safety facilities and equipment provided for that purpose;
report any situation which presents a risk to the health or safety of persons;
comply with the provisions of the act.

Previous legislation did not, in practice, address the occupational health care and compensation problems of mineworkers.

The spread of HIV/AIDS through the workforce is likely to be a feature of the mining and other industries over the next decade and beyond.

There are health and safety problems associated with small-scale mining which the current legislation and government policies do not adequately address.

3.1.2 Intent

Government will promote healthy and safe working conditions at all mines and, in accordance with national health policies, ensure that mines deal humanely with the health consequences of work in the mining industry.

3.1.3 Policy Requirements

3.1.3.1 Views of the employers

Policy should have as its objective the creation of an affordable, equitable and sustainable health-care system for employees.
It is imperative that regulations governing safety in mines should be realistic and practically enforceable and are focused on areas where they are most needed.
Health and safety in mines should be regulated by Acts of Parliament.
Employees must accept the obligation to comply with safety standards.
Government should develop a national HIV/AIDS plan in consultation with all stakeholders.

3.1.3.2 Views of labour

Trade union representatives should be included in decision making on health and safety matters.
Health and safety training for employees should take a priority position in the training programmes of the mines.
The capacity of the Department of Minerals and Energy to deal effectively with health and safety issues needs to be upgraded urgently.

3.1.3.3 Other views

The State must recognise the cost to society and especially to rural communities of disabled and ill mineworkers and ex-mineworkers. It must be recognised that these persons have little or no chance of re-employment and must rely on disability payments or pensions.
The State must recognise the health and safety aspects associated with small-scale mining.

3.1.4 Government Policy

Government will expedite the full implementation of the Mine Health and Safety Act which makes the employer primarily responsible for the protection of the health and safety of employees.
Government will, in consultation with employers and labour, develop a programme in the mining industry that ensures the physical, psychological and vocational rehabilitation of disabled workers to enable them to earn a living.
A national database on occupational health will be developed by the Department of Minerals and Energy in collaboration with the Department of Health that reflects the prevalence and incidence of occupational disease among mineworkers and ex-mineworkers. (Policy in regard to currently employed mineworkers will be developed by the Mine Health and Safety Council (MHSC) in terms of the Mine Health and Safety Act. Policy for ex-mineworkers will be developed by the Department of Health in consultation with the MHSC).
Government will, in consultation with employers and labour, review the system of compensation payouts to mineworkers and ex-mineworkers in the light of increases in the cost of living.
The system of implementing proper medical care for disabled and diseased ex-mineworkers will be reviewed
A coherent and comprehensive policy towards HIV/AIDS will be developed by the State in consultation with the stakeholders as part of a national policy. Government will address the manner in which epidemiological research into HIV/AIDS is conducted; the manner in which mineworkers are tested, and counselled, educated and treated; and specifically ensure that no pre-employment testing for HIV/Aids is conducted and that workers with HIV/AIDS are not discriminated against.
The International Labour Organisation Safety and Health in Mines Convention will be referred for consideration to the National Economic Development and Labour Council and the MHSC before ratification by Government.
Whilst maintaining health and safety standards in the small-scale mining sector, Government will review current legislation to ensure that the relevant provisions are practically applicable.
Government has accepted that a properly structured system of administrative penalties could be more effective than a system of criminal enforcement in achieving the ultimate goal of the Mine Health and Safety Act, which is to improve health and safety in the mining industry. In this regard, Government will, in consultation with employers and labour, introduce an appropriate system of administrative penalties into the Act to replace, in respect of certain offences, the current system of criminal sanctions.

3.2 Human Resource Development

3.2.1 Background

The mineral industry has been characterised by racism in past practices of job reservation and in restricted access to training and advancement. Problems that are present, but not confined to the minerals industry, are a poorly developed human resource base and a concentration of skills and positions of responsibility in the hands of whites.
The advancement of black workers and professionals into positions of seniority and into management in the mining industry has been limited.
The majority of mineworkers have not had access to education and training opportunities and, as a result, the majority are functionally illiterate. This situation has a negative impact on safety and health standards and on productivity.
In recent years, many mining companies have made efforts to redress past discrimination and to ensure that individuals with potential have the opportunity to reach higher levels of responsibility in the industry. Although aggregate statistical evidence is not yet to hand, individual mining houses report that a good majority of their apprentice artisans, learner-miners and other trainees are black and that, given the country’s demography, this situation will continue into the foreseeable future. Over and above expenditure on training for purposes of ensuring a more productive and safer workforce, individual mining companies have invested in the education of communities connected to their activities. Up until now, training provided by mining companies has been, perforce, fragmented and lacks national standardisation. This situation is being addressed by the South African Qualifications Authority Act.
The Mine Health and Safety Act provides for the establishment of a Mining Qualifications Authority (MQA) which will advise the Minister of Minerals and Energy on education and training policy in the mining industry.
A more comprehensive concept of human resource development which aims to have a more efficient, productive and better paid workforce through education and training is being adopted by all role players. This will upgrade the quality of life of the entire workforce.
The Leon Commission has found that it is unsatisfactory to use Fanagalo as the language of the mines, because the language has a very limited vocabulary. While it may be satisfactory for giving simple commands it is quite inadequate to convey the nature and extent of the dangers that lurk beneath the surface, the source of such dangers, and how best to avoid them.

3.2.2 Intent

Government will encourage, support and facilitate human resource development in the mining and mineral industry.

3.2.3 Policy Requirements

3.2.3.1 Views of the employers

Primary responsibility for education from the basic to the advanced level lies with the State through the academic and vocational education system.
For a competitive industry, South Africa needs an education and training system which provides a high quality secondary and tertiary education to meet the industry’s operational and strategic needs in a cost-effective manner. The learning system should provide employees with flexible skills and attitudes to contribute to the profitability and safety of the enterprise.

3.2.3.2 Views of labour

Full union participation in structures dealing with education and training issues, from mine level to industry level, is essential.
Education and training needs to incorporate a new set of values reflecting democratic change in the country.
Education and training programmes provided by the unions should be recognised by the State and by mine employers. Union committees should have access to proper facilities from which to conduct their duties in the workplace. They should have access to training venues and equipment in order to conduct steward and membership education and training.
Educational subsidies, including contributions from the mining industry, should be made available for the study of disciplines related to mining in line with general policies on support for technical and vocational training.
An industry training fund should be established via a small training levy on the mining industry wage bill. Mining companies providing or funding recognised training should be refunded from the training fund.
In line with the National Qualifications Framework, on-mine training programmes and capacity building should be adapted to incorporate life-long skills and to provide flexibility in workers’ career paths to assist miners to find post-mining employment in the context of downscaling and mine closure.

3.2.3.3 Other views

Entry of black students to minerals-related fields of study needs to be promoted to overcome the legacy of past discriminatory practices.
Hardships caused by job losses due to retrenchments and mine closures need to be ameliorated through appropriate education and training programmes to provide affected workers with enhanced employment possibilities, whether within the mining industry or elsewhere.

3.2.4 Government Policy

Government will support and promote provision of appropriate education and training in the mining industry. Particular emphasis will be placed on Adult Basic Education and Training (ABET), and health and safety training at all levels.

ABET will be aimed at the following:

to provide workers with an education and training base for further learning and career path advancement;
to enhance health and safety in the workplace;
to develop workers’ skills and understanding to enable them to participate more actively in the process of change within the workplace and the community;
to contribute to the removal of all discriminatory barriers within the industry, particularly those of a racial nature.

The Department of Minerals and Energy will continue to promote representivity and redress past imbalances in selection of staff and in its support for internal education and training.

Government will discourage the use of Fanagalo as a medium of communication in the minerals and mining industry. The language policy of the mining industry will be guided by the multi-lingual reality of South Africa, and constitutional rights regarding language.

Government will require that all learning achievements in the minerals and mining industry are registered on the National Qualifications Framework, to enable people to progress through various learning pathways, across levels of learning, and throughout their lives.

Funds of the Mining Qualifications Authority will consist of monies appropriated by Parliament; monies collected in terms of the Mine Health and Safety Regulations and other applicable laws; fees obtained from services provided by the MQA; and any other monies received from any other source.

The MQA will also be established as a sectoral Education and Training Authority in terms of the Skills Development Initiative by the Department of Labour with added functions as contemplated in that initiative.

Government will ensure that people in the minerals and mining industry have access to quality education and training so that they can gain the knowledge and skills they need for work and to improve their lives.

3.3 Housing and Living Conditions

3.3.1 Background

Hostels have been a significant feature of the system of labour on the mines since the birth of the modern mining industry in the late nineteenth century. Workers were often forced to live in austere, regimented single-sex hostels, subject to strict legal and extra-legal controls.

The housing and living conditions for many workers in the mining industry are sub-standard. These conditions impact adversely on their health, productivity and well-being.

The hostel system for black workers has been run on racial and ethnic lines and has been discriminatory.

Progress has been made in upgrading hostel accommodation which has, in some instances, included the provision of married quarters.

Since mining operations are frequently located far from existing settlements, the provision of housing has been undertaken by employers as part of the infrastructure required to develop the mine. South Africa is unusual among the world’s major mining countries in the provision of accommodation by employers.

There is merit both in continuing to provide accommodation (and to upgrade accommodation), within the constraints of costs, and in encouraging and facilitating home ownership/rental by employees within nearby communities.

The large number of workers housed in hostels and the costs of converting such accommodation requires a planned and phased approach to improving mineworkers’ living conditions. The principles of choice and full consultation with key stakeholders should apply to the planning and implementation of upgrading of accommodation and living conditions.

The whole structure of mining towns and settlements must be altered to integrate mineworkers into the local economy and to end the racially discriminatory provisions that apply to housing for black mineworkers.

3.3.2 Intent

To seek to ensure that all employees have a choice in their pursuit of suitable housing and living conditions.

3.3.3 Policy Requirements

3.3.3.1 Views of the employers

Accommodation should be affordable and sustainable.
Financing schemes used to improve mineworkers’ living conditions should be based on payment for services rendered.
Housing is part of remuneration and is settled by collective bargaining.

3.3.3.2 Views of labour

A range of tenure types should be offered to workers including rental accommodation, home ownership and social housing. Housing options should include single and family accommodation, accommodation in nearby settlements where feasible, and accommodation in mineworkers’ home areas. The principle of choice for mineworkers over a wide range of flexible housing options should apply.
Existing hostels on mines should be converted over time into family units and into single units for miners without families, or who elect not to live with their families. Included in the provision of family housing should be community and education services and facilities.
Every mine should, in conjunction with representative trade unions, be required to draw up a five-year plan for the improvement of living conditions for workers, incorporating specific targets.
The management of hostels must be democratised so that residents participate jointly with mine management in all areas of decision making around running the hostels.

3.3.3.3 Other views

The provision of family housing should be associated with expanded community services and facilities, including education.

3.3.4 Government Policy

Government will, in consultation with the Mine Health and Safety Council, propose measures regarding the standard of housing and nutrition of employees who are accommodated at mines. These measures should include the monitoring of compliance.

Government will investigate the improvement of housing and accommodation for mineworkers and their families, with due regard to the sustainability of communities involved. The mining industry will be encouraged to plan their housing needs in support of compact, integrated, liveable and mixed land use environments.

State assistance for both the upgrading of hostels to single accommodation and the conversion of hostels to family housing will be investigated.

3.4 Migrant Labour

3.4.1 Background

The system of migrant labour for black workers in the mining industry is deeply entrenched in the industry and within communities that have supplied labour for the mines, in some cases for over 120 years.

The system was used by the mining industry to provide labour at low wages and low cost for the labour-intensive work on the mines. At the same time political, economic and social factors affecting rural communities throughout southern Africa made migrant labour in many instances the only option to generate income.

Migrant labour is associated with a range of negative consequences including the denial of normal family life to migrant workers, poor living conditions in single-sex hostels, and social disruptions including the break-up of marriages.

The underdevelopment of parts of South Africa and of foreign countries supplying labour has created a situation of dependence on migrant labour for jobs and mineworkers’ remittances. Approximately half the Gross National Product of Mozambique and Lesotho comprises mineworkers’ remittances. As a result, individuals, communities and foreign countries have an interest in preserving the current system.

Mine employment patterns show a trend towards stabilisation of the workforce and a greater reliance on local recruitment. Despite such trends, migrant labour from rural areas within South Africa and from neighbouring countries will be a feature of mine employment for a long time to come.

Migrant labour is an important topic that affects the mining industry. It is a complex issue that is under consideration by the Chamber of Mines, the Employment Bureau of Africa, the National Union of Mineworkers and the South African and foreign governments.

The Labour Market Commission of 1996 considered a new approach for dealing with access to the SA labour market by non-South African nationals. The Commission:

believes that the migrant labour system should be phased out, but that in the process the terms of access of citizens of the southern African region should be easier than for citizens of other countries;
finds that compulsory deferred pay arrangements constitute a human rights violation;
recommends that the current migration policy be thoroughly reviewed. Policy should be informed by a coherent set of non-discriminatory principles based on international norms. The revised policy will be effected by a single immigration statute governing the entry of all foreigners into the country.

3.4.2 Intent

The system of circulating migrant labour will be regularly reviewed with the intention of minimising the adverse social consequences. In the longer term, Government will seek to phase out the migrant labour system.

3.4.3 Policy Requirements

3.4.3.1 Views of the employers

The principle of choice for employees and for employers over the offering and the engaging of labour should apply.
Mining companies should have the right to hire workers from anywhere they choose without restraint, including all the countries in the region.
Employers and employees should have the right to agree upon conditions of employment suited to their mutual needs.

3.4.3.2 Views of labour

There should be no discrimination against mineworkers on the basis of their geographical origin.
Workers on South African mines should be granted the same rights and freedoms as all other workers in the country. Employers and foreign states should be prohibited from treating migrant workers as a special category as they have in the past.
Employment contracts for mineworkers should be identical to those for all other workers. Workers and their trade union representatives should be entitled to re-negotiate their employment contracts directly with their employers and not be compelled to return home to do so.
As the mining industry cuts its labour requirements through the increased use of technology and stabilises its workforce, it is likely that foreign and less-skilled migrant mineworkers will suffer most as they are the least equipped to deal with the consequences of job loss and have fewer job opportunities. It is important that the interest of these workers are safeguarded.
Use of foreign labour should be regulated. The regulation should be aimed at keeping the volume of labour from outside at acceptable levels so that the region is supported in the process of addressing the endemic unemployment without unleashing anger in South Africa. However, people already working in the mining industry should have a right to retain those jobs.

3.4.4 Government Policy

The migrant labour system as it applies to the mining industry in its present form will be reformed.

Government will convene a South African regional forum for multi-party consultation on changes to the migrant labour system in order to protect the interests of migrant mineworkers and to manage the effects on neighbouring countries and on labour-supplying regions within South Africa.

Government will continue to permit citizens of the South African Customs Union countries and Mozambique access to the mining labour market on an acceptable basis.

Government will instigate a review of the system of compulsory deferred pay with a view to it being phased out after consultations with affected parties. Voluntary deferred pay schemes will be permitted.

Foreign miners will have the right to be treated as any other potential immigrant to South Africa or temporary resident. Employers will be required to observe the regulations and protocols of immigration law in their hiring practices. All the rights and benefits of a particular category of employment will be enjoyed by foreign miners, including the right of temporary residents to bring accompanying dependants into the country. Migrants will be eligible for permanent residence or citizenship once they have worked in South Africa for the required period. Years worked will be deemed continuous notwithstanding the annual end-of-contract breaks.

South Africa will subscribe to the International Labour Organisation conventions on migrant labour where relevant to the country’s situation. Government will refer these conventions to the National Economic Development and Labour Council prior to their ratification.

3.5 Industrial Relations and Employment Conditions

3.5.1 Background

It is the duty of the State to create a framework that will facilitate a healthy and productive relationship between employers and employees.

The Labour Relations Act provides a framework for industrial relations in the mining industry to take a less adversarial and more productive approach than has existed hitherto. This should underpin workplace efficiency and national economic growth.

The Labour Market Commission has recommended that the Department of Labour establish a Section for Mining within the Chief Directorate: Labour Relations. This directorate would be responsible for facilitating smooth industrial relations in this industry and, in particular, for facilitating the establishment of workplace forums and councils and putting in place the necessary training and guidance infrastructure.

In terms of the Mines and Works Act, mining on Sunday is prohibited. Essential maintenance work is allowed on Sundays. Additional work may be permitted by the Minister of Minerals and Energy "in the national interest". Extended operating times, not only in mines but in other sectors of the economy, has important employment creation potential. The prohibition on Sunday work in general and the regulation of working hours in the mining industry in particular, were seen by the Labour Market Commission as detrimental to the productivity of labour and capital.

3.5.2 Intent

Government will create a framework to facilitate a productive and non-adversarial approach to industrial relations and ensure that minimum standards apply to work in mining.

3.5.3 Policy Requirements

3.5.3.1 Views of the employers

All the necessary institutional arrangements are in place for meaningful discussions between employers and employees on all issues of mutual interest in the workplace. Any Government attempt to influence the balance between employers and employees could have serious implications, not only for the workplace partners, but also for Government itself.
In the new approach to industrial relations and improvement in workplace conditions, relationships should encourage rather than inhibit workplace efficiency and flexibility in a balanced and performance-based system.
Industrial relations matters are best left to arrangements agreed between employers and employees. Government should commit itself to ensuring a legislative and regulatory environment which secures opportunity for the workplace parties to settle their affairs without intervention.

3.5.3.2 Views of labour

The same basic conditions applicable to other workers should be extended to mineworkers.
There should be a national job grading system, linked to a national minimum wage safety net. Profit sharing across the industry should be facilitated by new tax laws and tax paybacks to ensure that the "same job, same pay" principle can be implemented across the industry. This system should be developed by a commission of inquiry under Government guidance. This will necessitate the formation of a National Bargaining Council for the mining industry, which should be encouraged by Government policy.

3.5.4 Government Policy

Government will encourage the formation of workplace participation at every mine.
Government will facilitate a process to establish a Bargaining Council for the mining industry.
Government will review the current restriction of Sunday work. It will be guided in this regard by the provisions of labour legislation.

3.6 Downscaling

3.6.1 Background

Since 1987, the South African mining industry has shed over 250 000 jobs. A substantial number of jobs have also been lost in the industries supplying mines and providing goods for mineworkers and mining communities. The social costs of this process have been huge. The remoteness of many mines and their dominance in local economies make mine downscaling a particularly destructive process. A disproportionate burden of suffering has been and is being borne by workers and their families in rural areas, which have, for generations, supplied labour to the mines and in mining towns.
Mining involves the extraction of finite resources and there inevitably comes a time when a mine must close. Up until 1987, mine closures were more than compensated for by the expansion of existing mines and the establishment of new operations. This pattern has now been broken. The depletion of ore reserves, combined with labour-saving technology required to improve competitiveness, will ensure a contraction of mining employment for the foreseeable future. A decline in a long-established mining centre has enormous knock-on effects for regions and for provinces, particularly when volatile economic events dictate the pace of contraction.
Government policy on the national management of the social consequences of industrial restructuring is currently under review within the National Economic Development and Labour Council.
The Labour Market Commission has recommended the adoption of a social plan approach to structural job losses such as those which are at present a feature of significant parts of the mining industry.
The social plan may encompass a wide range of interventions, some in the traditional areas of "active labour market policy", others in the areas of regional/local economic development and rural development. It is an attempt to ameliorate the significant social disruption generated by structural employment loss and, more ambitiously, to create a formulation for future development both of individuals and of communities and localities. Social plans must be stakeholder driven, and firmly rooted in collective agreements and social accords. The following is proposed by the Commission:
1. an amendment to the Labour Relations Act to include specific reference to the negotiation of a social plan;
2. the development of a capacity within Government to advise on the structuring of a social plan and, in partnership with relevant industry training bodies, to facilitate training programmes;
3. the establishment of a Social Plan Fund to support strategies and programmes negotiated between employers and workers facing structural employment decline. State funding should only be provided to augment financial contributions negotiated between employers, unions, municipalities and provincial governments in a partnership to deal with the consequences of employment loss in a community.
vi) Substantial benefits would accrue to the country if mines could continue to operate profitably until their reserves have been fully exploited. It may be in the national interest to provide some form of temporary assistance to those mines which have the potential to bring to account their remaining orebodies profitably. These considerations obviously apply particularly in local areas dependent on the mining industry and therefore vulnerable to its contraction.

3.6.2 Intent

Government will endeavour to ameliorate the social consequences of sizeable downscaling and mine closure.

3.6.3 Policy Requirements

3.6.3.1 Views of the employers

Existing laws already require extensive consultation with the workforce in the event of significant down-sizing. The downscaling process, in all its aspects, is most appropriately dealt with by collective bargaining.
Employers need to be fully informed of existing government programmes that may be of assistance to retrenched workers.
Because of the general level of unemployment and because of the remoteness of many mines, retrenched mineworkers often experience difficulty in finding alternative employment. Government has an important role to play, firstly, in co-ordinating counselling, training and other initiatives targeted at the retrenchees through existing government programmes, and secondly, in providing an environment that encourages companies to equip retrenched employees with skills to enhance their prospects of finding jobs outside the mining industry.
In addition, Government should facilitate the involvement of affected communities (including municipalities) in any process intended to deal with the consequences of mine downscaling and closure.

3.6.3.2 Views of labour

Employers have an obligation to keep the workforce informed of developments that may impact on employment security and to plan, jointly with government and labour, measures to preserve employment or mitigate the consequences of retrenchment.
Labour proposes active state intervention to prolong the lives of mines and to protect the interests of workers and communities affected by forces that lead to mine downscaling. Proposals include:

targeted assistance from the State to prolong the lives of marginal mines;

a Government agency that will manage and co-ordinate processes related to mine downscaling;

State stewardship of mines that are scheduled for closure within five years.

3.6.3.3 Other views

All spheres of government need to be fully aware of the likely pace, scope and effects of mine downscaling and to co-ordinate activities in this respect.

Government needs to ensure that the requirements for environmental rehabilitation are properly met in the case of unplanned downscaling.

Alternative economic uses for mine assets and the infrastructure of mining regions need to be investigated and promoted.

3.6.4 Government Policy

Government has an obligation to assist employers, employees, industry suppliers and mine-linked communities in anticipating and managing the consequences of large-scale job losses.

Preserving mining employment

Because unemployment in South Africa is so high, every effort will be made to preserve employment in mining for as long as is economically viable and socially desirable. This goal should recognise the benefits of maximum output and foreign exchange generated by the mining industry.
Employment will be best protected and promoted by creation of a business climate that recognises the fundamental importance of long-term profitability and hence that encourages investment.
Government will investigate whether public assistance should be available for mines and regions faced with downscaling and, if appropriate, to formulate guidelines for such assistance.

Dealing with retrenchments and restructuring

Government strongly endorses the proposal that social plans capable of cushioning the impact of structural job loss be drawn up.
Urgent action towards drawing up social plans is required in those mining sectors and geographical areas where large-scale restructuring is underway or imminent. Institutional support for the drawing-up of social plans is required.
Municipalities will be encouraged to take proactive steps, through their Integrated Development Planning, and Local Economic Development strategy, to ameliorate the negative impacts of downscaling and job losses in the mining sector.
In the short term:

Government will develop specific capacity to monitor and forecast trends in employment and output in the mining sector. The implications of this information will be reviewed on a regular basis by a tripartite meeting convened by Government.
Government will facilitate the establishment of forums at all mines. A tri-partite forum in the industry will review the trends identified by these forums on a regular basis. The tri-partite forum will outline agreed procedures for the process.
Government will draw up guidelines for mine downscaling and closure to provide all parties with a check-list and a time frame that can be adapted to their specific needs.
Government will assist mines to manage the retrenchment process. This assistance will include; assistance with information, unemployment insurance fund claims, counselling and skills development - on condition that the industry makes the agreed level of matching support.
Communities which are severely affected by large-scale retrenchments will be supported to identify alternative areas of economic activity.

e) In the medium term:

Government will introduce a provision that requires mining companies to notifiy Government in the case of retrenchments that cumulatively exceed 10% of the workforce in any twelve-month period.

Government will entrust the Advisory Board contemplated in 6.3.4 below with the task of monitoring restructuring in the mining industry and providing recommendations and options for the Minister of Minerals and Energy.

Government will encourage mines to establish social plan funds.

Chapter Four:
Environmental Management

The Constitution provides that everyone has the right to an environment that is not harmful to their health or well-being and to have the environment protected for the benefit of present and future generations. This must be done through reasonable legislative and other measures that will prevent pollution and ecological degradation, promote conservation and secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development.

To be able to meet the development needs of the people while ensuring that the integrity of the environment remains unimpaired, it is essential to integrate environmental impact management into all economic development activities. This is in the interest of Government’s overarching goal of sustainable development.

4.1 Background

Mining activities impact on the environment to varying degrees. Three important areas identify themselves for policy and regulation:
1. the environmental impact of exploration;
2. the environmental impact over the life of a mine including mine closure and financial assurances for mine site rehabilitation;
3. maintaining rehabilitation measures where mining activity has ceased.
South African society and the economy are characterised by the inequitable distribution of wealth and resources. This has resulted in the basic needs of the majority of South Africans not being met. To satisfy the needs of all South Africans, the utilisation of the mineral resources of the country, within a framework of responsible environmental management, is essential.
iDevelopment in South Africa requires the optimum and environmentally sustainable use of all the natural resources of the country. A balance must therefore be attained between a cost-effective and competitive mining industry and the imperative to protect the environment.
The complex nature, both underground and above ground, of on- and offshore mining operations requires a dedicated approach and specific skills from controlling authorities. Adequate personnel who are qualified in the earth, biological and environmental sciences and who have been subjected to specialist training relevant to environmental management and mineral extraction are therefore required by the controlling authority.
Government will have to ensure that the costs of environmental impacts of the mining industry are not passed over to the community. This calls for:
1. a co-ordinated and integrated environmental management approach to the planning, management and use of all natural resources;
2. an increased public involvement to ensure pro-active and informed decision-making;
3. the implementation of effective and affordable measures and standards for environmental impact management, the prevention or efficient management of water, soil and atmospheric pollution, and the rehabilitation of areas affected by past mining operations; and
4. ongoing research with a view to improving and strengthening the measures, standards and practice applied to managing the impacts on the environment and to control pollution.
Under the Minerals Act, prospecting and mining operations may not be conducted without an environmental management programme (EMP) having being approved by the authorities. To assist prospecting and mining companies to comply with this requirement, the Environmental Management Programme Report (EMPR) process was developed and has been approved for use in the mining industry. The EMPR covers a description of the pre-mining environment, a motivation for and detailed description of the proposed project, an environmental impact assessment, and an indication of how the impacts will be managed. Adequate consideration must be given to alternative methods of mining. The EMP, furthermore, requires adequate provision for financial guarantees for rehabilitation and arrangements for monitoring and auditing.

4.2 Intent

Government, in recognition of the responsibility of the State as custodian of the nation’s natural resources, will ensure that the essential development of the country’s mineral resources will take place within a framework of sustainable development and in accordance with national environmental policy, norms and standards.

4.3 Policy Requirements

4.3.1 Views of employers

A balance should be maintained between encouraging economic development and preserving high standards of environmental management.
Subject to the site-specific nature of the operation, uniform standards of environmental management should be applied across mining operations of varying scale so that all mining is conducted in an environmentally responsible manner. Artisanal mining, which has frequently caused severe environmental damage in other countries, should not be treated more leniently.
In principle, there should be no area, other possibly than those which have been sterilised by proclaimed townships, where prospecting and mining are prohibited, but the degree of sensitivity of the area must affect the standards of environmental control exercised by the mining operation. Should an economically viable ore body be discovered in a sensitive area, approval to mine should be subject to the full assessment of environmental impacts provided for in the Minerals Act, in which the "no project" option can be considered.
Cognisance should be taken of the stage of economic development of the country in framing environmental regulations. Environmental protection legislation that follows the example of highly developed countries should be adopted with caution. Prospecting and investment in mining have on occasion been substantially diminished as a direct result of ever-higher standards.
Mining should be granted precedence in land use, while taking cognisance of environmental factors.
Appropriate environmental standards should be set for different stages of mining so that low impact activities, such as prospecting, are not burdened with cumbersome regulations.
The interdepartmental consultation required for approval of environmental management programmes should be facilitated and expedited through a "one-stop shop" approach in which the Department of Minerals and Energy acts as a lead agent and liaises with other departments, provincial authorities and interested and affected parties.
Delays in obtaining environmental approvals should be eliminated through improved administration.

4.3.2 Views of small-scale miners

Government support should be provided for the education of small-scale miners on environmental management.
Intensive environmental management services should be provided in areas where there is a high concentration of small-scale miners. Measures should include providing technical and environmental management assistance and simplifying the procedures for complying with environmental management regulations. Explicit budgetary allocations should be made for this purpose.
Rehabilitation procedures should be made more affordable by devising a more flexible system for providing the necessary rehabilitation moneys.

4.3.3 Other views

Conservation areas including parks, reserves, wilderness areas, and cultural and archaeological sites should be protected.
The rehabilitation of defunct and derelict mines which are a risk to the environment, public safety and human health should be provided for by appropriate regulation.
The environmental damage caused by the mining industry should be managed and contained irrespective of the size of the mine.
It should be ensured that the rehabilitation of land for post-mine use is carried out to standards that permit its use for the purpose set out in the EMPR and that closure be granted only after satisfying that there are no foreseeable residual impacts that will be inherited by parties acquiring such land.
Communities directly affected by mining should be enabled to participate in environmental impact assessments studies at the planning stage.
South Africa should comply with international environmental standards to meet international obligations.
Concerns that the DME lacks capacity to enforce existing environmental provisions should be addressed.
Environmental management for the minerals industry should be improved by expanding the scope of EMPRs, which presently address the physical environment, to include assessment of the impact on the social environment.
A conflict of interest between the promotion of the minerals industry and the enforcement of environmental standards within the DME should be prevented by providing a clear separation of powers.
Land-use decisions should be based on economic efficiency and mining should not enjoy a claim to precedence.

4.4 Government Policy

Government will ensure that the following principles are adhered to:

In order to achieve integrated and holistic environmental management throughout South Africa, Government requires compliance with a single national environmental policy and governance within a framework of co-operative governance. While Government has appointed the national Department of Environmental Affairs and Tourism as its lead agent for this role, the DME will, in support of the lead agent and in accordance with national principles, norms and standards, develop and apply the necessary policies and measures to ensure the mining industry’s compliance with the national policy on environmental management and other relevant policies such as the national water policy.

Similarly, due recognition will be given to the Department of Water Affairs and Forestry as lead agent for the national water resource.

The processes of considering the granting of a prospecting or mining licence and the approval of an environmental management programme will run concurrently and the granting of the prospecting or mining licence and approval of the environmental management programme will take place simultaneously. The DME, in consultation with the relevant State Departments, will develop procedures to accommodate their requirements. These procedures will provide for decisionmaking in consultation with such Departments.

During decision-making, a risk-averse and cautious approach that recognises the limits of current environmental management expertise will be adopted. Where there is uncertainty, action is required to be taken to limit the risk. This will include consideration of the "no go" option.

The polluter-pays principle will be applied in the regulation and enforcement of environmental management. The mining entrepreneur will be responsible for all costs pertaining to the impact of the operation on the environment. Where for reasons such as the demise or incapacity of a mining entrepreneur, no responsible person exists or can be identified to address pollution emanating from past mining operations, the State may accept responsibility or co-responsibility for the rehabilitation required. Government may require that any person benefiting from such rehabilitation should contribute to the cost involved in such proportions as may be negotiated.

A consistent standard of environmental impact management will be applied and maintained irrespective of the scale of the mining operation. Special attention will be afforded to the education and the provision of guidelines for mining entrepreneurs concerning environmental management, especially for small-scale miners. Furthermore, intensified attention and guidance will be provided in areas where a high concentration of small mining activities occur.

Equitable and effective consultation with interested and affected parties will be undertaken pro-actively to ensure public participation in the decision-making process and the audi alteram partem (hear the other side) rule shall apply to all decision-making. The decision-making process shall provide for the right to appeal. Access to information shall be in accordance with the requirements of the Constitution.

Mining companies will be required to comply with the local Development Objectives, spatial development framework and Integrated Development Planning of the municipalities within which they operate and will be encouraged to promote social participation by conducting their operations in such a manner that the needs of local communities are taken into consideration. On closure of a mine, every opportunity must be taken to ensure the continued availability of useful infrastructure.

Clear guidelines on the process and sequence of events for implementation of environmental management procedures and decision-making will be provided.

The principles of Integrated Environmental Management (IEM) will be applied to environmental management in the mining industry. These must be amplified to include cradle-to-grave management of environmental impacts in all phases of a mine’s life, effective monitoring and auditing procedures, financial guarantees for total environmental rehabilitation responsibilities, controlled decommissioning and closure procedures, procedures for the determination of possible latent environmental risks after mine closure and the retention of responsibility by a mine until an exonerating certificate is granted.

The building of capacity to -

effectively implement environmental management measures;
monitor occurrences of pollution; and
monitor compliance with the requirements of the national environmental management policy.

The principle of multiple land use will be adhered to in planning decisions, and contending options will be assessed and prioritised on economic, social and environmental grounds.

The mining industry will be required to reduce pollution and encouraged to promote a culture of waste minimisation and creative recycling and re-use of waste products.

Problem areas in environmental management will be identified pro-actively with a view to the co-ordination of research thereanent.

Chapter Five:
Regional Co-operation

Sustainable development in South Africa depends in good part on sustainable reconstruction and development in southern Africa as a whole. An element of Government’s long-term thinking is the gradual integration of the economies of southern Africa through the trade and investment protocols of the Southern African Development Community (SADC). The region has considerable mineral potential and therefore the mining sector has a particularly significant contribution to make to the economic development of the region. Mutually beneficial programmes have the potential in the short as well as longer term to yield benefits for the region as a whole.

5.1 Background

International economic relations are increasingly influenced by the formation of regional trade blocks, such as those in Europe and North America, offering the advantage of co-ordinated policies, large markets and the free flow of goods and services.

Southern Africa has immense mineral wealth and the region produces over a third of the world’s supply of gold, diamonds, platinum-group metals, vanadium, chrome and cobalt as well as over a tenth of other important minerals such as copper, manganese, granite and zircon.

Since its inception, the South African mining industry has had extensive involvement and interests in the region, recruiting labour, prospecting and conducting mining operations. Historically, mining has played a role in integrating the economies of southern African countries. The industry can provide the foundation for renewed economic growth in southern Africa.

With the demise of apartheid and the normalisation of relations with our neighbours, South African companies are re-entering the region with vigour. Care will need to be taken to manage South Africa’s integration into the region’s economy to prevent it unduly dominating and attracting resources away from smaller countries.

A protocol on co-operation and integration of the mining sector in the SADC has been adopted which should result in economic development, alleviation of poverty and the improvement of the standard and quality of life througout the region.

5.2 Intent

Government will encourage co-operation on mineral and mining matters amongst the countries of the southern African region and base that co-operation on the principle of mutual benefit. It will devise policies to enhance South Africa’s capacity to contribute to the development of the region. The objective will be to achieve an equitable, balanced and mutually beneficial order in southern Africa.

5.3 Policy Requirements

5.3.1 Views of employers

South African mining companies, equipment suppliers and consultancies have technologies, expertise and services potentially in great demand in the region and the rest of the continent. South Africa’s economy stands to gain from increased regional, continental and international co-operation. For profound and enduring economic benefits of co-operation to be realised, a phased removal of barriers to the free movement of labour, capital, goods and services needs to take place, without destabilising any of the countries involved.

5.4 Government Policy

South African mining and related companies will be encouraged to apply their expertise to tap business opportunities in the region and across the continent.

Government will participate in the co-ordination of the policies of southern African countries so that the region can benefit optimally from its mineral wealth by taking specific steps to:

remove barriers to the movement of labour, capital, goods and services, but in a phased manner that will avoid destabilising the countries involved;
co-operate in the harmonisation of the minerals and related legislation in the region, including the harmonisation of mineral-related industrial and technical standards;
encourage cross-border mineral processing, which optimises capacity utilisation and increases value adding in the region;
foster regional co-operation in technology development; this should be facilitated through the exchange of geoscience and mineral processing information, technology, facilities and expertise;
encourage co-operation in the development of human resources in the region by facilitating the upgrading of the institutional capacity of southern African mining and geology departments at tertiary institutions, and by pooling resources in the form of laboratory facilities, research centres and institutions;
disseminate investment and exploration information among member countries.

iii) Government will work co-operatively with other governments, private industry and international agencies to address environmental concerns, as well as mine health and safety standards in respect of mining and minerals.

Chapter Six:
Governance

In order to contribute to a competitive and sustainable minerals industry in South Africa, Government involvement should be focused on efficient and cost-effective resource management. This includes the mineral, human, and environmental resources of the country. Such governance will require both regulatory and developmental dimensions, but with a clear separation of powers in order to maintain transparency and equity.

The activities of the Department of Minerals and Energy (DME) must be responsive to the needs of stakeholders and transformation within the industry. In this respect a special duty rests on the Department, being charged with a national function with wide impacts throughout the country, to co-operate with all spheres of government. Furthermore, the principle of tripartitism and consultation, which is necessary for open and inclusive governance, should be accommodated. This should include the opportunity for other parties and individuals to constructively engage Government and the main stakeholders on matters of common concern.

6.1 Regulation and Promotion

6.1.1 Background

In order to promote, support and regulate minerals and mining it is essential that Government institutions are competent and efficient. Exploration and mining are high risk businesses and consequently it is important that individuals and companies are confident in their dealings with state institutions, and that decisions are made timeously and efficiently. If contracts are to be negotiated and investment mobilised it will be important that institutions respond rapidly and professionally.

The governance of the mining industry involves a number of players, including specialised government agencies, such as the Council for Nuclear Safety and the Council for Geoscience and Mintek, that have a significant influence on the industry. At the level of central Government - in which a number of departments have an interest in the industry - it is the DME which has the primary role in governance.

The Leon Commission proposals regarding restructuring in the DME in order to address safety and health issues, have been incorporated in the Mine Health and Safety Act of 1996. These will, therefore, not be discussed in this chapter, other than to note that certain provisions of the Act remain to be implemented.

6.1.2 Intent

The regulatory and promotional activities of Government will be conducted in a transparent and efficient manner in carrying out its brief to manage the development of South Africa’s mineral resources, and to regulate the mineral industry to meet national objectives and bring optimum benefit to the nation.

6.1.3 Policy Requirements

6.1.3.1 Views of the minerals industry

Sensible regulation requires an understanding of the nature and interrelated technical complexities of mining, making the existence of a single, central regulatory agency highly desirable. That agency should be the DME, working as necessary through its own regional offices.

The Department should serve as the pivotal link between the industry and other government departments and regulatory agencies.

Subject to any obligations to maintain confidentiality of private information, the DME should make adequate information available on all the aspects involved in mineral investment and exploitation.

Mineral regulation and administration should be conducted efficiently and expeditiously.

The DME must be adequately staffed by skilled personnel.

The structure of the DME must be such that it is accessible and responsive to all sectors of the mineral industry in all parts of the country, and that the span of control is not stretched.

In order to improve access to and investment in the mineral industry, relevant government institutions should not only assume a regulatory role but should actively pursue a promotional role as well.

Interdepartmental communications, particularly between the DME and the Departments of Environmental Affairs, Water Affairs, and Trade and Industry, should be improved in order to decrease the potential for cross-cutting legislation.

An overall review is needed of which organisations of government will best serve the industry. The review should focus, in particular, on efficiency and competence in the administration and functioning of government agencies whose activities have a direct bearing on the mining industry. Regulatory and service agencies of the government should be attuned and responsive to the needs of and constraints upon the industry.

6.1.3.2 Other views

The DME should look after the interests not only of the minerals industry, but also of the communities in the areas where mineral exploitation activities take place.

The racial and cultural make-up of the DME should better reflect that of the community.

The DME should cultivate a culture of development and promotion of the industry and people associated with it as well as functioning as a regulatory body.

No intermediate institutions such as minerals trusts, should be involved in the process of mineral regulation and administration.

6.1.4 Government Policy

The DME will be the lead agent for governance of the minerals industry.

The structure of the DME will, amongst others, provide for:

separate intra-departmental components and mechanisms to handle mineral resource management and the promotion of the industry on the one hand and mineral resource administration and regulation on the other;
a separate structure, within the regulatory component, to control environmental management in the mining industry;
a separate mine, health and safety inspectorate;
the improvement of administrative procedures in respect of the granting of prospecting and mining rights;
the provision of a cost-effective "one-stop shop" information and advice service to the minerals industry; and
ongoing research, co-ordination and review of minerals and mining policy.

Government will ensure that all associated institutions concerned with the minerals industry will be guided in terms of national objectives and priorities. To this end it will be a statutory requirement that representatives from the DME serve on the boards of such institutions.

In particular, the Council for Geoscience should focus on serving as a national resource for South Africa that can make data available at nominal cost. This may require a review of the Council’s mission and Government’s funding policy towards this institution.

The staff composition of the DME will reflect the demographics of South Africa.

In the process of establishing mining operations, the relevant mining company will consult the affected community, taking due cognisance of the local economic development needs and local intergrated development plans.

Intermediate statutory regulatory institutions, such as minerals trusts, will be phased out.

6.2 National and Provincial Governments and Municipalities

6.2.1 Background

Mineral affairs are allocated to the national level. In the Constitution mineral affairs are not mentioned in schedule 4 stipulating functional areas of concurrent national and provincial legislative competence, nor in schedule 5 stipulating functional areas of exclusive provincial legislative competence.

The Minerals Act provides for the Department of Minerals and Energy to regulate prospecting, the exploitation of minerals, utilisation of land and environmental impact studies whilst health and safety issues are regulated in terms of the Mine Health and Safety Act.

Irrespective of the emphasis in the Constitution on national responsibility for mineral affairs, in practice the provinces, due to the wide range of functions they have, also impact on mineral affairs, and vice versa. Several provinces are keen to promote mining in their areas.

Mineral affairs interact with the following functions referred to in schedule 4 or 5 of the Constitution: agriculture, environment, health services, local government, nature conservation, regional planning and development, soil conservation, industrial promotion, urban and rural development, and public works.

In view of the Constitution, it is important to ensure that uniform mineral management and regulatory standards be maintained throughout South Africa and that services provided by Government be rendered in an equitable manner.

Constitutional provision is made for the equitable division of revenue raised nationally among the national and provincial governments and municipalities. This sharing of a national pool of revenue, which includes revenue from mining taxation, involves intricate considerations which fall within the functions of the Financial and Fiscal Commission.

6.2.2 Intent

Government will ensure equal treatment and standards in respect of the management and regulation of the mineral industry in all the provinces of South Africa.

6.2.3 Policy Requirements

6.2.3.1 Views of the minerals industry and investors

Sensible regulation requires an understanding of the nature and interrelated technical complexities of mining, making the existence of a single, central regulatory agency highly desirable.
Because of the way the industry has evolved, as well as the need for consistency of policy and practice across provincial and local boundaries, there should be minimal devolution of authority to separate provincial or lower level bodies. Such bodies should not be empowered to create laws or regulations which impact on mining.
In cases where there is a need for issues to be dealt with at sub-national level, a consultative process with all affected parties is essential.
The relationship between a mine and its provincial authority and municipality has many dimensions but the basic criterion should be that the authorities avoid undue involvement in the operations of a mine.
Where a mine uses services provided by a municipality such services should be charged for on an economic and equitable basis, governed by the costs of provision; mines should not be burdened with inflated prices designed to improve the financial position of the municipality.
Where a mine supplies its own services or can obtain them competitively from a supplier other than the municipality, it should not be obliged either to pay rates in respect of such services or to acquire them from the municipality.

6.2.3.3 Views of provincial governments and municipalities

In order to guide or affect the economic growth and development process, some influence is required in the minerals arena, be it at legislative, executive or operational level.
Mechanisms are required whereby the negative social and economic consequences of mine closures can be planned for and ameliorated.
There is a clear need for integration of regional/local, DME and Department of Trade and Industry attempts to stimulate small-scale entrepreneurial activities.

6.2.4 Government Policy

The minerals and mining industry will be governed at national level through a single lead department, but will obviously be required to comply with all national, provincial and municipal legislation.

Services provided to a mine by provincial governments or municipalities will be charged for on an equitable basis.

A formal mechanism will be established whereby provinces can engage with national government on mineral industry issues where these relate to agriculture, the environment, economic affairs and other relevant provincial and local government competencies.

Provincial governments and municipalities will have access to the expertise and information available in the DME and associated institutions.

6.3 Stakeholder Consultation

6.3.1 Background

The mineral industry has been an important factor in the development of South Africa’s infrastructure and much of its secondary industry. It is a major provider of employment and other business opportunities, both directly and through backward and forward linkages. In order for the mineral industry to play its required role in respect of economic growth and the earning of foreign exchange, good co-operation will be required between Government, labour and the industry. This can only be achieved when policy formulation, management and regulation are conducted in an atmosphere of openness and in close consultation with stakeholders in the industry.

South Africans recognise that there are large and complicated issues involved in mineral development activities. Development decisions affect the public in more ways than just providing employment opportunities. The stakeholders and affected communities should be involved in discussing all the issues surrounding mineral development activities and should participate in the decision-making process.

The Mine Health and Safety Act includes a variety of provisions relating to tripartite consultation and co-operation in respect of different health, safety, education and training issues; these will, therefore, not be addressed in this section.

6.3.2 Intent

The management and regulatory activities of Government will be conducted in a transparent manner and will take into account the views and interests of all the stakeholders in the minerals industry.

6.3.3. Policy Requirements

6.3.3.1 Views of the minerals industry

An ongoing opportunity to debate all issues pertinent to mining and minerals policy, that would also provide a forum in which the views of other interested parties could be canvassed, is required. Such a structure and process are essential in order to achieve a collaborative approach to policy formulation, as well as to give coherence and focus to what could otherwise be a fragmented and insufficiently consultative approach to policy.
The minerals industry will be promoted through information and education programmes relating to the contribution of the industry to the economy, the role of minerals in everyday life, and mineral-related issues such as the environment and safety and health.

6.3.3.2 Other views

A forum should be established where the views of communities affected by mining could be heard.
A greater degree of co-operation and co-ordination between government departments is required, as well as between Government and the private sector.
A tripartite forum is required to advise the Minister of Minerals and Energy on issues related to mining, such as the environment.

6.3.4 Government Policy

A statutory board will be established that will advise the Minister of Minerals and Energy on mining and mineral matters that fall outside the Mine Health and Safety Act. It will provide a forum in which government departments, representatives of the principal stakeholders, viz. business and labour, as well as other interested parties, can debate issues that bear upon existing or new policies. The board will inter alia be required by law to advise the Minister on whether, when and how to intervene in cases where a dispute arises in the granting of prospecting, mining and retention licences.

List of Abbreviations and Names

ABET - Adult Basic Education and Training (see ABET National Interim Guidelines, Department of Education, September 1995)
Council for Science - Council responsible for geological mapping, State earth science
Geoscience research and a repository of geological information
DME - Department of Minerals and Energy
EMP - Environmental Management Programme
EMPR - Environmental Management Programme Report
ESOPS - Employee Share Ownership Participation Schemes
Fanagalo - Dialect of commands combining various languages developed on mines early this century
ILO - International Labour Organisation
LRA - Labour Relations Act
MHSC - Mine Health and Safety Council
MQA - Mining Qualifications Authority
NEDLAC - National Economic Development and Labour Council
NQF - National Qualifications Framework
SADC - Southern African Development Community
SIMRAC - Safety in Mines Research Advisory Committee
TBVC - Transkei, Bophuthatswana, Venda and Ciskei

Legislation Cited

Companies Act no. 61 of 1973
Constitution of Self-governing Territories Act 21 of 1971
Income Tax Act no. 58 of 1962
KwaZulu Ngonyama Trust Act of 1994
Labour Relations Act no. 66 of 1995
Lebowa Minerals Trust Act of 1987
Mine Health and Safety Act no. 29 of 1996
Minerals Act no. 50 of 1991
Mines and Works Act no. 27 of 1956
Restitution of Land Rights Act no. 22 of 1994
Rural Areas Act, 1974
South African Development Trust Act no 18 of 1936
South African Qualifications Authority Act no. 58 of 1995

Commissions Cited

Katz Commission: Commission of Inquiry into Certain Aspects of the Tax Structure of South Africa
King Committee: The King Report on Corporate Governance, 1994
Labour Market Commission: Restructuring of the South African Labour Market: Report of the Commission of Inquiry into the Development of a Comprehensive Labour Market Policy RP83/1996
Leon Commission: Commision of Inquiry into Safety and Health in the Mining Industry, 1994