Hon member, you are left with two minutes.
The findings of the presidential mine safety audit report, which indicates a compliance of 66% by mines indicates room for improvement, but it should not be done at the cost of slowly strangling the industry. Whilst it is imperative to employ the most skilled employees and best equipment, it has been argued that the recent 23% reduction in fatalities indicates the success of the sector in applying the co-operative arrangement as mooted in the Leon report, rather than punitive measures introduced in the latest amendments. More importantly, the hesitation by the President in signing the new amendment on the grounds of possible unconstitutionality indicates enough reason for reconsideration by Parliament of some of those possibly offensive amendments to the Mine Health and Safety Act.
The review of the Mining Charter currently being undertaken should avoid any perception of the goalpost unilaterally being shifted by government as it will have its own negative consequences financially and otherwise. As such, the estimated R220 billion worth of black economic empowerment deals already concluded and reportedly at risk due to the collapse of share prices and failure by companies to pay dividends due to the economic turmoil, require more robust reconsideration.
Lastly, and relating to the issue of the splitting of the department, the Minister is described in the MPRDA as the Minister of Minerals and Energy and, in relation to the granting of exploration and production rights, your predecessor delegated her authority to the Director-General of the Department of Minerals and Energy, DME, and from him to the head of the Petroleum Agency to grant rights in terms of petroleum product. This is legally questionable as there is now no longer either a Minister or a Director-General of Minerals and Energy. Although it was advised that this would be resolved by a Presidential proclamation, there has been no sign of this. It would be interesting to know how the department intends addressing the issue of ministerial approvals or delegations of authority with effect from the date of splitting of the department, given that all such approvals and delegations are ultra vires until such time as the next proclamation is made. Thank you. [Time expired.] [Applause.]
Chairperson, Ministers, hon members and the public, there is no doubt that mining will also benefit from the 500 000 jobs earmarked by the President in his state of the nation address. By the same token, we applaud the Ministry of Labour's forward-looking announcement that unemployment benefits will be increased and prolonged to apply for one year. This confirms beyond all doubt that the ANC-led government is indeed an activist government.
Mining is undoubtedly one of the key economic drivers of South Africa with a large endowment of minerals, particularly coal - a fact that gives South Africa an electricity production system that is highly carbon intensive. As a country, South Africa generates two thirds of Africa's electricity, 90% of which is generated from coal. Mining has a long history of creating employment in this country, particularly for black people not only from South Africa but also from our neighbouring African states. This dates back to the discovery of gold on the Reef.
It is common knowledge therefore that mining has to do with mines that are excavations from which minerals are extracted. Mining constitutes 7,7% of South Africa's GDP. In 2007 the mining sector directly employed 495 474 people compared with 458 600 in 2006. In the first quarter of 2007, the mining sector's output grew by 4,2%, while the level of employment grew by 8,8%. During the fourth quarter of 2008, the mining sector declined by 5% while employment grew by only 4%.
Currently, the mining sector continues to face difficulties. According to recent statistics, the mining sector contracted 1,7% in the first quarter of 2009, the current year, while employment did not grow - a very sad state of affairs. This unfortunate economic scenario in the mining sector compels us as a nation and as a department to interrogate the role of domestic micropolicy in shaping current developments. South Africa has a long history of mining, as has been said. I personally grew up in the mining town of Vryheid, northern KwaZulu-Natal, where many of my uncles, cousins and other relatives worked in coal mines like Coronation, Nyathi, Hlobane, etc. Therefore I have personal and family experience of mining and I am familiar with all the problems.
Related to the creation of job opportunities in mining is the aspect of regulating minerals and the mining sector in order to promote economic development. The ANC-led government realises that mining plays a big role in beneficiation. Like farming, mining as a sector is divided into large- and small-scale farming. Large-scale mining offers employment, naturally, to a large number of people. It becomes problematic when mines, large or small, are closed down, as happened in some parts of South Africa a few years ago. I have in mind here mines such as Dannhauser, Hlobane, Utrecht and many others.
Such a state of affairs obviously leads to unwarranted unemployment within the mining sector resulting, of course, in a poor quality of life for those who depend on mining. For some odd reason there has emerged in recent times the phenomenon of illegal mining in which one or more persons become pirates by infringing on other persons' rights by mining illegally. In this respect, I endorse the Minister's remarks on the illegality of so-called illegal mining.
I want to close with a few remarks in my mother tongue, isiZulu.
Izimayini zineqhaza elikhulu kabi ekuletheni umsebenzi nasekwakheni amathuba omsebenzi. Siyazi sonke ukuthi abanumzane nezinsizwa bebesuka emakhaya beyosebenza emgodini eGoli ukuze bakwazi ukuthola imali yokondla imizi yabo, yokuthenga izinkomo nokusenga,nokufuya zikhokhe ilobolo. Ngiyabonga. [Ihlombe.] (Translation of isiZulu paragraph follows.)
[Mines play a big role in creating employment as well as job opportunities. We all know that family heads and young men used to leave their homes and head to Johannesburg to work in the mines so that they could get money to maintain their families, to buy cows for milking and farming and to pay lobola. Thank you. [Applause.]]
Chairperson, hon Ministers and Members of Parliament, I have to be brief due to the limited time allocated to me, so I will highlight two specific issues.
Programme 2 of Budget Vote No 28 focuses on the promotion of mine safety and health. The objective is to contribute to the reduction of mining- related deaths, injuries and ill health. I have a direct request to make of the Minister of Mining, that he take a serious look at this programme, because the increase in the number of mine-related fatalities has raised concerns about mine health and safety. However, I admit that some fatalities are directly related to illegal mining.
Programme 3 of this Budget Vote concerns mineral regulation. The focus is on administration of prospecting and mining rights, licensing and compliance with the Mineral and Petroleum Resources Development Act of 2002, including mine environmental compliance. The department must be committed to reducing the government's environmental liability and to minimising the pollution impact of the mining sector. This programme must regulate the sector by encouraging compliance with sound environmental practices.
Graag wil ek dan nou vir 'n oomblik stilstaan by die toekenning van mynregte wat die voortbestaan van die Verlorenvallei en omgewing kan vernietig. Bongani Minerals het aansoek gedoen vir die mynregte vir die ontginning van tungsten in die Moutonshoekvallei, gele tussen Piketberg en Elandsbaai aan die Weskus. Dit is in die ontvangsgebied van die Verlorenvlei, wat as 'n Ramsargebied verklaar is. Dit is een van die grootste natuurlike vleilande aan die Weskus en een van enkele varswatervleilande in Suid-Afrika.
Die Krom Antoniesrivier is die voedingsbron van die Verlorenvlei en is die suiwerste skoon bron van water wat lei na die vlei. Die ironie is dat die oopgroefmyn van 200 meter diep by die oorsprong van die rivier bo in die vallei beplan word. Ernstige kommer bestaan dus oor die impak van die myn en gifstowwe wat vrygestel gaan word, aangesien soda-as gebruik word om wolfram uit die erts te verwyder en dit in die water gaan beland. Dit is nie net Moutonshoek wat geraak gaan word nie, maar die totale landbou aktiwiteite in die gebied, wat strek tot by Elandsbaai. Die risiko wat die beplande myn inhou vir besoedeling van die grond en bo-grondse water is groter as die voordele van die nuwe werksgeleenthede wat geskep gaan word.
Maksimum werksgeleenthede wat moontlik geskep kan word vir di myn, wat na verwagting slegs 'n 20 jaar leeftyd het, is aanvanklik slegs 300 in die aanvanklike konstruksieperiode en daarna 407 werksgeleenthede. In hierdie gebied vind intensiewe boerderyaktiwiteite plaas, waarin seisoentyd tot 1 000 werksgeleenthede geskep word en dit slegs in die Moutonshoekvallei. Dankie. [Tyd verstreke.] [Applous.] (Translation of Afrikaans paragraphs follows.)
[I would now like to reflect for a moment on the granting of mining rights, which poses a threat to the continued existence of the Verlorenvlei Wetlands and its environment. Bongani Minerals has applied for the mining rights for the exploitation of tungsten in the Moutonshoek Valley, which is located between Piketberg and Elands Bay on the West Coast. This site lies in the catchment area of the Verlorenvlei Wetlands, which has been declared a Ramsar area. It is one of the largest natural wetlands on the West Coast, as well as one of the few freshwater wetlands in South Africa.
The Verlorenvlei Wetlands is mainly fed by the Krom Antonies River, the cleanest source of fresh water entering the wetlands. The irony is that the site of the proposed two-hundred-metre deep open-pit mine is located at the source of the river, right at the upper end of the valley.
So there are serious concerns about the impact of the mine and of the toxic waste that will be released, since soda ash will be used to extract the wolfram from the ore, and this is bound to end up in the water. And it is not only Moutonshoek that will be affected, but agricultural production throughout the whole region up to Elands Bay. The risk for pollution of the soil and surface-water of the proposed mine is greater than the advantages of job opportunities it will generate.
The mine has a projected lifespan of only twenty years; it may generate a maximum of 300 jobs during the initial construction period, and at most 407 jobs after that. But the area is also home to intensive farming, with as many as 1 000 seasonal jobs being created in the Moutonshoek Valley alone. Thank you. [Time expired.] [Applause.]]
Chairperson, hon Ministers, Deputy Ministers present, hon members, ladies and gentlemen, the ANC supports this Budget Vote.
The advent of democracy in South Africa brought a paradigm shift on issues of health and safety in the mining industry. This shift has been from safety to health and safety in working environments, particularly the mining industry. It has always been the view of the African National Congress that mineworkers are a valuable part or component of the mining industry. Therefore, the health of mineworkers is central to the health and productivity of mines; mineworkers are the heartbeat of the mining industry.
The Reconstruction and Development Programme, RDP, alludes to mining as a hard and dangerous job, and mineworkers labour under stressful conditions, often deep under the earth. The RDP envisages a new set of minimum standards for the mining industry that ensures fair wages and employment conditions for all workers and a health and safety system that recognises special hazards related to mining. Fundamentally, the Mine Health and Safety Amendment Act of 2008 is premised on the RDP. Mindful of the drudgery facing mineworkers, we continue to develop mechanisms to address challenges of health and safety in mines.
Mineworkers are consistently teetering on the brink of injury or death, as our mines are largely deep and a high-risk, especially the gold and platinum group metals mines. It should also be noted that the workplace in mines is characterised by a plethora of imminent dangers from accidents such as rockfalls, health-threatening contaminants such as dust, fibres, chemicals, noise, thermal stresses and radiation. High levels of exposure to harmful environments lead to occupational illnesses like silicosis and noise-induced hearing loss. Some of these problems are further worsened by the prevalence of HIV and Aids.
To compound these matters, mine owners fail to adequately protect those who are vulnerable to injury and harm. When one looks at the low levels of compensation for our mineworkers, we must urgently and speedily move to address the regulatory capacity of the mine inspectorate. The presidential mine audit has confirmed that we should be concerned about mines' compliance with health and safety requirements and the state's capacity to enforce legal requirements.
Last year, the committee approved the amendment of the Mine Health and Safety Act of 2008 to provide for the establishment of the inspectorate as a juristic person. It is the committee's belief that this move will lead to improved governance of health and safety at mines. Consistent with international practice, the amending Bill seeks to strengthen the mine health and safety legislative framework. This Bill fortifies the ANC's commitment to achieve safe workplaces, thus saving the lives of mineworkers; uphold section 11 of South Africa's Constitution - everyone has a right to life - through compliance with mine health and safety regulations.
The social and economic costs of poor health and safety at mines are just too high for us and the nation. For that matter, recently we have seen the recurrence of mine accidents resulting in injuries and loss of lives, blemishing last year's notable improvement in the levels of deaths and injuries at our mines. Surveys which were conducted showed an improvement of 24% on mine accident deaths, from 220 in the previous year to 168. Working together, we can do more.
The President, in his state of the nation address, spoke about creating 500 000 jobs in 18 months and making the environment urban; they should not leave their villages for a better life. It is of great concern when one comes to mine owners who are still bringing people with them, and not hiring these people who are looking at the development in their own villages, having no say in or access to the jobs. I think the Minister should engage the chiefs in this matter. That is the only way to change the lives of rural people in this country and to share in the country's wealth beneath the soil.
Ge mago?i a rena a ka ema ka maoto gore le rena batho ba ba dulago dinagamagaeng re seke ra duma ba ba leng makgoweng, ra duma go tla makgoweng, ke yona taba e tla tlo?ang tlala le bohloki, le malwet?i a tla fokot?ega ka baka la gore batho bao ba tlabego ba tloga gae ba eya meberekong, e tlabe e se batho bao ba tlogang kua ba eya kua. Malwet?i a tla ba gona... [Tshwahlelo.] Ke rata go leboga. [Nako e fedile.] [Magoswi.] (Translation of Sepedi paragraph follows.)
[Only if our chiefs can take part in the initiatives to help the rural people with job creation, then the people in the rural areas would not migrate to the urban areas - that is the only key strategy to alleviate hunger and poverty. If people are working closer to their homes there won't be any migration of people from one place to the other and this will also reduce the spread of diseases. Diseases which will be there ... [Interjections.] I thank you. [Time expired.] [Applause.]]
Chairperson, I'd like to thank the members for supporting this Budget Vote, even if it has not been split into two departments. We hope working together will make us work much better to ensure that there are benefits to communities.
To respond to some of the issues: the issue raised by Mr Lucas around illegal mining has been responded to. We are seized with those matters and we'll continue to make sure that we address them. The issue of beneficiation will be brought to the committee. We hope members of the committee will be able to make their inputs to enrich the document so as to make sure that it benefits and reflects the various constituencies in order to address the needs of our people in South Africa.
Regarding the issue of skills development and people leaving, raised by Mr Schmidt, the industry is not stifled. No goose thrown out or killed. It is the same story that I heard in 1997 that said that we are killing this goose, which is the mining industry. Instead I see more enthusiasm in this area. There is a lot of potential, but the challenge is how we address these issues.
Mr Schmidt also raised the issue of fatalities in the mining industry, and there is no way we can compare fatalities and capital. People are people; human beings are human beings and we've got to respect life. We'll continue to regulate it in a way that respects people's lives. We can't afford to have an industry that is negligent and increases the death rate. It is unacceptable and being irresponsible. One of our responsibilities as a regulator is to make sure that we do the right thing and that is to regulate in a responsible way. If it is tight, hard luck, we have to protect lives. We have a responsibility to do that.
In addition, Mr Schmidt raised the issue around the whole issue of privatisation and state-owned mines currently being in crisis. We are in a mess because of private businesses. Maybe if all the states took responsibility, there wouldn't be an economic crisis in the world. [Interjections.] You can say that is rubbish. It is the banks in the United States of America which led us into this mess. Maybe we must assume our responsibility as the state. [Applause.]
The issue raised by Mr Marais regarding the application for the tungsten mine is fairly new. We need to be patient because it was only received in March. Definitely the issues you raised are going to be taken on board and it is clear that it is an area that is highly challenged and we'll have to address those issues. There is no way in which we cannot address those issues. So, if it's clear that we cannot find a way of working compatibly, they will still have to exist. My point is that environment and mining are related, they cannot be enemies, and we have to make sure that they live together if we are to be a successful country.
The issues raised around Limpopo have been brought to my attention. We are going to look at those issues, because we want to make sure that this country mines better and smarter in order to leave this country intact for future generations. We must not destroy this country through mining, as was the case in the past. We can't go the same route. We must be responsible.
I agree that communities are a priority. No mining will happen without consulting them. I also want to say, whoever has an interest in this industry should not ride roughshod over communities. We are there to ensure that communities are protected. They have a responsibility. We all have to respond fairly and responsibly. That's the nature of the game we'll have to play. If someone feels that he can't comply with the name of the game, he must forget about coming into this industry. Such people do not belong in this industry and must go somewhere else. Thank you, Chair. [Applause.]
Chairperson, like my colleague, the Minister of Mineral Resources, I want to take this opportunity to thank all members for their participation as well as their support for the Budget Vote in this twin-track Budget Vote debate.
ANC members in this debate are aware of the challenge we have of ensuring that we meet our targets and that our people out there do not have access to resources that we want to roll out, and that they are very impatient since they've been waiting for a long time. The remaining 24% of areas without electricity in our country are in the three poorest provinces and the informal settlements, particularly in KwaZulu-Natal, the Eastern Cape and Limpopo as well as the informal settlements in Gauteng. So, we need to speed up the process in order to make sure that our people have access to these resources.
Hon Nchabeleng said that he saw many combatants in the House today. I think it's because of the challenges facing our country and our people, which make them respond positively when they are called upon. As activists they need to be sure that we are kept on our toes to respond to the needs of the people; and I thank them for their attendance.
Hon Motau, who on the spoke carbon capture and storage issue, the South African National Energy Research Institute, Saneri, will soon be incorporated into Saneti, the South African National Energy Technology Institute, which has been working in the Council of Geoscience and other stakeholders to prepare the groundwork for carbon capturing and storage. I want to announce here today that there will be an international conference on carbon capture and storage which will be held here in South Africa and it will be hosted by Saneri. I believe that members of the committee will be invited to this important conference that will examine which strategies can be used to fast-track carbon capture and storage development globally.
The hon Dexter spoke about the lack of incentives and I believe that energy efficiency should be paid for by energy wasters. Those who use more should pay more. That is why we suggest some kind of stepped tariff or a sliding scale type of tariff. The more you use, the more you should pay, so that we are able to make sure that those people who are the poorest of the poor and who do not use electricity can be cross-subsidised by those who use it.
Hon Lucas, you mentioned that there is underspending. I'm happy to say that, as a department, we acknowledged that we had an underexpenditure of 0,9% in the department. It is also important to mention that the expenditure in the 2007-08 budget was 99%, which is actually a very good track record. Hon Lucas, you also spoke about the issue of the pebble bed modular reactor, PMBR, and I want to inform you that PMBR is a project company that is owned by our sister department, the Department of Public Enterprises, and we will evaluate it as part of the Nuclear Policy Implementation Plan. And I believe that members of this committee will participate in the process.
Hon member - is it Greyling or Schmidt who spoke about the large scale of theft at Eskom - I appreciate that you raised this matter here. The losses of coal as well as other issues related to operational matters at Eskom will be raised with the Department of Public Enterprises, DPE. I believe that as a responsible hon member you should take that opportunity to raise it with the Minister of Public Enterprises so that it could be tracked down. This matter needs to be reported to the police, because it borders on criminality and action must be taken in that regard. Theft is theft; corporate theft is even worse because it denies people access - like you indicated - to resources. And you indicated that there's a possibility that we cross-subsidise that theft with the tariff increases. So, this is a serious matter that needs to be considered.
The Energy Efficiency Strategy is currently out for public comment, hon Greyling, and we hope that you will provide valuable inputs to this strategy, whose implementation will be underpinned by regulations. The closing date is the end of the month. So, we appeal to you to make sure that you participate in this important process. You'd also recall that my predecessor, hon Buyelwa Sonjica, hosted the Renewable Energy Summit in March this year. One of its resolutions was the process in which the renewable energy White Paper will be revised. One of my duties after assuming office was to start and approve this public participation process. I believe that we all need to participate. We'll also be having a solar industry summit where all role-players in the solar industry, from manufacturing up to service provision, will be participating. [Time expired.] [Applause.]
Hon members, just before you leave, please note that the debate on Vote No 30 on the Public Enterprises Budget Vote has already started in the Old Assembly Chamber. It commenced at 16:10. And the debate on Vote No 24 on Communications will commence in this venue. It was supposed to have started already. So, we will give you 10 minutes to vacate the room so that it can be prepared, and those who are supposed to come back can do so. Thank you.
Debate concluded.