Deputy Speaker, chairperson of the portfolio committee, members of the portfolio committee, Ministers present, Members of Parliament, I would like to take this opportunity to welcome the new Deputy Minister of Mineral Resources. Comrade Godfrey Oliphant, you are welcome in the department. I'm looking forward to working with you. [Applause.]
It gives me pleasure to introduce the Geoscience Amendment Bill. The amendments are in response to the challenges that the country is facing, which include, amongst other things, the need to ensure that infrastructure development, especially on land underlain by dolomite, takes place in a sustainable manner. Such land is prone to sinkhole formation, which often destroys infrastructure. An example of such a situation is the Khutsong township in Merafong, where sinkholes have destroyed property and as a result government is faced with the situation of relocating people at huge costs.
It also makes South Africa the most globally attractive country for mineral exploration. I am certain that our mineral industry has and will have tremendous potential for a host of new and exciting mineral discoveries, which will continue to play a major role in eradicating poverty, creating jobs and improving the welfare and equality of people of South Africa.
This Bill directly addresses the renewed push to increase investment in mineral exploration by mandating the Council for Geoscience to proactively participate in attracting investment into the exploration sector through the production of key geoscience exploration information and data assessment and interpretation. Therefore it will increase the role of mining in development.
The main objectives of the Bill are to make provision for the following: the Council for Geoscience to be a national advisory authority with regard to geohazards that are related to infrastructure and development; empowering the Council for Geoscience to be the custodian of all geotechnical data with the purpose of compiling a complete geotechnical risk profile; putting mechanisms in place to address the problems associated with infrastructure and development on dolomitic land; empowering the Council for Geoscience in the management and administration of the national seismic network; enabling the Council for Geoscience to execute its functions and responsibilities in promoting investment in the mining industry through its research activities; enhancing administrative processes of the Council for Geoscience to ensure effective implementation of the proposed amendments; addressing references to legislation that is obsolete in the Geoscience Act; and aligning the Geoscience Act with the Mineral and Petroleum Resources Development Act.
Between December 2008 and September 2009 the Department of Mineral Resources conducted consultations with various stakeholders, including government. As stated earlier, the threat posed by dolomite-related sinkholes has affected major human settlements such as Khutsong, Katlehong and Tshwane, as well as major national infrastructure.
The dolomite rocks underlie major portions of at least four provinces, and a potent risk of sinkhole development exists in the country.
It is for this government to address these infrastructure development challenges that could be associated with building on potential geohazardous land. It is government's understanding that, in order to address all the challenges associated with dolomite, it is necessary that the Council for Geoscience takes the lead in the research on and monitoring of the impact of development on land covered with dolomite.
The council will further advise all local government, provincial and national state authorities when assessing applications for infrastructure and development.
In conclusion, the necessity for these amendments cannot be overemphasised. It will only be to the benefit of the country to have a geological institution that serves and is responsive to the increasing needs of its people. I thank you. [Applause.]
Deputy Speaker, hon Ministers and Deputy Ministers present here and hon members, let me state from the outset - in case I run out of time - that the ANC supports this Bill. We believe that the transformation of the South African economy should always be holistic and comprehensive, covering all sectors of the economy. In this regard, we need to ensure greater state involvement and control of strategic sectors of the economy such as mining.
Key to this is the development of a mining sector strategy which must take into account the country's developmental needs. It should also help clarify the state's role in the sector. This will, of course, require consequential amendments of the Mineral and Petroleum Resources Development Act in order to support the objectives of our mineral sector strategy.
The Geoscience Act, Act 100 of 1993, was mainly introduced to establish the Council for Geoscience, the purpose of which was to provide for the promotion of research and the extension of knowledge in the field of geoscience.
The purpose of the Geoscience Amendment Bill is, therefore, to extend the mandate of the Council for Geoscience - as the Minister has pointed out here - to enable it to become the custodian of geotechnological information and an advisory authority in respect of geohazards related to infrastructure development.
The Bill further seeks to put mechanisms in place to address problems which are associated with infrastructure development in dolomitic areas. This phenomenon resulted in the development of sinkholes that were initially noticed way back in the 1950s, but the seriousness of the situation was highlighted in the early 1960s when a sinkhole engulfed a three-storey crusher plant at West Driefontein Mine.
In 2007, a three-bedroomed house in Khutsong, near Carletonville, caved in as a result of a sinkhole. This incident led to the relocation of residents from Khutsong to a safer area. It was initially planned that more than 25 000 housing units were to be relocated in three phases, and that such a project would have cost an estimated R3,5 billion. That would have been the cost to the state to relocate these communities!
Other incidents of damage caused by sinkholes include the following: the evacuation and demolition of Bank village in the 1970s; major repairs to the military airport by the Department of Public Works at Waterkloof Air Force Base in 2008; damage to Vosloorus Police Station; the collapse of a house in Hans Strydom Road in Tshwane; severe damage to a Basden Road townhouse in Tshwane in 2008; ongoing repairs that are required by Ekurhuleni Municipality to Kathorus suburbs; and the diversion of the double-lane N14 highway leading into the south side of Tshwane in 2008.
Notwithstanding the above-mentioned details, we are further informed that at least 39 people are known to have died over the past 50 years as a result of sinkhole-related incidents. It has cost people their lives. Research reveals that approximately 20% of Gauteng province, as well as parts of Mpumalanga, Limpopo and the North West are also underlain by dolomite. So the challenge in these provinces is not only acid mine drainage, but also the sinkholes.
All these above-mentioned serious incidents occurred under the watch of the private sector engineering companies - I think the DA must pay particular attention to this paragraph - upon which the state relied for advice before approving development plans. Through this Bill, therefore, we are also redressing the legacy of apartheid spatial planning, which we are still dealing with as we speak today.
Therefore this Bill empowers the Council for Geoscience to be the custodian of all geotechnical data, with the purpose of compiling a complete geotechnical risk profile of the entire country. The Bill further enables the Council for Geoscience to become the custodian of technical information related to exploration and mining.
There are some concerns that were raised during the process of the public hearings. There have been some concerns with regard to the passage of the Bill and I would like to address the House on the misconceptions that have been raised with these concerns. The first are the functions, powers and the role of the council that have come into question.
The state has the responsibility to ensure that the developmental infrastructure, minerals, land and other activities are in a condition that is best suited to deliver. Evaluation and assessment over a number of years has led to a scientific analysis. In areas of deprivation, the lack of penetration to turn around the material conditions of the people has been affected by market-related considerations that superseded the need and responsibility to address structural poverty.
Existing polices have proven not to be sufficient and, therefore, necessitated intervention. We cannot continue with a situation where development takes place under risky circumstances and the state, ultimately, has to then deal with the fallout of risky business ventures.
The second concern is that of the powers of the Minister. This is normally rolled out when it comes to amending Bills. In order to implement policies dictated to them through legislation, the executive requires the powers. The responsibility of the legislature, therefore, is to ensure oversight over those powers that the executive has.
We should not try to weaken these powers to the extent that the implementation of the policy becomes unworkable and also, because of broad flexibility, the policy implementation becomes ineffective and does not address the concerns that gave rise to it in the first place.
In this regard, the only semblance of powers conferred on the Minister by this Bill is in section 23(7) where it is stated that -
The Minister may issue a directive to authorise council officials to enter any land within the borders of the Republic of South Africa in order to execute the council's mandate, save where there is prohibition under any other law.
Even with this light amendment, the portfolio committee has included subsection 8 that provides for notification and consultation with the landowner and/or lawful occupier. Therefore this power, weak as it is, should be contained in the Bill.
Thirdly, there have been concerns that the council will have oversight over professional ethics. The principal intention of the Bill is to ensure ecological development and meeting socioeconomic needs, especially in poor communities. At the same time it cannot close its eyes to conduct in the exploration field that lacks professional ethics and therefore will intervene only when it's necessary.
Responding to some sectoral demands that were made during the public hearings, the amending Bill must ensure that the Council for Geoscience is well equipped and in a position to contribute to safety both at a residential level, especially in poor, working-class communities, and at the industrial base.
The Council for Geoscience must, therefore, be in a position to work with related stakeholders to develop technologies that can detect and give early signals of dangers. This would save many lives, especially in our mining industry.
The amending Bill will ensure that the council has a role to play in ensuring safety in the mines by mandating the mining industry to develop systems that would assist to detect, for example, seismic activities in the mines - as has been alluded to by the Minister. For this to happen, there needs to be improved co-ordination between the Council for Geoscience, the Mine Health and Safety Council and Mintek. This would ensure safety in mines, strengthen government functions to explore minerals and ensure information technology development.
The mining industry has been and remains a critical sector in our economy. Its transformation, therefore, is vital for our national sociopolitical objectives. The development of the Mining Charter in 2002 was informed by transformation considerations that were consistent with the evolution of the political landscape in the country. Accordingly, we recognise that the development of the country's mineral complex presents opportunities to expand related industries that supply material or services for mining to be effective.
To this extent, we have strengthened the notion of local content to support local industries consistent with the government's drive for local industrialisation, creation of decent jobs and poverty alleviation. I thank you very much. [Time expired.]
Hon Chair, the DA wishes to congratulate the hon Godfrey Oliphant on his appointment as the Deputy Minister of Mineral Resources. I have not yet seen him serving as a member of the committee, but I trust that he will be able to make a contribution. [Laughter.]
This Bill intends to amend the Geoscience Act of 1993. It provides, inter alia, for the Council for Geoscience to act as a custodian of all geotechnical data for the purpose of compiling a geotechnical risk profile for the country.
More importantly, it ensures that the council will be the custodian - and I stress the word "custodian" - of technical information relating to mining. It, however, assumes the task of being a custodian with respect to mining. This is a term that is used in the Mineral and Petroleum Resources Development Act of 2002, when it placed the ownership of mineral resources in the custodianship of the state. Whilst the Geoscience Act currently provides for numerous representatives on the Board from the private sector, such as a representative nominated by the Chamber of Mines, as well as representatives nominated by the Geological Society of South Africa and the Industrial Development Corporation, IDC, the current Bill intends to provide the Minister with the sole authority to determine who should represent the above institutions and organisations on their behalf.
Representatives from at least six different government departments would also be appointed by the Minister. The Council for Geoscience has provided specialised services to both the private sector and government departments for many years; at least since 1993 when it accommodated board members from both the private and public sectors.
Accordingly, it could be expected that representatives from the private sector nominated by the relevant institutions should be included. It also appears that some recent board members from the private sector have attended more meetings than certain members from the Public Service represented on the board, creating some obscurity as to the real reasons why private sector members are to be removed.
In the light of the recent developments relating to the intended state- owned mining company, which is to be formed by government presumably by June 2011, the above provides for a situation where no private sector participation on the board could lead to a situation where services are primarily directed to government functions - the state-owned mining company - to the detriment of the private sector, as it will have no input or participation in the affairs of the council.
An amendment that raises concern relates to the fact that the Bill proposes to allow the council to conduct business in so far as any reconnaissance operation and prospecting activities are concerned. This is a matter which has primarily been the domain of the private sector.
The view of the DA in this regard is well known: Mining operations should be undertaken by the private sector, whilst the task of government should be aimed at providing the necessary stimuli and macroeconomic framework to lure both local and international investments on a long-term basis - the basic tenets on which the mining industry is based.
Apart from the fact that government does not have the necessary expertise to run mines efficiently and cost-effectively, the state also does not have the capital - neither does it have access thereto - to capitalise and recapitalise mines considering the strong demand for socioeconomic rights and disparities.
Both Alexkor and the latest government-controlled African Exploration Mining and Finance Corporation, AEMFC, of which the state is the only shareholder, are in dire financial straits, having shed thousands of jobs and suffered a dramatic drop in production, in the instance of Alexkor, and are in urgent need of capital and experienced management.
The Bill, if approved, will not only allow the Council for Geoscience, to be in a position to act as a mandatory custodian of all knowledge relating to geological and geotechnical data on a national scale, but will also allow it to compete with the private sector in so far as exploration and prospecting are concerned. This allows the government to act as both player and referee with regard to its intended functions.
The CGS has been underfunded for many years. The intended extension of the existing mandate will require more skilled personnel and an additional budget. While the CGS is struggling to fulfil its current mandate with the allocated resources, the capacity required to fulfil its new intended mandate appears too ambitious if not impossible, as raised by various geological-related entities.
The additional unfunded mandate will impact negatively on its current commendable task, which relates to geophysics, seismology, mine safety, and aspects relating to mine flooding, acid mine drainage, development of databases and strategies on derelict and abandoned mines.
The most important reason for opposing this Bill is the conflict of interest, which will arise if the CGS is to operate as a service provider in addition to regulating the affairs to be prescribed by the Geoscience Amendment Bill. The DA therefore opposes this Bill. I thank you. [Applause.]
Chairperson, the delay in the Geoscience Amendment Bill is of concern to us, as this is an important piece of legislation for South Africans across the spectrum. One would have thought that, as a result of the delays, problem areas raised by stakeholders would and should have been addressed.
In this case I would like to raise some concerns. The Geological Society of South Africa, GSSA, alluded to the fact that now the Minister has the sole responsibility to appoint an individual representative of academic and professional expertise. This responsibility has been taken away from the