Order! I want absolute discipline! [Laughter.] Absolute discipline - no howling! I want good behaviour, and I am carrying a stick! [Laughter.]
Hon Sonto, please do not make provocative statements which will cause the House to fall into disarray.
Chairperson, thank you very much. Hon Minister Shabangu and hon Ministers present here, hon Deputy Minister Oliphant and hon Deputy Ministers at this point, hon members, esteemed guests, and ladies and gentlemen, once again as Parliament we are called upon to assess and comment on one of our departmental funding allocations by Treasury. This we do so that we can exchange ideas on the allocation and make suggestions as to how this allocation can best be utilised for the benefit of our citizens, Parliament and the country as a whole.
You have heard that South Africa is exceptionally well endowed with mineral resources. She possesses almost all the minerals necessary for a minerals- based industrialisation strategy. This suggests that this country has been blessed with an exceptional mineral resource endowment. She has been aptly described as a country of "geological superlatives", and is arguably the richest geological terrain in the world. In fact, reliable research has proven that South Africa has substantial deposits of almost all minerals important to modern industry.
When the ANC took over governance in 1994, we observed that discriminatory policies by the then apartheid government excluded the majority of South Africans from full participation in the minerals industry. On the basis of that observation, the democratic government established by the ANC had to devise legislative means that would promote, support and regulate mining in this country. This was prompted, as you have already heard, by one clause of a very thin, important document, uMqulu weNkululeko, [The Freedom Charter], which states that the "(t)he people shall share in the country's wealth!" and that "(t)he mineral wealth beneath the soil ... shall be transferred to the ... people as a whole".
That was further amplified by this people's movement in the Ready to Govern conference in 1992. Wawuphi wena? [Where were you?]
The ANC resolved at that conference that, and I quote:
The mineral wealth beneath the soil is the national heritage of all South Africans, including future generations.
And not of an exclusive few, as we found it.
Oppas vir die ... [Be careful of the ...] ... state-owned mining company. It's coming.
A milestone emanating from that conference was the implementation of the Mining Charter, which extended the scope of the state diamond board so that it became the SA Diamond and Precious Metals Regulator. Subsequent to that, we had the establishment of the State Diamond Trader.
These and other steps were taken by the democratic government to expedite the creation of an enabling environment to effect local beneficiation, which should be acknowledged and applauded.
You know, sometimes people who were given a certain colour by God think that because of that colour they can think better. [Laughter.] That is absurd. I was listening when hon Schmidt said that beneficiation had failed in Chile and Bolivia. Yet, when a state-owned mining company was briefing a South African delegation in their presence, they were mum; they couldn't say a word about the successes of beneficiation. [Applause.]
Because of this podium now ... [Interjections.]
I won't allow that. I won't allow that. Please! [Interjections.] I won't allow that. Order! Order! Order!
In the state of the nation address the President declared 2011 a year of job creation through meaningful economic transformation and inclusive growth. Mining and beneficiation were highlighted as one of the six priority areas where jobs could be created. You will realise that, in line with the above, section 26 of the Mineral and Petroleum Resources Development Act, MPRDA, which came into effect in 2004, legislates the policy concerning the exploration of the country's minerals. The Act addresses the following, among others: transformation of the industry; promotion of equitable access to South Africa's mineral resources; and promotion of investment in exploration, mining and mineral beneficiation.
Chairperson, beneficiation is one of the issues dealt with in the mining charter and is considered a viable avenue for increasing export earnings, creating employment locally, and furthering black empowerment initiatives.
The four stages of beneficiation include mining and production; bulk tonnage intermediate product; refined product; and finished consumer and industrial products.
Comrade Chairperson, the steps that the democratic government has taken might look small and insignificant at this point, but we need to applaud them. And as we applaud them, let me say that more is needed if we want to talk meaningfully about the actual inception of the concept. It is important for government to guide and lead the mining industry in formulating and accounting for a clear picture of the current status of beneficiation in the country, the extent to which beneficiation should be pursued in the immediate future, and what long-term future potential beneficiation has for the country.
The Broad-based Socioeconomic Empowerment Charter, which stipulates that beneficiation is those activities beyond pure mining and processing and includes the production of final consumer goods, also makes provision for mining companies to possibly offset the value of their beneficiation achievements against their historically disadvantaged South African ownership commitments. As things stand now, there is no clarity as to how mining companies will calculate the level of their beneficiation in order to achieve these offsets.
Chairperson, as government and as the ANC we strongly believe that pursuing beneficiation to its utmost potential is in the country's national interest, and legislative doors should be opened and institutional arrangements should be made for that to happen.
Yet we understand that any legislative or institutional arrangement for beneficiation in South Africa will be fiercely opposed by local individuals and certain companies. It is definitely going to be seen by those who are comfortable with the status quo as a form of punishment for the industry. I say no, it is not.
We know that by nature people are allergic to change, but I must assure this House that the current government and the state-owned entities will certainly pursue this initiative. We won't rest until change is achieved in this industry.
The ANC supports Budget Vote 32. [Applause.]
Chair, the proper management of the mining industry is of the utmost importance for South Africa's economic development, job creation and the eradication of poverty. One must not forget that it has always been this country's vast mineral resources that have acted, and still do act, as drivers of history.
It was the vast gold resources that provided the impetus for the Anglo-Boer War. It is the aftermath of that terrible and selfish war, especially the pain suffered by the Afrikaner in the British concentration camps - a holocaust which wiped out a third of our population - that pushed black and white into different camps during the twentieth century.
Today, a result of that history is the renewed call by young, black revolutionaries to nationalise all mines on behalf of the poor masses. Clearly, this economic sector carries a lot of historical weight, and thus needs to be treated in a responsible and economically viable manner.
Dit is om daardie rede dat die VF Plus die 434 onrelmatige mineraalregte, 713 verbrekings van die wetlike omgewingsvereistes, en 120 dubbeltoekennings van mineraalregte as 'n nasionale skande beskou.
Ons wil egter die Minister loof vir haar daadwerklike optrede om die probleme met die mineraalregtestelsel aan te pak. Die omvang van die onrelmatighede is verseker nie goed vir Suid-Afrika se beeld nie. Suid- Afrika het die vorige kommoditeitsoplewing misgeloop en kan nie weer so 'n fout bekostig nie. [Tussenwerpsels.] (Translation of Afrikaans paragraphs follows.)
[It is for this reason that the FF Plus regards the 434 irregular mineral rights, the 713 violations of the legal environmental requirements, and the 120 double allocations of mineral rights as a national shame.
However, we would like to commend the Minister for playing an active part in addressing the problems within the mineral rights system. The scope of these irregularities is indeed not good for South Africa's image. South Africa missed the previous commodities boom and cannot afford another mistake like this. [Interjections.]]
You can't hear me? [Interjections.]
Order, please! [Interjections.]
Where do you come from?
Members on my right! Members on my right! I warned you earlier. I want absolute discipline from you. Please continue, hon Alberts.
The FF Plus is also of the opinion that due to the perception of improper proximity between mining business and government employees, all new mining rights applications and licences must disclose any such connections to the public for scrutiny of any possible conflicts of interest.
The Minister should also engage with the Public Service Commission to adapt the Code of Conduct for Public Service employees so as to avoid any such situations.
Regarding nationalisation, what is the point of nationalisation if it is only to benefit a few closely connected government men, or bail out stressed black economic empowerment participants? We must therefore interrogate the optimal method to achieve the true desired outcomes, namely economic growth, job creation and general wealth creation. Experience, research and common sense clearly show that nationalisation is not the answer.
We have only to look in our own backyard at Alexkor to see why. Alexkor, according to the Auditor-General's report for 2009-10, is effectively bankrupt, as it cannot meet its day-to-day obligations. [Interjections.]
Hon Minister, please! Please!
Therefore, we ask the Minister to have another look at this whole situation in regard to nationalisation. Thank you.
Thank you, Chairperson. Ideally, we should all be proud of being citizens of a country so rich in mineral resources. The country is a leading supplier of a variety of minerals and mineral products that are exported to 87 countries. Each year, approximately 55 different minerals are produced in more than 700 mines, with gold, platinum, coal and diamonds dominating exports and revenue earnings. There are also important deposits of iron and copper.
Unfortunately, the legacy of colonisation and apartheid has created extremely poor sections in our society who only know that we have mineral resources because one or more members of that part of society have been employed in the mines. They live in dire poverty. This is even sadder if you consider that 17 years after democracy the effect of the richness of our soil has not been felt by the masses. Our people are still trapped in despicable poverty and the level of economic inequality is on the rise. Wealth is still retained in the hands of the few, and we have new terms now, like "black diamonds", referring to the exclusive class that has access to economic wealth, whilst the majority are trapped in poverty.
Often, when talking about our minerals, we have been made to believe that the problem is still with the white minorities' owning our minerals, and that transformation has been slow or been resisted on this front. This is true in many respects. However, more and more of the black elite have found their way into the mining industry. If media reports are anything to go by, most of this elite are associated in some way with the ruling party. The exploitation still continues.
I am sure we have all read about the Aurora Mine and the gross violations of human rights committed against the employees. In the light of this I would like to urge the department that, as much as they must seriously and consistently pursue fair distribution of wealth and transformation in the sector, other questions also need to be investigated.
How are we making sure that these processes are not just a replacement of skin colour, where the rich remain rich but with a mochachocca skin pigment? The poor remain extremely poor! How is this department strategically placed to address economic equality?
On a lighter but still important note, it was pleasing to read the message from the Minister in the annual report in particular. [Interjections.] He is at home, resting! [Time expired.]
Good day, hon Chair, hon Minister, hon Deputy Minister, hon Members of Parliament, captains of the industry, and ladies and gentlemen, I greet you all.
Let me take this opportunity in this Youth Month to salute all the youth of this country. Thank you very much for contributing to ensuring that democracy is restored in our country by voting for the ANC. Thank you!
I want to support this important Budget Vote, and my speech will focus on transformation in the mining sector. May I remind hon members that our Constitution not only enjoins us to heal the divisions of the past, but also renders the achievement of equality peremptory.
Equality is not only about inherent human dignity and the entrenched right not to be unfairly discriminated against. Equality is mainly about equal access, not only to opportunities, but also to resources. Such equality has to be based on positive discrimination to ensure that ownership of the means of production in general, and in mines in particular, vests with the majority of our people.
As citizens of this beautiful, rich and prosperous country on this continent, we can no longer allow a situation where the vast majority of our people do not enjoy and benefit from the mineral wealth that is endowed to us beneath our soil.
Our government has declared 2011 a job creation year. The President has called for an inclusive economy in which the black majority, women, people with disabilities and the youth participate fully and meaningfully in the mainstream economy.
The fact of the matter is that it is argued that efforts to transform the ownership of the mining sector serve to benefit a small group of elite businesspeople, while the majority of the country's black population remain impoverished and disempowered. There are undoubtedly cases that lend support to this argument.
However, there are also notable exceptions. For example, certain companies have implemented employee share ownership programmes, with varying degrees of success, while other companies have met ownership targets through empowerment deals in which local communities have been beneficiaries. The best known shining example of this was the deal between the world's second largest platinum producer, Impala Platinum, and the Royal Bafokeng nation in the North West.
South Africa has launched a new Mining Charter aimed at facilitating the sustainable transformation and development of its mining industry, with the emphasis on a target of 26% black ownership of the country's mining assets by 2014.
The launch of this charter comes after an assessment of the former charter showed that certain targets had not been met. According to the assessment, white men and women continue to dominate top management and technical positions in South Africa, earning much more than their fellow black counterparts, regardless of skills and experience. The racial ownership pattern of the country's mining assets remains largely unchanged, with only 8,9% black ownership attained by 2009, against a target of 15%.
We are saying as a committee that this scenario can no longer be acceptable. We need to turn it around. In fact, the only thing that does not change is change itself. The department should strengthen its work towards transforming the structures of ownership, acting against monopolisation of the sector, and promoting co-operatives.
A message needs to be sent out there that black economic empowerment, BEE, should never mean the enrichment of a handful, but rather the opening up of economic opportunities and improvement in living and working conditions for blacks as a whole.
By its nature the mining industry requires a large capital investment, and is thus not conducive to the participation of a large number of small entrepreneurs. We therefore commend the department for the successful launch of the state-owned mining company. We are convinced that the state- owned mining company will increase national income from the mining and minerals sector. It will advance job creation and destiny-changing community development projects for poverty alleviation and rural development. Lastly, we think that it will also improve the working conditions of mineworkers and also income levels.
The new Economic Growth Path is based on the premise that economic growth without corresponding job creation is meaningless, just as political emancipation without economic freedom is. The new Economic Growth Path, which also focuses on the mining value chain, is driven by the machinery of the developmental state with its strategic, organisational, and technical capacities, which are gaining strength as each day passes.
On the question of procurement of capital goods, we are saying multinational suppliers should contribute at least 0,5% of locally generated annual income towards a social development fund for the benefit of local communities, especially those residing in and around the mining areas.
Currently, in most communities residing in mining areas, for example a mining town like Barberton, where I come from, you can see poverty in the faces of the people residing in that area, where they have a high unemployment rate, poverty and a lack of basic amenities like schools, clinics and proper infrastructure.
We are saying that that should not be the case, when there is a presence in the area of big mining companies like Galaxy, De Beers and Anglo American, just to mention a few. Social responsibility and investment in the local community should be priorities to help arrest the situation. I am quite sure that, working together as government, local communities, financial institutions and the mining industry, we can turn the lives of our people around.
Another serious problem that is undermining the targets outlined in the mining charter is fronting, where companies misrepresent their BEE status to benefit their business. We are very happy to learn that the Association of BEE Verification Agencies is hosting a convention on fronting today - I think it is on right now - to determine the size and extent of this malpractice of fronting.
On the issue of the moratorium that was put in place by the department on the issuing of prospecting mining licences, we as a portfolio committee welcome the move as part of transformation. The moratorium, which took effect as from September last year, will allow the department to review gaps and inefficiencies.
In conclusion, as a committee we are aware of the concerns raised by big business, particularly the Chamber of Commerce, in regard to mineral beneficiation. Our answers to those concerns are that South Africa is a country full of possibilities. If we put our heads together and work together, like we did with the Soccer World Cup Tournament last year, we can do a lot. We can push back the frontiers of poverty. We can show the world that we, the people of South Africa, are a force to be reckoned with. Let us stop speculating and let us just do it for the sake of our people. Thank you very much. [Applause.]
Chairperson, hon Minister, Deputy Minister and hon members, the mandate of the Department of Mineral Resources is to:
Ensure transformation, economic growth, health, safety and sustainability of the minerals and mining sector.
South Africa, like Chile, Canada and Australia, has mining as one of its biggest income earners and generators.
On the issue of health and safety, the department must improve health and safety conditions in the mining sector. Mining executives have been urged to confront with renewed vigour the health and safety challenges of the aging mines. As mines get older, they become less profitable as a result of increasing overhead costs. However, the health and safety function within the mine needs to be maintained as long as that mine is in production, until the mine is formally closed on application to the Department of Mineral Resources.
Last year, South Africa achieved the most improved safety record in the country's mining safety records in the history of the country. However, over 120 deaths were still reported. Fall of ground incidents are still the major cause of fatalities in the country's mines, contributing to 39% of mine deaths in 2010. Falls of ground are caused mainly by systematic aspects and poor discipline. Gold mining remains the epicentre of fatalities, followed by platinum and then coal.
The number of deaths from respiratory diseases is increasing. Thousands of South African miners have contracted silicosis and silicotuberculosis in the past 100 years. Mining and the Mine Health and Safety Council have launched a series of road shows to increase awareness of silicosis, an incurable occupational lung disease caused by the inhaling of crystalline silica dust and marked by lesions in the upper lobes of the lungs.
The deaths of 5 396 miners from respiratory diseases from 2003 to 2009 have been recorded. Industry studies in 1998 put the number of silicosis sufferers at some 300 000. The South African mining industry is facing a very serious threat from silicosis claims. The Department of Mineral Resources is focusing on efforts to reduce dust levels in mines. Government is making a concerted effort to move towards a zero-fatality industry. Only safe mining is profitable and sustainable.
On the issue of economic growth, mining developments in South Africa are mostly dependent on efficient transportation logistics. The handling and transportation of commodities from a mine to a harbour, which optimise infrastructure, operation and maintenance costs, are significant factors in the development of a mine.
Saldanha Bay is a natural deep sea water harbour. The creation of additional quays and new facilities at Saldanha, to encourage the beneficiation of metals and minerals and the possible emergence of a manganese export terminal, will be an addition to the highly used iron ore export terminal.
Last year South Africa exported more than 47 million tons of iron ore from the deep sea water port of Saldanha, and it has plans to increase this export level to 60 million tons in the near future. The establishing of an industrial development zone in its port region is on the table. This has the potential to create many jobs in the region and stimulate economic growth.
At this point I would like to invite everybody present, specifically my chairperson, Mr Gona, to come and invest in Saldanha Bay Municipality because that's my constituency. It is now a DA-controlled municipality. [Interjections.] In 2006 the voter base was 28% for the DA, and this has now moved to 60,1%. They will look after your interests in Saldanha. You are more than welcome.
Confidence in the mining sector is growing after the bounce back and steady recovery of commodity prices, following their slide during 2008-09. Labour has an obligation to increase productivity to enhance global competition, while government has an obligation to ensure critical infrastructure such as rail, water and power, and a stable investment environment.
Export demand from other developing economies, particularly in Asia, has gained further ground. South Africa's exports to China over five years have increased by 475%, or from R8,4 billion to R49 billion. The second largest increase in exports, of R14,8 billion, is to Switzerland. Nearly 75% of these increases relate to platinum in general, and 11% to platinum coins. The leading export product categories in China, Japan, Korea and India were iron ore, platinum, coal and ferro alloys.
I have to compliment the Minister and the department on the new Electronic Mineral Management System, EMMS. The EMMS has the ability to group applications and prioritise them by both time and date. It will require greater transparency and accountability from government and those applying for prospecting rights.
The review of the current legislation and the proposed amendments will hopefully be concluded soon, as the widest possible consultation was needed.
On rehabilitation, the rehabilitation of abandoned mines will remain a challenge, given the department's budget constraint of plus-minus R51 million. Last year Mintek completed the rehabilitation of five asbestos mines in the Northern Cape, under the Department of Mineral Resources' derelict and ownerless mines programme. Thank you. [Time expired.] [Applause.]
Hon Chairperson, hon Minister Mme Shabangu, hon Deputy Minister Oliphant, supporting Ministers, chairperson of the portfolio committee, hon Fred Gona, and other chairpersons, members of the Portfolio Committee on Mineral Resources, Members of Parliament present, officials of the Department of Mineral Resources and guests, you are welcome.
This country, with its 48 million people, leads in the field of diamonds, gold, platinum group metals, PGMs, vanadium, coal and other precious metals such as platinum. However, the possession of these resources is blighted by a worrying mining health and safety record.
Concerns and measurable objectives of the programme are to ensure a reduction in mining-related deaths, injuries and ill health through the formulation of national policy and legislation, the provision of advice, and the application of systems that monitor, audit and enforce compliance in the mining sector.
The number of deaths due to mining incidents for the period of June 2008 to 2009 was 142 deaths of miners lawfully employed and 135 deaths of illegal miners. This is a continuous indication of the never-ending mine fatalities, and the total is viewed as disappointing, despite the fact that the total of mining deaths has decreased by 24% from the total of 221 since 2007.
In regard to classifying fatalities and accident trends in South African mines, a sharp rise of 59% in fatalities classified as general has been reported, including gassings, slipping and falling, fall of material, rolling rock and explosives. In 2007 significant contributors included 25% falling material or rolling rock, 23% slipping and falling, and 23% manual handling of material. All of these could be prevented by mining companies' channelling more investment into safety measures, including training, and detecting risky situations. This has since become an area of concern, the mining health and safety standards, within more legal realms.
There is already an indication that the tuberculosis, TB, infection rates in gold mines are amongst the highest in the South African mining industry. In 2004 the Aurum Institute for Health Research, as well as the Mine Health and Safety Council, were involved in a research programme to determine possible measures to curb the rising incidence of pulmonary TB in the gold mining industry. This was the Prevent TB or Thibela TB project.
The standard programme in operation was compared to the communitywide use of TB treatment such as INH over a nine-month period. The study aimed to show that the communitywide drug therapy successfully combats the rising rate of infections. This then, repeatedly reiterated in the health sector, confirmed that TB is curable.
Understandably, with the effects and complications of HIV and Aids-related problems exacerbating the possible increase in affected mineworkers, it remains unacceptable that there continue to be reports of such a high number of mineworkers who suffer from the disease.
Since the mining industry, amidst its difficulties in regard to employment, continues to have increased mine mass migration, the mineworkers are also growing in numbers and so are the number of commercial sex workers, and with that the threat of HIV and Aids. This leads to further cramped, substandard living conditions, which could further coax the potential spread of these diseases.
This means that there should be improved, co-ordinated work between the Mine Health and Safety entity, the Department of Health, and the mining industry hospitals, as well as health care centres. With free supplies of anti-TB medication, there can certainly be a significant drop in the present statistics.
Also, the notion that the board of directors should be held accountable for ensuring that quarterly reports on health and safety of mineworkers are submitted, inclusive of relevant statistics, should be applied. Furthermore, these should be detailed and accurate, and give a clear downward slide in occupational health diseases prevailing in mines.
I wish to quote hon Minister Shabangu regarding her commitment, stated in the foreword of the 2011-14 Strategic Plan for the Department of Mineral Resources:
... the essence of our mission ... is underpinned by our plans to change the legislative framework and completely transform the mining industry through the meaningful participation of all South Africans.
Even though it is young, the Department of Mineral Resources has certainly proven that this is so. It is improving and we wish to complement you on this.
Looking at the possible changes that need to be made, we wish to encourage speedy work by the department and the Cabinet in ensuring that relevant changes are made and implemented with regard to the review of the Mine Health And Safety Act, which the Minister has already alluded to.
Of critical importance, and a matter for attention, is that of strengthening the Mine Health and Safety Inspectorate, not only in numbers for effective and efficient service delivery, but also in capacity. Furthermore, to ensure the inspectorate's independence from the department in decision-making is a necessity.
One finds a situation where the Mine Health and Safety Inspector is to visit a section of the mining industry for the relevant inspection, and all is made right. As a result, a true reflection of health-related complications, such as injuries on duty, is not clearly seen, and possibly false statistics and reports may be obtained by the department, until we are shocked by public media reports of injuries in mines. There is thus a need for a tighter commitment, bound by law, to the sections in respect of the Mine Health and Safety Inspectorate under the Act. This needs to be seriously looked into.
There is serious and genuine support from the committee for the Department of Mineral Resources, DMR, to continue to look at possible proposals suggesting, amongst other things, that there should be inspectors who would focus only on inspections and audits, and there should also be an investigative unit which would focus only on health and safety investigations and/or inquiries, as stated by Adv Nogxina.
The Mine Health and Safety Council should in its work improve co-ordination with the department and tertiary institutions, in order to ensure that there is a proper target of retaining learners to ensure long-time employment; explore the best-use models around the world; and, instead of complaining of having too little funding, make use of budgetary review mechanisms which will ensure that we are able to use our return on investment plans that are in place in government, something which, by the way, is very good.
The implementation of the Workplace Skills Plan can, for example, ensure circulating funds to issues related to mines and mining sector training and skills development. Skills shortage should not be seen as a challenge, but as an opportunity in the mining sector, especially for previously disadvantaged learners, who continue to grow in numbers.
Sharing sentiments with the public out there; keeping up with the aspirations of the public that we represent in sharing the vast wealth of the industry in order to safeguard jobs after the mine Ministry reported that 25 000 had been lost during the recession; and the improvement of health and safety standards across the board have been suggested. We give these a thumbs-up for speedy development and a change for the better.
Lastly, I wish to hold accountable Adv Sandile Nogxina, Director-General of Mineral Resources, who at the department presented the Medium-Term Expenditure Framework, MTEF, and the Strategic Plan to the portfolio committee on 21 April this year. He said:
We will continue with our stance that if mines cannot mine safely they should not mine at all until effective measures are implemented to safeguard the health and safety of employees.
I hope that the advocate will reconsider leaving the department and stay, because we still need his genuine and expert advice.
Chairperson, please allow me to answer some of the points made by the opposition. They said that the fact was that we were proud that we had won votes, and that was fine, but it was a small drop in the ocean. [Interjections.] If you look at the percentage of votes that the ANC genuinely wins, you will need to go and study your elevations through the ID - your support is not genuine.
You must also stop your obsession with what is happening with Aurora. This is disappointing from the opposition. Please go and have a look at what your ancestors might be praying about before Judgment Day! The issue of Aurora is being attended to. It's a priority in the committee ... [Interjections.] You will say, "Hah!" because you are not part of the committee! The fact remains that it's a priority within the committee and the department, and to concerned South Africans. So, just leave it. The opposition, instead of continuously commenting on this, should be assisting us to find a solution.
Hon Schmidt, you were with us when we went to visit the mines. You are now complaining of the fact that people were not involved in the changing of the Mining Charter but, when you say that they were not consulted, what do you call yourself when you were there in the public hearing consulting with these very people? Stop your hallucinations.
Hon Dexter, stop acting like a saint and being judgmental about the bourgeoisie, the rich and so on. The blacks have worked and earned their money in difficult times, and what they have made presently, they deserve. Remember that Aurora was initially owned by a white mining company which created the disasters we are faced with. We as the ANC are resolving them! [Applause.]
I don't know where hon Alberts from the FF Plus has disappeared to. I would like to tell him in absentia that we are not dealing with nationalisation here. We are dealing with a state-owned mining company for the country, for its wealth to be equally shared amongst its people. We don't know where you are coming from with the fact that we are talking about nationalisation. I thank you, Chairperson.
Chair, to the chairperson and members of the committee, thank you very much for supporting our Budget Vote; that is also an indication that in working together with the committee, we can do better and more. Thank you very much, chairperson, especially for the stewardship you have shown in leading this portfolio committee; it is getting better every day and it is becoming the best. Thank you very much. [Applause.]
I would like to thank hon Marais. I think he understands the issues of the mining sector. The issues that he raised are issues of concern to us and we will continue working with him in making sure that issues of mine health and safety are for all of us to deal with. We have got to continue working together and we cannot politic around those issues.
I would also like to thank hon Bikani. Thank you very much, hon member, for speaking to the issues of mine health and safety. We are currently investigating occupational health matters, as they are very close to our hearts. We have done research and we will soon - somewhere in September - be having a tripartite summit with the intention of addressing these issues. We want to make sure that the mining sector becomes as safe as it can be. It is now branded as a sector of preference in our economy.
I would like to take this opportunity to respond to hon Ditshetelo. I want all of us in the House to look behind us. Look at the seats behind or in front of you. Are these the elite? [Interjections.] Are these the elite? What does transformation mean in this country? When it is black or African, then it is elite!
This is a process we have not yet completed. We said in 2009 that when it came to the charter we had achieved 9% of the 26% to be attained by 2014. This is an achievement, and it is a process - it is not an event! [Applause.] It is a process; it is not an event.
How can you transform your economy when you refer to these geologists or mining engineers who are now participating in ownership as the elite? It is unacceptable. Let us not undermine our people as they make progress. [Applause.] These same people read the Acts, the charter and the objectives of being broad-based. This is a process and it has been 17 years, as against out of over a hundred years when the mining industry was not transformed. What do we mean? What do we say? We must be realistic, but we must not be opportunistic, and we must also not insult our people. It is wrong, it is despicable, and we cannot afford to have that. Let us change our language, because what we are doing is labelling people unnecessarily where there is progress.
Let us appreciate the good work that is being done by our people. Let us give ourselves 20 years and see where the mining industry will be. We are addressing many issues that are a legacy of the past. We must do that. Please, hon member, recognise good work and good intentions in uplifting our people in South Africa. [Applause.] I now turn to the hon Schmidt. The ruling in the Agri SA case goes against transformation of our communities; hence we are appealing the decision. We cannot go back to a situation where we tried to reconcile and bring people together and we found that the situation tended to divide us - it is very dangerous. It is very, very dangerous! Therefore, I am saying we should be careful.
Ask yourself why Julius is calling for the nationalisation of the mines. Ask yourself! Ask yourself that! I am not calling for it. Ask yourself why Julius is going that route.
[Inaudible.]
No, he is not an elite. He is a young man who is interested in improving the quality of life of our people. [Applause.]
The state-owned mining company will continue to make a difference. It will compete. It is already competing, and I am very happy with that. There are no rights that are being given to holy cows here. In this country there are procedures, a Constitution and an MPRDA, and everyone must follow them. Maybe when you are the Minister you will take short cuts, but it will not be while I am still the Minister. I will never allow that. [Applause.] On the issue of the Kimberley Process, KP, and the allegations you have made in this regard, do me a favour - go and read the Kimberley Process. Understand the regulations and statutory aspects of the Kimberley Process and the role of the KP chairperson, who took a decision in March to endorse the fact that Zimbabwean diamonds, specifically Marange, are compliant. [Interjections.] Do me a favour; acquaint yourself with that decision.
It is against the Kimberley Process.
It is not against it. I am saying: read the process, and read about the role of the KP chair and his decision ...
Mr Chairperson, can I ask the Minister a question? [Interjections.]
Order! Order! Order, hon members! Order!
You are wasting my time!
Hon Minister, are you prepared to take a question?
No.
The hon Minister is not prepared to take a question, Mr Davidson.
She wants to run away from the ... [Inaudible.] ... she intervenes. [Interjections.]
Order! Order! Order, hon members! Hon Minister, before you continue, let me say this. Hon members from both sides of the House, you must respect the Rules of Parliament that you yourselves have adopted. Please, no shouting is allowed while the Minister is addressing the House and concluding the debate. Let us give the Minister an opportunity ... [Interjections.] Order, hon members! Order! If you do not respect the Chair, I will identify you and I will ask you to leave the proceedings. Let us conclude the debate with the dignity that it deserves. Continue, hon Minister.
Thank you, Chairperson. I am just saying: acquaint yourself with the rules in a totally holistic way, and not just part of it - whatever you think is best for you. [Interjections.] You have got to do that.
The other thing that I must indicate to you is that you must also acquaint yourself with the African Diamond Producers Association, ADPA, an association deprived from all African countries, and understand their point of view. Then you will understand the approach of Africa towards diamonds. We are the producers of 60% of the diamonds in the world, and we have to change the situation in favour of the developing countries. I must also indicate that you should go back to the Fraser Institute, and read what it says well, and understand it. Do not judge us! Most issues that you have alluded to, we have been correcting. However, they have judged us on those issues. We have dealt with all of those issues.
To hon Dexter, in isiZulu we say ... indlela yaziwa ngumhambi wayo. [Ihlombe.] [... the route is known by the one who travels it. [Applause.]]
The last point I want to make, hon Schmidt, is that the Kumba case is sub judice and we unfortunately cannot deal with it. Let us respect the law.
Thank you very much, hon members. Thank you for supporting the budget. I hope that as we continue engaging next year, we will come better informed and with an understanding of the critical issues in our budget and the overall environment. Thank you.
Debate concluded.