Hon members, I indicated earlier that I would come back with a ruling on a point of order that was raised by the hon Kalyan. This is in relation to an interjection by the hon Minister during Mr Lorimer's speech. The interjection, as I heard it, was: "It is your creation as a white man."
In ruling on points of order, the Chair has to strike a balance between allowing members freedom of speech, as granted to them by the Constitution, and the need to maintain the decorum of the House.
I am not convinced that the statement by the Minister is necessarily racist. More than that, it is an expression of the Minister's view with regard to the issues raised by the hon Lorimer in his speech.
Having said that, hon members, I wish to advise members to avoid making remarks that have the potential of being perceived as having racial undertones. I thank you.
Chair, the ACDP is interested to see, hon Minister, that you are considering the idea of auctioning our mining reserves, rather than giving them away on a first-come, first-served basis. We see Liberia has done this, and now Mozambique is embracing the concept.
In India, however, their supreme court's decision to distribute scarce natural resources by public auction only is said to be contrary to their Mines and Minerals (Development and Regulation) Act. This Act prescribes that mining rights should be granted on a priority basis.
Before committing ourselves to another debacle like the far from transparent road-tolling exercise, the ACDP hopes that you will be cautious and thorough in laying the groundwork in order to avoid legal hindrances, constitutional challenges and wasted expense in general.
The ACDP, whilst aware of the huge contribution made by mining to the economy, is also aware of the special treatment that has been reserved for mining on land not zoned for it. We do not condone breaking the law with impunity ... [Interjections.]
Hon member, I think there is a problem with your machine. [Interjections.] You must use the front one. [Laughter.]
Can I try again? Sorry.
Hon Dudley, take the front one, otherwise we will not hear you at all. You were making a very good point, but I can't hear you. [Interjections.] [Laughter.]
Right. Thank you. The ACDP, whilst aware of the huge contribution made by mining to the economy, is also aware of the special treatment that has been reserved for mining on land not zoned for it. We do not condone breaking the law with impunity by any industry. The executive director of the Centre for Environmental Rights, Melissa Fourie, has said that the consequences of decisions made on mining operations, without proper regard for other authorities and other pieces of legislation, are severe. They have aggravated the detrimental impact mining operations have on the environment and have not benefited the country, the mining industry, mineworkers or communities.
The Constitutional Court judgment that holders of mining rights cannot mine until the land has been zoned for mining marks the beginning of the end of decades of special treatment for the mining industry.
The ACDP supports calls for government to establish a commission to investigate how South Africa's mineral rights were "recklessly given away" after our attaining freedom from apartheid. Commentators say that giving away the nation's mineral resources to new owners without tendering has cost the country jobs, and they are optimistic that this commission will lead to more reasonable stewardship of mines and miners. They use the example of the Aurora Empowerment Systems' disgrace, where about 6 000 miners have gone unpaid for many months, with their families living in terrible conditions. The mineral rights conversion process, during which the state became a custodian of all mineral rights, is said to have been fraught with irregularities.
On the tricky question of the nationalisation of mines, the Chairperson of Gold Fields, Dr Mamphela Ramphele, has said:
I think that anyone with an understanding of the mining industry will know that no government has the capacity to mine ...
Even the mining industry is struggling to find the mining skills, capital and equipment to sustain it. So how could a government, struggling with major issues in the education sector, the health sector and even state- owned enterprises, hope to run the mining sector?
Please conclude, hon member.
I did lose a few minutes in between there, so I think I would like you to check on that. And I did time my speech, so I am pretty sure. [Laughter.]
What does make sense is for government to rather make sure the mining industry lives up to its responsibilities, cleans up its mines, compensates workers who are injured and their families, and reduces the number of injuries and fatalities. The ACDP agrees with this sentiment.
The ACDP will support this Budget Vote, which has a crucial role to play in helping us move towards a prosperous future for everyone living in South Africa. Thank you.
You should be happy - we are giving you one more minute, because it is you and you ... [Inaudible.]
I would like that, because I can say something nice about the Minister! [Laughter.]
Minister Shabangu's statement that there has been a significant improvement in health and safety since the department intensified enforcement measures at the mines links up with my previous statement. A safety crackdown on the South African mining industry is said to have reduced the number of fatalities in the country's mines to three in April, from an average of 11 or more a month. We hope that this trend will continue. My apologies, hon Minister, for having to leave early today. I have urgent business I have to attend to. Thank you.
Chairperson, hon members, hon Minister, hon Deputy Minister, director-general and staff of the Ministry, captains of industry, distinguished guests, ladies and gentlemen, I greet you all.
Let me start by expressing my support for this Budget Vote and take this opportunity to express my deepest condolences to the families of our beloved comrades, Comrade Sicelo Shiceka, Comrade Roy Padayachie and Comrade Florence Nyanda, who passed away unexpectedly. May their souls rest in peace.
Lalani ngoxolo. [Rest in peace.]
At its 52nd National Conference held in Polokwane in 2007, the ANC adopted, among other things, the following resolution:
The use of natural resources of which the state is the custodian on behalf of the people, including our minerals, water, marine resources in a manner that promotes the sustainability and development of local communities and also realises the economic and social needs of the whole nation. In this regard, we must continue to strengthen the implementation of the Mineral and Petroleum Resources Development Act, which seeks to realise some of these goals. Our programme must also deepen the linkages of the mineral sector to the national economy through beneficiation of these resources and creating supplier and service industries around the minerals sector.
In deliberating on this Budget Vote, we need to remind ourselves that the sovereignty of a nation lies in part in its ability to institute the necessary mechanisms for the development of mineral resources on a sustainable basis, in order to address the economic and social needs of the nation.
The Freedom Charter of 1955, which is the lodestar of the ANC and a fundamental source of policy which shapes government programmes, focused itself on the necessary measures to redistribute the mineral wealth which is our common heritage - to be shared by all.
The challenge therefore for the developmental state is to ensure that it has the ability and capacity to lead and shape the national agenda in respect of mineral resources, and that it has the organisational and technical capacity to deliver on its programmes, which will result in the greater redistribution of mineral wealth and thereby directly tackle poverty and inequalities.
Legislation is an expression of policy. The Portfolio Committee on Mineral Resources embarked on a process of public hearings in 2011, between May and September, to solicit the views of civil society on the intention to establish the state-owned mining company and other proposals to address the inequitable distribution of mineral wealth. This process included an international study tour to Chile and Bolivia by our committee to study different models of state mining companies. We were informed in our approach by research which demonstrated that South Africa is the richest country in terms of its mineral resources, which account for 88% of known global resources of the platinum group metals, 80% of manganese, 72% of chrome, 32% of vanadium, and 30% of gold.
Notwithstanding this, the majority of South Africans still live in abject poverty. The country is ranked as the most unequal society in the world, followed by Brazil. South Africa has a high unemployment rate, regardless of whether a narrow or expanded definition of unemployment is used.
What informs us is the position that the state must be enabled to secure the supply of minerals of strategic significance, such as energy, infrastructure and precious commodities. The state must further assume its rightful position in the global economy through the identification of more strategic mineral commodities and must lead in the production and supply of these minerals worldwide.
Furthermore, the state must intervene and deal decisively with the abject poverty that engulfs almost all mining communities as a result of the serious challenges of the socioeconomic backlog inherited from centuries of colonialism and decades of apartheid rule.
Local beneficiation of our minerals is central to this, given the huge potential for job creation, skills development, development of small-scale business enterprises and rural development. Therefore, the drawing up of a comprehensive beneficiation strategy that will enhance the industrialisation drive of the state must be concluded speedily.
In order that there should be no confusion about what I am saying, the African Exploration Mining and Finance Corporation, which is popularly known as Somco, was already an existing state company dating back to 1944 and is not the state-owned mining company we are speaking of. Its future will be determined by the establishment of the state-owned company, and the necessary legislation will address this.
The state-owned mining company should be established through a constitutional Act of Parliament, should have a competent board to run it, and should be directly accountable to Parliament through the Portfolio Committee on Mineral Resources. The consolidation of all state investment in the mining sector will fall under the state-owned mining company and will be wholly owned by the state. [Applause.]
The state-owned mining company will certainly focus on ensuring an increase in national income and/or state revenue from the minerals sector, including the capturing of economic rents so that the state can increase budget allocations for social and economic development. It will help advance and deepen broad-based transformation of the mining and minerals sector and ensure job creation and destiny-changing community-development projects for poverty alleviation and rural development.
Investment in exploration and in minerals-based knowledge generation, including research and development, will need focused attention. The ANC supports the Budget Vote on Mineral Resources. Thank you. [Applause.]
Chairperson, I suspect that the most fascinating subject relating to this department is the question of the nationalisation of mines. This is a complex and fascinating debate that can be approached from different angles. Those learned in economics may argue from an economic standpoint, whilst those politically and historically inclined may approach it from their predisposed inclination. Of course, the department and government have said that nationalisation is neither the government's policy nor that of the ANC. But I am of the opinion that there is so much to be pondered on in these issues that forums must be created in which people can give their viewpoints.
I am no expert on the study of where and when the nationalisation of mines has worked or not worked, and what the prevailing circumstances were in any of the cases. I am, however, a witness to the fact that while we are said to be a major contributor globally to the minerals sector, that has not translated into a better quality of life for many of our people. We have seen communities close to where most of the mining occurs that are subject to abject poverty, and that can never be right. It is not right that people work in mines all their lives only to retire poverty-stricken! It is not right that there are communities and provinces where the mines make billions of rand, but the people still cannot afford tertiary education for their children, thereby continuing the cycle of poverty. Whether this means we must consider nationalisation or not is a question that needs an informed answer. I do assert, however, that the department has a responsibility to manage the status quo and ensure that we do not remain where we are.
The issue of adding value to South Africa's minerals before they are exported has been debated for a number of years. This debate is based on the argument that the South African beneficiation of gold currently affects only about 2% of current mine production, and that the country is not exploiting any comparative advantages of its large natural resource base. But the perception of South Africa's having a comparative advantage owing to the location of its mining industry does not in itself render the country competitive in terms of its downstream industries.
Monopoly in pricing is but one of the problems facing the South African mining sector, with more propaganda being spread instead of the true facts, thereby misleading debates. This must be rectified. The UCDP supports the budget. Thank you. [Applause.]
Chairperson, Minister, Deputy Minister, chairperson of the portfolio committee, Comrade Gona, officials of the Department of Mineral Resources under the stewardship of Dr Ramontja, hon Members of Parliament, guests in the gallery and organised labour, I greet you this afternoon. I gladly follow those that have spoken before me in the quest to call for meaningful transformation in the industry.
South Africa is one of four countries that are ranked by the World Bank as having upper middle-income economies in Africa. South Africa has the largest economy in Africa, yet, surprisingly, almost a quarter of the population are unemployed. How can that be possible? Whilst we know that this massive unemployment is historical, we believe that the industry can turn this around.
But let us look at how it evolved. As a result of the systematic marginalisation of blacks - the majority of South Africans - by the former lily-white government, historically disadvantaged South Africans were prevented from owning any means of production and from any meaningful participation in the mining sector, and this included all major economic sectors. In essence, blacks in South Africa were relegated to being objects of no value in the economy, except to being made by legislative means to grow wealth for the white minority. This industry we are talking about is known to have been notorious for that.
The liberation ushered in by the ANC in 1994 sought to transform the economy in order to benefit all South Africans. This would therefore be a genesis of defeating the triple challenge of poverty, unemployment and inequality. The ANC's vision of economic transformation emanates from the Freedom Charter's clarion call that "the people shall share in the country's wealth".
As we are busy designing a developmental state, it becomes our responsibility therefore as government to lead and shape the process towards the transformation of the economy and, in this case, the mining sector.
At its 52nd National Conference, the ANC resolved that:
A developmental state must ensure that our national resource endowments, including land, water, minerals and marine resources are exploited to effectively maximise the growth, development and employment potential embedded in such national assets, and not purely for profit maximisation.
As mineral resources are the common heritage of all the people of South Africa, it is clear from this resolution that the intention is that our mines should not be a source of income for some, but should benefit the communities in which they are located and the country in general. These resources must be used to maximise growth and development for the surrounding communities. One wonders why these mines are not the absolute source of employment for the surrounding communities.
Because we in the ANC sought to address this - the inequalities existing in the mining sector - the Mineral and Petroleum Resources Development Act, Act 28 of 2002, was enacted. The objective of this piece of legislation was to transform the mining industry and facilitate the meaningful participation of historically disadvantaged South Africans in the mining industry.
Section 100(2)(a) of the Act provides that:
...the Minister must within six months from the date on which this Act takes effect develop a broad-based socioeconomic empowerment Charter that will set the framework, targets and time- tables for effecting the entry of historically disadvantaged South Africans into the mining industry, and allow such South Africans to benefit from the exploitation of mining mineral resources.
This is in line with the provisions of the Mining Charter, also signed in 2002.
In terms of the legislation and the Mining Charter, the captains of industry and the department must do a comprehensive assessment of whether the mining companies are meeting the provisions and targets set by the legislation and charter on the transformation of the mining industry. The report revealed that minimal progress had been made by the mining industry, as no targets had been met as set in the Mining Charter.
An analysis of data showed that even black economic empowerment ownership initiatives did not reach this target. The underlying issue identified was that the funding model was such that actual ownership of the mining assets intended for transformation purposes end up being tied to the loan agreements.
The assessment also showed that only 26% of the mining companies had met the Mining Charter target of 40% participation of previously disadvantaged South Africans at management level. Consequently, very few historically disadvantaged South Africans are found in top management decision-making positions in the mining industry. The effected pieces of legislation seek to change this and these measures should be implemented if we are honest and committed to the transformation agenda.
The assessment also revealed that there is ... [Interjections.]
Hon Sonto, mind your time.
Okay.
I have a point of order, Chairperson. My point of order is: What does "mind your time" mean? [Interjections.] The speaker has a limited amount of time. His time has either expired or not. I would like a ruling from you on that, Chair. [Interjections.]
Well, I guess, hon member, you should not expect me to explain it. We will certainly explain it to you via our staff after the sitting. We will explain to you what that means after the sitting. [Laughter.]
Chairperson, I am sorry. The point was raised in this House. I think you must respond, please. [Interjections.]
Chair, the hon members are really wasting the time of the speaker. [Interjections.]
Ayixoxwa emva kwendlu le nto. Ixoxwa apha phakathi kule Ndlu. [This issue is not being debated in secrecy. It is being debated in this House.] [Laughter.]
Hon member, let me assist you.
Thank you.
When I say to a member, "Mind your time," that member has one minute left.
Chairperson, I think I should be compensated for the loss of time.
Hon Sonto, we will allow you the time accordingly. [Interjections.] [Inaudible.] ... absolutely no need for it. Hon member, I should think you are happy now. Chief Whip, I think we are happy now. [Interjections.]
The department should intensify its efforts to ensure that the mining industry plays its part in the transformation of the industry. The legislation should be strengthened and government should be empowered to take punitive measures if necessary against those that are not complying. I am trying to rush.
In conclusion, for the ANC-led government the objective is clear and has been set. Beneficiation, ownership of the means of production, skills development and employment equity are among the issues that need to be dealt with in the transformation of the mining industry. How this is to be done is what the ANC has opened up for discussion. The government seeks to achieve a competitive industry. We in the ANC support the budget of the department. We further emphasise that it should strengthen its mandate of ensuring that the industry conforms to the transformation agenda of the ANC- led government. Thank you. [Time expired.] [Applause.]
Hon Minister, in the light of the fact that the DA is a party of the future, I would like to direct my speech in particular to the 21 future CEOs sitting in the gallery, unlike the ANC which, I suppose, is not open to change and alternative methods.
Could I just state that within the international framework and with R2,6 trillion's worth of estimated natural resources - $1 trillion dollars more than Russia, the second placed - South Africa must maximise its comparative advantage?
The introduction of a mineral resource rent tax and the proposed introduction of a carbon tax in Australia, the approval of a new ad valorem tax and royalty-sharing arrangements on certain minerals by India, Indonesia's calling for a 20% duty to be imposed on their mining exports, and the consideration by Ghana and, dare I say, Zimbabwe to drastically raise windfall taxes, will undoubtedly help the South African mining sector to obtain the competitive edge it requires if we manage it correctly. This is provided that we do not follow the same route by introducing carbon taxes and resource rent taxes, and increasing royalties and the like. Some local mining companies have already indicated that they are moving away from larger-scale South African projects to hasten returns and cut risk.
Luring and retaining investment is a real concern. BHP, one of the world's largest mining companies, recently closed down a coal mine in Australia owing to a lack of return on investment, labour unrest and other factors. An aluminium plant in Canada is also going to close down, as is the case in other mining jurisdictions. Canada has indicated that it will be easing immigration rules for skilled workers to alleviate mining labour shortages by attracting skilled workers in short supply.
In South Africa, many mining companies have blamed labour action, lower than anticipated production volumes, and lower grades as some of the causes for the drastic reduction in gold produced. We should take all reasonable steps to establish a thriving mining industry - one of the mainstays of this economy - the so-called "mining and energy complex" economy.
The State Intervention in the Minerals Sector report, mandated by the ANC and calling inter alia for the imposition of a 50% tax on windfall profits, will achieve exactly the opposite by not attracting investment, and will place us in the same position as, for example, Australia!
It has also been pointed out that had the South African government become the owner of mines in 2009, the South African Treasury would then have had to fund the difference between the capital investment and the dividends paid in that particular year - an amount of R26 billion. Talk of nationalisation is damaging the mining sector, especially in the context that nationalisation without compensation is unconstitutional, whilst nationalisation with compensation is unaffordable. Resource nationalisation, the touted alternative, amounts to nationalisation by stealth.
A 40% reduction in platinum group metals, an 11,5% reduction in gold output, an overall fall in mineral production of 14% compared to February last year, and a 17% reduction for April in the export of coal from the Richards Bay Coal Terminal indicate the real concerns of the mining industry and investors about the policy direction, or rather the lack thereof, of the Ministry.
Any steps, therefore, to introduce beneficiation, however much needed, should accordingly not come at the cost of competitiveness, lest production in the mining industry be further reduced, with the consequent reduction in much needed jobs. As indicated earlier, the figure from Adcorp indicated that the employment rate fell sharply in mining - down by 11,8%.
Growth and the accompanying increase in jobs in the industry are critical. This will require a 180 degree turnaround in policy formulation, such as from the inconsiderate policy by this government leading to Botswana becoming the next diamond hub in the world, with De Beers shifting its London-based diamond trading centre to Botswana.
With the capital cost required for developing a new mine being as high as R12 billion, investment in a stable and sound regulatory and political environment is imperative. The recent decision by Argentina to nationalise a Spanish-owned oil company led to the stern warning by the Glencore CEO that they would not hesitate to withdraw investments in countries where governments changed the terms of existing contracts in order to start taking a bigger profit or started introducing resource nationalisation. We should take note of these comments, hon Minister.
We all agree that mining companies have a social responsibility towards the communities within which they operate. Employee share ownership plans, Esops, which allow workers to share in the profits of the mines, are an important empowering tool. The pre-tax amount of about R500 000 paid to every qualifying Kumba employee is clearly an empowering tool. The mining companies and the department should ensure, too, that the agreed social and labour plan targets, which are aimed at benefiting communities, should be implemented to their fullest, thereby ensuring the continued successful operation of mines within the communities they operate in.
The National Development Plan being considered by the National Planning Commission and the Presidential Infrastructure Co-ordinating Commission, which intends to unlock the mineral wealth of the "northern mineral belt" in order to expand the infrastructure by developing various transport corridors for minerals, is supported.
With the intended increased participation of the state-owned mining company in the mining production sector, it is imperative that an independent licensing structure be established to ensure integrity within the process. At present the government is assuming the proverbial role of player, selector and referee, all with dire consequences.
Although we support the integrated approach in respect of the licensing process, as announced by the Minister today, we are of the view that an efficient one-stop independent service centre is crucial. Mineral rights applicants are then afforded the opportunity to interface with the departments handling mineral regulation, water and environmental affairs, and other required competencies, such as the Council for Geoscience, resulting in a speedy and effective application process.
Inherent to the success of this proposal is the determination of predetermined geographical areas where no applications will be accepted for certain predetermined and well-known areas owing to, for example, environmental and cultural reasons. Unnecessary costs, time wastage and lost opportunities for mining companies will therefore be prevented.
We do not share the Minister's views that the outcomes of a number of High Court decisions are an impediment to transformation. In fact, the high number of court cases in which the department has recently been involved and lost, is concerning.
In the very recent decision of the Constitutional Court in the Maccsand and Winelands District Municipality cases, in which the DA-governed City of Cape Town and the DA-controlled Winelands District Municipality took the department to court, the constitutional right of municipalities and provincial governments to regulate mining activities within their demarcated areas by virtue of their zoning regulations and land-usage schemes was confirmed. The Department of Mineral Resources was acting unconstitutionally by disregarding the rights of property owners affected by mining licences and by allowing mining to continue where no rezoning of the land had taken place. In most instances, the department allowed mining to continue against the well-established rights of property owners where land had been zoned differently.
The recent ...
Hon Schmidt, please conclude.
Must I "mind my time"? [Laughter.]
Try to conclude.
I'll mind my time.
The recent Western Cape High Court decision in the matter of Kumba v ICT also confirms the inability of the department to regulate the mining licence process justly and correctly.
I conclude by saying that the mining lekgotla next month, to be attended by unions, government and business to discuss risks in the mining industry, and its competitiveness, social pressures and growth opportunities, is an ideal opportunity to resolve some of these issues.
Interaction must lead to the tabling in Parliament of the long overdue amendments to the Mineral and Petroleum Resources Development Act, thereby doing away with the dangerous impression that the department is tabling the amendments subject to the whims of the next ANC congress in Mangaung. We need to keep the South African mining sector globally competitive. I thank you, Mr Chair. [Applause.]
Thank you, hon member. Hon Bikani, before you start, please mind your time.
Hon Chairperson, hon Minister and hon Deputy Minister, hon chairperson of the Portfolio Committee on Mineral Resources, hon Members of Parliament, the department, especially the new director-general, Dr Ramontja, the officials, our treasured guests in the gallery, ladies and gentlemen, we need to begin to apply the concept of a democratic developmental state to the governance of our mineral assets in order to ensure that the development of all the mineral linkage sectors is maximised to stimulate industrialisation and job creation, and to capture an equitable share of our resource rents.
The legislative mandate of the Department of Mineral Resources is determined by the Mineral and Petroleum Resources Development Act of 2002, which provides the regulatory framework for equitable success and the sustainable development of South Africa's mineral resources.
My focus in today's Budget Vote debate is on the transformation of hostels and the living standards of mineworkers, the transformation of procurement and, most important, the transformation of women in the mining industry.
Better socioeconomic conditions, particularly in metropolitan areas and other cities, fuel the process of urbanisation. Apartheid and colonialism had such devastating consequences for black communities because they structured the ownership and control of wealth in such a manner that these communities were deliberately excluded and neglected. No society in which wealth is defined in terms of ethnic or racial divisions can expect to maintain social or political cohesion. Therefore, an essential part of a national democratic society is the thorough deracialisation of the ownership and control of wealth, including land.
Our vision of economic transformation takes as its starting point the Freedom Charter's clarion call, which we as a committee all stress, that "The people shall share in the country's wealth!" Since 1994, the ANC-led government has made substantial progress in transforming the economy to benefit the majority, but the serious challenges of unemployment, poverty and inequality still remain.
Let me state that the ANC does support this Budget Vote. The most immediate challenge facing the developmental state is the implementation of our ambitious infrastructure investment programme, which will test its organisational, technical and strategic capabilities. Our ability to ensure that the infrastructure programme acts as a catalyst in the broader development of the economy will be a critical marker of the progress we are making in building a developmental state that can truly act as an instrument of economic liberation.
South Africa has the largest reserves in the world of a number of critical minerals, including platinum, chrome, vanadium and gold. We are also a major producer of a range of other minerals. Through links to other sectors of the economy, including chemicals, energy and manufacturing, the mining sector continues to drive the expansion of the economy as a whole.
The spatial location of mineral production is largely dependent on geological rather than economic conditions. It is therefore the main driver of economic development in some of the poorest regions of the country, for example the Northern Cape, the North West and Limpopo, which are but a few of our mining provinces.
Whilst the minerals sector continues to become more capital-intensive and therefore presents few opportunities for additional direct employment, the potential to build upstream links in the form of capital goods production and mining services must be fully realised. This means that a key element of our industrial strategy should be diversifying on the basis of our strong comparative advantage in the production of commodities.
An industrial strategy objective is meant to strengthen the manufacturing sectors downstream of mining, including the refining, processing and beneficiation of minerals into more value-added products, through a comprehensive strategy supported by legislation.
Since 1994, South Africa has witnessed a massive migration to the areas of economic opportunity, leading to sprawls of informal settlements in the major towns. Although poverty continues to be highly concentrated in rural areas, today the greatest numbers of poor people reside in and around the urban centres.
Nevertheless, the enduring legacy of apartheid planning means that spatial marginalisation from economic opportunities and social amenities continues to be a significant feature of our economy and must be addressed in order to reduce poverty and inequality and ensure shared growth.
Providing affordable accommodation is behind the ANC-led government's strategy to redevelop hostels and turn them into residential family units that have dignity and proper sanitation. As they demolish these old hostels, government is replacing them with new integrated human settlements that are now called community residential units. Limitations, owing to scarcity and pricing, in acquiring suitably located land are a major constraint in the creation of sustainable human settlements.
South Africa's mining activities left behind a trail of ghost mining towns. Apart from underdeveloped communities, mining in South Africa has led to a system of almost inhumane living conditions, mainly for the black workers. Such conditions contribute to the spread of diseases such as HIV and Aids, and to the disintegration of family and social systems, as well as drug and alcohol abuse. The results of the Department of Mineral Resources' 2009 report showed that only a quarter of the mining companies had provided houses for their employees, while a third - 34% - had helped their employees to access home ownership schemes.
What is a very painful part of South African history in regards to there being conditions of a progressive developmental state in the mining industry is that women, the rocks of the nation, and in particular aspiring black women in the mining industry, still live in abject poverty when it comes to ownership in the mining industry.
I have yet to see a good number of women that we can truly call successful black mine owners, women who make a significant contribution to the country's gross domestic product, ensuring that there is a boost in our economy and, as a result, true wealth for black women in mining. There is a much needed increase in the participation of women in the country's economy.
I have but one example of a truly liberated woman who is a true success story in our country. She not only owns a mine, but is the president of the SA Mining Development Association, Samda, a director of the New Africa Mining Fund, NAMF, and the executive chairperson of Mmakau Mining. She was South Africa's first black mining entrepreneur in the 1980s in contract mining. I am referring here to Madam Bridgett Radebe.
I can assure all present here today that if each industry had to groom, mentor and support a woman-owned mining company consisting of previously disadvantaged women in the country, the rewards for future generations would be great in terms of social and community contributions to the mining industry. This would definitely show true patriotism towards those in the "Boudoir" mining industry, who are said to be the top miners in the Republic of South Africa, and who have the best interests of the country's economic success at heart.
At this point and beyond the projects of the Minister - with a big congratulations to the young women that we have seen in the gallery - I wish to challenge entities such as the Chamber of Mines, its top 10 mining companies, the Department of Mineral Resources, and any other willing mining company to commit themselves to assisting black women in small-scale mining in a public-private partnership effort, through a co-ordinated and synergised programme, in order to assist the bottom 10 black-women-owned mining companies. They must be coached, mentored and empowered locally. Every possible effort should be made to induce, explore and research all potential in unleashing more successful black women-owned mining companies. [Applause.] In the light of the President's state of the nation address, this should yield a significant outcome of upcoming infrastructural development in the mining industry.
As a result of past constraints placed on the employment of women in the South African mining industry, both through legislative exclusion and as a result of attitudes and opinions, women are currently poorly represented in this important sector of our economy. Where women are employed in the industry, it is normally in non-underground occupations that are in support services such as administration and human resources. Over a number of years, a scattering of women have found their way into the South African mining industry, but very few women own mines. Even though the number of women operating as entrepreneurs in the South African mining industries is not known at this time, it is believed that the number is very small and that interventions to support women entrepreneurs are therefore appropriate.
The ANC also urges mining companies not to neglect adherence to safety and compliance.
The purpose of minerals regulation in the department is to regulate the minerals and mining sector in order to promote economic development, employment and environmental compliance, as well as to ensure proper transformation.
Hon Bikani, please wrap up.
Thank you, sir. This forms Programme 3 of Mineral Resources' budget summary. Minerals regulation forms part of a very important area of work in implementation within the public services' mineral resources, including the implementation of relevant transformation policies to date in an effort to keep up with the desperate needs of our small mining communities that have yet to see significant proceeds and benefits in terms of an economically developmental state for historically disadvantaged South Africans.
Recognising what the Minister has already said, progress in the development of an electronic licensing system, which is said to be the resource administration system, will certainly go a long way in proving government's technological efforts to ensure that targets are met timeously.
We hope to see these changes, so that we in the Portfolio Committee on Mineral Resources can see the difference in trying to make South Africans proud through the achievements of mining in a developmental democratic South Africa. I support Budget Vote 32: Mineral Resources. I thank you, Chair. [Applause.]
Thank you very much, hon member. Hon Minister, please take care in your five minutes - mind your time.
Chairperson, I would like to take this opportunity to thank hon members for supporting this budget, except for those of one party. [Interjections.] That one party did not support us. This is a reflection that we are on the right path in what we are doing in the department in repositioning the mining industry.
Thank you, hon Lucas, for supporting us and also for explaining the area of beneficiation quite well. I hope it will assist hon Lorimer to understand. There is no ambiguity. We are clear on that policy. We are saying that the core business of mining is mining. It is not beneficiation. We recognise that they can't produce cars. They never applied for licences to produce cars. Basically, what we are saying is that what they need to do is ensure that when it comes to adding value they make their commodity available to create other industries in this country. That is what we are saying. We don't want them to become businesses in areas for which they haven't budgeted or planned. I thought that I needed to clarify that.
I must also say that if you look at where we come from with the Fraser Institute, we are really striving towards something positive.
With regard to the jurisdictions you are referring to in Africa, when I meet the Ministers from those countries, they want to learn from us. So this shows that we are going in the right direction, and that we inspire the rest of Africa. [Applause.] I just want to tell you that some of the African countries you were quoting will be coming to South Africa. They want to see what we are doing as a government in this country. So you have to look at those issues. It's an ace for our side. It shows that we are going in the right direction.
I must also indicate that I like this House. Adv Schmidt, you spoke about nationalisation. That is an ANC issue. We have clarified the matter. I think it is high time that I call you Comrade Schmidt so as to allow you space to participate in the ANC debate around the issue of nationalisation. [Laughter.] [Applause.] I think it is very, very important for you.
Hon Chair, on a point of order: Is it parliamentary to refer to a DA member as a comrade? [Laughter.]
Hon comrade! [Laughter.] I think it shows that there is no suppression of ideas in the ANC. Individuals are allowed to express themselves in whatever way they choose.
What about Mr Malema?
Including Malema, by the way. [Interjections.] Including Malema. So, if you want to join the ANC, come and join the ANC, because it is a voluntary organisation. The privilege and the advantage of joining the ANC is that it is voluntary. You also don't go through a process of interviews, as if you are seeking employment. [Applause.] [Interjections.] That's the difference between us and you. We are an open organisation. We are transparent. [Interjections.]
Hon Lorimer, I think I would like the two of us to meet to talk about the issue of the discretionary powers of the Minister. You will realise that there isn't much power given to this little Minister. So I'm just saying the industry has no problem. I don't know where your concern arises from.
And I think you also need to understand that the Act we are implementing is an Act arising out of consensus. There was never a unilateral approach. It was government. It was business, which is your mining industry as a whole. It was labour in the mining industry. It's a consensus document - the issue of negotiations you find in the spirit of the mining industry. There was never a unilateral approach when it comes to the issues, including section 54. We agreed with all the stakeholders to implement this particular section, section 54. So I'm just saying this is the best industry you could come across for consensus.
I agree with you on the issues of the tax dispensation. As a country we have to be competitive because we are not an island; we belong to the global environment. So I fully agree with you, we can't unilaterally kill this industry. But that is exactly what you are doing. Talk to the people who are giving you information. The industry will tell you exactly how we as the Ministry are approaching the issues of taxes as the sector, as this Ministry. So I'm just saying we will always listen, and we will always make sure we don't contribute to the downfall of this industry. [Interjections.] They have agreed. We agree. So I'm saying to you, you are welcome. If you want to debate the taxation, you can also become an hon comrade in the ANC when we go to the policy conference in June. [Laughter.]
Lastly, I must indicate that there is one more expression which shows us that tripartism works through the mining industry and us. In June we will have a mining lekgotla where we are going to put our heads together on how best to position the mining industry in South Africa and also in the rest of Africa. Join me, Comrade Lorimer, in making sure we make a successful business. Thank you. [Laughter.]
Debate concluded.