Hon House Chairperson, chairperson of the committee, committee members, Minister of Minerals and Energy
and the Deputy Minister, the director-generals and the team from the department, hon members, ladies and gentlemen.
The Minister often describes mining with the four d's. He says it is difficult, dangerous, dirty and diseased. However, the four d's do not have to represent all that mining is about. In fact, government's approach to the sector is that if managed well, within the legislative framework we have, mining can be seen for its potential to contribute to the economic and social wellbeing of South Africans and the environment.
If we consider some facts about the sector, according to statistics, the sector contributed as follows during the 2017-18 financial year: R307 billion in exports representing 27% of the country's total of R1,1 trillion; there was production that rose to R630 billion which translated to 7,4% of R8,6 trillion South African production.
In spite on the job losses recorded, there were 7 000 jobs which went up to 464 667 in 2017. In other words, mining contributed
plus or minus 4,6% of the private sector and non-agricultural employment growth.
So, the positions that we normally take as South Africans when we discuss mining tend to be polarised. However, we need to take a step back and instead of demonising the sector we have to look at it objectively in terms of its good, its bad and its ugly sides. And I would argue that government, particularly the Department of Minerals and Energy, needs to lead this debate in our society.
In his inaugural state of the nation address, President Ramaphosa urged South Africans to begin to see mining as a sunrise industry.
Any country, for that matter, that is sitting on top of an estimated $2,3 trillion worth of mineral wealth as South Africa is, would have a serious national dialogue about how we can exploit this wealth to develop our country to the benefit of all.
So, the vision of the Department of Minerals Resources and Energy sets the goal of building a globally competitive, sustainable and meaningfully transformed mining and mineral sector. And this is in line with the vision of the 2030 National Development Plan.
However, there are real problems in the mining industry that must be tackled. Job losses are amongst the most news that we hear often. It is depressing because we know that as mining operations close down or adopt mechanisation methods, the most vulnerable are unskilled and semiskilled who lose their jobs by the thousands.
We believe that the industry must be held accountable for the commitments that business made at the Presidential Job Summit held in October last year. Business representatives including the mining sector agreed that they will do everything possible to avoid retrenchments, recognising that there are roots back to health for struggling companies and mines which do not require retrenchment of workers.
The ANC seeks a path to sustainable development of our minerals and related industries. This means conditions must be imposed on mining license holders that limit what they can and they cannot do. In this regard, the three departments that issue licenses: the Department of Mineral Resources and Energy, the Department of Water and Sanitation and the Department of Environmental Affairs, must work closely together to ensure license conditions pertaining to their mandates are complied with; it's a compliance issue.
This should be done in line with the commitment made by the President in his state of the nation address earlier this year that government departments will reduce the tendency to work in silos. By strengthening their co-operation we believe that loopholes that are being exploited by unscrupulous operators who place workers, mining communities and the environment at risk will be closed effectively.
As the ANC we support the Budget Vote. Our support recognises that the department has a huge mandate but limited resources. We acknowledge the steady increase in allocation, however, the
allocation of just R2 billion falls short of what the department needs in order to fulfil its mandate in terms of the Mineral and Petroleum Resources Development Act, MPRDA. This situation requires creativity on the part of the department.
The developmental state paradigm as understood by the ANC does not conceive the state as an overbearing giant carrying a big stick to beat the players into compliance. The developmental state is capable, clean and professional. It is embedded in networks with social partners, but at the same time it is autonomous. Embeddedness of the state means that communities and the organised working class have to be empowered to partner effectively with the department to ensure that there is compliance pertaining to their health, health and safety, environmental laws and labour laws in our country.
This Budget Vote is informed by the 54th National Conference resolutions of the ANC and our election manifesto. We have committed to transform the mining industry by focusing on beneficiation which has been mentioned several times, including the Minister.
Research and development capabilities as well as manufacturing will be developed through beneficiations. We would like to see the iron ore and steel beneficiation value chain rejuvenated and industrialisation through government support to enterprises, particularly Small, Medium and Micro- sized Enterprises, SMMEs, cooperatives owned by women, youth and previously disadvantaged people. For that reason, the ANC supports this Budget Vote. I thank you. [Applause.]