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.