Chairperson, hon Minister, hon Deputy Minister, and hon Members of the NCOP, in his state of the nation address, as the Minister has mentioned, the President declared 2011 the 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 can be created. The President gave a directive that all government departments should align their programmes with the job creation imperative. The President further instructed government to fill all funded vacant posts. A significant announcement made by the President with respect to mineral resources was the endorsement of the African Exploration Mining and Finance Corporation as the state-owned mining company that will undertake the mining of minerals of strategic significance.
The President's emphasis on job creation is in line with the New Growth Path Framework, which aims to create 5 million jobs by 2020. The framework identified the mining value chain as one of the sectors to be prioritised for job creation.
The framework projects that the mining sector can create 140 000 jobs by 2020, and 200 000 by 2030. This means that the sector should create, on average, approximately 15 556 jobs per year, beginning in the year 2011-12, in order to achieve its 2020 target.
The prospects for the mining industry look good as it is expected to grow at an average of 4% to 7% in volume during 2011, recovering to the levels preceding the economic crisis. The department, therefore, anticipates that the 40 000 jobs that were lost during the crisis will be created during the course of this year.
The department, during its presentation to the select committee on its budget and strategic plan, briefed the committee as follows. After the split of the Department of Minerals and Energy, one of the focus areas of the department in its three-year strategic plan, 2010-11 to 2012-13, was to finalise a service-level agreement with the Mining Qualifications Authority, MQA, to support and improve the current initiatives to address the skills shortage in the department. In its strategic plan for 2010-11 to 2012-13, the department reported that a mine rehabilitation strategy has been developed and adopted by the Minister of Mineral Resources and an associated implementation plan was being developed. The department also announced the development of the beneficiation strategy implementation plan. The department also developed a new small-scale mining strategy.
The department has a budget, as we heard the Minister announce now, of R1 billion for this financial year. Transfers and subsidies have been allocated at R438,4 million or 42% of the total Budget Vote allocation. The largest share of the transfers and subsidies - 54,3% - has been allocated to public corporations and private enterprises. A total of 45,4% will be transferred to departmental agencies and accounts.
Of particular importance is the promotion of the Mine Safety and Health Programme. This programme aims to ensure the safe mining of minerals under healthy working conditions. The programme is composed of two subprogrammes: the Governance Policy and Oversight Programme and the Mine Health and Safety Programme in the regions.
The programme's budget increased by 3,8% in nominal terms, but decreased by 0,9% in real terms from the 2010-11 financial year. This is as a result of the decrease in real terms in both subprogramme allocations. The greater portion of these programmes' budget has been allocated to the Mine Health and Safety subprogramme, which is responsible for inspections, audits, monitoring and enforcing compliance with the Mine Health and Safety Act.
As a committee we will strengthen our oversight machinery in this regard to ensure mining adheres to one of the four strategic objectives of decent work, and that is social protection. As a committee we are also worried about the small amount of the budget that the department has been given, but we know that the Minister, as she has shown and proved, will guide this department to be the shining light in Africa and the world.
As the Minister, the Deputy Minister and her department have shown us, they are aggressively searching for solutions to turn the current situation in mining around and drive the South African economy out of the current slump.
The Minister has shown us that developing countries cannot afford to wait for the solutions being sought by the so-called most powerful economies, but have to find their own solutions that are adapted to address their specific challenges.
Nonetheless, the industry is continually adapting to changing local and international world conditions and remains a cornerstone of the economy. It makes a significant contribution to economic activity, job creation and foreign exchange earnings.
Chairperson, allow me to conclude by reiterating the fact that major companies are increasingly moving their primary listings to international markets as part of globalisation, which takes many forms, from the direct acquisition of mining companies to partnerships with smaller exploration companies.
The mining industry is continually expanding and adapting to changing world conditions that influence demand for its products. It has experienced great challenges and changes recently.
The change strategies adopted by the industry over the past years have produced a significant improvement in its competitiveness. With better structured companies, a more robust operating and financial base and some of the world's most significant ore reserves, it will continue to be an important player in the global mining industry.
Chairperson, I wish to draw from Dr Martin Luther King Jr's articulations, and I quote:
The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy. Hon Minister, you really are standing firm in this time of challenges. You have steered a ship; you have steered the industry.
Thank you for your open-door policy. This committee supports the Budget Vote and we will ensure that we work hard and lobby to have the Vote, the money, increased. Thank you. [Applause.]