Chairperson, Minister, Deputy Minister, the department and colleagues, the Department of Mineral Resources was split from the Department of Minerals and Energy, and became a standalone from 1 April 2010. The objective of the department is to: promote and regulate the minerals and mining sector for transformation, growth, development and ensure that all South Africans derive sustainable benefit from the country's mineral wealth.
There has been a slight increase in the allocation for the budget of the department for the 2011-12 financial year. We do appreciate the fact that this department has managed its finances well.
However, the concern that we have now is how we are going to deal with the rehabilitation of the ownerless and derelict mines. The added problem is our water situation in the mines.
The IFP remains concerned about the Mine Health and Safety programme. It is important to train mine inspectors who will be responsible for enforcing compliance with the Mine Health and Safety Act. We recognise the problem that is caused by trained inspectors' being enticed to join major firms for higher salaries. In the future we must find ways of being able to retain our trained and experienced staff.
Let me once again touch on two subjects that are close to my heart. The first one is small-scale mining. The department has done quite a lot in order to be able to grant the historically disadvantaged prospecting licences. However, by and large it has not been able to produce the desired effect. The problem is basically the inability to acquire funds in order to do prospecting. The finance houses are not prepared to risk investing in prospecting. The banks are really only interested in mining licences because they become bankable documents.
It is important that the department and the portfolio committee investigate ways and means to assist disadvantaged groups to enter the mining industry. The IFP believes that this will avoid the exploitation of people who firmly believe that they are going to make an honest living by those with deep pockets, and also that it will result in developing a self-supporting middle class. May I suggest that we have a special meeting to address this problem. The IFP appreciates the new system of granting prospecting and mining licences.
The second one is beneficiation. Beneficiation is another possibility in order to add to our financial gains, and we are a country with large mineral resources.
First of all, may I clear the air and explain that the mining companies are already doing beneficiation by mining minerals with the gravel and then separating the waste from the particular mineral, such as gold or platinum. That is adding value.
However, we need to go a step further in the beneficiation process and manufacture finished products. The IFP knows that great strides have been made in the jewellery industry. Why do we not go further and build engine blocks, camshafts, etc? This will create more jobs and promote skills.
At the beginning we will have to source the technology, which will eventually be transferred to the locals. If we do not begin soon, it will cost much more at a later stage. The IFP admits that one of the disadvantages is that we unfortunately do not have a huge home market because of the size of our population. However, we can develop an export market. Let us develop our country and aim to be competitive. We are aware that this issue is with the Inter-Ministerial Committee.
We need to look at new technologies to make our coal environmentally friendly. Coal is going to be with us for a while, because it is still a cheaper method of firing our power stations. This has to go hand in hand with seeking other clean fuels.
In conclusion, I would like to state that it is important that we do prospecting for crude and gas. We are also stuck with the use of crude oil for some time to come. Gas is a clean form of energy. It is important to protect our environment. We owe this to future generations. The IFP supports this Budget Vote. I thank you. [Applause.]