In the state of the nation address the President declared 2011 a 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 could be created. You will realise that, in line with the above, section 26 of the Mineral and Petroleum Resources Development Act, MPRDA, which came into effect in 2004, legislates the policy concerning the exploration of the country's minerals. The Act addresses the following, among others: transformation of the industry; promotion of equitable access to South Africa's mineral resources; and promotion of investment in exploration, mining and mineral beneficiation.
Chairperson, beneficiation is one of the issues dealt with in the mining charter and is considered a viable avenue for increasing export earnings, creating employment locally, and furthering black empowerment initiatives.
The four stages of beneficiation include mining and production; bulk tonnage intermediate product; refined product; and finished consumer and industrial products.
Comrade Chairperson, the steps that the democratic government has taken might look small and insignificant at this point, but we need to applaud them. And as we applaud them, let me say that more is needed if we want to talk meaningfully about the actual inception of the concept. It is important for government to guide and lead the mining industry in formulating and accounting for a clear picture of the current status of beneficiation in the country, the extent to which beneficiation should be pursued in the immediate future, and what long-term future potential beneficiation has for the country.
The Broad-based Socioeconomic Empowerment Charter, which stipulates that beneficiation is those activities beyond pure mining and processing and includes the production of final consumer goods, also makes provision for mining companies to possibly offset the value of their beneficiation achievements against their historically disadvantaged South African ownership commitments. As things stand now, there is no clarity as to how mining companies will calculate the level of their beneficiation in order to achieve these offsets.
Chairperson, as government and as the ANC we strongly believe that pursuing beneficiation to its utmost potential is in the country's national interest, and legislative doors should be opened and institutional arrangements should be made for that to happen.
Yet we understand that any legislative or institutional arrangement for beneficiation in South Africa will be fiercely opposed by local individuals and certain companies. It is definitely going to be seen by those who are comfortable with the status quo as a form of punishment for the industry. I say no, it is not.
We know that by nature people are allergic to change, but I must assure this House that the current government and the state-owned entities will certainly pursue this initiative. We won't rest until change is achieved in this industry.
The ANC supports Budget Vote 32. [Applause.]