Hon Deputy Chair, one thing about the ANC is that it is not so desperate that it would take a dying party to come and join it. [Interjections.] I just want to say to the hon Lees that we can see the desperation that you are daydreaming. I don't think the ANC wants to wake you from your daydream. Hon Watson was daydreaming as well.
Mining is one of the leading South African industries in sustaining communities. The mining houses are as dependant on the communities as the communities are on them. They understand that growth can only be maintained by uplifting and empowering the communities that support them. These issues must pave the way towards long-term sustainability and success of the communities and mining houses.
Historically, mining houses have always been important contributors to the country's gross domestic product, GDP, and growth in the communities that they serve by providing employment and, very often, roads and schools. They are supposed to do all of this and more to make a sustainable impact on the future of these communities and South Africa as a whole, reaching far beyond the world of mining and its direct employees.
While it has become a South African franchise for adversarial groupings to find common ground for mutual benefit, this has been one of the initiatives of the NCOP during "Taking Parliament to the People". The programme was aimed at ensuring that our people benefit from our national wealth and resources.
On the said programme and the prior visits that we have undertaken, we heard the cries of the communities with regard to the mining houses not fulfilling their obligations which they have set out in their mineral rights applications and with regard to the social and labour responsibilities towards the communities.
Recently, a joint declaration between the ANC-led South African government - hon Lees - labour unions big and small mining businesses has clinched a historic 13-commitment accord to grow and transform South Africa's still well-endowed mining industry. This is a joint mining declaration which the Minister of Mineral Resources observes as a very important first step in the right direction.
A few of the commitments which I want to mention are sustainable development; acknowledging the importance of balancing economic benefits with social and environmental concerns without compromising the ability of future generations to meet their needs; supporting local beneficiation in order to unlock the intrinsic value of South Africa's minerals - that is what the ANC government does, hon Lees - considering the establishment of the national beneficiation agency to drive downstream, upstream and side- stream beneficiation, as well as all industries associated with mining; and enlisting the support of strategic international partners to facilitate skills and technology transfer for the benefit of local beneficiation.
Recognising that mining communities form an integral part of mining development, the parties have committed to developing guidelines and adhering to community consultation processes, developing a partnership approach towards mine community development and considering the establishment of regional social development funds for effective implementation of social and labour plans. You see, hon Lees, the ANC listens and acts, not like the DA, which doesn't have any alternative for that.
During our site visits, we witnessed that mine communities include both the surrounding mine host communities and major labour-sending areas, and that mining operations are in most cases located in remote areas often with less than salubrious facilities for the workforce. Realising that equity ownership provides an effective means of incorporating historically disadvantaged South Africans into the mainstream economy, ownership can afford historically disadvantaged South Africans an opportunity to influence the direction of the mining business in their area.
The Select Committee on Economic Development will vigorously embark on assisting the communities, as part of our oversight, in monitoring the mining houses' commitments to reach a minimum target of 26% ownership by 2014 to enable meaningful economic participation of historically disadvantaged South Africans, which includes black economic empowerment, BEE, transactions being concluded with clearly identifiable beneficiaries in the form of BEE entrepreneurs - hon Watson - workers and communities; ensuring that some of the cash flow accrues to the BEE partner throughout the term of the investment, barring any unfavourable market conditions; ensuring that BEEs have full shareholder rights such as being entitled to full participation at annual general meetings and exercising of voting rights; and ensuring ownership vesting within the agreed timeframes of the BEE structure, taking into account the prevailing market conditions.
In conclusion, South Africa is a land endowed with incredible possibilities, and through the collaborative efforts of all relevant stakeholders, it is contended that much more can be done for our communities. I thank you.