Hon Chairperson, South Africa accounts for over 10% of world gold production, and is the leading producer of precious metals, such as gold and platinum, as well as base metals and coal. It is the world's fourth largest producer of diamonds. This is something to be proud of, but the question is: Should we be proud?
The mining industry is also South Africa's biggest employer, with around 460 000 employees, and another 400 000 people employed by the suppliers of goods and services to the industry. Currently, more than 70% of the mining industry's labour force is black, while less than 5% of managerial positions are held by black people.
A target set by government is that by 2009 all mining companies were expected to have 40% of managerial positions held by previously disadvantaged South Africans. That has not worked, as the charter proved to be inefficient. It is disappointing to note that only 10% of the mining sector had been acquired for black citizens. This failure is very disappointing.
We now have reports that a new mining charter will be endorsed next month to increase black ownership. The question is: How will we ensure that the new charter does not fail where the previous agreement did? The willing- buyer, willing-seller scenario obviously does not work in any sector. Therefore, how will these goals be attained?
The statement by the Director-General of Mineral Resources that all South African mining companies must sell at least 26% of their assets to black investors by 2014 is very impressive, but we need to desist from setting unattainable targets without proper planning, just expecting the stakeholders to comply.
With these few points, the UCDP supports the budget. I thank you. [Applause.]