SPEAKING NOTES BY THE HONOURABLE DEPUTY MINISTER OF MINERAL AND PETROLEUM RESOURCES JUDITH NEMADZINGA (MP)
BUDGET VOTE 34
DEPARTMENT OF MINERAL RESOURCES AND ENERGY
NATIONAL COUNCIL OF PROVINCES
25 JULY 2024
Chairperson of the National Council of Provinces, Ms Refilwe Mtsweni-Tsipane
Minister of Mineral and Petroleum Resources, Mr Gwede Mantashe
Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa
Honourable Members
It is an honour that I stand before you today to deliver my maiden address in this august house as the Deputy Minister of Mineral and Petroleum Resources.
Honourable Chairperson, our nation has, over a century, benefitted from the mineral endowment that our nation is blessed with, albeit not without limitations.
Although the mining sector has been the backbone of the South African economy which led to major developments in areas with natural resources and access to ports, such as Gauteng, KwaZulu-Natal, and the Western Cape, the fact of the matter is that the pit-to-port approach to mining only benefitted a few in urban areas, whereas workers and mining communities were left poorer.
The enactment of the Mineral and Petroleum Resources Development Act (MPRDA) in 2002 and the introduction of the Mining Charter in 2004, presented significant changes in the living conditions of mining communities and labour sending areas, transformed the working conditions of mineworkers, and paved the way for the participation of previously disadvantaged people, in particular women and youth – who are the hardest hit populace by the scourge of unemployment, poverty, and inequality
It is heartening that since the dawn of democracy in 1994 and the introduction of the MPRDA, black ownership in the mining industry has increased from 02% to 39%, whereas women participation in the industry is now over 72 000. More encouraging to us is that not less than 2 women hold executive positions in global mining companies, and that today, we have the 2nd female President of the Minerals Council South Africa (MCSA) since its inception 135 years ago.
In order to sustain this transformation into the future, the department continues to empower women with mining skills and knowledge through the Women Diggers Programme and provide financial and non-financial support to artisanal and small-scale miners. To this end, Mintek has trained over 200 women across South Africa, from which 7 co-operatives were formed and have since applied for small-scale mining permits
Given South Africa’s endowment with the world’s largest reserves of Platinum Group Metals (PGMs), the manner in which these minerals are extracted and processed will require maximum participation of artisanal and small-scale miners. It is in this context that the department will convene regular workshops and information-sharing platforms to encourage emerging miners to seize opportunities presented to them with a particular focus on historical mining provinces, including Free State, Gauteng, Limpopo, Northern Cape, and North West.
In these workshops, we will be joined by mining experts who will impart knowledge and skills to the participants from institutions such as Mintek, Mining Qualifications Authority, Mine Health and Safety Council, Council for Geoscience (CGS), State Diamond Trader, South African Diamond and Precious Mineral Regulator, and other government departments.
Honourable Chairperson, we cannot ignore the dreadful heritage of mining companies leaving holes on the ground that have become a fertile ground for illegal miners and continue to pose a danger to society. It is against this background that the department has reprioritised R181.9 million from its allocated budget to increase the funding for the rehabilitation of derelict and ownerless mines, and thus bringing the total allocation for this programme to R310.8 million during the current financial year.
Mintek has since the inception of this programme rehabilitated 42 abandoned mines and closed 396 holings. An additional 2 mines are currently being rehabilitated, while 5 more derelict and ownerless mines are undergoing the design and planning phase. With the additional funding for this current financial year, the department intends to further rehabilitate 3 mines and close 40 holings.
Informed by the geological mapping programme of the CGS which identified Limpopo, Northern Cape and North West Provinces as the corridor or new mining belt with mineral resources that are needed for the global transition from high-to-low carbon emissions, the department will continue promoting investments in these provinces to enable South Africa to optimally benefit from the anticipated increase in demand of these resources.
In order to create value of the minerals extracted in our shores and ensure that that the benefits of mining accrue to the people of South Africa, we will focus our energies on ensuring that these minerals are beneficiated locally and therefore limit the exportation of the jobs associated with beneficiation.
Fact of the matter is that for South Africa to guarantee inclusive economic growth and realise employment creation, beneficiation at source becomes critical. It is therefore imperative on all of us to ensure reliable and affordable electricity supply to support local beneficiation.
We, therefore, urge members of this august house to support government’s initiatives that are aimed at facilitating entry and meaningful participation of historically disadvantaged persons in the mainstream economy, including but not limited to, the exploration of both mining and petroleum resources and the funding of artisanal and small-scale miners.
Your support for these initiatives will not only transform the mining and petroleum industries but will further accelerate the discovery of new mineral resources, promote the emergence of new mines, advance the development of South Africa’s Upstream Petroleum Industry, and ensure that women and young people become active participants in the extraction and exploitation of our nation’s mineral and petroleum endowment.
Honourable members, multistakeholder initiatives and tripartite alliances have contributed to the improvement in the mining industry’s health and safety performance as was evidenced by among others, the reduction in the number of fatal accidents from 46 in 2022 to 37 in 2023, and the significant reduction on Trackless Mobile Machinery (TMM) related fatalities, from 20 fatalities in 2022 to 8 in 2023. Notwithstanding these efforts, we are still far from realising the goal of zero harm.
It is in this context that the department will intensify inspections at mines, including unannounced visits, to monitor the sectors compliance with the Mine Health and Safety Act (MHSA). We will further collaborate with organised labour and business on campaigns to raise awareness about the importance of adhering to health and safety protocols.
We are convinced that by addressing our persisting challenges and continuing to enforce rigorous safety protocols, the industry can further mitigate risks and prevent incidents, and thereby ensuring a safer working environment for all.
In closing, honourable chairperson, allow me to pledge our commitment to working with members of this house, organised labour, communities, and business to transform the mining and petroleum industries and make them globally competitive.
I thank you.