DMR & Mine Health and Safety Council on their Annual Performance Plans; DPME input, with Minister

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Mineral Resources and Energy

03 May 2017
Chairperson: Mr S Luzipho (ANC)
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Meeting Summary

Mine related illnesses are putting the country on the edge of a silent disaster. The sick labour force is the main worry for the Minister of Mineral Resources though his Department is aware the problem is the responsibility of the private sector and the Department can do nothing about it.

This came out during the discussion session when the Department of Mineral Resources was briefed the Portfolio Committee on Mineral Resources on its Strategic and Annual Performance Plans and Budget for the 2017/18 financial period.

The Department reported it has achieved 75% of its set targets for Quarter 3, especially on its three core programmes of mine health and safety, mineral regulations, and mineral policy and promotion. Transforming the mining sector meaningfully continues to be its area of focus. Through decisive interventions the Department wants to ensure increased black ownership and participation in the sector, and to attract investment and grow the sector through the mineral investment promotion. The focus would be on black ownership and participation; community benefits from mining activities; and monitoring and enforcement of compliance and finalising the Minerals and Petroleum Resources Development Act and Mining Charter.

There has been 100% implementation of the Master Systems Plan and asset management plan. There are no incidents of irregular expenditure. There has been 100% achievement in the following areas: adherence to compliance framework, implementation of risk management plan, and implementation of management action plans (internal and external audit). On skills development, mining career awareness initiatives were held and bursaries on mining related qualifications have been provided.

The Department reported there has been 20% improvement per annum on the reduction of occupational fatalities and injuries. There is 10% improvement per annum on the reduction of occupational diseases including Tuberculosis. There is 80% achievement on adherence to prescribed timeframes for medical appeals and 100% is recorded on the adherence to prescribed timeframes for Chief Inspector of Mines.

The Department further indicated the issuing of mining rights and the implementation of the Social and Labour Plans has created a number of jobs and Social and Labour Plan development projects. The Department has recorded 100% achievement on the adjudication of work programmes and environmental management programme or authorisations.  Every year, the Department holds 150 consultations or engagements with communities and the mining industry on conflict management, and it issues 150 rights and permits per annum to Historically Disadvantaged South Africans (HDSA) controlled entities. The programme adjudicates prospecting and mining rights applications in line with the granting or refusal timeframes.

In terms of facilitating transformation in the mining and minerals sector, the Department has developed and reviewed legislative instruments; finalised the Mining Charter; ensured the Minerals and Petroleum Resources Development Act, Mining Company of South Africa and Mine Health and Safety Amendment Bills are processed and finalised; and developed the Mining Company of South Africa and amended the Minerals and Petroleum Resources Development Act and Mine and Health Safety Act. With regard to progress in the Mineral Beneficiation Strategy, the Department has collaborated with the Department of Trade and Industry on capital goods programme to leverage off the amended Mining Charter, and is working with the Industrial Development Corporation on their strategic high impact projects with focus on manufacturing fuel cells in the country.

The Department of Planning, Monitoring and Evaluation took the Committee through the performance assessments of Outcome 4, 6 and 10 of the Department of Mineral Resources, including recommendations on each Outcome. The Department reported that on Outcome 4 it is unlikely the Department will meet the set targets for the financial year 2016/17. However, they suggested that the actions and targets are revised in line with a more realistic approach. With regard to the Mineral Beneficiation Action Plan, the Department of Planning, Monitoring and Evaluation recommended that the outcomes of the Mining Phakisa, particularly the area on beneficiation, be the basis for the plan. It is recommended that the Department of Mineral Resources produces a recovery plan for the indicators where target dates have passed.

The Department of Planning, Monitoring and Evaluation further indicated the Department of Mineral Resources needs to improve with regard to progress reporting in Outcome 6, Sub-Outcome 2. The Department of Mineral Resources is either supporting or expected to deliver as per Medium Term Strategic Framework requirement during the financial year 2016/17. The Department of Mineral Resources has never reported progress since the beginning of the financial year 2016/17 on some indicators. It is recommended that the Department of Mineral Resources produces a recovery plan for the indicators where targets have lapsed and have not been achieved.

Regarding Outcome 10, the Department of Mineral Resources has up to now managed to rehabilitate 89 derelict and ownerless mine sites against the Medium Term Strategic Framework target of 250. With the 35% achievement to date, without any intervention, it is highly unlikely that the Department would achieve its target by 2019. Significant progress has been made by the Department of Water and Sanitation in the monitoring of mines for non-compliance with the water license conditions. It is recommended the Department of Mineral Resources should develop and implement a recovery strategy for accelerating rehabilitation of the remaining 161 derelict and ownerless mine sites during the remainder of the Medium Term Strategic Framework term. The Department should also present to the Portfolio Committee on Mineral Resources the state of readiness of those 89 rehabilitated sites to be safely utilised for alternative land uses such as agriculture, residential, conservation, etc.

Meanwhile, the Mine Health and Safety Council enlightened the Committee it has developed five initiatives to enable achievement on occupational health and safety matters in the South African mining industry and communities affected by mining activities. The initiatives are as follows:

  • developed four legislative advisory notes for submission to the Minister
  • developed four advisory notes on Occupational Health and Safety from Council Committees for submission to the Minister
  • developed four advisory notes on Occupational Health and Safety Summit Action plan for submission to the Minister
  • conducted one engagement with Mining Qualifications Authority and each of the identified statutory bodies on matters related to Occupational Health and Safety
  • developed the 2018/19 annual research programme on Occupational Health and Safety for submission to the Minister

The entity further reported it has scoped a project to develop guidelines and procedures to avoid future events that led to the Lily Mine disaster. Mine disasters would be commemorated and the focus would be in coal brook disaster and erection of the National Commemoration Site.

In terms of communication and promotion plan initiatives, the Mine Health and Safety Council and Mine Occupational and Safety and Learning Hub have signed a Memorandum of Understanding and an implementation plan that is aimed at promoting and strengthening collaboration in the identification, dissemination and adoption of leading practices in some of the following areas: elimination of fall of ground accidents; elimination of occupational lung diseases; elimination of transport and machinery accidents; and elimination of noise induced hearing loss

The Milne Health and Safety Council also revealed it has implemented the Enterprise Project Management System to manage all projects centrally. Milestones are monitored centrally on the developed dashboard views. The Enterprise Project Management System manages project risks throughout the delivery of the project through risk mitigation measures as contained in projects risk register. The next phase of the project would be on integration with the finance system and activation of alerts to notify project sponsor of any delays.


The Committee Researcher briefed the Committee on the Budget Review and Recommendation Report 2016, Annual Performance Plan and Budget 2017; progress with legislation and policy; and other issues in the budget. He reported that recommendations to National Treasury were not acted upon regarding a substantial investment in the Council for Geosciences mapping and research programme. The recommendations to the Department of Mineral Resources were also not acted upon regarding the development of an annual report for the new Environmental Mineral Resource Inspectorate; appropriate performance measures that reflect on the role of the SA Mineral Resource Administrative Database; and the finalisation and implementation of the Women in Mining Strategy.

On what should the budget allocation for the Department be, the Researcher indicated there is no suggestion that all the revenue collected from mining should go to the Department. The Researcher said mining is “sustainable” when the wealth it creates is re-invested for the good of the nation in infrastructure development, education, public investments, transformation, and policies.

Members asked the Department of Planning, Monitoring and Evaluation to clarify what it meant by the “second phase of democratic transition”; wanted to know why no one has seen Mining Phakisa; commented it appears to be difficult to develop the beneficiation strategy because it has been under discussion for five years now; and asked if the Department takes the Department of Planning Monitoring and Evaluation seriously.

Members then asked the Department if it has considered replacing SA Mineral Resource Administrative Database with something less expensive because the budget is slightly going down; enquired for clarity on the Master Systems Plan; wanted to know how investment is going to be grown through the mineral investment promotion; enquired when the Department is going to finalise the beneficiation strategy; wanted to find out how a fresh investment is going to be brought in the mining sector if there are desires to increase mining in the petroleum sector; asked what criteria are used to make sure even those in rural areas benefit from the bursary scheme; enquired for clarity on the policy for medical appeals by mining employees; wanted to establish what needs to happen before the Shale Gas exploration takes place; wanted to know if there are any programmes in place to support Small Medium and Micro Enterprises; and enquired if there are indications that the Council for Geo-Science budget would increase.

Meeting report

DMR Presentation

Mr Thabo Mokoena, Director-General: DMR, informed the Committee the priority areas of the Department are on the transformation and inclusion through decisive interventions to ensure increased black ownership and participation in the sector, and to attract investment and grow the sector through the mineral investment promotion. The focus would be on black ownership and participation; community benefits from mining activities; and monitoring and enforcement of compliance and finalising the Mineral and Petroleum Resources Development Act (MPRDA) and Mining Charter. The growing of investment would be done through stakeholder engagements towards growing the sector sustainably; state ownership in the mining sector; and upstream petroleum investment including the hiving off of Payment Association of SA (PASA).

For the integrated plan on priority areas to be implemented, internal efficiencies had to be improved through the integrated information and systems including the development of information sharing, management and efficient use of systems. The DMR Brand and Communication Strategy has been reviewed including the Department Service Delivery Model. Entity oversight through ensuring alignment of resources and collaboration across other departments and entities has been given priority as this would improve coordination and streamlining of efforts of State Owned Enterprises (SOEs), especially in skills, beneficiation, small-scale mining, investment promotion and international relations. The Governance Framework for SOEs has been reviewed to include regular engagements with entities at a senior level

The Committee was then taken through the four programmes of the Department: administration, mine health and safety, mineral regulations, and mineral policy and promotion.

Administration Programme

Ms Patricia Gamede, Deputy Director-General for Corporate Services: DMR, reported there is 95% achievement on Service Legal Agreements and 100% of financial reports were delivered on schedule. 100% of suppliers were paid within 30 days. There has been 100% implementation of the Master Systems Plan and asset management plan. There are no incidents of irregular expenditure. There has been 100% achievement in the following areas: adherence to compliance framework, implementation of risk management plan, and implementation of management action plans (internal and external audit). On skills development, mining career awareness initiatives were held and bursaries on mining related qualifications have been provided. Projects for women, youth and people with disability have been facilitated. The DMR programmes have been communicated with external and internal stakeholders through branding and rebranding of DMR offices, public participation awareness initiatives, media, and internal communication initiatives to raise awareness of DMR policies and programmes. There is 80% achievement on timeous response to opinion, appeals, inquiries, agreement, and litigation. Regarding human resource matters, the vacancy rate has been maintained at an acceptable level and affirmative action measures have been implemented.                         

Mine Health and Safety Programme

Mr Mthokozisi Zondi, Acting Deputy Director-General for Mine Health and Safety: DMR, reported there has been 20% improvement per annum on the reduction of occupational fatalities and injuries. There is 10% improvement per annum on the reduction of occupational diseases including TB. The Department has conducted 8000 inspections, 396 audits, and 40 tripartite workshops. The DMR collaborates with the Department of Higher Education and Training (DHET) and other stakeholders through the Mining Qualification Authority (MQA) to ensure the implementation of the skills development programmes. The DMR has recorded 100% adherence to Service Level Agreements (SLAs) and reviewed internal processes. There is 80% achievement on adherence to prescribed timeframes for medical appeals and 100% is recorded on the adherence to prescribed timeframes for Chief Inspector of Mines.

Mineral Regulations Programme

Ms Seipati Dhlamini, Acting Deputy Director-General on Mining Regulations: DMR, stated that the issuing of mining rights and the implementation of the Social and Labour Plans has created a number of jobs and SLP development projects. The DMR has recorded 100% achievement on the adjudication of work programmes and environmental management programme or authorisations. In reducing state environmental liability and financial risk, the DMR has achieved 100% on closure certificates issued in line with the regulatory framework and on orders issued to remedy inadequate financial provision. Every year, the DMR holds 150 consultations or engagements with communities and the mining industry on conflict management, and it issues 150 rights and permits per annum to HDSA controlled entities. The programme adjudicates prospecting and mining rights applications in line with the granting or refusal timeframes.                                                                   

Mineral Policy and Promotion Programme

Mr Joel Raphela, Acting Deputy Director-General on Policy: DMR, informed the Committee this programme had four engagements with relevant departments on the integrated and aligned environmental efforts. In terms of facilitating transformation in the mining and minerals sector, the programme has developed and reviewed legislative instruments; finalised the Mining Charter; ensured the MPRDA, MinCoSA and Mine Health and Safety Act (MHSA) Bills are processed and finalised; and developed the Mining Company of South Africa (MinCoSA) and amended the MPRDA and Mine and Health Safety Act. With regard to progress in the Mineral Beneficiation Strategy, the programme has collaborated with the dti on capital goods programme to leverage off the amended Mining Charter, and it is working with the IDC on their strategic high impact projects with focus on manufacturing fuel cells in the country. About progress on exploration of Shale Gas, the Regulations for Petroleum Exploration and Production have been finalised and were gazetted in June 2015. The Regulations have included provisions for the protection and co-existence of the SKA and shale gas development. The DMR is engaged in public awareness sessions in line with the Shale Gas communication strategy.

In his concluding remarks, the Director-General pointed out that transforming the mining sector meaningfully and sustainably continues to be their focus area. The DMR is confident the plan has responded adequately to the NDP, recommendations from the Budget Review Processes, Nine Point Plan, and other plans of the government. The DMR has put in place processes to ensure the annual performance plan is implemented.

(Tables and graphs were shown to illustrate financial overview over the MTEF)

DPME Presentation

Mr Rudi Dicks, Outcome Facilitator, DPME, took the Committee through the performance assessments of Outcome 4, 6 and 10 of the DMR, including recommendations on each Outcome.

Outcome 4 Performance Assessment and Recommendations

Mr Dicks reported it is unlikely for the DMR to meet the set targets for the financial year 2016/17. However, the DPME suggested that actions and targets are revised in line with a more realistic approach. With regard to the Mineral Beneficiation Action Plan (MBAP), the DPME recommends that the outcomes of the Mining Phakisa, particularly the area on beneficiation be the basis for the MBAP. Improved coordination and cooperation is required by DMR and the Department of Trade and Industry (dti) to ensure delivery on a beneficiation strategy, and given the long lead time in to determining viable Shale Gas quarterly reporting on the action may not be practical and reporting timeframes should be revised. The delay in the finalisation of the Mineral and Petroleum Resources Development Act (MPRDA) continues to impact on mining investment. Although the DPME has seen recovery in some mineral commodity prices in 2016, the mining investment remains low.

It is recommended the DMR produces a recovery plan for the indicators where target dates have passed. South Africa remains an important producer of a number of key minerals. However, uncertainty regarding government policy relating to the mining sector and its supporting industries has discouraged fixed capital formation. Furthermore, the impacts of higher electricity prices on goods-producing industries, especially the mining and manufacturing sectors, are of particular concern. Mining and mining related activities (upstream and downstream) would for a relatively long period remain one of the main drivers in terms of its contribution towards GDP. The DPME would remain vigilant in ensuring that mining communities benefit from mining activities in their areas, and the government needs to ensure that all stakeholders engage on how to utilise beneficiation more effectively to ensure economic growth and job creation.

Outcome 6 Performance and Recommendations

The Department of Mineral Resources needs to improve with regard to the progress reporting in the Outcome 6, Sub-Outcome 2. The DMR is either supporting or expected to deliver as per MTSF requirement during the financial year 2016/17. The DMR has never reported progress since the beginning of the financial year 2016/17 on the following indicators:

  •  To establish formal structure to foster collaboration between government, Eskom, Transnet, Sasol, IPP and the coal industry by December 2014
  • To have a Cabinet approval of National Coal Policy with regulations that would include a strategy to secure coal supply by July 2016

It is recommended the DMR produces a recovery plan for the indicators where targets have lapsed and not been achieved. The DPME MTSF refinement process should be utilised in instances where indicators and targets need to be tailored differently. Challenges hindering progress and achievement of targets, support required and intervention thereof from Cabinet should be clearly defined in the Programme of Action (PoA) report. The DMR should drive processes where collaborative intervention is required for the achievement of targets. An Explanatory note is required where progress report is not submitted for the quarter under review.

Outcome 10 Performance and Recommendations

To date, the DMR has managed to rehabilitate 89 derelict and ownerless mine sites against the MTSF target of 250. With the 35% achievement to date, without any intervention, it is highly unlikely that the DRM would achieve its target by 2019. Significant progress has been made by the Department of Water and Sanitation (DWS) in the monitoring of mines for non-compliance with the water license conditions. 258 out of 450 (57%) mines have been monitored so far. However, coordination and cooperation at operational level between DMR and DWS officials need improvement. The DMR as a Competent Authority has not commenced reporting the percentage of Environmental Impact Assessment Applications (EIAs) it is able to finalise within the legislated timeframes (107 days) against an efficiency target of 98%, in the National Environmental Assessment System (NEAS).  As a result, the sector is unable to determine the efficiency of the DMR in carrying out this legislated mandate; and there is still poor attendance in the participation of the Outcome 10 Implementation Forums though reports are submitted quarterly.

It is recommended the DMR should develop and implement a recovery strategy for accelerating rehabilitation of the remaining 161 derelict and ownerless mine sites during the remainder of the MTSF term. The DMR should also present to the Portfolio Committee on Mineral Resources the state of readiness of those 89 rehabilitated sites to be safely utilised for alternative land uses such as agriculture, residential, conservation, etc. Access to land is one of the burning issues in the country and this programme could be used to address the challenge of equal access to land. In light of the nature of environmental degradation related to mining activities, the DMR as a Competent Authority should provide reasons for the continuous delay in reporting progress on Environmental Impact Assessment Applications that are finalised within legislated timeframe and propose remedial actions. In the absence of the DMR reporting on NEAS or manually so, the sector is unable to determine the level of efficiency at the DMR in processing EIAs and give an accurate sector wide performance status in an attempt to ensure sustainable economic growth in the country.

Feedback on the DMR 2017/18 2nd Draft APP

The DPME conducted an assessment of the 2017/18 second draft APP of the Department of Minerals and Resources (DMR). The assessment was done in conjunction with National Treasury. Departments are required to submit 1st and 2nd draft APP to DPME every year by 31st Aug and 30 Nov. respectively. DPME provides recommendations to departments on both drafts for the improvement of plans.

It was highlighted that the DMR has included a number of operational indicators in the APP that are administrative focused, for example: “Percentage adherence to compliance framework”; “Implementation of management action plan (external audit)”. The APP is supposed to reflect high level outputs which focus on service delivery outputs or interventions that address blockages in the service delivery environment. Administrative/ process driven indicators should be reflected in the DMR’s operational plan.

It was also reported some of the indicators in the DMR plan are not clearly crafted and are measuring too many variables, for example: “Percentage of identified internal processes developed, reviewed and implemented”.  This makes it difficult to understand and monitor what is being measured and may result in disjuncture between the strategic intent reflected in the SP and what is being measured in the APP.

Performance indicators should be well defined to reflect measurability of the intended outcomes and outputs to be achieved.

It was further mentioned the DMR did not update its situational analysis for the 1st draft APP, but has updated it in the 2nd draft. However, the updated situational analysis in the 2nd draft made reference to outdated data which may not necessarily reflect the current situation in its environment. The situational analysis depicts the current changes in the external and internal environment of the DMR and also outlines the challenges that may have a bearing on the achievement of the DMR’s goals.  It further outlines new opportunities and strategies the DMR would embark on to address the identified challenges.

The updating of the situational analysis is crucial as it reflects that the DMR’s planning is evidence based on current issues in the micro and macro environment at large.  

Mr Dicks, in his conclusion, stated the DMR has achieved over 75% of its set targets for Quarter 3 in the core programmes (Programme 2 – Programme 4). It should, however, be noted that the DMR has also included operational/administrative indicators within each of the core function programmes, such as “% adherence to time frames”; “% implementation of management action plan (Internal Audit) “which should only be reflected in the Administration programme.  This has also contributed to the high number of reported achieved targets.

Researcher’s Presentation
Dr Martin Nicol, Committee Researcher, RSA Parliament, centred his presentation to the Committee on the BRRR 2016, APP and Budget 2017; progress with legislation and policy; and other issues in the budget. Concerning the BRRR, APP and Budget 2017, he reported that recommendations to National Treasury were not acted upon regarding a substantial investment in the Council for Geo-Sciences mapping and research programme. The recommendations to the DMR were also not acted upon regarding the development of an annual report for the new Environmental Mineral Resource Inspectorate (EMRI); appropriate performance measures that reflect on the role of the SA Mineral Resource Administrative Database (SAMRAD); and the finalisation and implementation of the Women in Mining Strategy. The 31 March 2017 deadline for the publication of the Mining Charter was missed.

Pertaining to other issues in the budget on mining, Dr Nicol reported the tax problems for mines arising from NEMA would be addressed. The Davis Tax Committee has submitted its final report on mining tax in December 2016 though it is not yet released. The draft proposals of 2015 were controversial and would impact negatively on mining. A discussion paper on options to address Acid Mine Drainage would be released in mid-2017. The revised Carbon tax proposals would be tabled and that would have no effect on the electricity price until 2020.

Dr Nicol further pointed out the DMR has convinced the Committee, not National Treasury, that it is under-funded in at least three respects:

  • Council for Geo-Science (R1 billion is needed for mapping)
  • Environmental Inspectorate (new responsibilities did not come with adequate resources)
  • SAMRAD (the DMR lacks funds for a world class database on the identity of right holders and where rights have been granted)

This expenditure is needed because the DMR is the custodian of the mineral wealth.

On what the budget allocation for DMR should be, Dr Nicol indicated there is no suggestion that all the revenue collected from mining should go to the DMR. He said mining is “sustainable” when the wealth it creates is re-invested for the good of the nation in infrastructure development, education, public investments, transformation, and policies.

(Graphs and tables were shown to illustrate performance measures for DMR, non-tax revenue from mining 2006/07 to 2017/18, Company Income Tax revenue from mining vs DMR budget allocation 2008/09 t0 2017/18, and DMR budget vs revenue collected from mining)

MHSC Presentation

Mr Thabo Dube, Chief Executive Officer: MHSC, focused his presentation on the customer and stakeholder perspective. He said the MHSC has developed five initiatives to enable achievement on occupational health and safety matters in the South African mining industry and communities affected by mining activities. The initiatives are as follows:

  • developed four legislative advisory notes for submission to the Minister
  • developed four advisory notes on OHS from Council Committees for submission to the Minister
  • developed four advisory notes on OHS Summit Action plan for submission to the Minister
  • conducted one engagement with MQA and each of the identified statutory bodies on matters related to OHS
  • developed the 2018/19 annual research programme on OHS for submission to the Minister

The entity’s target is to eliminate fatalities by December 2020. Up to December 2016, there has been 20% reduction in serious injuries per year. From January 2017, there has been 20% reduction in Lost Time Injuries per year. Every mining company must have a target of zero fatalities. In its implementation of health milestones, the MHSC is working on the elimination of noise induced hearing loss, elimination of lung diseases, rehabilitation of mine workers injured on duty, and integration and simplifying of compensation system. The revised integrated policy on HIV/AIDS and TB management and related guidelines would be finalised during 2017/18 for implementation by mines. The MHSC is collaborating with on Masoyise iTB initiative to strengthen TB and HIV management and control in the mining industry. The 2016 promotional campaigns were aimed at encouraging employees and communities to know their TB, HIV and other lifestyle disease for better management and care.

Regarding the elimination of genderism and all forms of discrimination, the MHSC has finalised the development of guidelines with minimum standards for the SAMI for implementation and incorporation into their policies for addressing this issue. The Minister has also approved the guideline outlining the process to identify, assess and adopt leading practices in the SAMI including registering those identified on the MHSC database.

Mr Dube reported that the MHSC has scoped a project to develop guidelines and procedures to avoid future events that led to the Lily Mine disaster. Mine disasters would be commemorated and the focus would be in coal brook disaster and erection of the National Commemoration Site. A Small-Scale Mining (SSM) guideline to assist the SSM to comply with the MHSA has been completed and would be disseminated in RTFs and SSMs.

In terms of communication and promotion plan initiatives, the MHSC and MOSH Learning Hub have signed an MoU and an implementation plan that is aimed at promoting and strengthening collaboration in the identification, dissemination and adoption of leading practices in some of the following areas:

  • elimination of fall of ground accidents
  • elimination of occupational lung diseases
  • elimination of transport and machinery accidents
  • elimination of noise induced hearing loss

The pilot campaign on Women in Mining (WIM) is there to create more awareness on Personal Protective Equipment (PPE) and sexual harassment issues was undertaken through RTFs. The campaign was held in Klerksdorp to assess the implementation of the PPE and prevention of sexual harassment materials and men pledging to end sexual harassment against WIM.

There are other initiatives on Information and Knowledge Hub for occupational health and safety research outcomes and availability of Occupational Health and Safety Research outcome from various institutions. Another initiative is around the implementation of the Centre of Excellence which would undertake Quick-wins Projects and Technology and Knowledge Transfer. The Centre of Excellence was launched in 2014 during the OHS Summit. The Quick-wins Projects are aimed at understanding the impact of technology on people in the SA mining industry, under and surface communication system, locating missing persons, etc.

The MHSC also revealed it has implemented the Enterprise Project Management System (EPM) to manage all projects centrally. Milestones are monitored centrally on the developed dashboard views. The EPM manages projects risks throughout the delivery of the project through risk mitigation measures as contained in projects risk register. The next phase of the project would be on integration with the finance system and activation of alerts to notify project sponsor of any delays.

In terms of capacity building initiatives, the MHSC conducts the skills audit, implements the skills audit recommendations, sources the required skills, implements technical and soft skills training interventions, and monitors the implementation of personal development plans. Initiatives to improve expenditure include:

  • critical monthly project milestones variances monitoring
  • Centre of Excellence Projects Implementation
  • Surplus Funds Utilisation Plan
  • Research Projects Budgets including all new contracted projects
  • Tight monthly budgets vs expenditure analysis and interventions
  • Surplus is expected to be depleted by 2021

(Tables and graphs were shown to illustrate financial performance and approved budget for 2018 – 2020)

Discussion

DPME Presentation

Mr J Lorimer (DA), first, asked for clarity on the meaning of “the second phase of democratic transition”. Second, he wanted to know why no one has seen Mining Phakisa. Third, he asked for clarity on why there is no evidence on fixed capital formations. Fourth, he wanted to establish the role the NDP has played in the process.

Mr Dicks, regarding the second phase of the democratic transition, explained it refers to what the ruling party refers to: the adoption of the NDP, radical economic transition, creation of an inclusive economy, and reduction of poverty and job losses. On the role of the NDP, there is a need to deal with challenges around the issue. The government has done a lot on the social sector: education, social grants, human settlements, etc. To be honest, the government has not done well on the economy. The country is on track of meeting the target of 11 million jobs. The debate should be around reducing poverty, job creation and economy. 75% of the economy is controlled by the private sector while the government controls the rest. It is important to align things with the NDP. Interventions should be on job creation, poverty reduction, etc. Concerning fixed capital formations, he reported that global markets are changing. There is a need to look at bulk commodities just like China.  This creates an opportunity for emerging miners. The government is not putting in money to create investment in the mining and manufacturing sector. With regard to Mining Phakisa, he reported there are many processes that are currently underway e.g. the Kholo Road Facility was going to be sold at a retail price to an investor and convert it into a housing project, but Mining Phakisa stopped that transaction. The DMR has to present to the Committee when it is ready about Mining Phakisa.

Mr H Schmidt (DA) remarked there is a disjuncture between the DPME and DMR because the DMR did not update and analyse information on its situational analysis for the 1st draft APP but has updated the 2nd draft. He further commented it appears to be difficult to develop the beneficiation strategy because it has been under discussion for five years now. It is impossible to leave it to the DMR.

Mr Dicks explained there is no disjuncture between the DPME and DMR. The DMR needs to update information on what is available or happening in the mining sector. Change in leadership of the DMR has had an impact on continuity in addressing pressing matters and concerns. This is not unique only to DMR. There is a need to develop a coordinated approach on how mining is seen because mining is not about digging holes. Pertaining to beneficiation, he stated it requires a coordinated approach with the dti, EDD, DMR, National Treasury, and Department of Energy. It is not an easy thing and things would take time to materialise.

Mr Lorimer asked if the DMR takes the DPME seriously.

The Minister of Mineral Resources, Mr Mosebenzi Joseph Zwane, explained the DMR takes seriously what the DPME has presented. This means planning is not only the duty of DMR. The presentation reflects on both departments to plan better on the issues raised. This would take care of the inter-departmental integration so as to move forward. The issue of Mining Phakisa has to be finalised so that everyone knows about it. It still has to be approved by the cabinet. It is not yet a formal programme.

MHSC and DMR Presentation

Mr Lorimer, first, wanted to know if the DMR has considered replacing SAMRAD with something less expensive because the budget is slightly going down. Second, he asked for clarity on the Master Systems Plan. Third, he wanted to find out why the DMR is providing bursaries. Fourth, he wanted to establish if litigation cases were completed timeously. Fifth, he enquired if the legal unit is sufficiently resourced.

Mr Joel Raphela, on SAMRAD, explained when they started to plan a baseline, they were informed of budget cuts on Compensation of Employees (CoE). As a result, they had to reprioritise and fill in all the posts. The posts have been rationalised to be in line with the budget. Goods and Services found a way of communicating through an integrated system seeing that there were budget cuts. About the Master Systems Plan, he said this is just a name for all their systems, not only for SAMRAD. Regarding bursaries, he indicated the DMR only facilitates the bursaries process because it gets assistance from mining companies and stakeholders. It does not provide from its coffers. With regard to litigations, he stated they have tried to complete a few cases, but there are still outstanding ones. Currently, they are finalising cases that are less than ten. Every year, they try to complete the big ones. On adequate resources of the legal unit, he pointed out that the Directorate of Legal Services needs to be resourced in order to speed up the processes.

Mr Lorimer asked if the technical and promotional publications produced by the DMR could be made available to the Committee. He also wanted clarity on the granted time extension by DMR to provinces on MPRDA. Further, he wanted to know how investment is going to be grown through the mineral investment promotion. Then he enquired when the DMR is going finalise the beneficiation strategy. And he wanted to find out how a fresh investment is going to be brought in the mining sector if there are desires to increase mining in the petroleum sector.

The Director-General, regarding publication, stated the publications are public and could be accessed when finalised. Arrangements would be made to forward them to the Committee. Concerning MPRDA, they continue to make a plea that the Bill be finalised as soon as possible, but noted they are not operating in a vacuum because the DMR cannot prescribe to Parliament of how quickly to finalise the Bill. Pertaining to growing investment through the state-owned mining company, he elaborated that African Exploration has a pipeline of projects that could contribute to investment in the mining industry and it is competing with private companies. With regard to the finalisation of the beneficiation strategy, he indicated the strategy is in place and the DMR is continuing working with the dti, EDD, National Treasury, and other SOEs like Mintek, State Diamond Trader, etc. Other stakeholders are those interested in the beneficiation. On bringing fresh investment, he stated the exploration sphere is good for the promotion of investment in SA. The DMR is participating in other investments platforms to attract new investment in SA, and helping small companies to grow big just like the other big mining companies.

Mr Lorimer further asked a number of questions: when is the new version of the Mining Charter going to be seen; asked for clarity on the Environmental Annual Report of the DMR; what needs to happen before the Shale Gas exploration takes place; are there any programmes in place to support SMMEs; and enquired if there are indications that the CGS (Council for Geo-Science) budget would increase.

Ms Seipati Dhlamini, concerning the new Mining Charter version, reported the DMR has not missed the deadline, but in a genuine effort to address the concerns of the stakeholders, the process was extended to ensure they produce a good product. About the DMR Environmental Annual Report, she said they have submitted inputs to the Department of Environmental Affairs (DEA) and noted there are certain parameters they operate in, which have to be respected and taken into consideration. Pertaining to the SMME support, she indicated it is the members of the public who approach the DMR for assistance, even in regional offices, especially the small-scale mining companies. The DMR provides technical support and identifies challenges they are faced with. In the previous year, the DMR supported 80 small-scale mining companies and that is the target it plans to stick with. With regard to funding for the CGS, she pointed out last year there was no window to ask for additional funding. There is not even an indication this year for that because everything is in the hands of Parliament. Maybe, next year it would happen. Regarding the Shale Gas exploration, she stated applications have been lodged and processed. Once the processing of the applications has been finalised, then everything would be dealt by regulations.

The Minister added that the Shale Gas process is still consulted upon. The people they are consulting with are saying they are ready for action e.g. the Northern and Eastern Cape ordinary people. There are interest groups as well they hear of in the media and the doors of the DMR are open for discussion. Consultations are being done with the DEA and DST (Department of Science and Technology). He stressed that the Committee has been given powers to stop the process of fracking if there is any risk. A pilot project is happening in Beaufort West. So far, it is successful. Legislatures who have requested information have been invited to make submissions.

Mr Lorimer, finally, asked two last questions. He wanted clarity on the radical economic transformation of the sector, and asked for an update on PASA.

The Minister elaborated that radical economic transformation is a term that should be used by all of us. The majority, especially Black Africans, are still behind when it comes to economic participation. Out of the top 16 richest families in SA, only 2 are black. It’s their work as the government and representatives of the people to emancipate the Black Africans. All problems should be addressed in one voice. He said their mission is to change the pattern of ownership so that Black Africans are not BEE forever in their own country.  On PASA, he said the entity has an acting CEO. Five years ago, there was a decision PASA should be taken back to the DMR because it is also regulated by MPRDA. It was agreed the state mining company and PASA should be given to the DMR, and it is not true the DMR was keeping the state mining company under its wing. The state mining company is still with the Department of Energy.

Ms M Mafolo (ANC) asked what criteria are used to make sure even the ones in rural areas benefit from the bursary scheme. She also asked for clarity on the policy for medical appeals by mining employees, and wanted to know the three countries the DMR is busy conducting negotiations with.

Mr Mthokozisi Zondi, concerning medical appeals, explained that employees can apply to the Department for a review process where the matter would be discussed by a panel of experts. On bursaries, there is a process they engage in before awarding the bursaries. They place newspaper advertisements that state clearly the intentions of the bursary regarding the mining work e.g. artisan work in mining.

The Minister, with regard to the countries the DMR is negotiating with, elaborated they have already gone to Nigeria, Mozambique and other countries to help them with the CGS services. The DMR would be going to Botswana, Zambia, Lesotho, and other African states so that they benefit from this growth.

Mr A Pikinini (ANC) asked the DMR to comment on the skills development programme and on its efforts to achieve zero harm on the HIV epidemic.

Mr Zondi, regarding skills development, indicated they do set targets when a licence is issued on jobs to be created and up-skilling and training of people. Last year, the DMR trained 39 000 environmental workers who have been already absorbed into the system.

The Minister pointed out his main worry with the DMR is that when you raise a concern, you discover there are more serious problems. The country has a sick labour force, especially on mine related sicknesses. 191 000 miners have tested for HIV and 121 000 have tested HIV positive. This is going to be a threat and these people are going to lose capacity to perform the work. The DMR is aware that the problem is a private sector concern and the Department can do nothing about it. This is a silent disaster.

Mr S Jafta (AIC) remarked that Dr Nicol’s presentation has pointed out the DMR has successfully convinced the Committee about the budget increase but the Department has not relayed the information to the National Treasury. There would be contradiction and unfairness if it does not convey that information to Treasury.

The Minister remarked the Mine Health Safety Council cannot continue to have a surplus when there are lots of accidents taking place in the mining industry. He is not suggesting money should be spent recklessly, but it should be depleted by 2020 and not to project for shortages. The DMR’s approach to National Treasury is not based on the individual but on the institution. As a regulator, it is the work of the DMR to bring awareness and statistics.  On the issue of planning, he was surprised the Committee did not raise the issue of the DMR to work with other departments like EDD, dti, etc. Planning is not the sole responsibility of one department, and he felt the Committee should have given the DMR credit for achieving 75% of its targets. The DMR should be commended for communicating the need for people to get tested so as to know the number of the affected. Lastly, he indicated there is a project that has unfolded and it involves the rollout of a special work kit for females in the mining industry.

The meeting was adjourned.

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