Hon Chair ... Hon Chair. Hon Chairperson, on a point of order.
... we were worried on your behalf ...
Hon Chair ... on a point of order, please.
... because we thought your life would be in danger ...
Hon Chair! Hon Chair!
... [Inaudible.] ... from those rogue elements in the ANC.
Hon Chair! Hon Chair!
The talk of nationalisation has done much harm ...
Hon Chair! Hon Chairperson, point of order, please.
... to the mining industry.
Hon Chair, could you please ask the hon member to maintain the decorum of the House. How can he say, for goodness' sake, that the hon Minister "has got balls". [Laughter.] For goodness' sake!
The talk of nationalisation has done much harm to the mining industry, and it will take years to recover the losses thereof. It now rests on the Department of Mineral Resources to rebuild investor confidence and recreate a conducive environment for business to operate in the mining industry, particularly when it comes to the unemployment rate, which sits at a horrifying 25,2%.
It becomes ever more important to ensure that government policy is - and its utterances are - crystal clear on matters of economic relevance in mining especially. This is extremely urgent, if the optimism of the National Development Plan is anything to go by, as it states that from the mining sector 300 000 direct and indirect jobs could be generated by 2030.
Hon Chair, could the member please withdraw that statement?
Hon member, that point of order is about a figure of speech that is often used. Are you finished, or are you going to continue? [Laughter.]
Hon Chairperson, it's very unfortunate when elders become very emotional when we are discussing important matters of state.
The IFP maintains that minerals will continue to be the mainstay of the economy for many years to come. Because of this, the mining industry provides jobs for many South Africans. The government has an obligation to ensure that it allows business to operate as efficiently and profitably as possible. State interference in the mining industry should be kept to a minimum.
Notwithstanding all its other objectives, we call upon the department to take care of the environment and to ensure that modern methods of mining and extraction prolong mine life.
Hon Minister, we welcome the efforts being made by you and your department through the Mining Qualifications Authority to address the shortage of mining and chemical engineers and other skilled labour. The IFP expects the department to work closely with the Departments of Basic Education and of Higher Education and Training to ensure that our education system is producing a workforce that is compatible with the needs of the mining sector.
In this regard, education and training standards of the industry should be designed to ensure that it is possible for individuals to move freely within the industry and, if so desired, outside the industry. Hon members and hon House Chairperson, I thank you.
Nehlise imimoya! [Please calm down!]
Chairperson, hon Minister and Deputy Minister, other members of Cabinet present here, hon members, dignitaries from the mining houses, representatives and leaders of organised labour in the mining sector, the Minister's tabling of this Budget Vote policy statement takes place at a time when memories of the Lonmin Platinum Mine tragedy at Marikana are still fresh in the minds of many South Africans. This and other ongoing industrial strikes engulfing the mining sector in South Africa call for decisive leadership and bold action from government, labour and business.
The leadership required should work towards accelerating transformation within the mining sector as a means towards ensuring social cohesion, social responsibility and responsive corporate citizenship. Our commitment to transforming the apartheid colonial socioeconomic relations in the mining sector in particular will never be found wanting.
We make this bold statement, convinced that none but ourselves and the masses of our people, led by the ANC, will continue to identify and correct the fault lines in the policy choices we have made in pursuit of fundamental transformation. In doing this, we will neither claim easy victories nor resort to fallacy in order to play to the gallery, as has become fashionable in the contemporary South African body politic.
Of course, we witnessed this not so long ago when opposition parties wanted us to digress from debating a very important policy issue on mining transformation. They have no intentions regarding the conditions of our people, the majority of whom are black - our African majority - in South Africa. Transformation is not like driving on a highway, counting the number of cars you pass while driving to a destination. It is a complex process of change that involves people and that observes the objective conditions that prevail at a given time. When the Minister and the rest of South Africa's government dig deep to find sustainable solutions for the process of change, it is an important process of development.
In any case, we must state that when the ANC adopted the Freedom Charter, the racist minority regime said it was a communist party document, that it smelt of ideology. It is no surprise that they want to hide their history. Today the hon member was unable to hide associating himself with a stagnated backward party that still smells ideology where none exists. [Applause.] It is clear that the DA wants to cling to the old apartheid colonial structure of the economy, because they stand to benefit and because it represents the interests of the white minority.
The debate on the transformation of the mining industry must be premised on breaking down the historical accumulation based on extractive mining, cheap labour, and environmentally degrading and socially irresponsible mining. The change we pursue in the mining industry seeks to advance environmentally sensitive mining, patriotic corporate citizenship, industrialisation that expands mining production, creating decent jobs and building competitiveness in our mining industry. The expansion of mining production should include building a reliable and efficient industrial supplier network upstream and efficient downstream value-adding processing and beneficiation of mineral products. Our focus on sector competitiveness is about improving production and management efficiencies, unleashing production innovation and improving product quality and services within the sector.
Africa possesses natural resources adequate for its needs and future development. As a country, we are poised to play a meaningful and exemplary role in ensuring that our national and natural assets are optimally exploited to build sustainable downstream production opportunities. A message is repeated endlessly that we should use our existing and positive heritage to lead the continent out of poverty, away from underdevelopment and towards sustainable growth and development.
The continent remains a virgin platform for unparalleled growth and development - ongoing discoveries and an abundance of natural resources present an opportunity to further the goals of integration and regeneration of all the people and the economy of our beloved continent of Africa.
Our mineral resource policy framework must always seek to create a balance between vibrant economic growth and a sustainable environment. Our present needs remain unquestionable and justifiable, as long as our actions are sensitive to the environment so that all South Africans, present and future, enjoy the right to an environment that is not harmful to their health or wellbeing. Our generation must guarantee this right by urgently addressing and enforcing mine rehabilitation challenges in all the forms in which they manifest themselves.
Transformation of the mineral sector must be thorough and timely. Parliament must be sensitive to the needs of all sectors in our society - in this case, the needs of both labour and business. The casualisation of labour and the ever-present onslaught against the labour rights remain critical elements that will define the success of our transformation policies.
Industrial relation practices must enhance opportunities for transformation of the sector by embracing labour as a factor critical to the success of the sector. This is an aspect of transformation missed altogether by proponents of labour broking. Not only does the model of labour broking serve to alienate workers and undermine socioeconomic transformation, but it will ultimately trap the majority of black people in perpetual dependency and poverty. We cannot allow practices aimed at short-lived gains at the expense of our national pursuit of political and economic emancipation of our people. Companies should demonstrate commitment to economic transformation by ensuring that workers participate meaningfully in transformation. The state must align its strategies for the financing sector based on enterprise development. Indeed, there are several financing opportunities and institutions created for enterprise development. However, they do not succeed because they lack the critical ingredients of being relevant, accessible and transparent. Enterprise development financing must target opportunities for new entrants at different phases of mining and beneficiation. They must be proactive in supporting their target clientele by providing an easy-to-do A-to-Z solution relevant to the sector.
In many cases, access to institutional financing has hidden requirements that are costly to beneficiaries. For this reason, the department must engage government-created financial institutions to address their models and criteria to speed up enterprise development in the sector. This imperative extends equally to subcontracting opportunities within the sector, which are inaccessible to the historically disadvantaged.
Transaction costs are high and favour historical relationships against new enterprises. The management composition is mainly white and male. The management composition - I restate this - is mainly white and male, and thus tends to perpetuate networking practices that alienate new enterprises. This is how the left wants the status quo to remain.
Transformation cannot be left to the whims of private business alone in this sector. The developmental state must seek innovative ways and models of incubating the businesses of historically disadvantaged individuals with a view to promoting business maturity and independence. At the same time, nonperformance in terms of the targets of the charter and the legislation must carry punitive sanctions.
This means that the current model of financing business development may not be enough. We need specialised interventions in this sector. The intervention must develop requisite sector expertise, understand the business processes and requirements and proactively develop strategic interventions that promote rapid transformation.
Our mineral resources are not without limits. We have already witnessed instances of mining operations that have run their full cycle and have faced or are facing potential closure. The ANC government must act in haste to ensure that before these resources are depleted, no efforts are spared in promoting the proportional distribution of resources to our people. In order to do this, we must undertake the following: enforce compliance with the current protocols and charters; ensure affirmation of the previously disadvantaged, especially women at all levels of management; and speed up efforts for skills development, especially of artisans across different disciplines of mining operations. Through this, we need to implement the skills accord that is articulated by the New Growth Path.
We also have to advance efforts regarding deep-mining technologies for the next phase of mining operations. By the way, Minister, regarding Gold Fields, Welkom, in the province I come from, we are told that gold is at a level where it is deep and expensive to mine. We also have to strengthen research and development for innovation and technologies.
Finally, the ANC supports this budget allocation in that it will help propel forward the transformation agenda. Thank you. [Time expired.] [Applause.]
Voorsitter en Minister, die VF Plus is bekommerd oor die wyse waarop die regering omgaan met die bates van die land. Ten spyte van ons geweldige minerale rykdom kry ons dit steeds nie reg om di bates om te sit in welvaart nie. Terwyl die res van die wreld hul minerale sektor suksesvol eksploiteer, beweeg Suid-Afrika van een krisis na die ander.
Die probleme wat ons ervaar, spruit voort uit gebrekkige leierskap vanuit die geledere van die myneienaars, unies en die regering. Minister Gordhan het juis gewaarsku dat die land by 'n kruispad is weens hernude arbeidsonrus. (Translation of Afrikaans paragraphs follows.) [Adv A D ALBERTS: Chairperson and Minister, the FF Plus is concerned about the manner in which the government is dealing with the country's assets. Despite our enormous mineral wealth we are just not able to convert these assets into prosperity. While the rest of the world is successfully exploiting their mineral sector, South Africa is moving from one crisis to another.
The problems that we are experiencing emanate from poor leadership among the ranks of the mine owners, unions and the government. Minister Gordhan has particularly warned that the country is at a crossroads because of the renewed labour unrest.]
In order to seek out solutions to the mining industry's problems, one has to look at the whole picture and the complex interrelations of relationships. It is true that some of the mining bosses earn salaries light years apart from those of the average mineworker. That needs to be addressed, not by tinkering with the market itself but by engaging mining companies on the dangers of allowing such a huge wage gap to exist, especially given the scourge of poverty hanging over most mineworkers.
Also, Minister, transformation in the spirit of Aurora is not the answer for our mining industry, neither is statism by virtue of Alexkor and the African Exploration Mining and Finance Corporation, AEMFC, whose only achievements are near-bankruptcy. Further to this, the relationship between unions themselves and the mining companies need to be addressed. The section 18 limitation in the Labour Relations Act that requires recognition only to a majority union should be amended to allow for a multiplicity of union voices to be recognised, thereby expanding democracy.
Dit bring ons by 'n verdere kommer. Die Minister, wat onbevange behoort op te tree tot voordeel van die algemene publiek, het ongelukkig kant gekies in die stryd tussen die Nasionale Unie van Mynwerkers, NUM, en die Vereniging van Myn- en Konstruksiewerkersunie, Amcu. Dit is in niemand se belang nie. Alhoewel dit maklik is om in samesweringsteorie te glo, sal dit gerade wees indien die Minister eerder objektief optree. (Translation of Afrikaans paragraph follows.)
[This brings us to another concern. The Minister, who ought to be acting impartially in favour of the general public, has unfortunately taken sides in the struggle between the National Union of Mineworkers, NUM, and the Association of Mineworkers and Construction Union, Amcu. This is in nobody's interests. Although it is easy to believe in conspiracy theories, it would be advisable for the Minister rather to act objectively.]
A further concern that is undermining confidence in South Africa's economy is the handling of the contentious matter of the expropriation of mineral rights. While the Constitutional Court did not view the appropriation of mineral rights as expropriation per se, it is trite that the state allowed for the facilitation, whereby rights that existed before were unilaterally alienated.
Given this position, surely the government must provide some compensation to those who have lost their mineral rights? One way of solving the problem is to provide that previous rights holders must share in the profits made by the mining company, as much as connected communities should share therein too. This will provide an equitable and elegant solution to a complex problem. Anything less would make the state nothing but a thief of its citizens' rights.
Die minerale sektor kan baie bydra tot die land se groei, maar mis elke keer die sikliese geleenthede daartoe. Dit moet ernstig aangespreek word, wat nie kan gebeur nie tensy die regering 'n reputasie kan handhaaf as 'n verantwoordelike bestuurder van ons minerale bates. [Tussenwerpsels.] Dit is omdat mense soos julle so skree en praat maar niks doen nie dat die land in so 'n gemors is! [Tussenwerpsels.] Dankie, Voorsitter. (Translation of Afrikaans paragraph follows.)
[The mineral sector can contribute a lot to the country's growth, but every time it misses out on the cyclical opportunities to do so. This should be seriously addressed, which cannot take place unless the government is able to maintain a reputation as a responsible manager of our mineral assets. [Interjections.] It is because people like you are shouting and talking but doing nothing that the country is in such a mess! [Interjections.] Thank you, Chairperson.]
Chairperson, thank you very much for this opportunity. Let me recognise hon Minister Shabangu, Ministers and Deputy Ministers here present, hon members and the acting chair of the portfolio committee, Ms Bikani, the director-general and senior officials of the department, senior executives of state-owned enterprises and the private sector, trade union leaders here present, religious and traditional leaders. Ladies and gentlemen, comrades and friends, let me start by first and foremost wishing the chairperson of the Portfolio Committee on Mineral Resources, Comrade Fred Gona, a speedy and full recovery.
I also wish to express appreciation for this opportunity to address this Chamber on the occasion of our Budget Vote for 2013-2014. I am particularly mindful of the month of May, which is acknowledged for its historical significance, namely the incarceration of former President Nelson Mandela on Robben Island 50 years ago on 27 May and the formation of the Organisation of African unity, now the African Union, also 50 years ago, to name but a few events of significance.
But, most importantly, May is considered Workers' Month. On Workers' Day this May, we are reminded all over the world that social development assumes meaning only when the economy consciously and actively promotes the wellbeing of the working class and the poor. Focusing on poverty alleviation and the welfare of the working class does not necessarily mean neglecting the broader interests of society.
Hon Lorimer, I see that you still begrudge those white, pale German philosophers. I can understand, because they mobilised society and especially the working class and the poor to stand up against the apartheid capitalism that you held so dear. I can tell you that you have lost it and you will never get it back. I can assure you that broad-based black economic empowerment, BBBEE, is here to stay. Those black miners that you see around here are not tokens; they are professional miners in their own right. So, you can eat your heart out, but BEE is here to stay. [Applause.]
This is particularly pertinent for us in South Africa, given the prevailing industrial relations disturbances within the economy and in the mining sector in particular.
The current conditions remind us that despite considerable progress made since the dawn of democracy in 1994, we still have a long way to go to reach a point at which the relative earnings within the economy are conducive to rising standards of living. It is a fact that mineworkers' living conditions have not changed sufficiently, and, by all accounts, remain below all our expectations since 1994. This is not helpful for productivity enhancement and for the stability of operations in the industry. As such, I firmly believe that it remains our collective responsibility to deal with the remaining issues with haste and composure. It is particularly noteworthy that ever since the 1920s, the mining sector in South Africa has been the arena for highlighting excessive income disparities and earnings inequalities within society. Clearly, history has shown beyond doubt that such structural issues need resolution once and for all - the sooner they are resolved, the sooner the mining industry will resume the stability and predictability that is so badly needed for the growth and development of the sector.
The mining sector is far too important for our country and for our social welfare to be left saddled with unfinished structural difficulties. Importantly, the resolution of these issues requires multistakeholder commitment.
Let me remind this Chamber once more about a resolution taken by Parliament seven years ago, on the occasion of the 60th anniversary of the 1946 mineworker strike. The National Assembly resolved that the living and working conditions of mineworkers must be investigated further and be improved; to support the initiative by the National Union of Mineworkers to build a workers' museum; that Parliament give consideration to naming some of its buildings after J B Marks, a leader of the African Mineworkers Union, and other heroes of the struggle. That is the resolution of Parliament.
South Africa is one of the oldest mining jurisdictions in the world. We have over 100 years of mining experience, expertise and knowledge, and we are, indeed, respected for this throughout the world. To date, we are still the richest country in the world, with more than 100 years of mining still ahead of us. So, mining does matter for to in South Africa. [Applause.]
On 1 May 2014, Workers' Day, we shall be celebrating the 10th anniversary of the Mineral and Petroleum Resources Development Act, MPRDA. This is a solid piece of legislation that has changed the minerals and mining landscape in South Africa. We wish to thank those who spent sleepless nights developing this revolutionary piece of legislation. For many years, the prophets of doom claimed that the MPRDA provisions amounted to the expropriation of property without compensation.
Today, we must also celebrate our recent victory in the Constitutional Court. Many so-called mining law experts have claimed that the MPRDA is unconstitutional and that its provisions amount to expropriation. These voices have been silenced forever. The department has won the debate. In a landmark decision, the Constitutional Court said that the transitional arrangements were so carefully designed as to alleviate potential hardship and prevent expropriation. This shows the genius of the public servants who drafted the MPRDA. [Applause.] Let those who think that the Public Service only employs those who cannot find jobs in the private sector be silenced for ever as well. The MPRDA was not drafted by lawyers in private practice. This piece of legislation was drafted by officials who were employed by the then Department of Minerals and Energy. We salute them.
Let me also inform this august House what the Constitutional Court said, and I quote:
The MPRDA constitutes a break through the barriers of exclusivity to equal opportunity and to the commanding heights of wealth-generation, economic development and power. It seeks to address the injustices of the past in the economic sector of our country in a more balanced way, by treating individual property rights with the care, fairness and sensitivity they deserve.
If the Constitutional Court labels the MPRDA as a break through the barriers of exclusivity to equal opportunity and the commanding heights of wealth generation, let's ensure that our people feel the warmth of this legislation. Our expectation in 2014 will be full compliance with the MPRDA and the Transformation Charter. This is non-negotiable.
As we deal with the structural issues, we should be ever mindful of the manner in which we resolve issues and the way in which we communicate the rationale and the outcomes to the broader investment community. It is stating the obvious that our collective national interest is in our own hands. We need to take extreme care that we do not unnecessarily and inadvertently undermine our country's brand and our collective ability to attract investment to this sector and its associated industries.
In addition to matters related to industrial relations, there are other structural issues that also need careful attention and conclusive resolution. All over the world, the mining industry is synonymous with the destruction of the environment, land disposition and the use of land that is potentially useable for agriculture and food production. Such dichotomies have to be managed carefully and responsibly via sound and concurrent environmental rehabilitation management practices.
Globally, the extractive industries have come under the spotlight. As hon members are aware, the G8 leaders are focusing on this sector, not only owing to issues of tax evasion, but also because of the broader factors that have turned the blessings of natural endowment to what is now referred to as "the resource curse" - a term encompassing the multifaceted damage that mineral endowment imposes on political stability, and on societies and communities that are rich in natural resources. How ironic, how very ironic, that the very resources that should and could be used to initiate and accelerate socioeconomic development, turn out to be a curse on the environment and sociopolitical stability.
Surely, this is the time to break with the past and reverse the patterns of historic instability in this sector into a framework for a coherent and integrated developmental process. I would like to believe that our mining sector stakeholders in South Africa are well aware of their joint destiny and have had sufficient historic experience to be able to discharge their patriotic responsibilities towards our country and its people.
The turbulent state of the mining sector calls for urgent and meaningful commitment to our collective patriotic responsibilities, with a view to setting up our mining sector for success.
It is a well-known fact that our natural resource endowment is considerable and that we have at least another century of mining ahead of us. It is surely incumbent upon us to govern it differently, structure it differently and manage it differently to unlock its maximum socioeconomic benefits for our nation.
To this end, some basic building blocks of sustainable mining need effective attention. First and foremost, it is about weaknesses in occupational health and safety performance in the industry. We cannot underestimate the misery brought to widows and orphans owing to the failure to comply with health and safety standards. There is an urgent need to eliminate the fatalities and injuries that have characterised the mining industry for more than a century.
I must also say that there are companies that have done very well. There is improvement, and if I had more time I would give the statistics about improvements in health and safety, especially in the number of fatalities in the previous years.
Next in line of priorities is the approach to environmental management, rehabilitation and, more broadly, the greenification of mining operations. This broader term pertains to a large number of factors such as energy efficiency, concurrent rehabilitation, prior planning for post-mining activities and the like. What is not acceptable and, indeed, highly undesirable is the neglect shown by many mining houses and companies with respect to environmental management. In the recent past, we have had high- profile cases of acid-mine pollution and contamination and the social pain caused by asbestosis. We are still seized with the long outstanding matter between the Kgatelopele asbestos community in Kuruman and the Asbestos Relief Trust, and we hope to find some resolution as soon as possible. This is indicative of the extent of care that needs to be taken, not only by the regulators, but also by the industry to avoid further damage to the socioeconomic fabric of our society.
Globally, it has also become clear that in areas of economic activity, legislation and legislative pressure have their limitations. We have seen such limitations in the financial sector with colossal social consequences.
The mining sector is no exception. Whilst appropriate legislation and adequate administrative capacity are important requirements, the role of compliance with the spirit of the legislation and alignment with broader national ideals cannot be underestimated. It is in this regard that we have reached a critical juncture in our mining sector, and I submit we have all that it takes to hammer out a sustainable growth path going forward.
Moreover, what is exciting and encouraging is that, despite all the unfavourable developments and the negative publicity around the challenges facing our mining sector, there is a great deal of goodwill and investor appetite for investment in our country. The reality is that if we see beyond the current cyclical downturn, the medium- to long-term demand for our mineral resources remains solid. Furthermore, there are many and major mining projects that are ready for implementation.
In our interactions with global and domestic mining houses, it is obvious that those who are long-term investors are committed to working with us and see beyond our short-term challenges.
Based on my recent interactions with the mining investment communities in Canada, Australia and South Africa, I am convinced that we have major projects that are shovel-ready in commodities such as manganese, zinc and platinum, to name but a few. Moreover, there is a growing realisation and willingness amongst the investor community for cross-border collaboration within our SADC region with a view to creating economies of scale and finding practical means of overcoming logistical bottlenecks. Opportunities for value addition are enormous and plans are already in place to start serious pilots in the near future.
Ironically, if we entertain a collaborative framework, much of what we now see as logistical bottlenecks can be turned into investment opportunities. We need to acknowledge that the cost base of our mining operations has risen sharply, and in the prevailing globally competitive environment our ability to maintain a desired investment destination hinges on our creativity to manage costs and do so in a timely manner. Both cost containment and timely interventions are critical.
As we reflect on the challenges and opportunities within the mining sector, we cannot be blind to the vast opportunities that our region offers. Possibly, for the first time in our history, our economy and that of our neighbours have a real chance of sustainable integration and industrialisation. To this end, the mining sector offers critical and exciting opportunities.
Getting the mining sector policy and operations right is not an academic goal or a theoretical nicety for us and our region. Rather, it is a matter of development or no development for many of our regions, communities and neighbouring states. It is therefore our collective obligation to ensure that this considerable wealth is utilised to generate socioeconomic benefits ...
Chair, on a point of order: What we read here is that he is a minute and a half over his 15 minutes. [Interjections.]
Hon member, I really appreciate your timekeeping but on this clock it is 38. Continue please, hon Deputy Minister. [Interjections.]
Let me conclude because I think that the truth hurts now.
It is therefore our collective obligation to ensure that this considerable wealth is utilised to generate socioeconomic benefits and integrated development for our nation. To do this, we need to draw lessons from our past century of mining to avoid undesirable consequences, and to ensure a mining industry that is socially progressive, environmentally sustainable and economically competitive.
Whilst I am concerned about the challenges prevailing in our mining sector, I am nonetheless convinced that the ANC is on the right track. Thank you very much. [Time expired.] [Applause.]
Chairperson, just before the next speaker, I think that we should actually ask that we get calibration certificates because there is a big difference between 15 minutes and 18 minutes.
I appreciate it. You can take that up at your next Rules Committee meeting.
Hon Minister, hon Deputy Minister, hon committee members, distinguished guests, I greet you all. Let me start by expressing my support for this Budget Vote and indicate that my topic for today is mineral beneficiation in South Africa.
If our country were to succeed in alleviating the many socioeconomic challenges we face today, those of high unemployment, poverty and many other social ills, the beneficiation of our raw materials would be the solution. The beneficiation of mineral resources is critical to the development of our economy, to employment creation and to generally improving the lives of ordinary people.
The ANC, at its 53rd congress in Mangaung, resolved that through economic transformation it intended to build an adequate society in which there was decent work for all. The past labour unrest in the mining sector, which has been marked by violence, loss of life, current lay-offs and job losses, is testament to the fact that South Africa remains an unequal society. This is a result of the historic apartheid spatial patterns that contributed to the migrant labour system, characterised by hostel dwelling, poor living conditions and an unskilled labour force.
Central to this year's state of the nation address, President Jacob Gedleyihlekisa Zuma affirmed that:
... on broader economic transformation, the revised Broad-Based Black Economic Empowerment Act and codes are finalised. The development of black-owned enterprises and black industrialists will be prioritised.
In the context of the mining sector, which is primary to beneficiation, there is a greater need to transform the structures of production and ownership in order to enhance the development of black-owned enterprises and black industrialists.
According to the Citibank Report of 2010, South Africa as a resource economy was estimated to possess approximately US$2,5 trillion in nonenergy mineral wealth, making it one of the wealthiest mining jurisdictions in the world. Despite this, South Africa continues to export most of its minerals as ore or semi-processed minerals rather than as high-value intermediate to finished products. There is significant opportunity lost to South Africa in this regard, and in fact South Africa has become a net importer of mineral products in value terms.
The mineral resources industry in South Africa has the potential to compete on a global scale. South Africa has a competitive advantage in mineral and metal resources. Not only does the country have a considerable portion of the world's known reserves of aluminium silicate, chromium, iron ore, gold, manganese, the platinum group of metals, vanadium and vermiculite, to mention but a few, but it is also rich in antimony, fluorspar, phosphate rock, titanium and zirconium. In 2004, mining contributed R87,1 billion, which is about US$13,5 billion or 71% to gross value added. This contribution increased by R2,9 billion from that of the previous year.
If various processed mineral products, such as ferroalloys, aluminium, carbon and stainless steel are included in this analysis, then the contribution of mineral resources to exports is much higher at over 35%. South Africa remains a resource-based exporter of largely unbeneficiated or partly processed primary materials and a net importer of manufactured goods. Certain products represent immediate opportunities, some examples being steel, screws, bolts, nuts, rivets, etc.
Toolmaking is a key supporting industry for mineral beneficiation and there is a national tooling initiative, which was formed after the tooling study was completed, to implement tooling training nationally.
The National Tooling Initiative, or NTI, is a public-private partnership, which is aimed at rehabilitating and growing the South African tool, die and mould-making industry. The South African tool, die and mould-making industry is anticipating that its intervention will increase turnover in the industry from R6 billion per annum to R20 billion by 2014.
Sihlalo, sidzinga kwakha tikhungo letinyenti tekucecesha lusha lwalapha eNingizimu Afrika kutsi lube ngema-Athizeni laneticu. Lomklamo webucwebe waseBhabtini-Emjindini usibonelo lesihle semklamo wekupolisha lodzinga kusekelwa nguhulumende. Awuniketi emandla nje kuphela kulolusha, kodvwa uphindze ulunikete lwati, buchwephesha kanye nesipiliyoni. (Translation of Siswati paragraph follows.)
[Chairperson, we need to build many institutions that will train the youth of South Africa to become qualified artisans. The jewellery project at Mjindini in Barberton is a good example of a beneficiation project that needs support from the government. It not only empowers the youth, but it also provides them with skills, expertise and experience.]
The beneficiation strategy identifies five pilot value chains as critical to addressing the nation's development priorities. Firstly, there are the autocatalysts, in terms of which the country's platinum group metals and significant portions of the country's stainless steel production are consumed. Then there is iron ore and steel, key elements in the development and industrialisation of countries. Lastly, there is energy that ensures the security of energy supply, which serves as the bedrock for development, pigment and titanium, as well as jewellery. In pursuit of an enabling regulatory environment to address the challenge of access, the Department of Mineral Resources has strengthened section 26 of the Mineral and Petroleum Resources Development Act to empower government to determine both requisite volumes and price for minerals to be sold for local mineral beneficiation. This will not only provide security of supply for manufacturers invested in South Africa, but will also make it attractive and cost-competitive for the establishment of such facilities in our country. Given that the most well developed beneficiators are established in traditional and emerging industrialised economies that commonly do not have minerals, the department believes that this proposition provides for a formidable partnership between the department and interested manufacturers, with both technical prowess and financial strength.
In conclusion, it would be important that manufacturing be more appropriately dealt with by entrepreneurs and companies with manufacturing skills. The promotion of the beneficiation Bill should be to create a regulatory environment in which incentives are offered to manufacturers so that they will be encouraged to invest in downstream activities in South Africa.
However, I want to point out that the mining companies' reservations concerning their involvement in downstream beneficiation must also come to the party. The sector must invest capital and find ways to promote beneficiation in minerals. Working together with the mining sector, we can go a long way in ensuring a better life for all our people.
Finally, we must heed the call by His Excellency, President Goodluck Ebele Jonathan of the Federal Republic of Nigeria, on his recent visit to Parliament when he urged all of us with the following words:
We must work together to put an end to the exploitation and exploration of Africa's resources for export without any value added.
In this regard, he continued:
African countries must transform from being primary sources of raw materials into producers to create jobs and opportunities for our people.
He added that:
We must check the loss of Africa's trained manpower to already developed countries; these are the very people we need to scale up our economies as well as improve our public and social services.
Thank you. [Applause.]
Chair, I will take advantage of this extra time. According to the National Development Plan, the NDP, the mining industry in South Africa has lagged behind global competitors in the past decade for reasons which include poor rail, water and energy infrastructure and a regulatory and policy framework that hinder investment. The ACDP holds the view that the Mineral and Petroleum Resources Development Bill contradicts the NDP's call for regulatory reforms that provide policy certainty, and calls on the Minister to address this contradiction.
Regulatory stability is crucial in the mining industry, which has to think decades ahead when making investments. Certainty about the rules they will operate under is so important. Onerous and unpredictable regulatory change, or existing regulatory requirements being enforced in an arbitrary and unequal manner are a huge stumbling block to investment.
On another very important aspect, the ACDP welcomes the latest environmental guidelines report, which starts an important process of finding a balance between two extremes: destructive mining and extreme environmental demands.
With labour challenges, land use issues, rising costs, weakening currencies and pricing, constrained budgets and more than 30% of platinum companies in the red, the mining industry is in crisis.
The additional challenge of stricter environmental measures could seem like a potential final straw, but fears are countered by promises of greater sustainability. This is much bigger than the mining industry and will require changes in thinking, culture, technology, the education of leaders and investment plans. Hon Minister, does the budget take these issues into consideration? Will it adequately facilitate the necessary working together of government, industry, communities and NGOs to find sustainable solutions together?
Moving on to the subject of beneficiation, a Chamber of Mines senior executive has pointed out that too little attention has been given to side- stream beneficiation, which is playing an important role in South Africa's economy, creating 1,3 million jobs and accounting for about 19% of gross domestic product and 20% of investment. Existing downstream beneficiation in South Africa, at the same time, is worth R300 billion, creating about 150 000 jobs. Support from both government and mining companies in side- stream and downstream processes is going to be critical.
For there to be successful beneficiation, almost all government departments have some role to play, including those that deal with Basic Education, Higher Education and Training, infrastructure, Transport, Energy and Mineral Resources.
But it is important that one government department take the lead. The ACDP calls on the Minister of Mineral Resources to provide South Africa with a champion for beneficiation and to ensure we no longer lag behind.
Industrial sociologist Gavin Hartford last year placed the migrant labour system at the heart of South Africa's mining unrest, saying that its punishing yearly work cycle spawned social evils. It is with this in mind that the ACDP notes mining union pioneer Dr James Motlatsi ...
Hon member, your time has expired.
So, I need to say the ACDP will support this budget. [Applause.]
Chairperson, hon Minister and Deputy Minister of Mineral Resources, acting chairperson of the portfolio committee, Members of Parliament, officials of the Department of Mineral Resources and all guests, good morning.
Sihlalo, ndihleli phaya phantsi ndiyacinga. Ndithi kunganjani xa singahlala emakhaya? Uvuke kusasa uthume umntwana aye kuthenga iphephandaba. Umthume nje amaphephandaba amabini, iSowetan kunye neStar. Ufunde iStar, sithi Marikana. Sithi akuliwa eMarikana, xa uhamba ugila isidumbu awukwazi nokuhamba. Hayi, ulibeke phantsi.
Uthathe iSowetan. Ithi akumnandi eMarikana, kojiwa inyama. Konke nje kulungile. [Kwahlekwa.] Wena ukugqiba kwakho ukufunda loo maphepha uze kusingxolela apha, uthetha into ongayaziyo. Indlebe zethu zitshise kuba simamele into esingayaziyo nokuba yintoni. (Translation of isiXhosa paragraphs follows.)
[Chairperson, as I was sitting there I was thinking: How would it feel if we were to stay at home, wake up in the morning and send a child to buy a newspaper or two? Let us say the Sowetan and The Star. You read in The Star that there is heavy fighting in Marikana, so much so that wherever one goes one trips on dead bodies strewn all around. You put it down.
You then read the Sowetan. It says it is so nice in Marikana, with people having a braai everywhere. All is well there. [Laughter.] And then after reading those newspapers someone comes here and makes noise about things he or she knows nothing about. Our ears hurt from listening to something that we know nothing about.]
The health and safety of workers in the mining industry ... [Interjections.] Please, you are disturbing me! I never disturbed you. I gave you a chance. Please! Please! [Interjections.]
the Temporary chairperson (Prof L B G Ndabandaba): Order! Order, hon members! [Interjections.]
If you want to talk to me, wait until we go outside. Don't shout at me.
the Temporary chairperson (Prof L B G Ndabandaba): Continue, hon member.
The health and safety of workers in the mining industry should continue to form an important part of the sustainability of the mining industry. The industry has for decades been the backbone of our economy and a major provider of employment in South Africa. Regrettably, the sector has also seen a significant loss of life, injuries and ill health of mineworkers.
You will recall that in the period before 1994, the occupational health and safety of mineworkers was sadly neglected. For instance, 706 workers regrettably lost their lives during 1990 as a result of accidents in the mines. However, there has been a significant reduction since 1994. The 2012 figures indicate that mine fatalities continue to improve, with 112 reported.
One of my greatest concerns has always been that mineworkers historically lost their lives as a result of the same causes, mainly rockfall accidents - and that is true. I just couldn't understand ...
... xa kusithiwa kukho ukuwa komhlaba ngaphantsi emgodini. [... when people talked about the rockfall phenomenon that happens underground in the mines.]
I don't want to repeat it. Let me just end there. Hence, it is encouraging to note that there has been a 35% reduction in rockfall fatalities between 2011 and 2012.
Uyazi ingathi ndingavusa utata wam owayesebenza emgodini endixelela ngayo yonke le nto ukuze ndimxelele ukuba hayi ayisenzeki yonke loo nto kule mihla. [You know, sometimes I wish I could wake my father up in his grave - he worked in the mines and he used to tell me about these things - and tell him that none of that is happening nowadays.]
Also, the coal sector, for the first time ever, did not have a rockfall fatality in more than 12 months. There has also been a significant reduction in the frequency of these accidents in the gold and platinum sectors.
The decline in fatalities over the past years is extremely encouraging and a step in the right direction. Hence, I greatly compliment the Department of Mineral Resources on implementing the necessary measures to ensure that there is a sustainable improvement in health and safety in the industry.
Hon members, whilst we recognise the improvement, we still experience loss of life, injuries and occupational diseases. So, we urge the mining sector to go back to the drawing board and constantly focus on both health and safety to ensure that there is zero harm to workers. In taking all these steps, the industry needs to have more platforms to share good experiences and develop programmes for the benefit of all workers.
There are more deaths in the industry as a result of occupational diseases. Hence, the improvement measures should also include general health issues, such as noise-induced hearing and silicosis diseases, which further expose miners to tuberculosis, a condition disposed to HIV and Aids.
There has been a welcome increase in participation by women in the mining sector, since the promulgation of the Mineral and Petroleum Resources Development Act, Act 28 of 2002. However, it has been noted with great concern during our mine oversight visits that some women are employed in occupations without recognising that women are physically and physiologically different from their male colleagues. The matter must be addressed to ensure that there is fair representation and participation of women across all levels in the mining sector.
Also, I'm deeply disturbed about the number of reported incidents of women experiencing sexual harassment and inhumane treatment by fellow workers in their underground workplaces. I would like to appeal to all the stakeholders to ensure that interventions are implemented to prevent the intimidation of women miners. More attention should also be given to the health and safety of women in the mining sector.
Accordingly, the mining sector should continue to take appropriate measures to ensure that women have safe and dignified working environments. The personal protective equipment, available for use in the mines does not fit women workers as most personal protective equipment is designed for the male body structure. In this regard, we welcome the research conducted through the Mine Health and Safety Council and expect that the implementation of the recommendations should assist the sector to select and provide appropriate and suitable personal protective equipment for women in mining.
Ndifuna ukubuyela kulaa ndaba yam bendiyithetha, hayi le yabantu abangxolayo, le yabantu abaphilileyo apha entloko. Ndiyalibulela isebe ngendlela elithe laphucuka ngayo. Ukuqala kwethu ukungena enyanisweni abantu bebesifa bebulawa yile tafile sithetha ngayo.
Phambi kokuba ndibulele uMphathiswa kunye nomlawuli jikelele, ndifuna ukubulela unyana wam osebenza kwezempilo nokhuseleko emigodini. Unyana wam ndiza kumbiza ngegama. Andikazi kumbiza ngoku. Besixabana kakhulu, sinyusana sisehlisana ngale nto yeli litye. Angeke kaloku ukususela ngowe- 1913 okanye nini kuwe ilitye kanti lisawa nanamhlanje. Ndingamjongi xa sixabana, ndijonge phantsi. Kodwa xa ndiphakamissa amehlo, ndiza kufika encumile.[Kwahlekwa.] Ndiyambulela bethuna uMnu Msiza ngokundinyamezela kuyo yonke loo nto ebendiba yiyo, ndingazenzi, nam ndiqhutywa yinto ebindiqhuba. (Translation of isiXhosa paragraphs follows.)
[I want to turn back to the matter I was addressing, not the one about people making noise, but the one about people who are mentally sound. I thank the department for the way it has improved. When we started out, really, people died from the rockfalls we are talking about.
Before I thank the Minister and the director-general, I want to thank my son, who works in health and safety in the mines. I am going to name him, but not now, later. We used to quarrel over the rock fall issue. In my opinion, you can't have rock falls from 1913 or thereabouts till today. At the beginning of our quarrel I would avert my eyes and look on the ground instead. But when I looked up, I would find him looking at me, smiling. [Laughter.] Indeed, I thank Mr Msiza for putting up with me in the state I found myself from time to time, which was beyond my control.]
the Temporary chairperson (Prof L B G Ndabandaba): Hon member, you have two minutes left.
Thank you very much.
Ndiyabulele kakhulu, Mphathiswa, Sekela Mphathiswa nomlawuli jikelele. Mhlawumbi kulo nyaka uzayo ngekhe umntu alifumane eli thuba, asazi ukuba kulo nyaka uzayo kuza kwenzeka ntoni na, umntu usenokusweleka usenokuthini, kodwa ke okwanamhlanje nanjengokuba ndisalifumene eli thuba mandinibulele. Iimfundiso zenu kwezemigodi ziza kuhlala zihleli. Nokuba ndisekhaya ningamangali xa nindibona ndisithi thu ndizo kumamela, kwaye nize ningandigxothi kuba ulapha kum entliziyweni umba wezemigodi. Nindazise ngalo lonke ixesha ukuba kwenzeka ntoni na, khon' ukuze nam ndikwazi ukuqhubeka nabam emakhaya ukuba ndisekhaya. Ndiyanibulele kakhulu. Malungu ekomiti, owu nkosi yam, nokuba niyayirhawula kodwa niyiphethe, ndiyanibulela. Niyiphethe ukudlula abantu abaphesheya, ingakumbi kwezi ntsukwana zimbalwa, kodwa ke siyiphethe. Naku namhlanje siyakwazi ukuxoxa phantsi kweemeko esikuzo. Sigulelwa nangumgcinisihlalo, kodwa siyakwazi ukuma namhlanje sixoxe. Xa ndigqibezela ... Kutheni ingathi uyavuya nje? [Kwahlekwa.] (Translation of isiXhosa paragraph follows.)
[Thank you very much, Minister, Deputy Minister and director-general. One never knows what might happen next year, perhaps one might pass on or something, but let me express my gratitude for the opportunity I have right now. Your teachings on mining matters will remain with me forever. Even when I have retired, don't be surprised to see me attending committee meetings and please do not chase me away because mining is an issue very close to my heart.
Please keep me abreast of developments so that I will be able to carry out my work with my own group in the rural areas, if I retire next year. Thank you very much, members of the committee. You are not perfect, but you are doing what needs to be done, more so in the past few days, which is more than can be said for the people across the Chamber. Today we are able to debate matters even in the circumstances in which we find ourselves. In spite of our chairperson being sick, we can hold our own in a debate. In conclusion ... It looks as if you are enjoying this? [Laughter.]]
In conclusion, the ANC supports Budget Vote 32 - Mineral Resources. Thank you. [Applause.]
Chairperson, the Marikana tragedy in August last year undisputedly blemished South Africa's mining industry. The events at Marikana changed the lives of more than 34 families who lost a child, a father, a brother or a husband. Marikana also changed the lives of everyone involved in the mining industry. It also illustrated the thoroughly weak state and the political-economic challenge of managing the most unequal country 19 years after democracy.
A well-known supporter of the ANC remarked, with reference to the Marikana tragedy, and I quote: "It looked like the ANC turned its guns on its own people." It is all about perception, hon Minister. These perceptions of the Marikana tragedy have contributed to threats by the Association of Mineworkers and Construction Union, Amcu, not ANC-affiliated, to bring South Africa's economy to a standstill. This, in turn, contributed to the rand sliding to a four-year low against the dollar, which could trigger another downgrade of South Africa's ratings.
The government's feeble response to the Marikana disaster was to send a ministerial task team and to appoint the Farlam Commission of Inquiry. The initial ministerial task team, which produced few results, was followed by a second and similar task team in response to renewed unrest at Marikana.
Not being welcome at Marikana, none of the problems leading to the Marikana disaster was addressed. An increased number of illegal strikes - and I emphasise illegal strikes - resulted, which cost the country at least R15 billion in revenue. An acting Minister in the President's Office recently stated that, and I quote: "We are confident we will be able to curb this problem and nip it in the bud." A rather contemptuous remark, considering the historical context.
A recent newspaper headline stated the obvious, and I quote: "Ministers misread mining crisis". The fact that the ANC government is allied to Cosatu, to which the National Union of Mineworkers, NUM, is affiliated, is leading to allegations of clientelism and patronage. Government is perceived as not being able to act impartially between NUM and Amcu.
The secretary-general of the ANC has already indicated to NUM workers that:
You are not being victims because of your membership of Num, but because you are a loyal member of the revolution...
... thereby creating more divisions. Last Friday, the hon Minister indicated that NUM was not to blame for the Marikana tragedy. Workers are losing faith in ANC-affiliated unions. [Interjections.]
Failure by local government to upgrade informal settlements, provide water, electricity, housing, sanitation and refuse removal increased problems regarding the social wage of workers at Marikana. It is particularly this failure which has created immeasurable hardship for mine communities. The trade-offs of paying living-out allowances, as compared to accommodation provided by government and mining companies, should be considered.
A co-ordinated structure between stakeholders needs to determine short, medium and long-term goals to prevent a second Marikana tragedy from taking place. The Mining Industry Growth Development and Employment Task Team, Migdett, which represents mining stakeholders, needs to step up to the responsibility.
A model community serving as a developmental model for the industry, as proposed by the Southern African Institute of Mining and Metallurgy, should include an integrated income-generating community of mineworker families whilst taking note of the Benchmarks Foundation report, which summaries most of the issues. The Minister of Finance, Pravin Gordhan, was correct when he stated recently that something needed to be done urgently in the mining industry as the country would lose jobs and investor confidence, resulting in companies closing. Unfortunately, this has already started to happen. Mining output contracted by 3,5% in March, according to Statistics SA. South Africa's foreign direct investment plunged from R45,4 billion in 2011 to R1,7 billion last year, as compared to Zimbabwe's foreign direct investment of R3,5 billion last year. What has happened, hon Minister?
Whilst mining contributes approximately 19% to GDP directly and indirectly and provides 1,3 million people with mining-related jobs, the proposed amendments to the MPRDA will lead to less regulatory certainty, less compliance with international best practice standards and hence less investment, thereby creating more social tension.
What South Africa needs to deal with to prevent another Marikana tragedy are threats of mine closures following the Marikana tragedy; veiled threats of nationalisation by the ANC government; more state involvement, control and interference; declaring certain minerals strategic minerals, with the Minister setting prices and determining the quantity to be exported; declaring an unspecified free carried interest in exploration activities to the benefit of the state and creating a perception of controlling certain markets.
Black economic empowerment has failed workers and mining companies. It has not been broad-based or economically viable in many instances. Mine employees should benefit from a responsible transformation of the mining industry such as employee stock ownership plans, formulated by Kumba. The criticism expressed by Africa's richest man towards the manner in which South Africa implements BEE is well known.
Following the Marikana tragedy, South Africa needs a social compact that encourages transparency and accountability, better governance and a shared understanding of the role and value of business in society. Marikana has led to South Africans re-examining the actions of the SA Police Service and those of an ill-equipped, unprepared and seemingly disinterested government in relation to the plight of the mining industry.
We should address the problem of being the most unequal society, manifesting itself acutely in the mining industry, by, inter alia, the following considerations: responsible downstream and side-stream beneficiation in an investment-friendly climate rather than imposing more taxes; a new labour dispensation model where mining is reintroduced as a continuous operation leading to more jobs and a higher frequency of leave; new, clean energy initiatives providing incentives to mining companies to build self-sustaining energy systems and the development of infrastructure inclusive of private sector participation; qualitative training for employees, including women engineering graduates; developing platinum-based fuel technologies, incentivising independent power-producer agreements based on, for instance, coal gasification and methane gas technologies; implementing well-considered special economic zones for certain commodities and poverty-stricken areas; concluding fair and representative union recognition agreements; developing an independent regulator responsible for applications for mineral rights and involvement by the state in the mining industry to provide an investor-friendly climate.
In conclusion, the future of South Africa's mining is on the brink of another crisis without definitive steps to resolve the underlying issues which contributed to the Marikana tragedy. I thank you. [Applause.]
Hon Chairperson, hon Minister Shabangu, hon Deputy Minister Oliphant, hon Ministers and Deputy Ministers present here, hon members, esteemed guests, ladies and gentlemen, the importance of this industry and its strategic contribution to the economy cannot be overemphasised. At its 52nd conference in Polokwane, the ANC resolved that:
The state must ensure that our national resource endowments, including land, water, minerals and marine resources, are exploited to effectively maximise the growth and development and employment potential embedded in such national assets and not purely for profit maximisation.
South Africa is a treasure trove with an abundance of resources, and the state is the custodian of all her mineral resources. There is no doubt about that. Diamond and gold production may well be down from their peak now, but South Africa is still ranked fifth in gold production. It is the world's largest producer of chrome, manganese, platinum, vanadium and vermiculite. This country is the second largest producer of ilmenite, palladium, rutile and zirconium. It is also the third largest exporter of coal, having overtaken India, to become the world's third biggest iron ore supplier to China, which is the largest consumer of iron ore. The picture that I paint tells us all that despite all the world's economic glitches and fluctuations, South Africa remains a cornucopia of mineral riches. [Applause.] [Interjections.]
In his 2012 state of the nation address, President Jacob Zuma said:
We remain committed to the creation of a favourable and globally competitive mining sector and to promote the industry to attract investment and achieve both industrial growth and much needed transformation.
I know that the concept of transformation does not go down well with other people. [Interjections.] Augmenting that statement is the reality that a well above average resource base, fair economic and physical infrastructure and high levels of expertise are some of the factors that allow this industry to flourish - say no if I am telling lies - thanks to all involved entities and their leadership. [Interjections.] Mintek and the Council for Geoscience, CGS, should be fairly funded, Minister, for their research and geotechnical responsibilities that support this industry. [Interjections.]
HON MEMBERS: Hear, hear!
We never argue that this industry is not without challenges. I would like to cite a few, Minister. Acid-mine drainage needs to be given the priority it requires, within the budget constraints, before it reaches critical stages. We have seen the painful efforts employed by the department to rehabilitate ownerless and derelict mines. The department needs to be applauded for such action. We have seen the department's efforts in dealing with illegal mining.
One hon member was talking - and I like him because he talks off the cuff - in Roodepoort - he did not mention that - about how the department demolished and destroyed illegal mining infrastructure, and it went further by sealing off shafts in the same area. That is a good move by all those that were involved, mining houses included. These people do not see that. [Interjections.] What I have mentioned above, plus the arrest of illegal mining kingpins in the West Rand, are pointers in the right direction. We are dealing with illegal mining. They do not know that, and I will tell you why they do not know it. [Interjections.] I will tell you.
Mining health and safety has improved dramatically. Members will recall that, in the past, health on the mines was determined by the physical ability of a worker to produce what is profit to the bosses. It has gone beyond that. Now, one can walk in the mines. One does not crawl. One can drive vehicles in the mine, thanks to the health and safety council. [Interjections.]
You must understand that we are dealing with an industry that suffers a hangover from the system of apartheid. Many employers in this industry, including the industry itself, in the main, paid lip service to the opposition to apartheid, like our colleagues on the left. Nobody wants to associate him or herself with apartheid. All of them have become freedom fighters now. [Laughter.] What a laughable stance! [Interjections.] What a laughable stance!
Policy stances held in this House on the ownership of mineral rights differ in understanding. Let me first deal with - you will hear why that hon member said what he said from this podium - proponents of private ownership. They maintain that private ownership is consistent with the market economy and with an international trend towards reducing the direct role of government in the mining industry. [Interjections.] They go on to say that private ownership encourages trade in the utilisation of mineral rights. What a fallacy! [Interjections.]
Listen to what the critics of private ownership of mineral rights are saying on this side of the House. Minerals are part of the nation's endowment and the state is the rightful custodian of that endowment. [Interjections.] Say no! They go on to say that private ownership of mineral rights suppresses exploration activity and the opportunity for alternative views of the economics of mining and the unexploited ore body. [Interjections.] I am coming to you. [Laughter.] I am coming to you. [Interjections.] We go on further to say that private ownership of mineral rights limits equal and equitable access to mineral rights and resources. What a truthful statement! [Interjections.] Before I conclude, let me deal with some of the ...
Fallacies.
... fallacies that were advanced here ... [Laughter.] ... by these hon members. [Interjections.] You know, the hon Carter from Cope is suffering from an identity problem. She does not know whether she belongs to a party or to a person. [Interjections.] She is a Cope member. Cope is an organisation which will always bring people from the streets and make them lawmakers in this Parliament. [Laughter.] I think she had no clue of what is happening in this industry. She just thought it wise to shout loudly and attack the ANC and its allies to please the DA. [Interjections.] You have pleased them. We cannot even think of what you said, hon member.
The hon young member Hlengwa from the IFP started off very well. [Interjections.] What?
And then he told the truth.
No! All of a sudden, you remembered that Big Brother is watching ... [Laughter.] ... and then you had to change. [Applause.] What a pity! [Interjections.]
The hon Lorimer said that the ruling party is in the process of bribing people to get a foot in the industry, and all that. Nonsense! [Interjections.] Well, I must be humane in responding to what he said. Every citizen in South Africa has the right to do business. [Interjections.] Thulani. Thulani. [Be quiet.]
Speaker, just take your seat for a moment.
This industry ...
Hello!
... has ceased to be an enclave for a few ...
Speaker! Speaker!
... as it used to be ...
Hon speaker Sonto!
... during the Kruger ... Hello? Hello? [Interjections.]
Hon Sonto ... [Interjections.]
No, no. Nonsense! Nonsense! [Laughter.]
Hon Sonto! [Laughter.]
You do not know. [Interjections.]
Hon Sonto, could you please sit down? Listen. This is the last part of the debate. I know you are all probably hungry, but we have absolutely no reason to scream at each other. Let us keep the decorum of this House, and let it be the last time I ask you to do so. Thank you. Continue, hon Sonto.
Thank you very much, Chairperson. Tell these people. [Laughter.]
I want to know how much time ... [Interjections.]
Hayi mani. [No, man.] Nonsense! Are you a timekeeper?
You know, Paul Kruger. What do you call yourselves? Descendants of Paul Kruger and the Oppenheimers will never be happy when we talk about transformation. [Interjections.] That is why you are shouting so loudly.
Let me come to this hon member Lorimer.
Chairperson ...
The hon member Lorimer ...
Chairperson, Chairperson ...
The hon member Lorimer ...
Chairperson ...
... sees worse things ...
Chairperson, on a point of order ... [Interjections.]
Oh no, man! [Interjections.]
Chairperson, on a point of order: As the previous Chairperson said, we have calibrated our clocks ... [Interjections.] ... and it is now 14 minutes; he is two minutes over his time. [Interjections.]
Seven more. I have seven more! [Interjections.]
Be part of the majority.
Stop the clock. [Interjections.]
Thank you, Chairperson. You cannot help people who cannot count. [Interjections.]
The hon member Lorimer sees worse things in South Africa and blames the ANC for that. You know what? The ANC cannot help you for being blind. It will never help you. You do not see. You are blind, hon member. [Interjections.] You talk about failing ANC policies. What are you providing as an alternative? Nothing! Zilch! [Interjections.] [Applause.] Let me tell you what you do not know about this hon member. He has never been on an oversight visit. This one!
HON MEMBERS: No!
Never! Not a single moment. [Interjections.] This one! Do you know the reason why? He cannot sit in a kombi for an hour next to me. [Interjections.] This member! At one stage, hon members will remember he said the mining house should hire a helicopter for us so that we could move from one mining house to another. [Interjections.] We said "nonsense" to this member. [Interjections.]
That is absolute rubbish! [Interjections.] You cannot just make things up!
Do you know what? [Interjections.]
Chairperson ... [Interjections.] ... Chairperson ...
In the DA ...
Chairperson, on a point of order ... [Interjections.] Chairperson, Chairperson, Chairperson, on a point of order ... [Interjections.] ... on a point of order: I would like to know how much time ... [Interjections.]
[Inaudible.] [Interjections.]
Chairperson, on a point of order ... [Interjections.]
You have one minute to finish.
Chairperson, I have risen on a point of order. [Interjections.] Do we have a Chairperson in the House? [Interjections.] I have risen on a point of order! [Interjections.]
Could you please sit down. [Interjections.] He had 20 minutes. [Interjections.] Hon member ...
Chairperson ...
This hon member raised the same point.
Chairperson, with all these realities communicated loud and clear ... [Interjections.]
If you were listening you would have heard ... [Interjections.]
The Chairperson is not doing anything about the matter. [Interjections.]
With all these realities communicated loud and clear, only those with a cut-and-paste historical background would say no to these realities. [Interjections.] Do you know what? These people want to co-opt everybody who was involved in the struggle, including Mandela. [Interjections.] What? Whoa, whoa, whoa, whoa!
Hon Sonto, your time has expired. [Interjections.]
We are saying from the ruling party ...
Hon Sonto, your time has expired. [Interjections.]
... these natural resources in South Africa are for the benefit of all South Africans.
Hon Sonto, your time has expired. [Interjections.]
The ANC supports the Budget Vote. [Applause.] [Interjections.]
Hon members ... [Interjections.]
Hon House Chairperson ...
Hon members ... [Interjections.] Sit down. [Interjections.]
On a point of ...
Sit down! [Interjections.] I have not given you permission to speak. [Interjections.] Hon members, will you kindly be quiet now. [Interjections.] This is not a circus. This is a House of Parliament. [Interjections.] So, behave yourselves like hon members, please!
Chairperson, may I ... [Interjections.] Chairperson ...
I call upon the hon Minister.
Chairperson, on a point of order ... [Inaudible.]
What did he say? I didn't even hear. I didn't even hear that in all this noise. To answer your question, the Minister has nine minutes.
We can't hear you!
Of course you cannot hear, because you are all screaming! Will you please sit down. The Minister has nine minutes. [Interjections.] This is because some minutes were given by the ANC to the Minister. Will you sit down now. I am not taking any more points of order. [Interjections.] Will you sit down. I didn't give you permission to rise, sir. [Interjections.] Sit down! Sit down! Sit down, I said! [Interjections.] If you do not wish to sit down, you may leave the room.
Chairperson, the House Rules compel you to take a point of order.
I just gave you a point of order. Can you make your point of order and sit down.
I have not raised my point, because you have not acknowledged us.
I've acknowledged you.
Thank you. Then I will talk now.
Speak up, then!
On a point order: May we please have clarity, and clear clarity, firstly, on how 12 minutes changed to 17 minutes and 55 seconds? [Interjections.] Then the explanation thereafter was that it was because of an extra minute. Now, at the beginning, the Minister took eight of her 10 extra minutes. Then an additional five minutes and 55 seconds were taken now.
Now, let me explain to you. A number of ANC members decided ... [Interjections.] Are you listening? [Interjections.] Are you listening? A number of ANC members gave their speaking time to the Minister. Do you understand that?
You are not allowed to do that!
You are not allowed to do that.
I would like to give a ruling at this stage. The ruling is that the Minister has been given an extra four minutes taken from one member of the ... [Interjections.] That is a ruling, and now you ...
Hon Chairperson!
I will not accept your point of order!
Hon Chairperson!
You asked me a question. I have replied!
On a point of order, hon Chairperson ...
I will not take that point of order.
You will have to take a point of order, hon Chairperson.
No! You asked me a question. I answered you.
You have to take a point of order!
Will you please carry on, Minister?
Can I make a point of order, hon Chairperson?
No!
It has been expressly stated in the Chief Whips' Forum that ...
The members from Cope, if you heard what the reply was, you got your answer.
You have to take a point of order, Chairperson.
If you want to make a drama scene here, you can go ahead.
You have to ...
Hon Greyling, I have given a ruling, and I will not accept a further point of order from you. Will you kindly sit down. Will the Minister come to the floor, please? [Applause.]
Chairperson ... Chairperson ... On a point of order, Chairperson ...
I am not taking any more points of order.
Chairperson, you have to take a point of order.
You don't tell me what to do!
That is the Rule, Chairperson.
No! These are spurious points of order that are being raised here.
It is not spurious.
What is your point of order?
No, Chairperson, my point of order is that minutes from the ANC cannot be transferred to the Ministers.
Yes, four minutes.
And that is now what has happened. The hon Minister has used 8 minutes of her 10 minutes for her reply. There are 2 minutes left. You are now giving her 4 minutes from ANC members. [Interjections.] Yes, the Chief Whips' Forum. You may not do that.
Were you there? I've never seen you in a Chief Whips' Forum. [Interjections.]
Chairperson, may I take this opportunity ...
I think if you read your Rules ...
... to thank hon members, thank the ANC ...
Sorry, Minister. If you read your Rules, you would know that five minutes can be added for the executive. Now, can we finish this debate, please? Hon Minister, continue. [Interjections.]
May I take this opportunity to thank my comrades from the ANC, the acting chairperson and all the members of the ANC for supporting this Budget Vote and for also understanding the imperatives of transformation in the mining industry, the complexities and the difficulties we have faced since the inception of democracy. Thank you very much. Thank you, comrades, for your contribution to this debate and for being constructive. [Applause.]
Hon Hlengwa, thank you very much. The IFP has never let us down in this portfolio committee. You have always supported us. May I call upon you - all of us - to boldly stand in making sure that this industry thrives? We believe in you, as the IFP, as the previous members have done. We believe that, together, we will be able to create a better mining industry in this country. [Applause.] We also believe that the hon Dudley's contribution to this portfolio committee - understanding the challenges, skills development, the importance of making sure that we modernise this industry - is imperative. We welcome her support of our Budget Vote.
Coming to the prophets of doom, starting with the hon Carter: Jim comes to Johannesburg. [Laughter.] Make sure you understand this industry better. Don't come here on the platform of a dying party, which has never gone to elections, which doesn't understand democracy. After hardly five years, it is up in arms, fighting. Where do you belong: to Lekota or to the honourable Shilowa? Which one do you belong to? [Interjections.] We are an organisation which has integrity and which has a track record. [Interjections.] Very soon you will be joining the DA, because you don't know where you belong. [Interjections.]
Hon Lorimer, may I say that we are in the illegal space in Roodepoort. We are there. We exist. We are hands-on, because we come, and we were created by the ground. I am unlike you who pass the area and then say that you understand. I am there! I work with the people on the ground. [Interjections.] That is why there is change! That is what we are doing in that space! Where are you? You are sitting here. Participate in the committee and understand what is going on there. Don't just come here and challenge what you don't know. We are a party of integrity.
Let me also say to you that when you come to Parliament, contextualise. Contextualise and listen. I reflected the success whilst we face challenges. The mining industry is doing well, but you continue, because you did not write your speech! You didn't hear; you had to stick to the book. Understand and contextualise. Come here understanding what goes on. [Interjections.] Don't just say what is written in the papers by researchers. Understand the industry. No-one writes for us! We develop and create our speeches, as the ANC. That is how we were brought up. That is how we were taught in the ANC. Join us, as the ANC! [Applause.]
Hon Schmidt, may I say to you ...
Minister! Minister!
May I also say to you, hon Lorimer ...
Minister, your time has expired!
That's fine. [Applause.] Debate concluded.