Madam Chair, we welcome the question asked by hon Matlanyane. Section 2.1 of the Mineral and Petroleum Resources Development Act, Act 28 of 2002, provides for the holder of mining and production rights to contribute to the socioeconomic development of areas in which they are operating. The contributions are made by the mining companies in terms of the provisions of the Mining Charter, in accordance with the requirements of the social and labour plans, SLPs.
One of the key elements of the SLPs is a local economic development programme which contributes to mine community development. The LED programme must include, among others: the social and economic background of the areas in which the mine operates; the key economic areas; and the impact that the mine will have in the local and labour-sending communities. In addition, there are also the infrastructure and poverty eradication projects that the mine will support, in line with the integrated development plans, IDPs, of the areas in which the mine operates, as well as the major labour-sending areas.
In addition to all of this, the department has also published guidelines that will assist companies in drafting credible SLPs that will address section 2.1 in regard to the issues mentioned above.
Lastly, in regard to compliance, in order to ensure that the holder of the mining rights is contributing to the socioeconomic development of the areas, the following need to be adhered to: The Mineral and Petroleum Resources Development Act provides for routine inspections to be conducted by officials; the charter needs to be reviewed every time; and, lastly, the mining companies must also report on annually the progress they are making in connection with the provisions of the law. Thank you very much. [Applause.]