Chairperson, hon Minister, Deputy Minister and hon members, the mandate of the Department of Mineral Resources is to:
Ensure transformation, economic growth, health, safety and sustainability of the minerals and mining sector.
South Africa, like Chile, Canada and Australia, has mining as one of its biggest income earners and generators.
On the issue of health and safety, the department must improve health and safety conditions in the mining sector. Mining executives have been urged to confront with renewed vigour the health and safety challenges of the aging mines. As mines get older, they become less profitable as a result of increasing overhead costs. However, the health and safety function within the mine needs to be maintained as long as that mine is in production, until the mine is formally closed on application to the Department of Mineral Resources.
Last year, South Africa achieved the most improved safety record in the country's mining safety records in the history of the country. However, over 120 deaths were still reported. Fall of ground incidents are still the major cause of fatalities in the country's mines, contributing to 39% of mine deaths in 2010. Falls of ground are caused mainly by systematic aspects and poor discipline. Gold mining remains the epicentre of fatalities, followed by platinum and then coal.
The number of deaths from respiratory diseases is increasing. Thousands of South African miners have contracted silicosis and silicotuberculosis in the past 100 years. Mining and the Mine Health and Safety Council have launched a series of road shows to increase awareness of silicosis, an incurable occupational lung disease caused by the inhaling of crystalline silica dust and marked by lesions in the upper lobes of the lungs.
The deaths of 5 396 miners from respiratory diseases from 2003 to 2009 have been recorded. Industry studies in 1998 put the number of silicosis sufferers at some 300 000. The South African mining industry is facing a very serious threat from silicosis claims. The Department of Mineral Resources is focusing on efforts to reduce dust levels in mines. Government is making a concerted effort to move towards a zero-fatality industry. Only safe mining is profitable and sustainable.
On the issue of economic growth, mining developments in South Africa are mostly dependent on efficient transportation logistics. The handling and transportation of commodities from a mine to a harbour, which optimise infrastructure, operation and maintenance costs, are significant factors in the development of a mine.
Saldanha Bay is a natural deep sea water harbour. The creation of additional quays and new facilities at Saldanha, to encourage the beneficiation of metals and minerals and the possible emergence of a manganese export terminal, will be an addition to the highly used iron ore export terminal.
Last year South Africa exported more than 47 million tons of iron ore from the deep sea water port of Saldanha, and it has plans to increase this export level to 60 million tons in the near future. The establishing of an industrial development zone in its port region is on the table. This has the potential to create many jobs in the region and stimulate economic growth.
At this point I would like to invite everybody present, specifically my chairperson, Mr Gona, to come and invest in Saldanha Bay Municipality because that's my constituency. It is now a DA-controlled municipality. [Interjections.] In 2006 the voter base was 28% for the DA, and this has now moved to 60,1%. They will look after your interests in Saldanha. You are more than welcome.
Confidence in the mining sector is growing after the bounce back and steady recovery of commodity prices, following their slide during 2008-09. Labour has an obligation to increase productivity to enhance global competition, while government has an obligation to ensure critical infrastructure such as rail, water and power, and a stable investment environment.
Export demand from other developing economies, particularly in Asia, has gained further ground. South Africa's exports to China over five years have increased by 475%, or from R8,4 billion to R49 billion. The second largest increase in exports, of R14,8 billion, is to Switzerland. Nearly 75% of these increases relate to platinum in general, and 11% to platinum coins. The leading export product categories in China, Japan, Korea and India were iron ore, platinum, coal and ferro alloys.
I have to compliment the Minister and the department on the new Electronic Mineral Management System, EMMS. The EMMS has the ability to group applications and prioritise them by both time and date. It will require greater transparency and accountability from government and those applying for prospecting rights.
The review of the current legislation and the proposed amendments will hopefully be concluded soon, as the widest possible consultation was needed.
On rehabilitation, the rehabilitation of abandoned mines will remain a challenge, given the department's budget constraint of plus-minus R51 million. Last year Mintek completed the rehabilitation of five asbestos mines in the Northern Cape, under the Department of Mineral Resources' derelict and ownerless mines programme. Thank you. [Time expired.] [Applause.]