Chair, hon Minister, colleagues, ladies and gentlemen, South Africa is reported to be the most mineral-rich country in the whole world, and it has been found that it also has the highest inequality in the world. We were the last colonised country to gain independence and to usher in a bloodless constitutional democracy in Africa, yet we have the highest infant mortality rate in the world. "The wealth of the country shall be shared amongst those who live in it." So says the Freedom Charter. But the wealth of the country continues to be looted by the multinational companies, who come to Africa under the guise of investment. Our mineral resources have been spirited away by the likes of Anglo American, now called AngloGold Ashanti, which has moved its headquarters to London and relisted on the London Stock Exchange.
There are a couple of other companies, such as BP and Shell, that are pulling out of Africa for reasons best known to them. The question remains: Is the wealth of this country shared amongst those who live in it?
As we put a stamp of approval on your budget, hon Minister, I would like to argue that the broad-based black economic empowerment policy, as implemented currently, is a double-edged sword that creates the black middle class and upper class that live in leafy urban areas and on golf estates, while the poorest of the poor, who live in Mandela Park in Thabong in the Free State, are still looking forward to empowerment.
As much as we know that the policy does not mean that historically disadvantaged individuals necessarily need to have equity in companies they are working at or participating in, we cannot say that we have transformed and deracialised the mining sector without black people being owners of those mines. I take solace in the fact that the mineral policy and promotion programme has been allocated the biggest share of the budget: R429 million. We hope that the Minister and the department will work hard to ensure that the mining charter is implemented fully.
We do not know if the department will meet its target of 26% of the sector being in black hands by 2014. That does not mean, in my view, black faces in top management and on boards of directors in the industry. It means ownership. We were informed that the department intends to fast-track the upward mobility of black people in the industry through social labour plans. That is, however, still not ownership.
The department will continue supporting small and medium enterprises with funds and some technical skills. This is highly appreciated, as the mining industry is a capital-intensive one. However, this can only be done with small-scale mining. It appears that it is only in small-scale diamond mining in the Northern Cape and the North West that the projects are operational. This is simply because diamonds can be found in the gravel close to the surface, or in streams - what are geologically known as alluvial diamonds.
These can be easily separated from the host rock, in this case gravel, through panning. As a result, small-scale mining is possible. It is, however, different and it will be difficult for small-scale miners to mine kimberlite pipes that extend vertically hundreds of metres into the ground. This needs heavy equipment and is very expensive. To sink a shaft, in my days when I was mining, cost R5 million. I wonder what it would cost today.
It will also be difficult to embark on small-scale mining in gold, platinum, iron ore and any other mineral, which need heavy machinery and equipment to mine and separate from the host rock, unless such projects are adequately financed. We are therefore looking forward to the mineral promotion and policy programme coming up with policies that will better address the need that "the people shall share in the country's wealth".
Australia has taken a deliberate decision to impose a 40% tax on mines from 2012 onwards. It intends to spread the wealth of the country in that manner. I am not saying we should follow suit, but what we should keep in mind is that the mineral resources in the ground are not replaceable. And, if we continue giving away this wealth without our country being developed using our country's natural endowments, we are definitely going to end up at the IMF and World Bank's door with a begging bowl. I thank you. [Applause.]