Hon Chairperson, mining has been the mainstay of South Africa's economy for centuries. There are, however, serious challenges that need focused attention, for instance resource depletion, the ballooning costs of mining, the high cost and uncertainty of power supply, technological challenges, the threat of nationalisation, and undue political interference.
The reassurance by the Minister on behalf of government on the subject of nationalisation will have calmed the nerves, but it has left a lingering doubt. As mining in our country is no longer done at the surface, mining costs are rising steeply. In the last year, over 30% of miners lost their jobs. Maybe the ANC Youth League should be encouraged to study the economics of present-day mining. We know that the president of the ANC Youth League is not very strong in mathematics. [Interjections.]
In 2004, government approved the Mineral and Petroleum Resources Development Act. Its objectives were to provide for equitable access to mineral resources, promote economic growth, achieve mineral resource development, and provide for security of tenure in respect of prospecting, exploration, mining, and production operations.
Hon Minister, some of these objectives are not being met owing to administrative indiscretion, political gerrymandering and uncertainty in the regulatory framework. A typical example is the fiasco involving Kumba Iron Ore, ArcelorMittal and the reapplication for the mining licence. The net result is that a few privileged, politically connected individuals apparently stand to gain R8 billion without lifting a finger.
A lot has been said about unrehabilitated mines, and I think the best example is Kimberley, where, indeed, it was proven that diamonds are not forever. We need to address the issue of mining companies which place this critical rehabilitation phase last on their to-do lists.
Cope would like to congratulate Migdett - the Mining Industry Growth, Development and Employment Task Team - on managing to save almost 65 000 jobs instead of us experiencing the expected job loss of 100 000 during the financial crisis. The Minister has already indicated what they intend doing.
Beneficiation remains the nemesis of the South African mining industry. It is unacceptable that the same hollow arguments are continually raised as to why mineral resources cannot be beneficiated close to the source of production. Government must think outside the box and seriously consider initiatives like smelters for the Northern Cape and the relocation of the State Diamond Trader back to Kimberley where it belongs.
Further, it is an indictment of government that single-sex hostels are still in existence. According to some reports, 36% of mineworkers still live in these circumstances. Although the figure has come down, it begs the question: Why is it taking so long to do away with this practice?
It would also be appreciated if the hon Minister could pronounce herself on the situation at the Aurora Grootvlei mining operation where three miners died whilst waiting in a queue to receive their hard-earned wages.
Lastly, Cope wants to endorse the summoning of the Mine Health and Safety Council to appear before the committee. There are many questions regarding mining health and safety that still remain unanswered, and it is important to ensure that the Mine Health and Safety Council does, in fact, enforce compliance. At present, only 2% of the budget is allocated to the promotion of health and safety. This is certainly not enough and we need to look at that. I thank you, hon Chairperson. [Applause.]