SELECT COMMITTEE PRESENTATION OF THE MINERAL RESOURCES 2012 SONA RESPONSE DATE 13 MARCH 2012 DEPARTMENT OF MINERAL RESOURCES 1

Presentation Outline 1. Job creation 2. Beneficiation 3. Competitiveness / Infrastructure 4.Skills development 5.Health 6.Procurement / Empowerment 7.Employment Equity 2

Job creation 1.The New Growth Path has identified the mining industry as one of the key job drivers 2.The President’s speech indicated that the mining industry has contributed to the reduction in unemployment for To address the issue of job creation, stakeholders developed a strategy for the sustainable growth and meaningful transformation of the mining sector; Further to this, was a commitment by all parties to create 140, 000 jobs by Current indications are that we are on track. 5.Together with stakeholders, through MIGDETT, we will monitor progress.

Job creation Cont’d Through licensing and regulatory activities, the department will continue to contribute towards job creation through: issuing of prospecting rights, mining rights and mining permits to compliant applicants. improving monitoring and enforcement of compliance through conducting inspections covering Social and Labour Plans. 4

TOTAL EMPLOYMENT, **2011 Preliminary Employment

Beneficiation South Africa is endowed with a variety of mineral resources The challenge for the country has been the ability to significantly add value to the mined minerals The President emphasised the importance of beneficiation in addressing the triple challenges of poverty, unemployment and inequality In this regard, the department has developed a beneficiation strategy that was approved by cabinet. Cabinet instructed DMR to develop implementation plans for the following value chains: 1.Iron ore and steel 2.Energy (e.g Coal, Uranium & Thorium) 3.Platinum Group Metals – focus on autocatalysts 4.Titanium 5.Jewellery fabrication The first two were approved by Cabinet in November 2011 and the remaining three are due for submission to Cabinet this year 6

Competitiveness / Infrastructure Competitiveness in the mining and minerals industry is critical in terms of developing new projects and creating jobs To address competitiveness of the mining and minerals industry, the sector strategy for sustainable growth and meaningful transformation that was developed under the auspices of MIGDETT identified a number of binding constraints. Some of the binding constraints are:  infrastructure  research and development e.g high quality geological information  availability of energy The announcement by the President will go a long way in addressing the issues of infrastructure and competitiveness in the mining industry The DMR will continue working with stakeholders to address the issue of infrastructure constraints through: - inter governmental structures - MIGDETT processes 7

Skills Development  Skills development is still a challenge within the mining industry.  The DMR is collaborating with the DHET through the MQA to improve skills development in respect of the following programmes:  Artisan Development.  Improving women participation.  Developing black managers.  Skills required to support Beneficiation Strategy.  Bursaries.  The Department will explore ways of improving the percentage pass rate for various certificates of competency.  The DMR has its own internal programmes to enhance skills of the staff. 8

Health of mine employees including TB, HIV and AIDS is a continuing concern within the mining sector. These issues were also identified during the Mine Health and Safety Summit held in November Commitments were made during the Summit which will address silicosis, TB, HIV, AIDS and the general health of employees. 9 Health

Responding to the President’s call, we will further tighten up our Supply Chain Management (SCM) to prevent fronting and corruption. All employees of the Department, including SCM employees are screened before commencing employment in the Department. Fronting in the industry regarding licenses is an area of major concern. Through the current regulatory framework the Department will intensify enforcement of its transformation objects and the review process of legislation will address any gaps. In addition implementation of Social and Labour Plans will be enforced to ensure significant socio economic development within communities 10 Procurement / Empowerment

Employment Equity The department has a mandatory 2% as its target for disabled employees in its employment equity plans. Currently we are sitting at 0.6% but plans are afoot to increase this target through our recruitment strategy. Employment equity in the mining industry is also of concern. The Department assesses progress on a continuous basis to ensure that transformation takes place in the industry. 11

THANK YOU 12