1. TRANSFORMATION the Key to the future Portfolio Committee on
NUM Presentation
20th August 2014
Portfolio Committee on
Mineral Resources
TSHIMANE MONTOEDI

2. Transformation Status in the Mining
MPRDA 2002
Social and Labour Plan
Broad Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry

3. Social and Labour Plan Implementation
The mining industry has the necessary legislative frameworks to achieve greater transformation and ensure the development of its employees, mine host communities and labour sending areas.
The biggest impediment to achieving the above mentioned objectives, is the industry’s lack of commitment towards transformation.
The captains of industry need to spearhead this process with executive decisions, backed by the necessary financial support

4. The mining industry has a collective responsibility to ensure that mining companies comply with the Mining Charter, the MPRDA 2002, Skills Development Act, Social and Labour Plans.
SLP implementation should result in skills development for employees, developed mine host communities, mining operations significantly contributing to local economic development through procurement and enterprise development, etc.

5. Challenges with SLP Implementation
There is no direct link between the Mine Works Programme, SLP commitments and IDP’s
Non compliance is not linked to heavy penalties (Section 93 not always followed by Sec 47)
Lack of Coordinated Monitoring and Evaluation Programme (as per the stakeholder declaration)
Section 101 not adhered in the appointment of contractors

6. Human Resource Development
Updated Form Q that determines employees educational needs
Full implementation of Employee and Community ABET program
Eradicating Barriers linked to ABET, these include loss of bonuses and salaries for employee’s who attend such programmes
Mining Companies should stop relying on MQA grants in order to implement skills development initiatives
Learnerships & Bursaries should be utilised to empower workers and create community talent pool

7. Local Economic Development
Stakeholder involvement in the implementation process
Compulsory Host Community and Labour Sending Areas Socio Economic Survey should be conducted in order to understand their needs
Mining Companies project managing all LED projects to ensure sustainability of the project
This section should be linked to both Local and District Municipalities Integrated Development Plans

8. Housing and Living Conditions
Conversion of all hostels into single and family units as per the charter targets (this must include all contractor employees)
Mining Companies should not only facilitate, but provide employees with houses as benefits of the minerals they mine.
Mining Companies should ensure all new developments house prices are affordable for mine workers.
Housing Policies should allow employees to own houses in Labour Sending Areas and Villages

9. Downscaling and Retrenchments
All mining right holders must have compulsory monthly SLP forums with Labour Represented and quarterly Future Forums with other stakeholders represented.
The industry should implement Section 52 and Regulation 46 (e) before LRA’s Section 189.
Companies should cut management salaries and bonuses as an initiative to avoid Job losses.
DMR Regional Offices should be actively involved in the approval or rejection of all downscaling processes.

10. Mining Charter Assessment Challenges
No significant change on the ownership of mines (most transactions are economically meaning less and over burdened with debt)
No evidence of direct link between proposed and implemented community development projects
Insignificant number of HDSA at decision making positions
Lack of sufficient investment in HDSA skills development
Lack of strategy for procurement and enterprise development

11. Ownership
Achieve a minimum of 26% HDSA ownership by 2014 (including ESOPS)
10% Should be owned by Employees
10% Should be owned by host communities
This ownership should translate to executive decision making
The funding for these initiatives should not be linked to debt
It should also enjoy the equal shareholder benefits, including dividends and participating in AGM’s or board meetings.
Ooooooooo

12. Beneficiation
Coordination between DMR, DTI and Economic Development Departments (on the implementation0f the Beneficiation Strategy)
The Beneficiation strategy should outline both upstream and downstream beneficiation strategies
The strategy should be linked to the Skills Development Accord with specific focus on how SETA’s can ensure alignment with the required skills
Establishment of a Mineral Beneficiation Committee

13. Procurement
Developing an industry wide strategy for local procurement and enterprise/SMME development
The regulator’s monitoring and evaluation process should include forensic audits of company financial statements and submitted reports
Established Suppliers must form mandatory Joint Venture partnerships with local suppliers
Enterprise Development should be accompanied with the relevant support

14. Employment Equity
Industry should eradicate the “Irish Coffee Syndrome”
Income disparities should be addressed (especially if race and gender is the only differentiator between two employees)
HDSA’s in Management should have executive authority
HDSA’s should represent the country’s population demographics, currently the biggest benefactor of this policy are white women

15. Mine Community Development
Host communities and labour sending areas should benefit from the mineral wealth of this country
The Community is a critical stakeholder in the mining industry, hence it’s imperative for companies to include them in their HRD programme (ABET, Learnerships, etc.)
Enterprise Development with the relevant business support
Preferential Procurement Policies should specifically target the Economic Development of host communities

16. Way Forward
An integrated approach is required to monitoring and evaluation of implementation (Reporting)
Enforce punitive measures for Non-compliance, the current draft amendment bill should provide for this
Redefine HDSA (exclude white women, reflect racial demographics of the country)
Include people living with disabilities in the charter

17. THANK YOU!!!