1. SPECIAL PRESIDENTIAL PACKAGE FOR DISTRESSED MINING COMMUNITIES
IMC INTERVENTIONS IN MINING TOWNS & OTHER PLANS TO ERADICATE INFORMAL SETTLEMENTS
PROGRESS REPORT BY THE DEPARTMENT OF HUMAN SETTLEMENTS
DIRECTOR- GENERAL: T. ZULU
10 March 2015
Confidential

2. PRESENTATION OUTLINE INTRODUCTION BACKGROUND
INTER MINISTERIAL COMMITTEE – MANDATE
INTER MINISTERIAL COMMITTEE – DEPARTMENTS
SCOPE OF WORK
PROGRESS TO DATE
FUNDING ARRANGEMENTS
RECOMMENDATIONS AND CONCLUSIONS
Confidential

3. INTRODUCTION
Mining towns are characterised by wide-scale informal settlements
Informal settlements are often located on tribal or privately owned land
Miners do not qualify for government’s housing subsidy programmes
Many mining companies have reached agreements with unions to pay a living out allowance – largely not used for decent housing and has led to many miners living in terrible conditions in backyards/informal settlements
High levels of indebtedness exist amongst miners

4. INTRODUCTION
Informal Settlement Upgrading projects are typically multi-year projects
There is a need to accommodate a diverse range of residents in the mining towns requiring a diverse range of housing options/solutions (upgrading of informal settlements, hostel upgrade, private rental/ownership, social housing, partially and fully subsidised housing)
Overall objective of the intervention = “Transformation of mining towns through creation of sustainable human settlements”

5. BACKGROUND
SOCIAL ACCORD: In October 2012 the President led the signing of a Social Accord (not confined to the mining industry) with Government, Business and Labour referred to as the Special Presidential Package (SPP) which made a number of commitments :
Part 1:Restoring confidence in labour market institutions, addressing income inequalities and building social cohesion
Part 2: Action to combat violence and lawlessness
Part 3: Addressing socio-economic challenges
FRAMEWORK AGREEMENT: In July 2013 the DP facilitated development of the Framework Agreement for a Sustainable Mining Industry, as mandated by the President. The Stakeholders are:
Government
Labour (NUM, AMCU, UASA and Solidarity, supported by their Federations: COSATU, NACTU and FEDUSA)
Business Chamber of Mines (CoM) and South African Mining Development Association (SAMDA)]

6. BACKGROUND
An action plan was developed and consists of the following 5 objectives :
Ensuring the rule of law, peace and stability (SAPS; Justice & Corrections supported by Dept. SS)
Strengthening labour relations (DoL supported by DMR)
Improving living and working conditions of mineworkers (DoL supported DHS, DOH, SocDev, DED, COGTA)
Providing short to medium term measures to support growth and stability (DMR)
Identifying long-term measures to support growth and stability (DMR supported by DTI, NT)
As per the June 2014 SONA, the Framework Agreement is now led by the President

7. IMC: Revitalization of Distressed Mining Communities
In late 2012, an Inter Ministerial Committee for the Revitalisation of Distressed Mining Communities was established to address Part 3 of the Social Accord (SPP): Addressing socio-economic challenges in mining districts and their labour sending areas. The IMC has focused on:
Integrated and sustainable human settlements, led by the DHS and supported by its agencies, e.g. NHFC, HDA
Improved socio-economic conditions, led by DCoG, Dept. of Traditional Affairs, DRDLR and supported by DTI, EDD, Treasury, DBSA, SALGA, IDC, MISA
Improved working conditions of mine workers led by DoL
Decent living conditions for mine workers and meaningful contribution to the development trajectory of mining towns and labour sending areas, led by DMR

8. IMC: Revitalization of Distressed Mining Communities

9. SCOPE: 15 Towns for the Revitalisation of Distressed Mining Communities
Fifteen mining areas in five provinces and their associated labour sending areas have been prioritised for the revitalisation of distressed mining communities
MINING TOWNS
PROVINCE
DISTRICT MUNICIPALITY
LOCAL MUNICIPALITES
Limpopo
Sekhukhune
Fetakgomo, Tubatse, Elias Motsoaledi
Waterberg
Lephalale
Gauteng
West Rand
Westonaria, Randfontein, Mogale City, Merafong
North West
Bojanala
Rustenburg, Moses Kotane, Madibeng
Dr. Kenneth Kaunda
Matlosana
Mpumalanga
Nkangala
Emalahleni, Steve Tshwete
Free State
Lejweleputswa
Matjhabeng

10. SCOPE: Twelve Priority Labour Sending Areas for the Revitalisation of Distressed Mining Communities
Twelve labour sending areas in two provinces have been prioritised for the revitalisation of distressed mining communities
LABOUR SENDING AREAS
PROVINCE
DISTRICT MUNICIPALITY
LOCAL MUNICIPALITY
Eastern Cape
OR Tambo
King Sabata Dalindyebo, Nyandeni, Nquza Hill, Mhlontlo, Port St Johns
Alfred Nzo
Mbizana, Ntabankulu
KwaZulu Natal
Zululand
AbaQulusi, eDumbe, Nongoma, Ulundi, uPhongolo

11. Progress: Planning for Informal Settlement Upgrading (SPP)
Province & Municipality
NUSP Priority informal settlements
Stage of ISU Planning work (January 2015)
Total Number of Informal Settlements within Municipality
Assessment & categorisation
Settlement planning
Project packaging
Completed
North West
Rustenburg 24 10
complete
in process
Madibeng 30 28 3
Moses Kotane 4
Matlosana
Free State
Matjhabeng 20
Limpopo
Greate Tubatse 7 2
Elias Motsoaledi 5
Lephalale
Fetakgomo 1
Mpumalanga 6
Emalahleni 8
Steve Tshwete
Gauteng
Westonaria
Randfontein 11
Merafong
Totals
136
119
12 municipalities completed
13 in process
10 in process
32 being upgraded

12. Progress: Planning for Informal Settlement Upgrading (SPP)
Province & Municipality
NUSP Priority informal settlements
Categorisation of the settlements after rapid assessments (Jan 2015)
Total Number of Informal Settlements within Municipality A B1 B2 C
tbc
North West
Rustenburg 24 10 1 8
Madibeng 30 28 13 4 3
Moses Kotane 2
Matlosana
Free State
Matjhabeng 20 5 14
Limpopo
Greate Tubatse 7
Elias Motsoaledi
Lephalale
Fetakgomo
Mpumalanga
Emalahleni
Steve Tshwete
Gauteng
Westonaria 6
Randfontein 11
Merafong
Totals
136
119 45 36 16
Based on the rapid assessment informal settlements are categorised as follows:
A: Full Upgrading = Rapid Formalisation, full services.
B 1: Interim basic services = Provision of interim services leading to eventual formalisation
B 2: Emergency basic services = Provision of emergency basic services BUT leading to eventual relocation
C: Rapid relocation to a site which is already available or imminently available
36 informal settlements will require re-location and cannot be upgraded in-situ

13. Progress: Planning for Informal Settlement Upgrading (SPP)
Alignment of NDHS and DMR information on Informal Settlements and Housing options provided by Mining Companies
SPP Provinces
Total Number of Informal Settlements within SPP Municipalities in provinces
Estimated no. of households in the informal settlements
No. of employees on LOA (DMR)
No. of employees in hostels (DMR)
No. of employees staying in mine provided housing schemes (DMR)
no. of employees on home ownership schemes (DMR)
North West 61
80041
70221
46087
6629
15908
Free State 20
6331
12428
5720
744
726
Limpopo 15
11789
10326
194
947
1947
Mpumalanga 16
3006
4717
2051
6952
Gauteng 24
37834
18810
16019
15958
6324
Totals
136
139001
116502
68020
26329
31857
Note: 40% of total workforce on LoA in SPP areas. Total workforce of (DMR information)
There is a strong correlation between the no. of households living in informal settlements & the no. of employees on LOA in the SPP municipalities.

14. Progress: Human Settlements Projects Implementation
Province & Municipality
Total number of projects as per business plans
Total no. of projects underway 2014/15
Progress with project implementation (Jan 2015)
Planned units/sites
Completed units/sites
No. of ISU projects
North West 36 11
9869
6360 13
Rustenburg 19 4
2965
2353 10
Madibeng 8 2
4060
2885 3
Moses Kotane 9 5
2844
1122  0
Free State 15
8867
Matjhabeng
Limpopo 14
2644 
1374
Greate Tubatse 6
 955
 903  2
Elias Motsoaledi
 837
 471
Lephalale
 750  3
Fetakgomo
 122
Mpumalanga
1552
349
Emalahleni  4
185 
76 
Steve Tshwete
 185
 76
Gauteng
720
Westonaria
570
Randfontein
Merafong 1
150
Totals 87 52
24029
8197 35

15. Budget Allocation of SPP Provinces
GOVERNMENT (Rands)
MINING COMPANIES (Rands)
TOTAL (Rands)
FREE STATE
GAUTENG
LIMPOPO
MPUMALANGA
NORTH WEST
TOTAL

16. DHS - Capital Subsidy Funding & Expenditure 2014/15
Mining Towns Summary: Expenditure against budget as at end Jan 2015
SPP Provinces & Municiplaities
2014/15 Ring-fenced Funds Allocated R'000 (Gazetted)
2014/15 Adjusted Ring-fenced allocation R'000 (Revised BP)
Expenditure as at end Jan 2015 (R'000)
% Expenditure of Gazetted allocation
% expenditure of adjusted allocation
North West
Rustenburg
65 337
36 375
55.7
28.22
Madibeng
69 777
11 916
56 505
81.0
474.19
Moses Kotane
15 977
28 898
47 194
295.4
163.31
Free State
Matjhabeng
26 788
23 892
89.2
13.54
Limpopo
Greate Tubatse
1 684
69 946
Elias Motsoaledi
3 255
50 450
Lephalale
4 720
Fetakgomo
710
31 247
Mpumalanga
Emalahleni
25 507
53 427
209.5
14.49
Steve Tshwete
10 131
39 727
392.1
10.43
Gauteng
Westonaria
17 141
29 335
Randfontein
8 666
839
Merafong
6 961
14 673
Totals
100.18
18.24

17. Free State: Summary Matjhabeng
A total of 48 projects totalling R
Government = R
Mining Companies = R
11 contained in the Social and Labour Plans of Mining Companies
17 Dept. of Human Settlements
16 Dept. Social Development
2 Dept. Rural Development
1 Dept. of Environmental Affairs
1 Dept. of Transport

18. Free State: Summary Matjhabeng
GOVERNMENT(Rands)
MINING COMPANIES (Rands)
TOTAL (Rands)
HUMAN SETTLEMENT
WATER AND SANITATION
COMMUNITY PROJECTS
SOCIAL SUPPORT
SCHOOL PROJECTS
ECONOMIC DEVELOPMENT
ENVIRONMENTAL PROJECT
RURAL DEVELOPMENT
TRANSPORT PROJECT
TOTAL

19. Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong
A total of 71 projects = R b
Government= R
Mining Companies = R )
45 projects contained in the Social and Labour Plans of Mining Companies
8 Dept. of Human Settlements
3 Dept. of Water and Sanitation
2 Dept. of Social Development
1 Dept. of Transport
12 Dept. of rural Development and Land Reform

20. Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong
GOVERNMENT (Rands)
MINING COMPANIES (Rands)
TOTAL (Rands)
HUMAN SETTLEMENT
WATER AND SANITATION
COMMUNITY PROJECTS
SOCIAL SUPPORT
SCHOOL PROJECTS
ECONOMIC DEVELOPMENT
ENVIRONMENTAL PROJECT
RURAL DEVELOPMENT
TRANSPORT PROJECT
TOTAL

21. Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi
A total of 162 projects totalling R4 167b
Government = R 3 485b and
Mining Companies = R681 
103 contained in the Social and Labour Plans of Mining Companies
30 Dept. of Human Settlements
4 Dept. Social Development
2 Dept. Rural Development
17 Dept. of Water and Sanitation
5 Dept. of Environmental Affairs
1 Dept. of Trade and Industry
1 Dept. of Cooperative Governance
1 Dept. of Transport

22. Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi
GOVERNMENT(Rands)
MINING COMPANIES (Rands)
TOTAL (Rands)
HUMAN SETTLEMENT
INFRASTRUCTURE
WATER AND SANITATION
COMMUNITY PROJECTS
SOCIAL SUPPORT
SCHOOL PROJECTS
ECONOMIC DEVELOPMENT
ENVIRONMENTAL PROJECT
RURAL DEVELOPMENT
TRANSPORT PROJECT
TOTAL

23. Mpumalanga Summary: Emalahleni, Steve Tshwete
Total of 62 Projects recorded
Total costs are:
Government (R253.4m) and
mining Companies (R1, b)
Housing:
There are 32 housing projects initiated by NDHS. Of these, 5 projects have no defined location and all have no indication of budget allocation
9 housing projects are contained in SLP’s. 5 of these have been completed.
Costs= SLP (R107.7m)
61 Informal settlements with an estimated households. DMR info indicates that there are mine employees receiving a living out allowance in the North West
45 Informal settlements receiving technical assistance from the National Upgrade Support Programme of DHS

24. Mpumalanga Summary: Emalahleni, Steve Tshwete
GOVERNMENT (Rands)
MINING COMPANIES (Rands)
TOTAL (Rands)
HUMAN SETTLEMENT
INFRASTRUCTURE
WATER AND SANITATION
COMMUNITY PROJECTS
SOCIAL SUPPORT
SCHOOL PROJECTS
ECONOMIC DEVELOPMENT
ENVIRONMENTAL PROJECT
RURAL DEVELOPMENT
TRANSPORT PROJECT
TOTAL

25. North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana
A total of 106 projects have been recorded. Total cost is R4 186b
Government = R2 147b
Mining companies = R 2 039b
49 projects are contained in the SLP of mining companies,
1 joint economic project from dti, EDD and RLM,
1 Dept. trade and industry
1 Dept. of Co-operative Governance
5 SALGA
36 Dept. Human Settlements
10 Dept. Water and Sanitation
4 Dept. Environment Analysis

26. North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana
GOVERNMENT
MINING COMPANIES
TOTAL
HUMAN SETTLEMENT
INFRASTRUCTURE
WATER AND SANITATION
COMMUNITY PROJECTS
SOCIAL SUPPORT
SCHOOL PROJECTS
ECONOMIC DEVELOPMENT
ENVIRONMENTAL PROJECT
RURAL DEVELOPMENT
GOV CAPACITY DEVELOPMENT
TRANSPORT PROJECT

27. Recommendations and conclusions
Portfolio Committee notes the Progress Report on Revitalization of Distressed Mining Communities
Provide relentless support to Government initiatives and interventions whilst providing oversight on the distressed mining communities
Presidency/DPME continues to ensures alignment with other government departments in order to enhance Joint Programme Implementation (DMR, DHS, DWS, DoL, COGTA, DOH,DED, etc)
NDHS ensures appropriate dedicated capacity focusing on the mining towns intervention
Partnerships with mining companies and labour encouraged in line with Social Accord & HS Social Contract sothat Government investment is matched /enhanced by the mining companies

28. “We have come a long way – Celebrating 20 Years of Freedom!”
THANK YOU
“We have come a long way – Celebrating 20 Years of Freedom!”