DEPARTMENT OF MINERAL RESOURCES (DMR) – COMMITTEE MEETINGS (8,9 AND 11 JULY 2014) POINTS RAISED PRESENTATION BY MINISTRY OF MINERAL REOURCE 1st time that the Minister sat at a DMR committee meeting 1. Regress in Health and Safety standards in the years 2012/2013 because there was a change of CEO’s every two months. Miscommunication between tri apartheid committees set up. 2. Mining to ensure to not effect communities 3. Using strategic goals set out in the NDP 4. Mining sector is still in transitionary stage between Old mining rights and implementing new mining laws and licences 5. December 2014 marks the end of the transitionary stage as indicated in the Mining charter 6. No indication of when the exact cut of date is for Mining companies to comply with new mining rules as per mining charter. 7. No indication of how the DMR will ascertain if mining companies have actually complied with laws 8. No infrastructure or very weak infrastructure in place to monitor that mines are complying with new mining act. 9. Inadequate number of inspectors to see to compliance and maintenance of basic health and safety. 10. Of the 1600 operating mines in South Africa, the number of mines checked over the parliamentary term is referred to as a sample 11. Unable to give an indication of how many mines of the 1600 operating mines constitute a ‘sample’ 12. Unable to indicate how many inspectors are required to check all mines annually. 13. Honourable Malema indicated that the December 2014 marks an important moment in the history of the mining sector as it will be a time when mining licences are reviewed around the country. Mines who have not adhered to the Mining charter will have their licences revoked. It is concerning that there are no monitoring mechanisms (including adequate number of inspectors) in place to follow through this process. 14. Ministry to set up an ICT system to steer the monitoring system of the Mines 15. Honourable Malema objects to the Ministry relying predominantly on an IT system as these type of audits can easily be corrupted. It is very detached from what is actually taking place on the ground and can easily be misguided by whomever is controlling the IT processes. 16. Honourable Malema insists that the Ministry creates budget for additional Inspectors to monitor ALL 1600 mines across South Africa this year especially as we are heading towards the December 2014 deadline (marks 10 years given to the Mining sector to comply with new mining regulations). 17. Honourable Malema suggests that this be considered by the Ministry as a ‘Special Project’ and that adequate funding be allocated for it. 18. Minister affirmed that Mining Sector with the guidance of President Jacob Zuma will focus on the development of infrastructure for mining communities. No detail on Plan of Action was given however. 19. South Africa has 1 state owned mine 20. Honourable Malema remarked that the Ministers presentation lacked depth that he is capable of exhibiting, and that mediocrity should not be celebrated. 21. Questions asked by Honourable Malema included: · Who is the custodian of the state owned MR company · Especially beneficiation. Whose minerals are we beneficiating. · Commission an investigation on transfer costs of minerals 22. In December 2014, marks the full implementation of the mining charter, most mining companies are seen to not have being complying with regulations, but the DMR has no mechanisms in place to track compliance, Honourable Malema asked the Minister: · are we going to close the mining industry in December 2014 · How do we hold these companies accountable (if they don’t comply)? Either shape up or ship out. · Are we going to have a festival of removing certifications? 23. Honourable Malema advised the Minister to be aware of corruption of ‘Transfer Costs’ of Minerals and to commission an investigation on the transfer cost of minerals. Transfer pricing: Transnational and Multi national companies. They own Mines in South Africa but agencies in London, set up reduced price for minerals to avoid tax in SA. 24. Honourable Malema stated that the AMCU strike was a revolutionary successful strike to improve salaries of strikers. Studies conducted show that other miner outside South Africa are paid more. Minimum wage for mineworkers should be R12500. 25. Gas and Petroleum are new minerals that might be found in South Africa. Ministry affirms that this is a game change for South Africa. 26. A new minerals bill has been passed that deals with the inclusion of these minerals however it is deemed problematic (no presentation given on why it is problematic). 27. State wishes to unlock investment as soon as possible, while considering the environmental implications. 28. State has agreed to 10% of the shares of these NEW minerals going to BBEEE, and a further 10% going to state. Leaving 80% with the private sector. The state can acquire more shares on agreed price in the future. 29. Industry asks that these figure reflect on the Bill not only the regulations. 30. State wishes to have state owned block in the future collaborating with the private sector. 31. Big equipment bought by big companies not BBBEE companies. 32. Minister affirmed that the State owns minerals, government act as a regulating body. 33. Honourable Malema in an interview with a reporter from the Beeld (had shortly after the committee meeting) stated that the Ministers statement on the State owning the Minerals is misguided in that, the state actually Privatises the ownership of the minerals via licences issued. 34. 4 One Stop Service Centres, dealing with Miners health issues like TB, Cilosis, HIV. Provides free medical benefits every 2 years. 2 centers are in place. Centres to be set up in Northern Cape, Limpopo and Eastern Cape. 35. Miners still live in Hostels. Ministry plans to extend the hostels into bigger housing spaces. 36. Honourable Malema advises that the areas the hostels are situated will not be able to accommodate all miners when the expansion happens. There needs to be new land allocated for new housing for miners. 37. Minister answers questions briefly but has to leave to catch a flight. 38. Mining sector finds it difficult to recruit peoples with disability, although they use recruitment agencies. Further investigation will go into why this is so. 39. Projects: · 8 Black women wash iron ore move towards training them into beneficiating iron ore. · Women interns learn how to smelt copper · Sasol project: 10 students learn mining skills · Northern Cape: College were 34 students learn mining skills 40. Always around a 10% vacancy rate due to employees being pouched by the private sector 41. No skills development program for miners at lower level to occupy these vacancies. 42. No synergy between Government, Mining Companies and Mining communities to help the development of mining communities. 43. No indication of how many conflicts the Ministry has dealt with, or how many mining licences have been issued or taken away. 44. Mining Industries focus has been on creating indirect jobs as opposed to direct job. 45. In 5th Parliament DMR to go on site visits to see that whats on paper is reflected on the ground. 46. There needs to be the creation of synergy between the Social and Labour Plan and the Municipality 47. Conflict in communities not seeing the social and labour plans materialising in their area. 48. No indication of how many SLPs are on track, how many SLPs are not on track. 49. No indication of how many direct jobs are created by the Mining Industry 50. No indication of how many mines are inspected a year. 51. Ministry of Minerals Resources said they can’t inspect all 1600 mines in a year. Ministry compared inspecting all mines to inspecting all cars in South Africa. They want mines to comply with law, the private sector must also be audited by their own auditors to see that they comply with the law. 52. Honourable Malema said he was worried by response of Ministry on the inspection of Mines, that they can’t be expected to inspect all mines. Honorable Malema said we can’t compare cars to mines, it makes no sense. If we don’t have the 1600 mines inspected, Politicians and Multinational Corporations who control mines will be left to do as they please. White Monopoly Capital won’t be held accountable, but we (DMR) will spend our time chasing small fish around. 53. Honourable Malema asked the Deputy General of the Ministry: Deputy General should make a special project to ensure all mines are inspected. Otherwise, Politicians and White Monopoly Capital that control mines will not comply. We need a blanket approach so no one will survive via political connections and connections to corporations. 54. Ministry said there is not enough budget to inspect all mines, they would rather concentrate on developing IT capabilities to help with compliance. 55. SLPs – Section 93 remedies non-compliance – mining rights will be revoked. 56. DMR talk about reporting style of regulator when dealing with mining law compliance 57. All hostels to be destroyed by December 2014 58. Honourable Malema addressed Ministry: I don’t think it’s wrong to say that you don’t have mechanisms in place in terms of compliance. Once this is acknowledge we can work towards putting systems in place. Presentations before you said there is no mechanisms in place, this is a critical year. When dealing with compliance we need to identify the roles of leaders, municipalities, workers and unions. 59. Honourable Malema said to the Ministry, The DMR needs a specific presentation on how to monitor this process. Honourable Malema said: “I don’t agree with you that we can’t inspect all mines, this should be treated as a special project, we must ask for extra funding to do this.” 60. Honourable Malema said (speaking on behalf of the DMR), we can’t rely on improving an IT system to do this, we can’t trust this source, it’s not enough), we need this to be done physically. We can’t be sitting here in December, and talking about extending the deadline (referring to Mining Charter deadline) by two years. 61. Chairperson of DMR affirmed that it is the DMR that will decide if a special project is indeed needed. 62. The Ministry of Mineral Resources has 7 days to: · How may mines are inspected yearly · How many more inspector ae required to inspect all 1600 mines. · How many mining licences have been revoked 63. Chair of DMR said the audit of the Mining Charter should be the Priority of the DMR 64. Honourable Malema said: “I don’t agree with adoption of the budget of the Ministry. We all agree there is not enough money in the Ministry. If we are serious about this we must disagree with the budget. We can’t adopt a budget of paying salaries. The budget must be to insure the people who live like pigs are prioritised in improving their lives.”Honourable Malema said this requires sufficient resources to make sure work done touches life’s practically and physically. 65. ANC members (Honourable Mandela) said the budget should be adopted as is. 66. The Chairperson said that the Budget should be adopted but the DMR should note that it is insufficient. 67. ANC member (Honourable Mandela) said that DMR should note concerns with ministry but NOT interrogate the Ministry to get clarity on questions raised. 68. Budget vote for DMR is as follows: · 5 members move budget (ANC) · 2 members who against budget adoption (EFF and DA) · 1 abstain (ANC member was asleep) she later moves to accept budget Committee meeting on accepting DMR report and DMR minutes (11 July 2014) 1. Honourable Malema with the support of DA MP, asked that both the minutes and the report reflect that the Budget was passed through majority vote. The impression given by the minute’s conclusion is that everyone agreed, this is not true. 2. Honourable Malema asked that the DMR not suppress the views of the minority parties as it is their democratic right, the DMR should not supress their right to disagree. These minutes are for public viewing and does not reflect the true outcomes of the DMR. 3. Honourable Malema said that people both nationally and internationally need to know that not everyone sitting in this committee are ‘Yes Men and Yes Women’. 4. ANC members saw nothing wrong in the wording of the conclusion in the minutes and moved that it be passed as is. 2 hrs
Posted on: Sun, 13 Jul 2014 16:49:56 +0000
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