ACDP calls on minister to address Bill contradicting NDP’s call for ‘regulatory reforms that provide policy certainty'

MEDIA RELEASE

Cheryllyn Dudley MP

28 May 2013

ACDP calls on minister to address Bill contradicting NDP’s call for ‘regulatory reforms that provide policy certainty'

·        welcomes new environmental guideline

·        points out need for new migratory labour system

According to the National Development Plan (NDP), the mining industry in South Africa has lagged behind global competitors in the past decade for reasons which include: poor rail, water, energy infrastructure and a ‘regulatory and policy framework that hinders investment'.  The ACDP holds the view that the Mineral and Petroleum Resources Development Bill contradicts the NDP's call for ‘regulatory reforms that provide policy certainty' and calls on the Minister to address this contradiction.

Regulatory stability is crucial in the mining industry which has to think decades ahead when making investments.  Certainty about rules they will operate under is so important - and onerous and unpredictable regulatory change or existing regulatory requirements being enforced in an arbitrary and unequal manner are a huge stumbling block to investment.

On another very important aspect - the ACDP welcomes the latest environmental guideline report which starts an important process of finding a balance between two extremes – destructive mining and extreme environmental demands.

With labour challenges, land-use issues, rising costs, weakening currencies and pricing, constrained budgets - and more than 30% of platinum companies ‘in the red’- the mining industry is in crisis.  The additional challenge of stricter environmental measures could seem like a potential final straw but fears are countered by promises of greater sustainability – this is much bigger than the mining industry and will require changes in thinking, culture, technology, the education of leaders and investment plans.  Hon Minister, does this budget take these issues into consideration – will it adequately facilitate the necessary working together of government, industry, communities and NGOs to find sustainable solutions together?

Moving on to the subject of beneficiation, a Chamber of Mines senior executive has pointed out that too little attention has been given to side-stream beneficiation which is playing an important role in South Africa’s economy, creating 1.3-million jobs, and accounting for about 19% of gross domestic product (GDP) and 20% of investment.  Existing downstream beneficiation in South Africa – at the same time - is worth R300 billion and creating about 150 000 jobs.

Support from both, government and mining companies in side-stream and downstream processes; the related research and development; funding arrangements; training and market development - is going to be critical.

For successful beneficiation almost all government departments have some role to play including: basic education, tertiary education and training, infrastructure, transport, energy and minerals. But it is important that one government department takes the lead. The ACDP calls on the Minister of Minerals to provide SA with a ‘champion for beneficiation’ - and to ensure we no longer lag behind.

Industrial sociologist Gavin Hartford last year placed the migrant labour system at the heart of South Africa’s mining unrest, saying that its punishing yearly work cycle spawned social evils.  It is with this in mind that the ACDP notes mining union pioneer Dr James Motlatsi’s proposal for a new deal for South Africa's migrant mineworkers.  He is proposing that: migrant mineworkers work for four months and go home for two months as opposed to the current system of 11-shift fortnights and 12 holidays a year. This he suggests will improve the economies of rural areas and increase employment opportunities, without increasing the cost to the employer.  At the same time, he suggests that mineworkers willing to leave the rural areas and relocate with their families to mine accommodation should be accommodated.

Hon Minister is the department involved in talks about new migratory labour models founded on human dignity and shorter work cycles within a continuous-operation scenario?

The ACDP will support this budget despite reservations.


For more information contact Cheryllyn Dudley, MP, 082 890 6520 (SMS best for urgent response)
Media enquiries: Keeno Petersen, Media Liaison Officer, ACDP - Parliament, Tel: 021-403-3307 or Email: kpetersen@parliament.gov.za