BACK TO BASICS

 

To say the least we are quite disturbed by the hasty decision adopted by the Chamber of Mines and the Minister of Mineral Resources on this matter to approach the courts for a final sanction or interpretation on the matter, as from where we are sitting the mining charter clearly stipulate current ownership as of 2014 should "achieve a minimum target of 26% ownership to enable meaningful economic participation of  Historically Disadvantaged South Africans (HDSA) by 2014". Based on the interim results presented to stakeholders, 91% of all assessed mining right holders did not meet this target. With only 5% of these having met the mining charter target, with the relevant cash flow to the beneficiaries. The remaining 3% only has meaningful participation, but no cash flow to beneficiaries. This is mostly attributed to the loans/debts or vendor financing used to acquire the HDSA ownership, thus equating the net value closely to nothing in the hands of the HDSA's.

 

This goes against the objectives of the Minerals and Petroleum Resources Development Act 2002, which three of the nine states as follows:

2 (c) Promote equitable access to the nations mineral and petroleum resources to all the people of South Africa;

2 (d) Substantially and Meaningfully expand opportunities for historically disadvantaged persons, including women, to enter the mineral and petroleum industries and to benefit from the exploration of the nation's mineral and petroleum resources;

2 (f) Promote employment and advance the social and economic welfare of all South Africans.

 

By the assessment results, the industry has failed dismally to achieve a mere three of the nine objectives, but they are quickly of the blocks to dash and threaten to go to court for continuous consequences of converted licenses. By definition conversion of an old mining right pre-2002, into the new order meant complying with the MPRDA 2002. Which Section 100 2 (a) instruct the Minister to "ensure the attainment of government's objectives of redressing historical, social and economic inequalities as stated in the constitution, the Minister must within six months from the date on which this Act takes effect develop a broad-based socio-economic empowerment charter that will set the framework, target and time-table for effecting the entry of historically disadvantaged South Africans into the mining industry, and allow such South Africans to benefit from the exploration of mining and mineral resources.

 

The above mentioned Act empowers the Minister of Mineral Resources, not the Chamber of Mines or the individual mining right holders in London, Switzerland or Sandton. Hence we are taken back by the DMR's acceptance of the possible ambiguity in law passed by the National Assembly, the next thing the mining right holders will contest is the Minister's powers to impose sanctions against no compliance (as tried by Phokathaba Platinum in 2011). "As the NUM we find this completely unacceptable and bordering on a travesty of justice for the rest of South Africans, whose right to benefit from our countries mineral wealth could be short changed by this court decision if ruled otherwise", said Luthando Brukwe the NUM Head of Transformation. We will thus ensure our legal team monitors the events leading up to the finalization of this declaratory order, we cannot rule out a mass action and picketing against this anti transformative and regressive gesture by the Chamber of Mines.

 

"The employers are on the offensive to nullify the existence of transformative legislation in the Mining industry.  They took a conscious decision to disrespect and/or circumvent all opportunities geared to transform the mining industry.  This action signals serious provocation on the workers, communities and all the working class and the poor.

 

Despite promulgation of MPRDA, Mining Charter, Skills Development Act and others, more than 10 years back, the systematic marginalisation of majority of South Africans (HDSA) from owning the means of production and from meaningful participation in the mainstream economy persist unabated," said Tshimane Montoedi, NUM Deputy General Secretary.

 

"The Department of Mineral Resources is the custodian MPRDA and Mining Charter, our firm view that they are not doing enough to enforce compliance with legislation by employers, instead, they negotiate legislation with them.

 

The blatant failure on the part of the mining industry to implement or comply with legislation will inevitably translate into government failure to achieve objectives envisaged in the National Development, Industrial Policy and all other relevant plans and policies," Montoedi added.

 

It is our considered view that until such time as the industry is able to embrace the central tenets of the country’s transformation agenda and becomes an active participant in finding collective solutions to address the current challenges, the industry and indeed the nature of labour relations will continue to deteriorate and result in a zero -sum game.

 

For more information, please contact:

 

Tshimane Montoedi: NUM Deputy General Secretary: 082 808 9373

Luthando Brukwe: NUM Head Transformation Unit 082 801 3604 

Livhuwani Mammburu: Acting NUM National Spokesperson: 083 809 3257 

 

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