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Wednesday , August , 21 2019
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NUM statement on the release of Mining Charter Assessment

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The National Union Mineworkers (NUM) welcomes the release of the Mining Charter Assessment Report by the Minister of the Mineral Resources; we note with deep concern the outcome that paints a bleak picture in terms of transformation in the mining industry. What is for us unacceptable 
is the minimal progress since the 2009 assessment, which led to the 2010 revised Mining Charter. We had hoped the 2010 stakeholder declaration would have encouraged the industry to accelerate implementation and compliance of the Mining Charter targets and Social & Labour Plans. 

The preliminary data through the interim report reflects dismal failure by the industry to reach the Mining Charter targets in terms of Ownership, Human Resource Development and Mine Community Development amongst others. In terms of ownership, data reflects 91% of companies who reported 
do not comply with meaningful economic participation as stipulated in the revised charter and the signed stakeholder declaration in 2010. The significance of the meaningful economic participation emphasises on the broad based economic participation of these transactions, which must have BEE entrepreneurs, Employees through Employee Share Ownership Schemes and Community trusts in the 26% owned by Historically Disadvantaged South Africans. 

We take serious exception to the Chamber of Mines approach to challenge the signed stakeholder declaration and mining charter of 2010, by insisting on once empowered always empowered.  We will also be closely participating in the MIGDETT process of seeking a declaratory order on this 
matter, as most our Employee Share Ownership Scheme are economically meaningless and without economic benefit for beneficiaries (who are employees). The charter is clear on the current 26% HDSA ownership of current mining right holders, meaning the historical transactions are insigficant 
in line with the 2014 charter deadlines for individual operators.

The report further shows the re-enforcement of apartheid style housing and living conditions for the majority of the mineworkers, with a snail pace of conversion of hostels into single and family units. With majority companies still are dragging their feet with the promotion of homeownership for the majority of their employees. This reinforces our long held view that there is little difference between the current capitalist mining bosses and their apartheid predecessors like Cecil John Rhodes.

The country is crippled by skills shortages, thus the charter target of 5% of annual payroll should be budgeted and spent on Skills Development, this should benefit employees through Adult Based Education and Training (to eradicate illiteracy in the mining industry), Learnerships (both 18.1 & 
18.2) and Bursaries. The report shows that a marginal 36% of the companies were able to spend as per the stipulated target, thus significantly contributing towards the skills shortage in South Africa. 

We can only ask the industry whether they are deliberately sabotaging the objectives of the National Skills Accord signed at NEDLAC.We thus call on the Department of Mineral Resources to conduct a multi-stakeholder audits and verification of Non-Compliant mining right holders; the penalties stipulated in the Mineral & 
Petroleum Resources Development Act 2002 in terms of Section’s 93 and 47 respectively. The employees of these non-compliant companies should not be directly or indirectly affected by this atrocious disregard of the laws of the Republic of South Africa by their boards and executive 
management. The workers must be paid full salaries during the period of suspension of the respective mining rights and individual company executives must be held accountable by their shareholders (including the IDC, PIC and most employees’ pension funds).

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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