[miningmx.com] — MINES Minister Susan Shabangu on Friday
acknowledged the “modest changes’ made by miners to transform the industry, but
said a lot more needs to be done to alter the face of the sector.
Speaking at a meeting of the Association of Mine Managers of South Africa (AMMSA),
Shabangu said “real’ ownership and equal opportunities for black people in mining
remained a far-off ideal, with little progress made by miners so far.
“The question that exercises government’s mind is to what extent transformation of
the sector has advanced the objectives of the constitution and mining-specific
legislation,’ she said. “Whilst we welcome the modest changes you have made in
transforming your organisation [AMMSA], I believe that more still needs to be done to
totally transform the industry at all its levels.’
Shabangu said everyone in the industry had to up their game to comply with the
different elements of the Mining Charter.
“We have noted some progress in respect of ownership, [but] meaningful ownership
has not been achieved,’ she said. “The underlying empowerment funding models have
resulted in the actual ownership being tied up in loans.
“Accordingly the net value of a large proportion of empowerment deals is often
negative, due to the high interest rates on loans.’
She said the lack of HDSA representation at board level limits their decision-making
authority, or, as minority parties, have little influence in major decision making.
“We also want to see this industry moving away from the current practice of
employing blacks only to use them as “government liaison officers’. What the country
instead requires is for this cadre of people to be given meaningful operational roles of
the mining industry.’
She said mine managers had a crucial role to play in ensuring that the work
experience and exposure provided to many graduates and potential managers are
extended, so that the country has a pipeline of managers who will be able to do their
jobs both domestically and internationally.
“Whereas in the past we would prepare our future managers for domestic needs, we
are now operating in the global village where South Africans are leading major global
mining companies. You have a role to play to preserve this leadership legacy, which
should help you to retain emerging and much sought-after black management talent.’
SOCIAL LABOUR PLANS
Shabangu told mine managers they should refrain from delegating the implementation
of social and labour plans (SLPs) to their companies’ development sections.
“These may seem “soft’ issues to you, but to us they are the most important basis on
which each mining right was granted,’ she said. “The compliance audits that we have
conducted do point to the prevalence of a situation where these SLPs are changed
and amended without the relevant Ministerial consent.
“Compliance with the law cannot and must not be shirked.
“In fact, I trust that you will be able to do much more than you have committed
yourselves to in the various SLPs, and that you can have plans to over-achieve when
it comes to the targets of the Mining Charter.’
