Shabangu to rehabilitate view of SA mining

[miningmx.com] – GOVERNMENT and mining companies would meet for high-level engagement with the country’s trade unions in an attempt to stave off renewed labour unrest and instability, and to rid South Africa’s mining industry from bad perceptions.

This was one of the announcements Mines Minister Susan Shabangu made when delivering the department of mineral resources’ budget speech for the 2013-’14 financial year at parliament earlier today.

“The engagements will be led by the National Treasury, Department of Labour and Department of Mineral Resources,’ Shabangu said. “This was a bold and decisive action taken with a view to dealing head on with the challenges faced by our economy.

“Such steps were necessary because of the crisis of perception, of our country and the mining industry which invariably has an effect on, among others, the fluctuation of our exchange rate, the result of which we can ill afford as a country.’

The department of mineral resources received a budget allocation of R1,394bn, which Shabangu called “the most testing time in the post-apartheid history of the mining industry’.

Shabangu said while government respects workers inalienable right to strike and the right to the freedom of association, anarchy, violence, intimidation and illegal strikes will not be tolerated. “This not only threatens our democratic freedoms, but also the sustainable growth and employment in a sector with so much to offer.’

She also appealed to “protagonists’ in the cyclical wage negotiations process to be more responsible and take decisions that will retain jobs, bring about stability in the mining sector.

Shabangu didn’t spare mining companies and laid into them for not doing enough to bring about transformation in the industry. The Mining Charter, Shabangu said, was a consensus document by mining stakeholders that introduced transformations that should have been done in a ten year period – the targets of which have to be attained by 2014.

“But when we subjected the efficacy of this transformation tool to a rigorous test in 2009 in respect of its progress, the findings of which were less than desirable,’ Shabangu said.

“During this time, every other stakeholder suffered from a case of parochial amnesia in terms of their responsibility for the implementation of this transformation agenda, and we ended up with widely varied accounts on the extent or otherwise of the progress that has been made in this regard.’

Shabangu also partially blamed the tragic events at Marikana in August last year on the industry’s failure to transform. “The societal problem that was accentuated by Marikana as well as several other related occurrences reflect that there has been glaring lapses in the implementation of our transformation tool.’

COAL DEEMED STRATEGIC

In her speech, Shabangu reiterated that coal, among other minerals will be declared a strategic national resource.

The coal report has been concluded by the Council for Geosciences and the findings will be released soon.

“The accelerated demand for coal, accompanied by an increase in international coal prices, has invariably changed the buying patterns and structure of the local coal export industry,’ Shabangu said.

“In our national energy plan, coal remains an important component of our future energy mix and requirements. It is therefore paramount that we work towards a common objective.’

She was however mum on progress with regard to amendments to the Minerals and Petroleum Resources Development Act (MPRDA). It is expected that the draft legislation will provide more detail on government’s beneficiation strategy. The deadline for public comment has passed and the draft legislation is currently with the department for further consideration.

The opposition in parliament, however, did not let the opportunity slip to point out the weaknesses of the draft legislation when participating in today’s budget vote.

“The new Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill is set to squeeze more out of the industry, while making operating conditions even more onerous,’ the DA’s spokesperson on Mineral Resources James Lorimer said.’ It will dry up our already shrinking pool of mining investment.’