Zuma threatens to seize mining licences

[miningmx.com] – PRESIDENT Jacob Zuma has told the country’s mining companies that they offer decent housing to employees or they lose their mining licences, according to a report by Sapa.

“In terms of the Mining Charter, all mining companies are required to implement measures to improve the standard of housing and living conditions of mine workers,” Sapa reported the president as saying.

In terms of the mining charter, which dates from 2004, mining companies are required to convert or upgrade their hostels into family units. The charter also calls for a one person per room policy, and facilitate home ownership options for workers by 2014.

“In terms of the 2012 scorecard, the improvements of hostels to attain the one person per room upgrade and into family units is only 50%. Some companies have plans in place and have achieved some of the targets, such as housing for employees.”

Mining companies stand to lose their mining licences if by 2014 they have not met all the provisions of the mining charter, including 26% black ownership of mines or mining companies.

Zuma was speaking at a lecture commemorating former African National Congress president James Moroka, in Mmabatho, North West about a week after police services gunned down 34 striking mineworkers at Lonmin’s Marikana mine.

Pointing out that the mining industry has assets valued at more than R20 trillion excluding coal and uranium, Zuma said the sector should be able to pay its workers a better wage.

“In fact it should not be such an industry that has the lowest paid worker, given the wealth they have,” he said.

He also noted that the government issued a directive to improve housing conditions for mine workers two years ago.