
87c2669608dcced907f8b67af644f628.ppt
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DEPARTMENT OF PLANNING MONITORING AND EVALUATION CONSOLIDATED PROGRESS REPORT: SPECIAL PRESIDENTIAL PROJECT IMPLEMENTATION OF THE FRAMEWORK AGREEMENT FOR A SUSTAINABLE MINING INDUSTRY AND THE REVITALISATION OF DISTRESSED MINING COMMUNITIES Portfolio Committee on Public Service and Administration and Planning, Monitoring and Evaluation 29 October 2014 The Presidency: Department of Planning Monitoring and Evaluation 1
Presentation Outline § Background to the October 2012 Social Accord § Progress on the Implementation of Framework Agreement and the Revitalisation of Distressed Mining Communities § Objectives § Actions § Progress § Challenges § Interventions § Recommendations The Presidency: Department of Planning Monitoring and Evaluation 2
1. Background to the October 2012 Social Accord and Introduction The Presidency: Department of Planning Monitoring and Evaluation 3
October 2012 Social Accord Ø In October 2012 the President led the signing of a Social Accord (not confined to the mining industry) with Government, Business and Labour referred to as the Special Presidential Package (SPP) which made a number of commitments : § Part 1: Restoring confidence in labour market institutions, addressing income inequalities and building social cohesion § Part 2: Action to combat violence and lawlessness § Part 3: Addressing socio-economic challenges The Presidency: Department of Planning Monitoring and Evaluation 4
Framework Agreement for a Sustainable Mining Industry Ø In July 2013 the DP facilitated development of the Framework Agreement for a Sustainable Mining Industry, as mandated by the President Ø The Stakeholders are: § Government § Labour (NUM, AMCU, UASA and Solidarity, supported by their Federations: COSATU, NACTU and FEDUSA) § Business Chamber of Mines (Co. M) and South African Mining Development Association (SAMDA)] Ø An action plan was developed and consists of the following 5 objectives : § Ensuring the rule of law, peace and stability § Strengthening labour relations § Improving living and working conditions of mineworkers § Providing short to medium term measures to support growth and stability § Identifying long-term measures to support growth and stability Ø As per the June 2014 SONA, the Framework Agreement is now led by the President The Presidency: Department of Planning Monitoring and Evaluation 5
Core and Supporting Departments for the Framework Agreement The Presidency: Department of Planning Monitoring and Evaluation 6
IMC for the Revitalisation of Distressed Mining Communities In late 2012, an Inter Ministerial Committee for the Revitalisation of Distressed Mining Communities was established to address Part 3 of the Social Accord (SPP): Addressing socio-economic challenges in mining districts and their labour sending areas. The IMC has focused on: Ø Integrated and sustainable human settlements, led by the DHS and supported by its agencies, e. g. NHFC, HDA Ø Improved socio-economic conditions, led by DCo. G, Dept. of Traditional Affairs, DRDLR and supported by DTI, EDD, Treasury, DBSA, SALGA, IDC, MISA Ø Improved working conditions of mine workers led by Do. L Ø Decent living conditions for mine workers and meaningful contribution to the development trajectory of mining towns and labour sending areas, led by DMR The Presidency: Department of Planning Monitoring and Evaluation 7
IMC core and supporting Ministries for the Revitalisation of Distressed Mining Towns Chair: Minister of Planning, Monitoring and Evaluation in the Presidency The Presidency: Department of Planning Monitoring and Evaluation 8
Fourteen priority mining towns for the Revitalisation of Distressed Mining Communities Ø Fourteen mining areas in five provinces and their associated labour sending areas have been prioritised for the revitalisation of distressed mining communities The Presidency: Department of Planning Monitoring and Evaluation 9
Complementing mandates Ø Other complementing forums : § The Mining Industry Growth Development and Employment Task Team (MIGDETT) is constituted by DMR, organised labour, SAMDA and the Chamber of Mines and deals with matters related to managing the negative effects of the global economic crisis, sustainable growth and meaningful transformation of the South African mining sector including Mine health and safety Facilitating mine community development Improving housing and living conditions for workers Promoting human resource development Promoting employment equity § Issues get considered as and when they arise Ø Negotiations on other social and economic issues, e. g. through NEDLAC The Presidency: Department of Planning Monitoring and Evaluation 10
2. Progress on the Implementation of Framework Agreement and the Revitalisation of Distressed Mining Communities The Presidency: Department of Planning Monitoring and Evaluation 11
Objective 1. Ensuring rule of law, peace and stability Actions Ø Law enforcement Ø Enforce municipal by-laws Ø Establishment of Mine Crime Combating Forums (MCCFs) Ø Denounce violence, taking active measures to eliminate violence and intimidation Ø Improve case management and capacity to speed up prosecutions The Presidency: Department of Planning Monitoring and Evaluation 12
1. 1. Progress on Ensuring rule of law, peace and stability (1) Actions Ø Ø Core Department/Organisation MCCFs established and officially launched in the following provinces: Ø North West Ø Limpopo Ø Free State • SAPS In Mpumalanga and Gauteng MCCFs have been established, but not yet launched • SAPS Mines Security collaborate with organised labour and SAPS to monitor and improve investigation of crimes on mines- this include the use of CCTV cameras and recordings • SAPS Visible policing in hotspots enhanced, with greater security patrols at villages and hostels • SAPS Supporting Departments/Organisations • Department of State Security • Department of Constitutional Development
1. 1. Progress on Ensuring rule of law, peace and stability (2) Actions Ø MCCFs established and officially launched in the following provinces: Ø North West Ø Limpopo Ø Free State Ø Ø Supporting Departments/Organisations In Mpumalanga and Gauteng MCCFs have been established, but not yet launched Ø Core Department/Organisation • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders Mines Security collaborate with organised labour and SAPS to monitor and improve investigation of crimes on mines - this include the use of CCTV cameras and recordings • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders Visible policing in hotspots enhanced, with greater security patrols at villages and hostels • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders
1. 1. Progress on Ensuring rule of law, peace and stability (3) Actions Core Department/ Organisation Supporting Departments/Organisations • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders A task team has been established, comprising of senior representatives from Police Detectives, NPA and Justice to monitor, review mining strike related cases through the JCPS structures • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders Ø 47 Cases were recorded and processed through the judicial system in relation to mining and unrest related incidents • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders Ø Continuous monitoring of strike actions (both unrest and peaceful protests) in the mining sector: A total of 699 incidents were managed in 4 Provinces (North West 342, Gauteng 42, Limpopo 290 and Free State 25) from August 2013 until August 2014 Ø The Presidency: Department of Planning Monitoring and Evaluation 15
1. 2. Challenges: Ensuring the rule of law, peace and stability Ø Poor participation of certain members in the MCCFs; fear of victimization of witnesses to criminal cases; culture of intolerance among certain union members and subtle intimidation and disregard for the law such as the new Dangerous Weapons Act Ø Some striking workers continued to disregard picketing rules in terms of section 69 of the Labour Relations Act Ø A concern regarding increased participation by communities and political parties during labour protest actions Ø Reluctance by some eye witnesses to provide formal witness statements Ø Mushrooming of informal settlements around mining operations The Presidency: Department of Planning Monitoring and Evaluation 16
1. 3. Interventions/Actions: Ensuring the rule of law, peace and stability Core Department/Organisation Actions Ø Mine Security will continue working with organised labour and SAPS to improve investigation of crimes on mines (including use of technology CCTV cameras and recordings) Supporting Departments/Organisations • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders Ø Continue quarterly MCCF meetings • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders Ø MCCF must continue to engage with • SAPS • Department of State Security • Department of Justice and Constitutional Development • Department of Mineral Resources • Mining Industry Stakeholders communities structures through various The Presidency: Department of Planning Monitoring and Evaluation 17
Objective 2. Strengthening Labour Relations (Dept. of Labour) Actions Ø Develop a protocol for verification of union membership Ø Fast tracking resolutions of disputes over membership status, verification of membership figures, and recognition agreements Ø Re-evaluating the principles of majoritarianism Ø Developing the capacity of union leaders and workers on labour relations matters Ø Mobilising technical expertise to identify and address basic factors underlying workplace conflict and improving negotiations structures at all levels The Presidency: Department of Planning Monitoring and Evaluation 18
2. 1. Progress on Strengthening Labour Relations (1) Actions Core Department/Organisation Supporting Departments/Organisations Ø Union membership verification protocol has been developed • Department of Labour • Department of Mineral Resources Ø Union membership verification conducted at certain mining operations § Bokoni Platinum Mine in Limpopo and Beatrix Mine in the Free State • Department of Labour Ø New recognition agreements have been concluded where there was a need within the PGM industry • Department of Labour • Mining Industry Stakeholders Ø Mining Industry disputes are routinely prioritised and monitored by the CCMA National Office and allocated to a pool of highly skilled and experienced Commissioners • Department of Labour • Council for Conciliation Mediation and Arbitration • Department of Mineral Resources The Presidency: Department of Planning Monitoring and Evaluation 19
2. 1. Progress on Strengthening Labour Relations (2) Actions Ø The Labour Relations Amendment Bill (Act) signed on 1 st September 2014 has resolved the matter of majoritarianism Core Department/Organisation • Department of Labour Supporting Departments/Organisations • Council for Conciliation Mediation and Arbitration • Mining Industry Stakeholders § Minority unions now have access to the CCMA to request for the lowering of the representitivity threshold if its too high Ø Intensive training programme for shop stewards and union organisers have been conducted for the following stakeholders: Harmony Gold Mine, NUM, UASA, AMCU, Solidarity, ANGLOPLATS and LONMIN • Department of Labour • Council for Conciliation Mediation and Arbitration • Mining industry stakeholders The Presidency: Department of Planning Monitoring and Evaluation 20
2. 2. Challenge : Strengthening Labour Relations Ø Establishment of relations and management of conflicts in the workplace requires full buy-in from all stakeholders The Presidency: Department of Planning Monitoring and Evaluation 21
2. 3. Interventions/Actions: Strengthening Labour Relations Actions Ø Principals to emphasise efforts to promote a culture/environment of multi-unionism, to be explored within the context of the law Core Department/Organisation • Department of Labour Supporting Departments/Organisations • Department of Mineral Resources • Council for Conciliation Mediation and Arbitration • All stakeholders Ø Labour Indaba (not only for the mining industry) is to be held on 4 November 2014, where a number of issues relating to labour relations will be discussed • Department of Labour • Department of Mineral Resources • Council for Conciliation Mediation and Arbitration • Department of Human Settlements • All stakeholders Ø Capacity building exercises in • Department of Labour labour relations matters for roleplayers in the mining industry will continue • Department of Mineral Resources • Council for Conciliation Mediation and Arbitration • All stakeholders The Presidency: Department of Planning Monitoring and Evaluation 22
Objective 3: Improve living and working conditions of mineworkers Actions Ø Accelerate efforts to upgrade human settlement in mining towns Ø Initiate a process to transform the migrant labour system Ø Assist workers with financial literacy and financial planning Ø Addressing compensation and health screening for current and ex mine workers Ø Improving Town Planning in mining towns The Presidency: Department of Planning Monitoring and Evaluation 23
3. 1. Progress on improving living and working conditions of mineworkers (1) Supporting Departments/Organisations Actions Core Department/Organisation Ø Total of R 2. 1 billion over the MTEF period ring-fenced funding for housing project Implementation in mining towns • National Department of Human Settlements • National Treasury Ø R 290 million has been approved for Informal Settlement Upgrading for 2014/15 period in the mining towns, in the following provinces: • National Department of Human Settlements • National Treasury • Housing Agencies § Mpumalanga, North West, Gauteng, Northern Cape, Limpopo and Free State The Presidency: Department of Planning Monitoring and Evaluation 24
3. 1. Progress on improving living and working conditions of mineworkers (2) Supporting Departments/Organisations Actions Core Department/Organisation Ø Informal settlement upgrading : § 82 settlements are being assessed or planned through National Upgrade Support Programme (NUSP). Twenty of these settlements have now moved into the implementation phase by provinces • National Department of Human Settlements • National Treasury Ø Human Settlements Project Implementation: § 66 projects are being implemented, including the 20 informal settlements being given services § Tenure work is being done on 40 of the projects • National Department of Human Settlements • National Treasury • Housing Agencies The Presidency: Department of Planning Monitoring and Evaluation 25
3. 1. Progress on improving living and working conditions of mineworkers (3) Breakdown of the housing allocation for the 14 mining towns over the MTEF period The Presidency: Department of Planning Monitoring and Evaluation 26
3. 1. Progress on Improving living and working conditions of mineworkers (4) Actions Ø A study on the migrant labour system is underway – a preliminary report has been sent to stakeholders Core Department or Organisation Supporting Departments or Organisations • Department of Planning, Monitoring and Evaluation • Department of Mineral Resources • Department of Human Settlements • Department of Labour • Department of Rural Development and Land Reform • Mining Industry Stakeholders The Presidency: Department of Planning Monitoring and Evaluation 27
3. 1. Progress on Improving living and working conditions of mineworkers (5) Actions Ø Initiatives are in place to address issues relating to health of current and the ex miners. Two One Stop Health Service Centres for ex mine workers have opened in Mthatha and Merafong, next centres will be Kuruman and Sekhukhune § Do. H has secured R 500 mil from the Global Fund for TB Screening for current and ex mine workers and community members § Screening and treatment protocols are being developed by the Do. H § Government analysis has identified lack of coordination in the compensation legislation/system for mine workers, including ODMWA, COIDA and Rand Mutual Assurance § R 5 billion compensation for ex mineworkers is being distributed to ex mineworkers through these one stop shops Core Department or Organisation Supporting Departments or Organisations • Department of Health • Department of Mineral Resources • All Stakeholders • Department of Environmental Affairs • Department of Water and Sanitation The Presidency: Department of Planning Monitoring and Evaluation 28
3. 1. Progress on Improving living and working conditions of mineworkers (6) Actions Core Department/Organisation Supporting Departments/Organisations Ø A number of mining companies have continued with providing financial literacy training programmes, especially in the Gold, PGMs and Coal sectors. Companies such as Edutouch and Old Mutual and are doing the training • Department of Labour • All Stakeholders Ø Garnishee orders are being audited to determine if reckless lending continues • Department of Trade and Industry • All Stakeholders Ø The inspections of emolument orders have also helped close down several illegal micro lenders • Department of Trade and Industry • All Stakeholders The Presidency: Department of Planning Monitoring and Evaluation 29
3. 1. Progress on Improving living and working conditions of mineworkers (7) Actions Ø Social work support has been rendered through the Department of Social Development in mining communities; § Social relief of distress which includes the handing out of food parcels to poverty stricken community members, more than 8000 sanitation packs given to young women § Supporting of school feeding schemes and ECD centres, ECD practitioners trained § Young adults have also been given support in terms of managing social problems which range from teenage pregnancy and alcohol and drug abuse Core Department/Organisation • Department of Social Development Supporting Departments/Organisations • All Stakeholders The Presidency: Department of Planning Monitoring and Evaluation 30
3. 2. Challenges: Improving living and working conditions of mineworkers (1) Ø Due to the limited time and research project budget, the research on Migrant Labour system concentrated only on migration from within South Africa Ø The mining industry has not fully played its role in the compensation of mineworkers in relation to occupational diseases Ø Whereas safety performance is improving, occupational health such as TB and Silicosis of mine workers is a national emergency § Multi National Mining Companies have differential health and safety standards in developed and developing world (sub standards) Ø Inadequate coordination of human settlement planning in mining towns § Lack of bulk infrastructure in certain mining municipalities remains a challenge Ø Informal settlements tend to mushroom proximate to mining operations The Presidency: Department of Planning Monitoring and Evaluation 31
3. 2. Challenges: Improving living and working conditions of mineworkers (2) Ø Informal settlements often located on tribal or privately owned land Ø Miners do not qualify for government’s full subsidy housing programme Ø Many mining companies have reached agreements with unions to pay a living out allowance – largely not used for decent housing and has led to many miners living in terrible conditions in backyards/informal settlements Ø High levels of indebtedness amongst miners Ø The plight of women in mining towns and labour sending areas is a characterised by high levels of unemployment, poverty and violence against women The Presidency: Department of Planning Monitoring and Evaluation 32
3. 3. Interventions / actions: Improving living and working conditions of mineworkers (1) Actions Core Department/Organisation Supporting Departments/Organisations Ø An integrated sustainable human settlement approach needs to be followed – National Strategic interventions need to be integrated, SEZ, Social and Labour Plans integrated in IDPs District Municipality • Department of Co-operative Governance • Department of Mineral Resources • Department of Planning, Monitoring and Evaluation • Department of Transport • Department of Environmental Affairs • Department of Water and Sanitation • Department of Human Settlements • Department of Trade and Industry • Economic Development Department • Department of Small Business Development • South African Local Government Association • Industrial Development Corporation • Development Bank of Southern Africa Ø The first draft of a report on the Migrant Labour System will be reviewed by a panel of the tripartite Technical Task Team by the end of October 2014 – the report needs to address the issue of the living out allowance • Department of Planning, Monitoring and Evaluation • Department of Mineral Resources • Department of Human Settlements • Department of Labour • Department of Rural Development and Land Reform The Presidency: Department of Planning Monitoring and Evaluation 33
3. 3. Interventions / actions: Improving living and working conditions of mineworkers (2) Actions Ø Co. GTA will facilitate participation of National sector Departments in the on-going IDP reviews to integrate national FY 14/15 strategic interventions (e. g. SEZ Programme in Bojanala and Sekhukhune) in IDPs Core Department or Organisation Supporting Departments or Organisations • Department of Cooperative Governance • Department of Mineral Resources • Department of Planning, Monitoring and Evaluation • • Department of Human Settlements Department of Trade and Industry Economic Development Department of Small Business Development Department of Mineral Resources South African Local Government Association Industrial Development Corporation Development Bank of Southern Africa Ø Mine Health and Safety Summit scheduled for 16 to 17 November 2014 (DMR) • Department of Mineral Resources • Department of Health • All Stakeholders Ø Tighten the laws to reduce the burden of diseases associated with mining activities to the state • Department of Mineral Resources • Department of Health • Department of Justice and Constitutional Development The Presidency: Department of Planning Monitoring and Evaluation 34
3. 3. Interventions / actions: Improving living and working conditions of mineworkers (3) Actions Core Department/Organisation Supporting Departments/Organisations Ø Water and Sanitation in Bojanala – the focus will be on accelerating expenditure on the Municipal Infrastructure Grant • Department of Water and Sanitation • Department of Co-operative Governance • Department of Mineral Resources Ø The MPRDA Bill augments SLP development at District Municipality level to enable optimal contribution of the industry towards development (DMR) • Department of Mineral Resources • Department of Co-operative Governance • Department of Rural Development and Land Reform Ø Ministry of Women will be • Ministry of Women engaged on the matter to facilitate research on the state of women in mining and labour sending areas and to recommend appropriate interventions (Mo. W) • Department of Mineral Resources • Department of Planning, Monitoring and Evaluation The Presidency: Department of Planning Monitoring and Evaluation 35
3. 3. Interventions / actions: Improving living and working conditions of mineworkers (4) Actions Ø In line with the IMC recommendation of August 2014, the NDHS together with its agencies will lead the process of development and implementation of an employer assisted housing financial model for mine workers (NDHS) § This will need to be discussed with mining houses and organised labour § An agreement on a housing finance model will need to address the living out allowance issue § The Impala Platinum integrated human settlement model to be considered Core Department/Organisation • National Department of Human Settlements Supporting Departments/Organisations • Human Settlements Agencies (HDA, NHFC etc. ) • National Treasury • Department of Mineral Resources • Department of Trade and Industry • Department of Labour • Mining Stakeholders • Financial Institutions • Organised Labour The Presidency: Department of Planning Monitoring and Evaluation 36
3. 3. Interventions / Actions: Improving living and working conditions of mineworkers (5) Core Department or Organisation Supporting Departments or Organisations Ø Operational Arrangement for Support to the mining towns currently being put in place nationally and in provinces with Hosing Development Agency (HDA) National Department of Human Settlements • Human Settlements Agencies (HDA, NHFC etc. ) • Department of Cooperative Governance • Department of Mineral Resources Ø Policy alternatives to the current provision of state subsidised housing will be identified and the response of the State to the challenges and who will be responsible to provide funding for the programme will be interrogated National Department of Human Settlements • Department of Planning, Monitoring and Evaluation • Department of Mineral Resources • National Treasury Ø Environmental laws to be tightened to ensure better protection of the environment and improved compliance with Environmental Management Plans § An improved plan to deal with mining environmental damage legacy issues with emphasis placed on AMD, rehabilitation of old mine sites and reclamation of tailings facilities • Department of Environmental Affairs • Department of Water and Sanitation • Department of Mineral Resources • Department of Planning, Monitoring and Evaluation Actions The Presidency: Department of Planning Monitoring and Evaluation 37
Objective 4. Short to medium term measures to support growth and stability Actions Ø Ø Ø Ø Actively engage both local and foreign investors to ensure that South Africa remains an attractive investment destination Ensure certainty in legislative and regulatory programmes Companies should inform employees upon receiving emolument garnishee orders Prevention of unscrupulous micro-lenders and reviewing the regulations around salary deductions on garnishee orders Assessment of economic and social conditions in surrounding and labour sending areas Enforce and implement all elements and commitments of the Mining Charter Ensure integration and implementation of Social and Labour Plans (SLP) and Integrated Development Plans (IDPs) in labour sending areas and mining areas The Presidency: Department of Planning Monitoring and Evaluation 38
4. 1. Progress on implementing short to medium term measures to support growth and stability (1) Actions Ø Stakeholders have engaged extensively with the investment community, pointing to progress made on ensuring strike activities are done within the ambit of the law, and that every effort is being made to resolve industrial actions within the realms of economic constraints § International engagements: Government has continued to engage with international investors, asset managers, analyst; bankers and opinion makers to reassure them of South African commitment to remains the investment destination of choice through provide regulatory certainty among other key issues § Local engagements: e. g. local investment community, Mining Indaba, Mining Lekgotla Core Department or Organisation Supporting Departments or Organisations • Department of Mineral Resources • National Treasury • All Stakeholders The Presidency: Department of Planning Monitoring and Evaluation 39
4. 1. Progress on implementing short to medium term measures to support growth and stability (2) Actions Core Department/Organisation Ø The contribution of mining industry to socio-economic development (SLP) towards mining communities and labour sending areas between 1 st July 2013 and 30 th September 2014 amounted to R 2. 15 billion, spanning social infrastructure, education infrastructure, health infrastructure as well as support for enterprise development project in all nine provinces • Department of Mineral Resources Supporting Departments/Organisations • Mining Industry Stakeholders The Presidency: Department of Planning Monitoring and Evaluation 40
4. 1. Progress on implementing short to medium term measures to support growth and stability (3) Actions Ø A national task team made up of the dti, DBSA, SALGA, DSBD, DMR, IDC, Co. GTA and EDD has been set up to strengthen District municipalities’ IDPs, with Bojanala District Municipality identified as a pilot prioritized in the short term § Special Economic Zone (SEZ) in Bojanala and Sekhukhune District municipalities are being established § Co. GTA has developed a thematic approach to build a diverse economic base, develop inclusive economies, enterprise support and development as well as strengthening municipal economic governance and economic infrastructure § Back to Basics municipal service delivery approach being implemented Core Department or Organisation Supporting Departments or Organisations • Department of Cooperative Governance • Department of Human Settlements • Department of Trade and Industry • Economic Development Department • Department of Small Business Development • South African Local Government Association • Industrial Development Corporation • Development Bank of Southern Africa • Department of Environmental Affairs • Department of Water and Sanitation • Department of Mineral Resources The Presidency: Department of Planning Monitoring and Evaluation 41
4. 1. Progress on implementing short to medium term measures to support growth and stability (4) Actions Core Department/Organisation Supporting Departments or Organisations Ø Diagnostic assessment of socio- • Department of Planning, economic conditions and Monitoring and Evaluation capacity of the local • Department of Mineral municipalities to manage Resources municipal services currently • National Treasury taking place through DPME and National Treasury • All Stakeholders Ø DTI and DMR are jointly developing action plans for the minerals beneficiation strategy and this has been committed in the current MTSF • All Stakeholders • Department of Planning, Monitoring and Evaluation • Department of Trade and Industry • Department of Mineral Resources The Presidency: Department of Planning Monitoring and Evaluation 42
4. 1. Progress on implementing short to medium term measures to support growth and stability (5) Supporting Departments or Organisations Actions Core Department or Organisation Ø Mining Charter assessment is underway • Department of Mineral Resources • Mining Industry Stakeholders Ø A consolidated support programme to enhance capacity in the respective municipalities has been developed § Capacity building programmes by SALGA and DSBD are being implemented in municipalities § Anglo American’s Capacity Building Programme in partnership DBSA and municipalities was launched in September 2014 • Department of Co-operative Governance • Department of Mineral Resources • Department of Small Business Development • Department of Environmental Affairs • Department of Water and Sanitation • Department of Human Settlements • Department of Trade and Industry • Economic Development Department • South African Local Government Association • Industrial Development Corporation • Development Bank of Southern Africa The Presidency: Department of Planning Monitoring and Evaluation 43
4. 1. Progress on implementing Short to Medium term measures to support growth and stability (6) Actions Core Department/Organisation Supporting Departments/Organisations Ø On ensuring certainty on the legislation, discussions have taken place between government and stakeholders to resolve the critical mining related issues in respect of the MPRDA Bill • Department of Mineral Resources • Mining Industry Stakeholders Ø Traditional Councils in the identified mining communities and labour sending traditional communities are actively involved in the IDP processes • Department of Co-operative Governance and Traditional Affairs • • Department of Human Settlements Department of Trade and Industry Economic Development Department of Small Business Development • South African Local Government Association • Industrial Development Corporation • Development Bank of Southern Africa The Presidency: Department of Planning Monitoring and Evaluation 44
4. 1. Progress on implementing Short to Medium term measures to support growth and stability (7) Actions Core Department/Organisation Supporting Departments/Organisations Ø The MPRDA Bill introduces provisions to ensure an integrated implementation to SLP and IDPs to allow for pooling of SLP resources between companies in district municipalities to improve developmental outcomes • Department of Co-operative Governance and Traditional Affairs • Department of Mineral Resources • • Department of Human Settlements Department of Trade and Industry Economic Development Department of Small Business Development • South African Local Government Association • Industrial Development Corporation • Development Bank of Southern Africa Ø Position Paper on Mining and Local Government has been drafted § To improve the interface between mining companies and local authorities • Department of Co-operative Governance and Traditional Affairs • Department of Mineral Resources • Department of Planning, Monitoring and Evaluation • • Department of Human Settlements Department of Trade and Industry Economic Development Department of Small Business Development • South African Local Government Association • Industrial Development Corporation • Development Bank of Southern Africa The Presidency: Department of Planning Monitoring and Evaluation 45
4. 2. Challenges: Short to Medium term measures to support growth and stability Ø Misperceptions about South Africa’s investment climate Ø Lack of a coordinated stakeholder approach to engaging the local and global investment community Ø The high level of indebtedness of mine workers and existence of unscrupulous micro lenders and unsecured lending Ø Misalignment of IDPs and SLPs The Presidency: Department of Planning Monitoring and Evaluation 46
4. 3. Interventions / actions: Short to Medium term measures to support growth and stability Supporting Departments/Organisations Actions Core Department/Organisation Ø Identification of illegal micro-lenders and handing them over to the authorities • Department of Trade and Industry • All Stakeholders Ø Support and formalise small entrepreneurs • Department of Small Business Development • Department of Trade and Industry • Economic Development Department Ø Position Paper on Mining Government to be finalised • Department of Co-operative Governance • All Stakeholders Ø Ensure an enabling mining regulatory environment • Department of Mineral Resources • All Stakeholders Ø Stakeholders should jointly engage with international and local investors (All stakeholders) • Department of Mineral Resources • All Stakeholders and Local Ø A report on the Mining Charter compliance • Department of Mineral status will be made available in mid. Resources December 2014 or January 2015 (DMR) • Mining Industry Stakeholders The Presidency: Department of Planning Monitoring and Evaluation 47
Objective 5. Long term measures to support growth and stability Actions Ø Review of the long term Mining Strategy and supporting initiatives for restructuring, re-skilling to achieve competitiveness, sustainable growth and transformation is planned Ø Continue to promote development of infrastructure to unlock growth in mining industry and related sectors The Presidency: Department of Planning Monitoring and Evaluation 48
5. 1 Progress: Long term measures to support growth and stability Actions Supporting Departments/Organisations Core Department/Organisation Ø Conceptualising the Review of the Mining Strategy to be undertaken in 2015 • Department of Mineral Resources Ø Mining related infrastructure requirements are being addressed through the PICC programme • • Economic Development Department of Water and Sanitation • All Stakeholders • • All Stakeholders Department of Environmental Affairs The Presidency: Department of Planning Monitoring and Evaluation 49
5. 2 Challenges : Long term measures to support growth and stability Ø Inadequate infrastructure to unlock the mineral development potential of the country The Presidency: Department of Planning Monitoring and Evaluation 50
5. 2 Interventions / Actions : Long term measures to support growth and stability Supporting Departments or Organisations Actions Core Department/Organisation Ø The Review of the Mining Strategy to be undertaken in 2015 • Department of Mineral Resources • All Stakeholders Ø Continue to address mining related infrastructure requirements in line with the PICC programme • Economic Development Department • All Stakeholders Ø Developing and Implementing the country’s minerals beneficiation implementation plan • Department of Trade and Industry • Department of Mineral Resources • All Stakeholders The Presidency: Department of Planning Monitoring and Evaluation 51
THANK YOU The Presidency: Department of Planning Monitoring and Evaluation