Transformation of Mining Industry Needs to Be Fast-Tracked, Minister
BuaNews (Pretoria)
February 6, 2003
Posted to the web February 6, 2003
Matome Sebelebele
Pretoria
The transformation of the country's multi-billion Rand mining sector must be fast tracked to ensure that mineworkers and poor South Africans get a piece of the cake in a meaningful and sustainable way, says mineral and energy minister Phumzile Mlambo-Ngcuka.
Addressing a two-day policy conference of the National Union of Mineworkers in Pretoria today, minister Mlambo Ngcuka said the industry, which accounts for more than 34.3 percent of the country's total export revenue, was faced with many tests including ensuring that it not only made profits but put in place a social plan to prevent job losses and protect the environment.
She appealed to giant mining companies to ensure that sectoral jobs were saved and retrenchments were reduced.
The industry employs 2.7 percent of the country's economically active population, half of whom work in the gold producing mines, which collectively makes South Africa the leading gold producer in the world.
She added that no longer would mining companies be allowed to not address the health and safety of mineworkers.
'The industry will no longer be allowed to consider profits only. Plans which detail how the employees will be looked after, after the operations have ceased will have to be in place before operations start,' she said.
To counter the effects of job losses in the industry, authorities have established a social plan, which seeks to ensure that the industry adheres to the notion of a triple bottom line - that is, more specifically - profits, the people and the planet, she explained
She added that the industry ought to deliver upon decisions contained in the mining charter as well as the Minerals and Petroleum Resources Development Act, which calls for amongst others, the development of human resources and skills amongst rank and file, protection of workers from safety and health hazards, and better working conditions for workers.
The broad based socio-economic empowerment charter, which has been largely welcomed by giant mining corporations, commits the industry to transferring 26 percent of its assets to historically disadvantaged South Africans by 2013.
President Thabo Mbeki signed the charter into law last October, paving the way for African participation thus unlocking the mining sector's potential.
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