NUM statement on the release of the final Mining Charter Assessment
15 May 2015
The National Union Mineworkers (NUM) welcomes the release of the final Mining Charter Assessment Report by the Minister of the Mineral Resources as part of the outcomes of MIGDETT principals meeting.
The final report reaffirmed the appalling state of transformation and compliance with the mining sector, thus blatantly disregarding Minerals & Petroleum Resources Development Act 2002.
This happens on the backdrop of deep economic hardship faced by the majority Historical Disadvantaged South Africans (HDSA) (especially workers and communities); this so-called pillar of our economy still perpetuates increased levels of inequality, poverty and unemployment.
The state ownership of our country’s mineral wealth is again found wanting, as the industry fails to achieve its set targets in the revised Mining Charter since the 2009 implementation assessment.
The sad reality of only 6% percent of assessed mining companies having achieved and complied with the revised mining charter also confirms the lack of commitment and disregard towards the government of South Africa and its people. We still ask ourselves: “How the Department of Mineral Resources allowed matters to reach such shocking levels of non-compliance? As the charter has progressive targets that ensured all mining right holders had a minimum of 11% HDSA meaningful broad-based ownership by 2011,” asked Luthando Brukwe the NUM Head of Transformation.
We reiterate our call for the DMR not to be a participant in this “declaratory order” court process, driven by the protectors of white capital imperialists Chamber of Mines.
The report shows only 45% of mining companies have complied with the conversion of hostels into single and family units. This is an astounding endorsement of apartheid-style inhumane living conditions for our members and employees.
The fact that these companies do not understand the linkages between our living conditions, nutrition, solvency and our productivity levels, leaves a lot to be desired about the drivers of this pillar of our economy.
While we are expected to plunge deep into the belly of mother earth day and night, in search for riches of those in Sandton, New York, London, Switzerland and Australia.
We have called for an in-depth verification and audit process by the Department of Mineral Resources, in order to audit individual mining right holders Annual Financial Statements to a certain the reported procurement figures. As we are of the firm view that the levels of non-compliance on procurement are conservative, as mining companies in Kuruman, Burgersfort and Swartruggens still rely heavily on white-owned companies in Gauteng.
This is closely aligned to the 64% of mining right holders that failed to contribute and comply with Mine Community Development element.
The same mining industry that is quick to claim the country has a shortage of skilled workers, more than 61% of right holders failed to invest 5% of their payroll on skills development. Thus ensuring that Employment Equity targets are still dominated by white males, HDSA’s are denied equitable access to Learnerships, Bursaries and other related Human Resource Development Programmes.
We call on the DMR to ensure all mining right holders comply with Section 52 of the MPRDA when contemplating job losses/downscaling and retrenchments. Thus ensuring those that want to put the mines under care and maintenance, loses the right/licence to operate and thus ensuring that all mines achieve the objectives of the MPRDA 2002.
As the NUM, we have noticed the unfortunate tirade by the Chamber of Mines (COM) on the mining assessment report, we find it quite shocking and bizarre.
As they have participated in all MIGDETT processes leading up to the release of the report, although it is a reminder of their (COM) disdain for the laws governing South Africa and are mistaking this democratic government to their apartheid sponsored government.
We call on government led by the President to treat this as a huge violation of the framework agreement by COM and call for stricter compliance monitoring of all companies in the mining industry.
This level of non-compliance makes a mockery of our hard-won democracy and delays the achievement of the second phase of transition for economic transformation.
The threat of investor confidence should not give the mining industry a blank cheque to do as please while all of us have to abide the laws of the Republic.
We look forward to our members to personally deliver the Section 93 notices of non-compliance from the DMR and if there is no remedial action, we urge the Minister the issue Section 47 suspensions.
Statement issued by Luthando Brukwe, NUM Head of Transformation, May 15 2015
