Solidarity supports Minister Mantashe’s proposal to withdraw mining bill

23 August 2018

Trade union Solidarity said today that the mining sector’s quest for policy certainty will receive a huge boost if Mineral Resources Minister Gwede Mantashe’s proposal to withdraw the Mineral and Petroleum Resources Development Amendment Bill (MPRDA) is implemented.

Solidarity General Secretary Gideon du Plessis said this amendment bill has created uncertainty in the mining sector since 2013, and that its withdrawal as well as the finalisation of the Mining Charter before the end of the year will therefore remove a huge obstacle preventing growth in the sector.

“At retrenchment consultations and wage negotiations, trade unions constantly have to hear that the low commodity prices, uncertain regulatory environment and high electricity tariffs are the reasons behind a retrenchment or a low wage increase. The removal of these said regulatory restrictions will therefore be a huge boost for the industry,” Du Plessis said. 

Solidarity calls on cabinet and political parties to support Mantashe’s proposal and to immediately repeal the amendment bill,” Du Plessis requested. 

According to Du Plessis, the Minerals Council South Africa has indicated on many occasions that mining houses would actualise expansions and developments worth billions that could lead to the creation of thousands of jobs, provided that the relevant legislation and the Mining Charter protect and promote their investment. 

“If Mantashe can follow the same pragmatic approach as far as the Mining Charter is concerned by removing the restrictive barbs the charter still contains so that government, the mining houses, communities and trade unions can agree on its content, then Eskom tarrifs would be the remaining major headache,” Du Plessis said.

Issued by Gideon du Plessis, General Secretary: Solidarity, 23 August 2018