PRESENTATION TO THE PORTFOLIO COMMITTEE ON MINERAL RESOURCES ON FARLAM COMMISSION AND THE STEPS TAKEN BY THE DEPARTMENT TO DEAL WITH THE FINDINGS. 07 September 2016

PRESENTATION OUTLINE Introduction. Farlam Findings Recommendations Progress. Social and Labour Plans Amendments. Conclusion.

INTRODUCTION On the 26th August 2012 the President, His Excellency Jacob Zuma, appointed a Commission of Inquiry to investigate the tragic incidents at Lonmin during 11th to 16th August 2012. The President appointed retired Judge Farlam to head the Commission. On 25th June 2015, the President released the Commission’s report to articulate both the findings and the recommendations to various affected parties. Only one recommendation was directed to the Department of Mineral Resources (DMR).

FARLAM- FINDINGS In terms of the SLP Lonmin committed to: phasing out all existing single sex hostel accommodation; converting most existing hostels into bachelor or family units; and building an additional 5500 houses for their migrant employees. Lonmin further committed to completing both the hostel conversion and the house construction processes by September 2011. The Department of Mineral Resources approved the proposed SLP and Lonmin became legally obliged to comply with its terms, which could only be amended with the written consent of the Department, which was neither given nor sought.

FARLAM-RECOMMENDATIONS “The Commission recommended that Lonmin’s failure to comply with the housing obligations under the SLP‟s should be drawn to the attention of the Department of Mineral Resources, which should take steps to enforce performance of these obligations by Lonmin.”

PROGRESS - LONMIN Following the recommendations made by the Farlam Commission, the DMR conducted an inspection focusing on Housing Social and Labour Plan commitments. The outcome of the inspection reveals the following: All hostel dwellings have been converted into bachelor, single and family units by the end of 2014 as per the Mining charter targets. This constitutes 776 family units and 1908 single units. The company is in the process to build infill apartments in between the current existing hostels, to address rental needs of the 85% of employees who indicated no interest in home ownership.

PROGRESS - LONMIN Hostel: Before Hostel: After

PROGRESS - LONMIN Infill Apartments

PROGRESS – SPECIAL PRESIDENTIAL PACKAGE An Inter Ministerial Committee (IMC) for the Revitalisation of Distressed Mining Communities was established during 2012 to address Part 3 of the Social Accord (SPP): Addressing socio-economic challenges in mining districts and their labour sending areas. The IMC is also focusing on ensuring decent living conditions for mineworkers including in the North West province. 50 hectares of serviced land was donated for the development of 2658 (rental and ownership) accommodation units at Marikana Ext II (2013) in partnership with the Department of Human Settlements. This land became part of the Special Presidential Package. The construction of Phase 1 comprising 292 BNG (Breaking New Ground) houses and 252 CRU (Community Residential units) rental units were completed in March 2016. 70% of the CRU rental units will be allocated to employees in category 4 to 9.

MARIKANA EXT. 2 INTEGRATED HUMAN SETTLEMENTS PROJECT, NORTH WEST

MARIKANA EXT. 2 INTEGRATED HUMAN SETTLEMENTS PROJECT, NORTH WEST…

SOCIAL AND LABOUR PLAN AMENDMENT The DMR directed Lonmin to revise their SLP, including the housing aspect in line with the National Integrated sustainable housing strategy. The provision of accommodation including, construction of houses, rests fully with the mining right holder and should not be transferred to the responsibility of government and or employees.

CONCLUSION The implementation of the housing backlog pertaining to the SLP commitment of LONMIN, as contained in the Farlam Commission report is progressing, albeit not at the desired pace. The SLP is being amended to align the housing component to the National Housing Strategy, with clear plan and cost of implementation. Notwithstanding severely limited monitoring capacity, the DMR will continue with a monitoring and enforcement programme especially in the Bojanala District, due to the higher concentration of mines and disputes in the area. Regulatory notice’s will be issued for any non compliance identified during these audits.

THANK YOU.