SPECIAL PRESIDENTIAL PACKAGE FOR DISTRESSED MINING COMMUNITIES IMC INTERVENTIONS IN MINING TOWNS & OTHER PLANS TO ERADICATE INFORMAL SETTLEMENTS PROGRESS REPORT BY THE DEPARTMENT OF HUMAN SETTLEMENTS DIRECTOR- GENERAL: T. ZULU 10 March 2015 Confidential

PRESENTATION OUTLINE INTRODUCTION BACKGROUND INTER MINISTERIAL COMMITTEE – MANDATE INTER MINISTERIAL COMMITTEE – DEPARTMENTS SCOPE OF WORK PROGRESS TO DATE FUNDING ARRANGEMENTS RECOMMENDATIONS AND CONCLUSIONS Confidential

INTRODUCTION Mining towns are characterised by wide-scale informal settlements Informal settlements are often located on tribal or privately owned land Miners do not qualify for government’s housing subsidy programmes 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 High levels of indebtedness exist amongst miners

INTRODUCTION Informal Settlement Upgrading projects are typically multi-year projects There is a need to accommodate a diverse range of residents in the mining towns requiring a diverse range of housing options/solutions (upgrading of informal settlements, hostel upgrade, private rental/ownership, social housing, partially and fully subsidised housing) Overall objective of the intervention = “Transformation of mining towns through creation of sustainable human settlements”

BACKGROUND SOCIAL ACCORD: 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 FRAMEWORK AGREEMENT: In July 2013 the DP facilitated development of the Framework Agreement for a Sustainable Mining Industry, as mandated by the President. The Stakeholders are: Government Labour (NUM, AMCU, UASA and Solidarity, supported by their Federations: COSATU, NACTU and FEDUSA) Business Chamber of Mines (CoM) and South African Mining Development Association (SAMDA)]

BACKGROUND An action plan was developed and consists of the following 5 objectives : Ensuring the rule of law, peace and stability (SAPS; Justice & Corrections supported by Dept. SS) Strengthening labour relations (DoL supported by DMR) Improving living and working conditions of mineworkers (DoL supported DHS, DOH, SocDev, DED, COGTA) Providing short to medium term measures to support growth and stability (DMR) Identifying long-term measures to support growth and stability (DMR supported by DTI, NT) As per the June 2014 SONA, the Framework Agreement is now led by the President

IMC: Revitalization 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: Integrated and sustainable human settlements, led by the DHS and supported by its agencies, e.g. NHFC, HDA Improved socio-economic conditions, led by DCoG, Dept. of Traditional Affairs, DRDLR and supported by DTI, EDD, Treasury, DBSA, SALGA, IDC, MISA Improved working conditions of mine workers led by DoL Decent living conditions for mine workers and meaningful contribution to the development trajectory of mining towns and labour sending areas, led by DMR

IMC: Revitalization of Distressed Mining Communities

SCOPE: 15 Towns for the Revitalisation of Distressed Mining Communities Fifteen mining areas in five provinces and their associated labour sending areas have been prioritised for the revitalisation of distressed mining communities MINING TOWNS PROVINCE DISTRICT MUNICIPALITY LOCAL MUNICIPALITES Limpopo Sekhukhune Fetakgomo, Tubatse, Elias Motsoaledi Waterberg Lephalale Gauteng West Rand Westonaria, Randfontein, Mogale City, Merafong North West Bojanala Rustenburg, Moses Kotane, Madibeng Dr. Kenneth Kaunda Matlosana Mpumalanga Nkangala Emalahleni, Steve Tshwete Free State Lejweleputswa Matjhabeng

SCOPE: Twelve Priority Labour Sending Areas for the Revitalisation of Distressed Mining Communities Twelve labour sending areas in two provinces have been prioritised for the revitalisation of distressed mining communities LABOUR SENDING AREAS PROVINCE DISTRICT MUNICIPALITY LOCAL MUNICIPALITY Eastern Cape OR Tambo King Sabata Dalindyebo, Nyandeni, Nquza Hill, Mhlontlo, Port St Johns Alfred Nzo Mbizana, Ntabankulu KwaZulu Natal Zululand AbaQulusi, eDumbe, Nongoma, Ulundi, uPhongolo

Progress: Planning for Informal Settlement Upgrading (SPP) Province & Municipality   NUSP Priority informal settlements Stage of ISU Planning work (January 2015) Total Number of Informal Settlements within Municipality Assessment & categorisation Settlement planning Project packaging Completed North West Rustenburg 24 10 complete in process Madibeng 30 28 3 Moses Kotane 4 Matlosana Free State Matjhabeng 20 Limpopo Greate Tubatse 7 2 Elias Motsoaledi 5 Lephalale Fetakgomo 1 Mpumalanga 6 Emalahleni 8 Steve Tshwete Gauteng Westonaria Randfontein 11 Merafong Totals 136 119 12 municipalities completed 13 in process 10 in process 32 being upgraded

Progress: Planning for Informal Settlement Upgrading (SPP) Province & Municipality   NUSP Priority informal settlements Categorisation of the settlements after rapid assessments (Jan 2015) Total Number of Informal Settlements within Municipality A B1 B2 C tbc North West Rustenburg 24 10 1 8 Madibeng 30 28 13 4 3 Moses Kotane 2 Matlosana Free State Matjhabeng 20 5 14 Limpopo Greate Tubatse 7 Elias Motsoaledi Lephalale Fetakgomo Mpumalanga Emalahleni Steve Tshwete Gauteng Westonaria 6 Randfontein 11 Merafong Totals 136 119 45 36 16 Based on the rapid assessment informal settlements are categorised as follows: A: Full Upgrading = Rapid Formalisation, full services. B 1: Interim basic services = Provision of interim services leading to eventual formalisation B 2: Emergency basic services = Provision of emergency basic services BUT leading to eventual relocation C: Rapid relocation to a site which is already available or imminently available 36 informal settlements will require re-location and cannot be upgraded in-situ

Progress: Planning for Informal Settlement Upgrading (SPP) Alignment of NDHS and DMR information on Informal Settlements and Housing options provided by Mining Companies SPP Provinces Total Number of Informal Settlements within SPP Municipalities in provinces Estimated no. of households in the informal settlements No. of employees on LOA (DMR) No. of employees in hostels (DMR) No. of employees staying in mine provided housing schemes (DMR) no. of employees on home ownership schemes (DMR) North West 61 80041 70221 46087 6629 15908 Free State 20 6331 12428 5720 744 726 Limpopo 15 11789 10326 194 947 1947 Mpumalanga 16 3006 4717 2051 6952 Gauteng 24 37834 18810 16019 15958 6324 Totals 136 139001 116502 68020 26329 31857 Note: 40% of total workforce on LoA in SPP areas. Total workforce of 291944. (DMR information) There is a strong correlation between the no. of households living in informal settlements & the no. of employees on LOA in the SPP municipalities.

Progress: Human Settlements Projects Implementation Province & Municipality Total number of projects as per business plans Total no. of projects underway 2014/15 Progress with project implementation (Jan 2015) Planned units/sites Completed units/sites No. of ISU projects North West 36 11 9869 6360 13 Rustenburg 19 4 2965 2353 10 Madibeng 8 2 4060 2885 3 Moses Kotane 9 5 2844 1122  0 Free State 15 8867 Matjhabeng Limpopo 14 2644  1374 Greate Tubatse 6  955  903  2 Elias Motsoaledi  837  471 Lephalale  750  3 Fetakgomo  122 Mpumalanga 1552 349 Emalahleni  4 185  76  Steve Tshwete  185  76 Gauteng 720 Westonaria 570 Randfontein Merafong 1 150 Totals 87 52 24029 8197 35

Budget Allocation of SPP Provinces GOVERNMENT (Rands) MINING COMPANIES (Rands) TOTAL (Rands) FREE STATE 97 695 445 45 350 000 143 045 445 GAUTENG 1 212 190 184 190 222 416 1 402 412 600 LIMPOPO 3 485 482 000 681 893 084 4 167 375 084 MPUMALANGA 253 400 000 1 283 550 000 1 536 950 000 NORTH WEST 1 289 240 000 1 392 150 000 2 681 390 000 TOTAL 6 338 007 629 3 593 165 500 9 931 173 129

DHS - Capital Subsidy Funding & Expenditure 2014/15 Mining Towns Summary: Expenditure against budget as at end Jan 2015 SPP Provinces & Municiplaities 2014/15 Ring-fenced Funds Allocated R'000 (Gazetted) 2014/15 Adjusted Ring-fenced allocation R'000 (Revised BP) Expenditure as at end Jan 2015 (R'000) % Expenditure of Gazetted allocation % expenditure of adjusted allocation North West   Rustenburg 65 337 128 898 36 375 55.7 28.22 Madibeng 69 777 11 916 56 505 81.0 474.19 Moses Kotane 15 977 28 898 47 194 295.4 163.31 Free State Matjhabeng 26 788 176 449 23 892 89.2 13.54 Limpopo Greate Tubatse 1 684 69 946 Elias Motsoaledi 3 255 50 450 Lephalale 4 720 117 207 Fetakgomo 710 31 247 Mpumalanga Emalahleni 25 507 368 591 53 427 209.5 14.49 Steve Tshwete 10 131 380 888 39 727 392.1 10.43 Gauteng Westonaria 17 141 29 335 Randfontein 8 666 839 Merafong 6 961 14 673 Totals 256 654 1 409 337 257 120 100.18 18.24

Free State: Summary Matjhabeng A total of 48 projects totalling R146 045 445 Government = R97 695 445 Mining Companies = R48 350 000 11 contained in the Social and Labour Plans of Mining Companies 17 Dept. of Human Settlements 16 Dept. Social Development 2 Dept. Rural Development 1 Dept. of Environmental Affairs 1 Dept. of Transport

Free State: Summary Matjhabeng GOVERNMENT(Rands) MINING COMPANIES (Rands) TOTAL (Rands) HUMAN SETTLEMENT 36 590 000 350 000 36 940 000 WATER AND SANITATION 46 175 000 COMMUNITY PROJECTS 5 634 577 4 500 000 10 134 577 SOCIAL SUPPORT 1 613 040 SCHOOL PROJECTS 2 479 185 20 200 000 22 679 185 ECONOMIC DEVELOPMENT 1314043 23 300 000 24614043 ENVIRONMENTAL PROJECT 11 239 600 RURAL DEVELOPMENT 4 800 000 TRANSPORT PROJECT 3 000 000 TOTAL 74 642 405 48 350 000 161 195 445

Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong A total of 71 projects = R 1 .402 b Government= R1 212 190 184 Mining Companies = R 190 222 416) 45 projects contained in the Social and Labour Plans of Mining Companies 8 Dept. of Human Settlements 3 Dept. of Water and Sanitation 2 Dept. of Social Development 1 Dept. of Transport 12 Dept. of rural Development and Land Reform

Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong GOVERNMENT (Rands) MINING COMPANIES (Rands) TOTAL (Rands) HUMAN SETTLEMENT 18 000 000 32 900 000 50 900 000 WATER AND SANITATION 1 207 000 000 4 000 000 1 211 000 000 COMMUNITY PROJECTS 4 974 00 47 000 000 SOCIAL SUPPORT 246 000 SCHOOL PROJECTS 23 000 000 ECONOMIC DEVELOPMENT 61 372 000 ENVIRONMENTAL PROJECT 9 200 000 RURAL DEVELOPMENT TRANSPORT PROJECT 3 000 000 TOTAL 1 228 246 000 177 472 000 1 405 718 000

Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi A total of 162 projects totalling R4 167b Government = R 3 485b and Mining Companies = R681 893 084 103 contained in the Social and Labour Plans of Mining Companies 30 Dept. of Human Settlements 4 Dept. Social Development 2 Dept. Rural Development 17 Dept. of Water and Sanitation 5 Dept. of Environmental Affairs 1 Dept. of Trade and Industry 1 Dept. of Cooperative Governance 1 Dept. of Transport

Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi GOVERNMENT(Rands) MINING COMPANIES (Rands) TOTAL (Rands) HUMAN SETTLEMENT 302 814 000 11 050 000 31 3864 000 INFRASTRUCTURE 29 421 000 250 202 268 279 623 268 WATER AND SANITATION 3 137 710 000 67 061 750 3 204 771 750 COMMUNITY PROJECTS 39 058 800 SOCIAL SUPPORT 187 000 5 190 000 5 377 000 SCHOOL PROJECTS 66 540 000 ECONOMIC DEVELOPMENT 15 350 000 149 140 266 164 490 266 ENVIRONMENTAL PROJECT RURAL DEVELOPMENT TRANSPORT PROJECT 8 000 000 TOTAL 3 493 482 000 588 243 084 4 081 725 084

Mpumalanga Summary: Emalahleni, Steve Tshwete Total of 62 Projects recorded Total costs are: Government (R253.4m) and mining Companies (R1, 283.55b) Housing: There are 32 housing projects initiated by NDHS. Of these, 5 projects have no defined location and all have no indication of budget allocation 9 housing projects are contained in SLP’s. 5 of these have been completed. Costs= SLP (R107.7m) 61 Informal settlements with an estimated 80 041 households. DMR info indicates that there are 70 221 mine employees receiving a living out allowance in the North West 45 Informal settlements receiving technical assistance from the National Upgrade Support Programme of DHS

Mpumalanga Summary: Emalahleni, Steve Tshwete GOVERNMENT (Rands) MINING COMPANIES (Rands) TOTAL (Rands) HUMAN SETTLEMENT 253 400 000 1 283 550 000 1 536 950 000 INFRASTRUCTURE 8 300 000 WATER AND SANITATION 236 000 000 1 450 000 000 1 686 000 000 COMMUNITY PROJECTS SOCIAL SUPPORT SCHOOL PROJECTS 74 300 000 ECONOMIC DEVELOPMENT 51 550 000 ENVIRONMENTAL PROJECT 9 100 000 4 000 000 13 100 000 RURAL DEVELOPMENT TRANSPORT PROJECT TOTAL 506 800 000 2 863 400 000 3 370 200 000

North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana A total of 106 projects have been recorded. Total cost is R4 186b Government = R2 147b Mining companies = R 2 039b 49 projects are contained in the SLP of mining companies, 1 joint economic project from dti, EDD and RLM, 1 Dept. trade and industry 1 Dept. of Co-operative Governance 5 SALGA 36 Dept. Human Settlements 10 Dept. Water and Sanitation 4 Dept. Environment Analysis

North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana GOVERNMENT MINING COMPANIES TOTAL HUMAN SETTLEMENT 1 289 240 000 1 392 150 000 2 681 390 000 INFRASTRUCTURE 111 900 000 11 190 0000 WATER AND SANITATION 836 000 000 43 700 000 879 700 000 COMMUNITY PROJECTS 161 500 000 SOCIAL SUPPORT SCHOOL PROJECTS 280 000 000 ECONOMIC DEVELOPMENT ENVIRONMENTAL PROJECT 17 600 000 50 100 000 67 700 000 RURAL DEVELOPMENT GOV CAPACITY DEVELOPMENT 4 590 000 TRANSPORT PROJECT 2 147 430 000 2 039 350 000 4 186 780 000

Recommendations and conclusions Portfolio Committee notes the Progress Report on Revitalization of Distressed Mining Communities Provide relentless support to Government initiatives and interventions whilst providing oversight on the distressed mining communities Presidency/DPME continues to ensures alignment with other government departments in order to enhance Joint Programme Implementation (DMR, DHS, DWS, DoL, COGTA, DOH,DED, etc) NDHS ensures appropriate dedicated capacity focusing on the mining towns intervention Partnerships with mining companies and labour encouraged in line with Social Accord & HS Social Contract sothat Government investment is matched /enhanced by the mining companies

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