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DEPARTMENT OF MINERAL RESOURCES PPC PRESENTATION OF THE MINERAL RESOURCES 2013 SONA RESPONSE DATE 20 MARCH

Presentation Outline 1.Job creation - Enabling environment - Beneficiation - Competitiveness - Infrastructure 2.Restoration of stability 3.Payment to procured services in 30 days 4.Health issues 5.Human Resource issues 6.International Relations 3

Job creation – enabling environment 1.The NDP & NGP have identified the mining industry as well as mineral value addition (beneficiation) as one of the critical sectors for development. The industry is therefore important for job creation 2.To address the issue of sustainable, decent and inclusive employment in mining, DMR championed the development of a strategy for the sustainable growth and meaningful transformation of the mining sector.  The strategy provides the basis for long term sustainable growth, transformation and competitiveness of the industry. 3.The global economic environment remains depressed and threatens existing jobs in the sector, as highlighted by the platinum sector. The objective of the DMR is to ensure that we preserve existing jobs while creating an enabling environment to grow the industry and create new jobs: The DMR initiated the platinum task team as a means to preserve existing jobs and ensure long term sustainability of the sector. 4

Job creation – enabling environment Cont’d In dealing with the Anglo American Platinum mass retrenchment announcement, the DMR has secured a deferment to allow or a bilateral engagement which will be concluded by the end of March. 5. The department will continue to contribute towards job creation by ensuring an enabling environment for the mining industry by: Reviewing current legislation. Improving monitoring and enforcement of compliance through conducting inspections covering Social and Labour Plans. 5

Job Creation - Beneficiation South Africa is endowed with a variety of mineral resources The challenge for the country has been the ability to significantly add value to the mined minerals Beneficiation is critical in addressing the triple challenges of poverty, unemployment and inequality To enable beneficiation relevant sections of the MPRDA are being strengthened and will be presented to cabinet in due course. A consolidated implementation framework for beneficiation is a subject of inter-department consultation and the process. 6

Job Creation - Competitiveness / Infrastructure Competitiveness in the mining industry is critical in terms of developing new projects and creating jobs for the people of South Africa Some of the critical elements that are needed in addressing competitiveness are:  infrastructure – as highlighted by the president in his speech  research and development e.g high quality geological information  availability of energy As stated earlier the sector strategy for sustainable growth and meaningful transformation has been developed, which identified binding constraints to growth and transformation of the mining industry. 7

Competitiveness / Infrastructure cont’d The mining infrastructure requirements are being factored into the national infrastructure programme (PICC), to ensure existing constraints are mitigated and future development of mining in new growth nodes, such as the Waterberg coalfields are enabled The department created task teams to mitigate the effects of identified binding constraints and to enhance competitiveness of the industry e.g Infrastructure Task Team led by the Council for Geoscience, Innovation / R&D Task Team led by MINTEK. 8

Restoration of Stability Housing and Living conditions As part of addressing the housing and living conditions of mine workers, a task team comprising of the Department of Mineral Resources and other relevant Departments as well as Social Partners has been established. The task team is currently developing an action plan. In addition, the Department of Human Settlements is also involved in addressing human settlement around identified mining towns. Consultation within Government and stakeholders is underway. Stability A Framework on peace and stability was signed on 25 February by all stakeholders ( DMR, DOL, NUM, UASA, Solidarity, NUMSA, AMCU, Chamber of Mines, SAMDA ) We are currently working on implementation plan of the framework. 9

The Department is reporting on a monthly basis to National Treasury. DMR is currently performing at 92% in terms of paying service providers within 30 days. The DMR will improve internal controls to achieve 100% Payment of procured services in 30 Days 10

Health Health of mine employees including TB and HIV is a continuing concern within the mining sector, these issues were also identified during the Mine Health and Safety summit held in November The Department is collaborating with stakeholders, through the Mine Health and Safety Council, to monitor the implementation of the 2011 Summit commitments to address silicosis, TB, HIV and the general health of employees. 11

HUMAN RESOURCES ISSUES GENDER EQUITY The DMR has an Employment Equity Strategy, which is being implemented to address gender equity. Through the Mine Health and Safety Council: I.Research is currently being undertaken on health and safety issues for women. A draft report on protective clothing for women is being finalised, II.Workshops are being held with industry on the outcomes of the protective clothing for women report. 12

Human Resource issues cont’d Skills Development / youth employment The DMR is collaborating with the Department of Higher Education and Training through the MQA in respect of the following programmes: - Encourage workers to participate in ABET training. - Increase the supply of learners with Maths and Science and ensure career guidance interventions takes place for participating learners. - Provide bursaries to undergraduates and facilitate access to work- place experience. - Supporting the FET College System to be responsive to sector skills needs and priorities. - Support learners on artisan programmes. The Department will be embarking on a learner inspector programme through the uptake of about 100 graduates for experiential training.  In conjunction with mining companies the Department will be registering 52 learners in April 2013 for a learnership programme.  The DMR has its own internal programmes to enhance skills of the staff. 13

International Relations BRICS: I. DMR will be participating in the BRICS summit to be held in Durban, with the leadership of the minister ii. The process is being co-ordinated by DIRCO 14

THANK YOU QUESTIONS? 15