1 / 17

Portfolio Committee on Mineral Resources

Portfolio Committee on Mineral Resources Challenges and opportunities facing the mining industry over the next 20 years Gideon du Plessis – 20 August 2012. Challenges facing the mining industry. People and Community Issues.

phaley
Download Presentation

Portfolio Committee on Mineral Resources

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Portfolio Committee on Mineral Resources Challenges and opportunities facing the mining industry over the next 20 years Gideon du Plessis – 20 August 2012

  2. Challenges facing the mining industry

  3. People and Community Issues • Increase in worker and community frustration vs unlawful conduct - Possible solutions: • Compliance with Social and Labour Plans (SLP) • Effective local government infrastructure development programmes • Governmental mining area housing projects • Effective Mining Crime Combatting Forum • Improve technical training and FET colleges • More favourable migrant labour system • Financial literacy programmes & worker protection against “loan sharks”

  4. Battle of Ideas • High level of intolerance for opposing ideas: • Tension between unions • Tension between government and business • Tension between unions and employers • Tension between race groups • Self-interest supersedes workers’ interests • Globalisation – Lack of understanding of SA • Induction of foreign owners to SA realities • Unsubstantial talks – no real output • Robust stakeholder closed sessions required

  5. Industrial Relations • Undemocratic majoritarian principle → LRA amendments • Unrealistic and unfair expectations created by unions • Premeditated strikes → artificial negotiations until strike • Failure of dispute resolution and bargaining structures • Labour unrest and labour turmoil impact on employment: • One example: Loss of 6 000 real jobs at Lonmin (K4 shaft) • Demise of local business (incl. street vendors) • Decline in use of contractors and the outsourcing of services • Employee reduction through natural attrition and automation • SOLUTION: Social pact → improved social wage and increases vsincrease in productivity and elimination of unprotected strikes • Social pact also alternative for automation (“quid pro quo”)

  6. Costs and Infrastructure • Influence of unreliable electricity supply and cost of electricity: • Negative impact on production ↔ knock-on effect on production bonuses, overtime pay, wage increases and threatens job security • Rail (Transnet) infrastructure shortcomings • Concerns about impact of possible introduction of carbon emission tax • Costs passed on to employers, paid for by employees

  7. Investor Confidence • Image of SA mining industry needs to improve • Aurora debacle and lack of accountability for their unlawful actions (Blyvooruitzicht repeat) • Local companies investing in their operations outside SA • Disinformation on and/or a lack of understanding of SA mining policies and legislation

  8. Relations and Forums • Amcu non-involvement from established mining forums • Migdett has lost its effectiveness • Mining Sector Stakeholder Consultative Forum to continue to focus on the implementation of Framework Agreement principles • Effective “Future Forums” to be implemented at all workplaces • Health and Safety Forums – neutral forums dealing with matters of mutual interest and ideal for relationship-building among stakeholders

  9. Health and Safety • Concern about compliance at marginal mines, and by smaller and foreign employers • Best practice - Anglo American Tripartite Forum • Concern about future provision and access to clean water • Labour unrest-related deaths to be reported: • To create awareness and enhance constitutional right to “freedom of association”, “right to work”, and “right to life”

  10. Mine Closures • Closure of mined-out and marginal mines • Forced liquidation and “convenient” liquidations to avoid mine closure responsibilities • Creation of ghost towns → urbanisation • SLP – minimise negative impact on employees • Increase in illegal mining activities • Safety and security risk • Illegal commodity trading and impact on economy

  11. Opportunities for the mining industry

  12. Mechanisation / Automation • Mechanisation can extend the life of a mine in the following instances: • Working at unsafe depths • Mine water risks • Seismic activities • Mechanisation • Favourable employment opportunity for women and disabled people in mining

  13. SA Advantages • SA mining image can only improve • Reality starting to set in • Better PR required from all stakeholders • SA world leader when it comes to mineral reserves • It possesses world-class skills and technology • Abundant availability of skilled and unskilled labour

  14. Training and Skills Development • Ageing workforce – loss of skills • True empowerment through skills development • Higher BEE/EE points for skills development • EE model to also credit mentorship initiatives • Portable skills training as safety net for future redundancy • Employee relations and cultural diversity training for mine management

  15. Conclusion Importance of a mining focus: Mining industry is a microcosm of the SA society, and if we find solutions to the mining industry challenges, then we have the blueprint to manage South Africa’s challenges.

More Related