Revitalization of Distressed Mining Towns Programme: Committee Presentation

1. SELECT COMMITTEE PRESENTATION ON THE REVITALIZATION OF DISTRESSED MINING TOWNS PROGRAMME ACTING DIRECTOR-GENERAL: MR M TSHANAGANA 09 JUNE 2015 CONFIDENTIAL

2. Presentation Outline • INTRODUCTION • BACKGROUND • INTER MINISTERIAL COMMITTEE – MANDATE • INTER MINISTERIAL COMMITTEE – DEPARTMENTS • SCOPE OF WORK • PROGRESS TO DATE • FUNDING ARRANGEMENTS • PROJECTS LISTED IN THE 2015/16 PROVINCIAL BUSINESS PLANS • RECOMMENDATIONS AND CONCLUSIONS

3. Introduction - Context • 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

4. Introduction - Context • Informal Settlement Upgrading projects are typically multi-year projects • There is a need to accommodate a diverse range of residents in the mining townsrequiring 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”

5. 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 Deputy President facilitated development of the Framework Agreement for a Sustainable Mining Industry, as mandated by the President. The Stakeholders are: • Government • Labour • Business: Chamber of Mines and South African Mining Development Association

6. 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 the Department of Security Services) • Strengthening labour relations (Department of Labour, supported by the Department of Mineral Resources) • Improving living and working conditions of mineworkers (Department of Labour supported by the Departments of: Human Settlements, Health, Social Development, Economic Development, Cooperative Governance and Traditional Affairs) • Providing short to medium term measures to support growth and stability (Department of Mineral Resources) • Identifying long-term measures to support growth and stability (Department of Mineral Resources supported by Department of Trade and Industry and National Treasury) • As per the June 2014 SONA, the Framework Agreement is now led by the President

7. IMC: Revitalization Of Distressed Mining Communities • In 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 Department of Human Settlements (supported by its agencies, e.g. NHFC, HDA, SHRA, NURCHA) • Improved socio-economic conditions, led by Departments of: Cooperative Governance and Traditional Affairs, Rural Development and Land Reform (supported by Departments of: Trade and Industry, Economic Development, National Treasury, and DBSA, SALGA, IDC and MISA) • Improved working conditions of mine workers led by Department of Labour • Decent living conditions for mine workers and meaningful contribution to the development trajectory of mining towns and labour sending areas, led by DMR

8. IMC: Revitalization Of Distressed Mining Communities

9. 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

10. 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

11. PROGRESS: PLANNING FOR INFORMAL SETTLEMENT UPGRADING (SPP)

12. Progress: Planning for Informal Settlement Upgrading (SPP) 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 104 informal settlements will require re-location and cannot be upgraded in-situ

13. Progress: Planning For Informal Settlement Upgrading (SPP) There is a strong correlation between the no. of households living in informal settlements & the no. of employees on LOA in the SPP municipalities.

14. Budget allocation of SPP Provinces

15. Budget allocation of SPP Provinces

16. DHS - Capital Subsidy Funding & Expenditure 2014/15

17. Financial Contribution by SPP Departments

18. Free State Summary: Matjabeng • A TOTAL OF 53 PROJECTS = R786 197 716 • Government 40 projects = R310 647 716 (includes 2015/16 HSDG ring-fenced funding, NURCHA, RHLF and NHFC) • Mining Companies 13 projects = R475 550 000

19. Free State Summary: Matjabeng

20. Free State Summary: Matjabeng

21. Free State: Summary Matjhabeng

22. Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong • A TOTAL OF 63 PROJECTS = R1 850 453 166 • Government 29 projects = R1 573 989 350 (includes 2015/16 HSDG ring-fenced funding, RHLF and NHFC) • Mining Companies 34 projects = R 276 463 816

23. Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong

24. Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong

25. Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong

26. Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi, Waterberg • A TOTAL OF 143 PROJECTS = R 7 344 938 840 • Government 57 = R6 887 290 617(includes 2015/16 HSDG ring-fenced funding and RHLF ) • Mining Companies 86 = R476 362 058

27. Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi, Waterberg

28. Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi, Waterberg

29. Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi, Waterberg

30. Mpumalanga Summary: Emalahleni, Steve Tshwete • A TOTAL OF 34 PROJECTS = R 2 910 682 152 • Government 23 = R 1 259 232 152 (includes 2015/16 HSDG ring fenced funding, NURCHA, RHLF and NHFC) • Mining companies= R 1 651 450 000

31. Mpumalanga Summary: Emalahleni, Steve Tshwete

32. Mpumalanga Summary: Emalahleni, Steve Tshwete

33. Mpumalanga Summary: Emalahleni, Steve Tshwete

34. North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana • A TOTAL OF 112 PROJECTS = R 4 881 014 951 • Government 64 Projects= R 3 523 271 360 ( Includes 2015/16 ring fenced funding, NURCHA, RHLF, NHFC. • Mining companies 48= R 1 357 743 591

35. North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana

36. North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana

37. North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana

38. Labour Sending Areas Eastern Cape: King Sabata Dalindyebo, Nyandeni, Nquza Hill, Mhlontlo, Port St Johns, Mbizana, Ntabankulu& KwaZulu Natal: AbaQulusi, eDumbe, Nongoma, Ulundi, uPhongolo

39. Eastern Cape: King Sabata Dalindyebo, Nyandeni, Nquza Hill, Mhlontlo, Port St Johns, Mbizana, Ntabankulu • A TOTAL OF 46 PROJECTS = R227 960 872 • Government 16 = R124 037 667 • Mining Companies 30 = R103 923 205 • Thirty (30) contained in the Social and Labour Plans of Mining Companies • Sixteen (16) Dept. of Rural Development and Land Reform

40. Eastern Cape: King Sabata Dalindyebo, Nyandeni, Nquza Hill, Mhlontlo, Port St Johns, Mbizana, Ntabankulu

41. Eastern Cape: King SabataDalindyebo, Nyandeni, Nquza Hill, Mhlontlo, Port St Johns, Mbizana, Ntabankulu

42. KwaZulu Natal: Abaqulusi, Edumbe, Nongoma, Ulundi, Uphongolo • A TOTAL OF 45 PROJECTS = R113 173 069 • Government 16 = R66 121 102 • Mining Companies 29 = R 47 051 967 • Twenty nine (29) contained in the Social and Labour Plans of Mining Companies • Sixteen (16) Dept. of Rural Development and Land Reform projects

43. KwaZulu Natal: Abaqulusi, Edumbe, Nongoma, Ulundi, Uphongolo

44. KwaZuluNatal: Abaqulusi, Edumbe, Nongoma, Ulundi, Uphongolo

45. Mining Towns Projects as listed in the 2015/16 Provincial Business Plans

46. Mining Towns Projects as listed in the 2015/16 Provincial Business Plans

47. Mining Towns Projects as listed in the 2015/16 Provincial Business Plans

48. Mining Towns Projects as listed in the 2015/16 Provincial Business Plans

49. Recommendations and Conclusions • Note the Progress Report on Revitalization of Distressed Mining Communities • Provide 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 so that Government investment is matched /enhanced by the mining companies

50. THANK YOU “We have come a long way – Celebrating 20 Years of Freedom!”