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By Melody Kweba ( Chair) and Lucy Ngwabeni ( Secretary)

TRANSFORMATION IN THE MINING SECTOR Presented to the Parliamentary Portfolio Committee On the 23 th Nov 2011. By Melody Kweba ( Chair) and Lucy Ngwabeni ( Secretary). APPROACH. Objectives Background Progress Report SAWIMA & STRATEGIC PARTNERS Transformation Concerns

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By Melody Kweba ( Chair) and Lucy Ngwabeni ( Secretary)

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  1. TRANSFORMATION IN THE MINING SECTORPresented to the Parliamentary Portfolio CommitteeOn the 23thNov 2011 By Melody Kweba ( Chair) and Lucy Ngwabeni ( Secretary)

  2. APPROACH • Objectives • Background • Progress Report • SAWIMA & STRATEGIC PARTNERS • Transformation Concerns • Analysis of the Mining Charter Provision • Beneficiation Strategy • Our Value Proposition • Way Forward

  3. OBJECTIVE • To honour the invitation to present to the Committee • Clarifying grey areas (if any) • Display SAWIMA’s attitude towards accountability • Establish a Communication Protocol as a new leadership • Sensitize the Committee on areas where the Committee Intervention is required.

  4. background • The focus of SAWIMA is two-fold: • To assist informal mining groups to obtain mineral rights and run mining businesses/operations and • To promote female empowerment in the mining sector in accordance with provisions of the Mining Charter.

  5. Background - SAWIMA • SAWIMA – has membership in all nine (9) Provinces which is led by an Executive Committee. • The Executive committee get elected every three (3) years as per constitution. • It is through this membership that the funding was sourced for members to invest in SAWIMIH when opportunities were available. • There is an annual membership fee of R300 • Most of the members are also Shareholders in SAWIMIH.

  6. background • SAWIMIH was birth our of SAWIMA • SAWIMIH is a Proprietary Limited Company that was registered in October 2003.The members holds majority shareholding in the company, thus ensuring broad based empowerment participation. SAWIMIH was spawned out of SAWIMA

  7. Progress report • Governance Structures in place • For both SAWIMA and SAWIMIH there is new office bearers with a three year term. • Major deals – Exxaro and Sasol • Beneficiation / Green fields

  8. Sawima AND STRATEGIC PARTNERS • DMR - initiated the association then and still crucial in current and future initiatives • Exxaro Resources – Deals ( SAWIMA/ SAWIMIH) Lonminn - Deal • Anglo American – support for trainings • MQA- Training ( For SAWIMA to secure offices in the Chamber of Mines it was through the support of late Dr Mthwecu from MQA as mandated to do so by the then minister Pumzile Mlambo - Ngcuka)

  9. STATISTICS • NB: Some Provinces have few shareholders than members hence the proposed collaboration between Mining and non Mining Provinces. Some members still to renew membership this year

  10. Sawima AND STRATEGIC PARTNERS • Chamber of Mines – Offices for the past 10 years • BHP Billiton – website • Rio Tinto – support in conferences • Sasol Inzalo - 5% • Sasol Public Offer - 2.5 % • Anglo Gold Ashanti- currently communicating with them for procurement opportunities for women

  11. CHALLENGES • Alignment of SAWIMA and SAWIMIH – the delays issuing share certificates was a serious concern from Shareholders, this has since been resolved. • Leadership issues – instability - the same Board has been for both SAWIMA and SAWIMIH, • Litigation from previous leadership • No clear reporting lines from DMR / no dedicated custodian of SAWIMA, though there is a working relationship it is not formalised and lacks accountability. • Mining Houses not delivering on the Mining Charter

  12. Strategy to deal with challenges • New Board in place as per the legal framework i.e. SAWIMA Constitution and SAWIMIH – Companies Act and King III principles followed. • Have a SAWIMA report to the Deputy Minister on quarterly basis. • Strategic Plan to be done to include Province • SAWIMIH Board has a performance Contract with clear KPAs • Empowerment and development of leadership. • Performance Appraisal

  13. BENEFICIATION • Strategy Framework –in bilateral make Provisions for SA Co-Ops / others which SAWIMA is. • In Key Action Plans (KAP) – Govt & Business, these KAP must yield results for Women too e.g. co-generation of energy, could include SAWIMIH. • E.g. Commitment by business to establish and support beneficiation projects in SA, Develop export markets for beneficiated products – • QUESTIONS? Are there beneficiated products? What %? Who is involve? If not why? What is government role to ensure implementation of strategy

  14. Charter provision • Ownership, prospecting, exploration beneficiation operations; no significant change • Participation in or control of management of such operations - minority • Development of management, scientific, engineering or other skills of HDSA’s; - Women? • Procurement chains of operations;-scorecard? • Integrated Socio-economic development & responsible Mining – Labour sending areas – Mining houses to plow back, safety, family friendly accommodation? etc

  15. OUR VALUE PROPOSITION • Skilled women in business and mining • Representation across all Provinces • Explore opportunity for renewable energies • Economically Empowered Women play an important role not only in their families by in the Community. • The venture stared by Women contribute to job creation. • Consider Manaufacturing in the Mining Value Chain • Envisage to rise to export level.

  16. PROJECT PLAN FOR THE NEXT 3 YEARS ( with new boards) • Rebranding, Aggressive Marketing and deal sourcing • Strategic Plan for National and Provincial and customised Provincial Plans • Collaboration between Mining and Non-Mining Provinces • Explore owning an actual Mining Operation with Majority personnel being Women. • Ensure that the Mining Charter is adhered to for the benefit of women • Women Development & Succession Planning

  17. THE SAD REALITIES • Little progress has been achieved in the past 20 years. Far form meeting the Mining Charter targets. • The Scorecard of the Big Mining Houses, are not well monitored, if not meet there are no consequences. • Still few women really owns mines • The pronunciation by other structure on the future of Mining ( where correct or not) is inevitable if government does not led the transformation

  18. PROPOSED WAY FORWARD • SAWIMA Implement the 3 –year plan as articulated • Government's intervention to ensure the Mining Houses to delivery on the set targets as per the Mining Charter and Beneficiation Strategy. • May be consider penalties • Periodical reports ( quarterly) submitted to the Portfolio Committee via DMR. • DMR to adhere to their commitment in their agreement with SAWIMA • Explore opportunities to speed the transformation

  19. Thank You

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