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PRESENTATION TO SELECT COMMITTEE ON ECONOMIC DEVELOPMENT OF DMR 2010 / 11 ANNUAL REPORT

PRESENTATION TO SELECT COMMITTEE ON ECONOMIC DEVELOPMENT OF DMR 2010 / 11 ANNUAL REPORT 15 NOVEMBER 2011 Programme 4: Mineral Policy & Promotion. Presentation Outline. Non Financial Performance Information Programme 4: Mineral Policy & Promotion - Successes - Challenges

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PRESENTATION TO SELECT COMMITTEE ON ECONOMIC DEVELOPMENT OF DMR 2010 / 11 ANNUAL REPORT

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  1. PRESENTATION TO SELECT COMMITTEE ON ECONOMIC DEVELOPMENT OF DMR 2010 / 11 ANNUAL REPORT 15 NOVEMBER 2011 Programme 4: Mineral Policy & Promotion

  2. Presentation Outline Non Financial Performance Information Programme 4: Mineral Policy & Promotion - Successes - Challenges - Corrective measures Presentation to be read in conjunction with pages 87 to 95 of the DMR Annual Report

  3. Programme 4Mineral Policy & Promotion Purpose To formulate mineral-related policies and promote the mining and minerals industry of South Africa, making it attractive to investors. Objective Through research, provide relevant information to enhance global competitiveness, review policies and formulate legislation to achieve transformation and attract new investment into South Africa’s minerals industry..

  4. MINERAL POLICY AND PROMOTIONSuccesses • The Geoscience Amendment Act 16 of 2010 was signed into law in December 2010. • The MIGDETT stakeholders signed a declaration on the sustainable growth and meaningful transformation of mining industry in June 2010. • The Reviewed Charter came into effect on 13th September 2010. • A mining sector strategy was developed based on the signed declaration of stakeholders.

  5. MINERAL POLICY AND PROMOTIONSuccesses cont’ • Cabinet approved the usage of AEMFC as nucleus for the establishment of a State Owned Mining Company. • Five asbestos projects were successfully rehabilitated in 2010/2011. • The five sites are Prieska Rehabilitation, Jebolo, Strelley, Owendale and Prieska Wall construction –all in Northern Cape Province. • The DMR successfully hosted the ADPA Council of Ministers in 2010 with the Minister as Chair of the organization.

  6. MPP Objectives Successes cont’ • Build Strategic partnerships – set targets of building strategic partnerships met. • Contribute to skills development – all targets were met except participation at the Science Unlimited Expo. • Educate and communicate with stakeholders – targets for stakeholder engagements met. • Promote investment in the minerals sector – All targets were met except for growth in investment in the sector – a mining sector strategy has been developed to address this. • Drive transformation – the Mining Charter has been strengthened to ensure visible transformation of the sector and 82 SMMEs were supported; 66 small scale mining and 16 beneficiation projects • .

  7. Successes Cont • A total of 66 SSM project were supported, 38 old projects and 28 new projects: • Old projects: • Eastern Cape x 2 Free State x 10 • KwaZulu-Natal x 7 Limpopo x 8 • North West x 1 Northern Cape x 2 • Western Cape x 3 Mpumalanga x 5 • New projects: • Eastern Cape x 3 KwaZulu-Natal x 9 • Limpopo x 2 Mpumalanga x 4 • Free State x 3 Western Cape x 5 • Northern Cape x 2

  8. Successes Cont • 16 mineral beneficiation SMME’s supported in 2010/11 as part of the pilot project. • Free State x 1 • Gauteng x 9 • KZN x 2 • Northern Cape x 1 • North West x 1 • Western Cape x 2 • Breakdown by minerals processed/products: • 1 Granite and Marble processing • 3 Jewellery Manufacturing • 8 Diamond cutting and polishing • 2 Pottery and ceramics

  9. MPP Successes cont’ • Promote job creation – a number of interventions were put in place to promote short – long term creation of jobs in the sector. • Promote mineral beneficiation – targets partially achieved as the recession led to closure of beneficiation projects. • Promote sustainable resource use and management – two study reports were completed as mineral intelligence projects. • Develop effective environmental policies – a sustainable development strategy for the sector has been developed. • Enforce compliance and monitoring with data submission – achieved as the level of compliance improved.

  10. Challenges • MPRDA Amendment Bill – Consultation with other Govt Departments. • Beneficiation strategy – was not completed as per the target in 2010/11; has since been adopted by Cabinet. • Small Scale Mining Strategy - still needed discussion on concerns around environmental compliance and funding matters. • Funding the rehabilitation of the D&O mines.

  11. Corrective Measures • MPRDA Bill – will be introduced to Cabinet after obtaining the State Law Advisors preliminary certification. • Beneficiation Strategy – has since been approved by Cabinet. The implementation plan in progress to cabinet for approval. • Small scale mining strategy – strategy has been developed with new vision. • Sourcing additional funding for the rehabilitation programme.

  12. Thank you

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