JOHANNESBURG (miningweekly.com) – There are still many shortcomings in the local mining industry, with many targets set out in the Mining Charter not being met.

The Mining Industry Growth Development and Employment Task Team, led by Mineral Resources Minister Ngoako Ramatlhodi, found that, overall, 45% of mining right holders had not met the target for improving the living conditions of mineworkers by either reducing the occupancy rate to one person per room at hostels or by converting hostels into family housing units.

Further, against a 2014 target of spending 40% of expenditure on procuring capital goods from black economic-empowerment (BEE) entities, 60.4% (unweighted) of right holders had not met the target. In terms of the procurement of services from BEE entities, 66.8% (unweighted) of the industry had not met the 2014 target of 70% of expenditure.

The data also showed that nationally, only 36% of mining right holders had met their set target on mine community development, while 55.5% of mining right holders had not met the target for implementation of environmental protection plans as stipulated in the charter.

On a positive note, analysis of the reported aggregated information in terms of employment equity showed that the mining industry exceeded the 40% target for 2014 in the different functional categories.

“However, the industry remains dominated by white males in key management and strategic levels of the industry,” Ramatlhodi said during a media briefing on Thursday.

Prior to the introduction of the Mining Charter, female representation in the mining industry was insignificant. The 2004 Mining Charter set a target of 10% representation of women in mining by 2009, with the actual representation of women having stood at 6% at that time.  This had improved to 14.7% by 2014.

WHERE TO FROM HERE?
The Department of Mineral Resources (DMR) had started engaging with individual right holders who failed to comply with the laws and, in terms of Section 47 of the Minerals and Petroleum Resources Development Act, the necessary remedial steps would be taken.

The process of a declaratory order would also still proceed as previously determined, to allow the courts to pronounce on issues on which stakeholders did not agree – specifically the matter relating to ownership.

“From here, we have a lot of work. We have to verify the outcomes [as] we are using the information provided by the licence holders,” Ramatlhodi replied to a question by Mining Weekly Online.

“We will also issue letters of noncompliance to licence holders who do not meet our criteria, then give them the opportunity to present to the department,” he added.

The DMR expected the Mining Phakisa, currently scheduled to take place in August, to contribute to finding solutions to the industry’s challenges.

“The Mining Phakisa will identify key constraints to investment and growth of the industry and develop a shared vision and growth strategy for the long-term development and transformation of the sector.

“The Mining Phakisa will also focus on finding win-win solutions in dealing with the role and contribution of the mining industry to beneficiation and industrialisation,” the Minister noted.