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Mining communities receive R18bn funding – Zuma

JACOB ZUMA Government embraces partnerships because we understand that when working together we can achieve much more

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HOME SWEET HOME There are 66 public sector housing projects currently under way in prioritised mining towns

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28th August 2015

By: David Oliveira

Creamer Media Staff Writer

  

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Distressed mining communities in the Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga and the North West have received R18-billion in funding to date, South African President Jacob Zuma said in a media statement, published in June.

The bulk of the funding came from government, with mining companies having contributed about a third.

Zuma, in 2012, following the tragedy at platinum producer Lonmin’s Marikana mine, in the North West, established an inter-Ministerial Committee (IMC) for the revitalisation of distressed mining communities to oversee the implementation of integrated and sustain- able human settlements, improve the living and working conditions of mineworkers and determine the development path of mining towns and the historic labour sending areas.

Zuma reported that socioeconomic studies of 15 prioritised mining towns and 12 prioritised labour sending areas were currently under way to “understand the extent of the challenges in each town and to determine the most appropriate actions to address these”.

Further, he noted that government would, with the support of the Australia-Africa Partnership Facility, draw lessons from the policies and regulations governing mining in Australia, Chile, South Africa and Zambia.

The President pointed out that there are 66 public-sector housing projects currently under way in the prioritised mining towns.

He highlighted that, during the 2014/15 financial year, the Department of Human Settlements had spent over R419-million of its ringfenced budget to upgrade informal settlements, delivering more than 7 000 housing units to mining towns in Limpopo, the Free State, Gauteng, Mpumalanga and the North West.

Further, Zuma added that the Human Settle- ments department aimed to significantly improve these figures in the current financial year, having ringfenced R1-billion to deliver about 19 000 housing opportunities in mining towns.

Meanwhile, the President mentioned that housing agencies supported by the department contributed over R1-billion to the development of integrated human settlements during the 2014/15 financial year. The National Housing Finance Corporation delivered 3 403 mortgage and social housing units valued at R673-million and the Rural Housing Loan Fund approved 17 341 loans valued at R239-million.

“Government embraces partnerships because we understand that, when working together, we can achieve much more, which leads to a greater impact than when working in isolation,” Zuma said, adding that the Human Settlements department was actively pursuing partnerships with mining companies to develop housing for mineworkers in Limpopo, Mpumalanga, Gauteng and the North West.

Meanwhile, Zuma stated that the IMC was ensuring “concerted focus and support” for the implementation of South Africa’s Mining Charter so that “decent living conditions for mineworkers and a meaningful contribution to the development trajectory of mining towns and labour sending areas” received the necessary urgency.

He pointed out that the country’s mining industry had relied heavily on the migrant labour system, which “continues to have an enduring impact on mining towns and rural labour sending areas”.

Zuma stressed that South Africa’s mining stakeholders were considering implementing the improvements suggested in a recently completed report.

He added that government was undertaking two evaluation exercises to enhance its governance processes.

The first evaluation process was aimed at improving the relevance and effectiveness, as well as the implementation of, environmental governance legislation relating to mining. The second process under consideration focused on the effective implementation of the Mining Charter to strengthen the realisation of its objectives, said Zuma.

During the February 2015 State of the Nation Address, he announced the implementation of a Mining Phakisa programme, based on Operation Phakisa, a ‘fast results’ integrated delivery programme, of the health and oceans economy sectors, as part of the National Development Plan.

Zuma stated that over 15 consultative meetings had taken place between government, mining CEOs, representatives of civil society and national labour unions, adding “there is overwhelming support for the Phakisa process”.

“We are determined, together with our stakeholders, to steer the mining industry towards increased investment, growth and transformation, while being mindful of the social, environmental and health impacts on our people in mining towns and labour sending areas,” he commented.

Zuma added that Mining Phakisa would be further discussed during the mining sector’s National Consultative Forum, which will take place later this year, concluding that all stakeholders and communities affected by mining should work with government “as we revitalise the mining sector so it can further consolidate its position as the backbone of the South African economy and to ensure that the living and working conditions of mineworkers improve”.

Edited by Leandi Kolver
Creamer Media Deputy Editor

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