President Jacob Zuma used the platform of his State of the Nation Address in Parliament on Thursday night to make a direct appeal for mine owners and mineworkers to put the economy and job security ahead of narrow self interest as they negotiated a resolution to ongoing industrial-relations disputes.

Deviating from his formal speech, Zuma said there was “no way we can have conflict that destroys the economy” and appealed to both sides to negotiate in a manner that was mindful of mining’s vital economic, employment and export contribution.

The President was speaking against a backdrop of an ongoing strike in the platinum sector, which the Chamber of Mines had indicated was costing the industry R400-million a day. But labour tensions were broadly based across the sector, having intensified in the run-up to, and since, the killing of 34 miners and 10 police and security personnel near Lonmin’s Marikana mine in August 2012.

A multilateral process, led by Deputy President Kgalema Motlanthe, had been initiated in an effort to stabilise industrial relations in the sector – a process that Zuma said was yielding results.

“We need a mining sector that works. Mining employs over half-a-million people. It is the biggest earner of foreign exchange in our country. It also contributes about R20-billion directly to the tax revenue,” he highlighted.

Union leaders had the welfare of workers at heart, but Zuma said they also needed to ensure that jobs were not made vulnerable when pursuing better conditions and decent wages.

“It must not be easy for anybody to say: ‘let’s strike’. Or for somebody to say: ‘I’m now reducing the workforce’. All of us must think together,” he said during a joint sitting of both houses of Parliament where union leaders were among invited guests, who included anti-apartheid struggle heroes and their families, musicians and artists.

Mining had also been identified as one of six key job-creating sectors, and Zuma promised a streamlined regulatory and licensing approval regime for environmental-impact assessments, water licences and mining licences.

“Parliament is finalising amendments to the law to give effect to this very positive development, which will cut to under 300 days the time it takes to start a mine, from application to final approvals.”

But Zuma also put direct pressure on mining companies to improve housing conditions in mining towns. “Let me also remind mining companies that 2014 is the deadline for them to improve housing and living conditions of mineworkers and to achieve a number of targets. Government continues to monitor and enforce compliance on both the company’s Social and Labour Plans and Mining Charter targets.”

Chamber of Mines CEO Bheki Sibiya said he was encouraged by the emphasis given to mining in the speech and told Business Day that he hoped the President's advice on discouraging ill-considered strikes would be heeded.

The South African Chamber of Commerce and Industry also welcomed Zuma's call for greater stability in industrial relations in the mining sector and the positive contribution of government mediation. But CEO Neren Rau added that progress in streamlining environmental assessments and mining and water licences to ease the regulatory burden on heavy industry and the mining sector was yet to be substantially tested.

In light of economic headwinds, as well as chronic unemployment, poverty and inequality, government, business and labour needed to work together to grow the economy at rates higher than 5%, as outlined in the National Development Plan (NDP), which was again held up as the country’s “socioeconomic blueprint”.

“Working together as government, business, labour and the community sector, we nursed the economy to a recovery,” Zuma argued, adding that sustained efforts were required to navigate the current “difficult period”.

Outgoing Business Unity South Africa CEO Nomaxabiso Majokweni welcomed the reaffirmation of the NDP, but said business remained less optimistic about the effective implementation of the NDP.

"We will however continue with our engagements with government aimed at the implementation of the NDP and boosting economic growth," she said, highlighting that business would closely monitor the upcoming Budget address for signals that implementation was being prioritised.

The weaker exchange rate posed a significant risk to inflation and would make the infrastructure programme more expensive. “However, export companies, particularly in the manufacturing sector, should take advantage of the weaker rand and the stronger global recovery,” the President argued.

SHALE GAS & NUCLEAR BACKED

Also emphasised during the address was government’s infrastructure drive, on which R1-trillion had been invested over the past five years.

Zuma put his weight behind controversial plans to pursue shale energy, nuclear power and biofuels.

“The development of petroleum, especially shale gas, will be a game changer for the Karoo region and the South African economy. Having evaluated the risks and opportunities, the final regulations will be released soon and will be followed by the processing and granting of licences.”

A procurement process would be launched for new nuclear capacity, while "biofuels manufacturers have been selected and have started work".

The potential manufacturing and transformation spin-offs associated with the infrastructure programmes were also highlighted.

“In the next five years, the State will procure at least 75% of its goods and services from South African producers,” Zuma promised, adding that government was working intensively to develop emerging black industrialists.