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EQUITABLE ACCESS CAMPAIGN. Submission on the review of the MINING CHARTER. ACKNOWLEDGMENT. This is the first time that the Shallow Water Mining Industry is giving input on the Mining Charter. Our deep gratitude to Parliament for this opportunity to participate in our country’s democracy.
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EQUITABLE ACCESS CAMPAIGN Submission on the review of the MINING CHARTER
ACKNOWLEDGMENT This is the first time that the Shallow Water Mining Industry is giving input on the Mining Charter. Our deep gratitude to Parliament for this opportunity to participate in our country’s democracy.
THE QUESTION THE REVIEW ASKS IS: What progress has been made towards the attainment of the OBJECTIVES of the Mining Charter as measured against the nine Charter ELEMENTS? The EAC, will today provide Parliament with answers on behalf of the NORTHERN CAPE SMALL-SCALE MARINE MINERS.
INTRODUCTION The EAC is the official representative body of the SMALL-SCALE MARINE MINERS IN THE NORTHERN CAPE. Our membership base constitutes 100% of the BEE COMPANIES engaged in shallow water mining using divers & u/w mining equipment.
Over the past 10 years our members have: Produced R1.8 billion in diamonds for Alexkor. Provided Alexkor with a net operating profit of R581 million. Provided the State with R90 million in royalties. Provided the South African economy with approximately R6.5 billion worth of diamonds at the retail level.(With the exception of the 4th bullet The above figures were extracted from Alexkor’s AR’s from 2001-2010)
BACKGROUND The Marine Diamond Mining Industry covers an area of coastline stretching from the Orange River mouth in the north to Doornbaai in the south. It is made up of 52 mining blocks that are laid out in an alpha-numeric grid.
It is divided into three sectors namely: Shallow Water- comprising the sea strips & the (a) concessions which is mined by divers. Mid Water- comprising the (b) concessions which is mined by airlifts. Deep Water- comprising the (c) concessions which is mined by airlifts and remote mining vehicles.
IN ANSWER TO THE QUESTION THE REVIEW POSES, THE EAC CAN REPORT TO PARLIAMENT AS FOLLOWS ON THE SHALLOW WATER MINING INDUSTRY:
OWNERSHIP:There is no ownership by the coastal mine community in any of the shallow water mines which, despite the Charter and the efforts of the EAC, are about to become further concentrated with Trans Hex’s shallow water holdings increasing from 35% to 62% if the sale of Namaqualand Mines is approved by the Minister as proposed.
2. PROCUREMENT & ENTERPRISE DEVELOPMENT: Alexkor 52 BEE small enterprises. Trans Hex nil BEE small enterprises. De Beers nil BEE small enterprises. Namagroen nil BEE small enterprises. There is no BEE enterprise development taking place on 73% of the shallow water mines.
The 52 Alexkor SMME’s are all BEE companies while the 2 Trans Hex and 2 Namagroen SMME’s are not.
BENEFICIATION:There is no beneficiation or branding of shallow water diamonds at all in the mine towns and no attempt to harness the synergies between diamond diving and heritage tourism. A tourist can not buy a diamond in Port Nolloth. EMPLOYMENT EQUITY:There is no employment by mine owners as the mining, where undertaken, is outsourced to contractors who employ the mine workers.
5. HUMAN RESOURCE DEVELOPMENT:Human resource development on the part of mine owners cannot take place as the mine workers are employed by contractors. 6. MINE COMMUNITY DEVELOPMENT:Alexkor is the only mine owner that does community development. The other mine owners are disengaged from the local community and located in the Cape.
HOUSING & LIVING CONDITIONS:Alexkor is the only marine mine owner that provides housing for mine workers in the Northern Cape, all of which are family units. SUSTAINABLE DEVELOPMENT & GROWTH OF THE MINING INDUSTRY: 1. Alexkor is the only marine mine owner in the Northern Cape that promotes sustainable development of the marine diamond resource. Achieved by sub-dividing its concessions and offering deal splits that match economic viability which varies greatly. This promotes the blending of high and low grade ores and acts as an effective deterrent against high-grading.
4. Trans Hex, De Beers and Namagroen’s N. Cape marine mines are either zombies or dead with no development taking place. 5. The N. Cape zombie mines owned by Trans Hex and Namagroen are located along a remote piece of coastline with no oversight from the mine owners. Consequently they are unable to determine whether or not the Mine Health and Safety Act is being complied with by their contractors or, more crucially, respond to a request for emergency assistance in the event of an accident. In the event of a diver working in these areas requiring therapeutic hyperbaric treatment, the nearest operational recompression chamber is at Alexkor’s facility. The delay in getting treatment could result in permanent injury or death.
REPORTING, MONITORING AND EVALUATION:The EAC is of the view that accurate reporting and adequate monitoring are not being done and hence we have a dismal transformation picture and an industry in collapse.In the 1980’s there were more than twenty diamond vessels operating out of Port Nolloth. Today there are less than five.
CONCLUSION Our conclusion in closing, Mr. Chairman & Members is the following: With the exception of Alexkor, mine owners are using contract miners to circumvent the charter, much the same way as companies in South Africa use labour brokers to circumvent the Labour Act. With the exception of Alexkor, mine owners are rent seekers. The bulk of our marine diamond resource is being hoarded. Our marine diamond resource is over concentrated and about to become more so. There has been no transformation at ownership level. With the exception of Alexkor, mine owners are unwilling to consult with the most important stakeholders ie the miners and have a tendency to treat them with disdain. With the exception of Alexkor, mine owners are trivializing the Charter. Thank you.
