A draft document from the mineral resources department is proposing to place housing, health and infrastructure responsibilities squarely on mining companies, setting the stage for fresh conflict.
Commenting on the draft review housing and living conditions standards for the mineral industry, which was gazetted by mineral resources minister Gwede Mantashe on March 20 and threatens miners with their licences for noncompliance, Mineral Council SA president Mxolisi Mgojo on Wednesday said this was an untenable document for the sector in its current form.
“As the Minerals Council we do not believe the recently published Living and Housing Standard will resolve issues, and attempts to abrogate the developmental, infrastructure and service obligations of local government and impose them on the mining sector. This will not work,” he said.
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The council used the 30-day comment window to submit a written reply objecting to the draft and it now wanted face-to-face meetings with Mantashe and his senior leadership to discuss the document that will cost the industry an unestimated amount to implement in its current form, said Tebello Chabana, senior executive of public affairs and transformation at the council.
The council has lodged court papers contesting a number of clauses in the new Mining Charter, extending regulatory uncertainty that has marked the industry for years and underlined the fragile nature of the relationship between the industry body and the department of mineral resources.
The document, when passed into law, will “form part of the terms and conditions of a mining right”, it said, and noncompliance with the extensive and detailed conditions that put all the responsibility for housing employees squarely on mining company could result in the loss of the right.
Speaking at the council’s 129th annual general meeting, Mgojo said it had proved frustratingly difficult for mining companies to work with underskilled and poorly managed municipalities.
As an example of the dire state of SA’s municipalities, 68% of municipalities in the North West are under central government administration, according to the SA Municipal Workers Union.
The document stated it was intended to give effect to clauses in the Mineral and Petroleum Resources Development Act, the constitution, the National Housing Act, National Housing Code and “other related policies and legislation by ensuring that adequate housing, health-care services, balanced nutrition and water are adequately provided to mine employees in SA”.
The new demands on mining companies, which are dealing with a 523% increase in electricity tariffs since 2007, above-inflation wage increases for its workforce, electricity supply disruptions and variable commodity prices, are “onerous”, said Chabana.
For example, a mining right holder must buy land close to the mine and plan housing needs. It must work with the local governments to integrate its plans.
“Housing provided by the employer shall be redeveloped or developed to have access to electricity, facilities for hot water supply and running water, basic fixtures and fittings in rental stock and access to ablution facilities.”
It went on to say that in order to give employees “decent living conditions” the mining right holder had to provide primary health-care services for their employees and “affordable, equitable and sustainable” health-care schemes.
Right holders would also have to provide “sufficient, suitable, balanced nutrition and portable water” and a “clean, safe and healthy environment”.
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