Note to Editors: The following remarks were delivered by RISE Mzansi National Leader, Songezo Zibi MP, during the debate on Budget Vote 34 (Mineral Resources and Energy).
Chairperson
Honourable Members
Ministers and Deputy Minister
It was just over 12 years ago that at the Mining Indaba, one of your predecessors promised a one-stop shop for the licensing of mining operations to facilitate investment. This would process exploration, mining and integrated water use license applications. This would be accompanied by a cadastral system that would improve transparency and efficiency.
Today we are still talking about the same.
Also, it was 17 years ago that I was involved in discussions with officials of this Department to regulate the increasing export of un-beneficiated chrome ore to China. At the time, the Chinese were using our ore to build a ferrochrome industry while we have a natural endowment that should make us a dominant player. Today, China is a major ferrochrome producer, partly at our expense. That intervention never happened even though there was a bilateral agreement with China that said minerals must be beneficiated at source.
What the Chinese are producing at home should be exported from South Africa, not produced in China.
Today, that same intervention against the export of un-beneficiated ore would probably sink a few major operators in that sector because they have come to rely on ore exports themselves. This is unsustainable. We need mining-subsector strategies immediately after this review, and a commitment to act with speed. We can no longer continue to be mere price takers even in minerals where we are supposed to be the dominant resource owner in the world.
The mining sector is a significant economic driver in South Africa, employing just under 500,000 people, with about R782-billion in exports last year.
Minister, these numbers sound impressive but they could be much bigger! But we need a strong, efficient and fair regulator that moves with speed. We cannot wait so many years while we have so much unemployment and poverty.
The same applies to prospecting rights and exploration licenses. If we are serious about growing economy and mining sector, the Department needs to among other things:
If we – all of us in this House – can achieve this, we can create more jobs, put food on tables, and build communities where people live happy and dignified lives.
Ndiyabulela!