If there is one thing that tugs at my heartstrings, it is reading about people losing their jobs. In a country where the unemployment rate hovers around 32.6%, the recent retrenchments in the platinum sector are particularly alarming.Mineral and Petroleum Resources Minister Gwede Mantashe has voiced his concern about these job losses.
“Whilst the mining sector employs 489,000 mineworkers, we have noted with concern the recent retrenchments specifically in the platinum sector. In response to these job losses, we have pulled our social partners together and are in discussions to craft an approach to minimise them,” Mantashe said during the Department of Mineral Resources and Energy’s Budget Vote in Cape Town.
Significant progress has been made by the National Energy Crisis Committee (NECOM) and National Logistics Crisis Committee (NLCC) in forming partnerships with industry players to improve infrastructure supporting mining. The department is currently drafting amendments to the Mineral and Petroleum Resources Development Amendment Act (MPRDA) to strengthen areas identified as weak and legally challenged, ensuring they align with international best practices.
“These amendments will also review the licensing regime to reduce red tape and improve the business environment for investors while keeping in sync with South Africa’s social and economic fabric,” Mantashe stated. These changes continue the regulatory and policy adjustments initiated during the sixth administration.
Given South Africa’s wealth of mineral reserves, the government believes increased exploration will allow the country to benefit from its global advantage. The department, guided by the country’s exploration strategy, has partnered with the Industrial Development Corporation (IDC) to establish an exploration fund supporting emerging and junior miners. The government aims to secure additional financing to sustain this fund through engagements with fund managers and the investor community.
Moreover, the department has allocated R72 million to support artisanal and small-scale miners, including women and youth-owned companies. Mantashe emphasized that the health and safety of mine workers remain a priority for the government. “Owing to our strategic partnership with our social partners, we have improved our performance towards the zero harm goal,” he said. This is evident in the record low of 49 mine fatalities in 2022.However, the regrettable disaster at Impala Rustenburg that killed 13 mineworkers and other fatal incidents led to 53 fatalities in 2023, highlighting the challenges still faced.
The emerging trend of fatalities related to motor accidents and illegal mining disasters is also a major concern. To address this, the department has agreed with the industry on developing minimum standards and guidelines to mitigate road fatalities while intensifying efforts against illegal mining.
For the 2024/25 financial year, the department has been allocated at least R8.84 billion, with R6.4 billion earmarked for transfers to public entities, municipalities, and other institutions or implementing agents.