The Premier of Limpopo Province, Mr Stan Mathabatha,

The Minister of Mineral Resources, Ms Susan Shabangu,

Mayors of Vhembe and Capricorn Districts,

The Chairman of Anglo American, Sir John Parker,

The Chairman of De Beers and CEO of Anglo American, Mr Mark Cutifani and members of the Boards,

Representatives of labour,

Ladies and gentlemen,

 

We have gathered today to mark another important milestone in the development of our diamond industry, and also our country’s mining sector.

 

Mining has been the foundation of economic development in South Africa for well over a century.

Despite a considerable diversification of our economy in the recent past, the mining sector remains the cornerstone of the economy, due to the number of direct and indirect jobs, its export earnings and other benefits.

 

Our mineral-rich country continues to host significant known reserves of mineral commodities, with almost 60 minerals being actively mined.

Estimates suggest that our mineral resources will be exploitable for over a century to come.

Limpopo on its own is endowed with a variety of minerals, with an estimated 70 mines operating in this province.

 

It is for this reason that as government we are investing time and effort in strengthening the mining sector so that it can contribute to inclusive growth and jobs as envisaged in the National Development Plan.

Thus, our mining industry is definitely poised for growth, especially if we continue working together to promote the industry in various ways.

This R20 billion investment in the diamond industry, the biggest single investment in the diamond industry in decades, signals that indeed our mining sector is poised for growth, and that it has a bright future.

The investment will no doubt boost diamond production, from which the country has lost its eminence in recent years.

This project is also significant because it demonstrates confidence in South Africa as an investment destination of choice by both foreign and South African companies.

 

Ladies and gentlemen

 

Our research shows that our economy has the potential to create employment through a few sectors such as infrastructure development, mining, agriculture, manufacturing, tourism; the green economy and knowledge-based sectors.

With mining being one of these main job drivers, we are pleased that this operation employs more than 2,500 people, and indirectly benefits thousands of people inthe community and the Province.

In addition, I am informed that  3000 people will benefit from employment created during the peak of this construction phase and that the mine will sustain approximately 2500 full time jobs over the life of the mine.

 

Working together, we have to ensure that our mining sector grows even further.

 

We must therefore provide the right environment for growth. This includes the implementation of transformation measures and also to promote labour market stability in the sector.

 

We are encouraged by the positive response of business and labour to government’s intervention to bring about labour peace and stability, a project led by Deputy President Kgalema Motlanthe.

While there is relative peace, we condemn the isolated incidents of violence such as the killing of a National Union of Mineworkers branch leader in Rustenburg last week. Such incidents have no place in a democratic society like ours.

 

In addition, the labour relations mechanism in our Constitution and the laws of the land are advanced enough to ensure a peaceful and orderly management of labour relations.

But we need also lasting solutions.

 

The horrific Marikana tragedy last year sharply reminded us of the need to deepen longstanding work directed towards improving the lives of mineworkers and surrounding communities.

It reminded us of the need to speed up the transformation journey that began in 1994 with the dawn of freedom and democracy.

Accordingly, the implementation of the Mineral and Petroleum Resources Development Act, the Social and Labour Plan mechanisms and the Mining Charter remain immensely important to ensure the growth and sustainability.

 

Fortunately, investors in the mining industry are aware that they should, in terms of the law, redress past imbalances in the industry.

These past imbalances are related to the failure of the colonial system to re-invest in the local human resource base and the regeneration of the local economy and protect the environment.

 

Our legislation requires investors to commit to the Mining Charter, the Social and Labour Plan, and sound environmental management.

In terms of the Mining Charter, mining companies are required to improve housing and living conditions of workers.

 

They must attend to mine community development, human resource development, employment equity, local procurement and enterprise development, upstream and downstream linkages, and sustainable growth and development in the mining industry.

Companies have to meet certain targets for the conversion and upgrading of single sexhostels formerly used by migrant workers into family units by 2014 or an occupancy rate of one person per room for those with no families.

Companies are also expected to facilitate home ownership by 2014. 

 

It is necessary to create such living conditions to ensure the dignity of workers who produce such precious metals that keep our economy strong and vibrant.

The local procurement plans are geared to expand participation in the mining supply industry by black people and women and to ensure re-investment in the local economy.

 

I am informed that De Beers is already working on the Social and Labour Plan for the mine with the Department of Mineral Resources and that some of the projects that will be implemented include the following;

 

•               Electrification

•               Road construction

•               Building schools

•               Mathematics and Science programmes and

•               Ventilation pipes.

 

I am aware that you are already in discussion with government in relation to education and skills development as investing in the youth of this province is absolutely critical for economic growth and development.

 

Government will play its part as well nationally to develop mining towns, working through the Presidential Package for mining towns unveiled in October 2012, following my meeting with business and labour after the Marikana tragedy. Our intervention is geared towards building viable and decent human settlements. This is in addition to ordinary state development programmes.

With regards to environmental sustainability, this mine operates within the buffer zone of the Mapungubwe World Heritage Site.

The Mapungubwe site and the buffer zone are legally protected through the National Heritage Resources Act, the National Environmental Management Act and the World Heritage Convention Act.

Considerable care must be taken to prevent any possible harmful effects to the area through mining. We appreciate therefore your decision to change the mining method from open cast to underground mining.

This will ensure that the outstanding universal value of the Heritage Site is not endangered.

 

Ladies and gentlemen,

 

Let me also hasten to add that this wonderful occasion reminds us of the need to promote our mineral beneficiation strategy.

 

We have been exporting diamonds for more than 100 years but have not been able to develop local diamond cutting and polishing jewellery industries.

We have therefore not been reaping the full benefits of our commodities. We have thus identified jewellery manufacturing as apriority area.

We are looking at a win-win formula for both government and the mining sector. Minister Shabangu will be hosting the first Jewellery Forum this week, which should generate ideas that will help take the process forward.

 

Compatriots,

 

We also wish to bring to your attention again the matter of the Kimberley Process.

 

This initiative bears testimony to the adage that “working together we can do more”. International partners have worked tirelessly to significantly reduce the trade of illicit diamonds that funded campaigns to destabilise legitimate governments in Africa.

 

To date, Africa is increasingly enjoying the benefit of democratic governments and transparent governance.

 

Delegates will gather on our shores for the second leg of the meeting in November this year, following the first meeting in June.

The South African Chairmanship is coming to an end in December this year and I am confident that through partnerships with key stakeholders of your calibre, we would leave yet another indelible legacy for the Kimberley Process and the diamond industry.

 

Ladies and gentlemen,

 

Tomorrow the Minister of Finance Mr Pravin Gordhan will unveil the Medium Term Budget Statement.

 

It has been drawn up under difficult economic conditions.

As agreed with all colleagues in Cabinet, Minister Gordhan will deliver on our behalf a Budget that the country needs at this point, to stimulate growth under difficult conditions while also encouraging fiscal discipline. I will not steal the Minister’s thunder. Let us wait for the presentation tomorrow.

 

Compatriots

 

Let me again welcome the launch of this construction phase of the Venetia underground project.

With production set to continue into the 2040s, Venetia will sustain and underpin South Africa’s diamond industry as well as the related industries of South Africa and many other countries, including India.

 

Our message to you and the world today is that South Africa is open for business. It is open for both domestic and foreign investments.

Our mining sector is poised for growth and expansion.

 

Whatever difficulties we have experienced in the mining sector will be resolved through working together, taking us towards achieving the vision for the mining sector outlined in the National Development Plan.

 

I wish you success with the project.

I thank you.