Presentation to the Portfolio Committee on the Presentation to the Portfolio Committee on the

Mining SectorMining Sector

17 October 201417 October 2014

MINING IN SOUTH AFRICA

• Gold: South Africa mined gold production. 1940-2011 South Africa accounted for 15% of the world's gold production.

• Diamond: South Africa has been a world leader in diamond production. The primary South African sources of diamonds, including seven large diamond mines around the country.

• Platinum and Palladium: South Africa produces more platinum and similar metals than any other nation.

• Coal: South Africa is also a producer of coal

April 19, 2023 2

Labour Market Governance

• The Basic Conditions of Employment Amendment Act of 1997: Sets floor rights in the labour market including the mining sector.

• The Labour Relations Amendment Act of 1995: Regulates orderly collective bargaining in the labour market. Parties cannot negotiate less favourable conditions than the floor rights set by the Basic Conditions of Employment Amendment Act.

• The Employment Equity Amendment Act of 1998: Deal with affirmation and discrimination in the labour market.

• The Mine Health and Safety Amendment Act of 1996: Regulates health and Safety in the mines.

• The Department of Labour inspectorate enforces the Employment Equity and the Basic Conditions of Employment Legislation.

• The Department of Mineral Resources inspectorate enforces health and safety in the mines.

April 19, 2023 3

MIGRANT LABOUR SYSTEM AND SUBCONTRACTING

• Migrant labour system is still rife in the mining sector. These migrant workers were recruited from over 20 territories with main providers being Lesotho, the Eastern Cape within South Africa and Mozambique.

• The mistreatment of migrant workers has been the dominance of a handful of powerful, centralised mining groups which began to outsource non-production and production functions to a growing number of sub-contracting companies

• The use of these sub-contracting workers has been highest in the platinum sector

• In 2005, 54 667 of a total of 96 734 employees in the platinum group metals were outsourced, while in gold sector only 23 373 of 133 569 male employees were outsourced

• The mining houses tend to hire more vulnerable migrant workers particularly from Mozambique and Lesotho, and the trend of subcontracting has had a marked impact on trade union strength in the mining industry and led to a marked deterioration in wages, working conditions and underground safety

April 19, 2023 4

MIGRANT LABOUR SYSTEM AND SUBCONTRACTING

• The extensive outsourcing in the platinum mines resulted in workers employed through labour brokers being paid much less than permanent workers. The sub-contracted workers do not receive benefits such as healthcare and housing.

• AngloPlatinum over 41% of its workforce is employed through labour brokers; about 30% at Marikana

• These labour brokers are used to circumvent aspects of the labour law, rendering union representation ineffective.

• The sub-contracted workers compete with permanent workers which creates conflicts as they take jobs of permanent employees, and are paid less.

April 19, 2023 5

COLLECTIVE BARGAINING IN MINING

• There is no sectoral determination prescribing minimum wages and conditions of employment in the mining sector.

• Mining conditions of employment and wages are determined through collective bargaining

• Collective bargaining is fragmented: It is both centralized and non centralised

• Centralized collective bargaining: It is conducted by Chamber of Mines for Gold and Coal mines

• Non-centralised collective bargaining: It is conducted at company level at platinum and diamonds mines.

• Centralised bargaining covers 69% of gold mines employees and 36% of coal mines employees.

• Lack of uniform in collective bargaining creates different conditions of employment and wages in the sector which turns to be a source of conflict at times.

April 19, 2023 6

TRADE UNIONS IN THE SECTOR

Trade union name Membership

National Union of Mineworkers (NUM)

United Association of South Africa (UASA)

Association of Mineworkers and Construction Union (AMCU)

Solidarity

April 19, 2023 7

NUM is the largest trade unions in the mining sector. AMCU is the emerging trade unions in the mines.

NUM is the major negotiating partner with the Chamber of Mines for the Gold and Coal mines

AMCU is the major negotiating partner at company level in the platinum sector

EMPLOYMENT EQUTY IN MINING SECTOR

Employer Top Management Senior Management Middle Management

Junior Management

African Rainbow Minerals

35.5% 33.3% 64.% 92.7%

Anglo American Platinum

37.5% 41,1% 56.7% 70.7%

Anglogold Ashanti 37.5% 32.8% 49.5% 52.6%

Anglocoal 44.4% 32.9% 53.2% 68%

Assmang Beeshoek 0% 57.1% 42.9% 59%

De Beer Marine 0 60% 46.2% 86.7%

Exxarro Coal 100% 28.6% 54.2% 61.1%

Exxarro Coal Mpumalanga

0% 33.3% 49.7% 65.7%

Goldfields South Deep 0% 10% 43.7% 65.6%

Harmony 54.2% 44.4% 45.5% 58%

BHP Billiton SA 100% 50% 0% 40%April 19, 2023 8

Employment Equity status refers to the levels of representativeness of the designated groups, i.e. black people (African, Indians and Coloured, women (all races) and people with disabilities (all races and gender)

EMPLOYMENT EQUTY IN MINING SECTOR

Employer Top Management Senior Management Middle Management Junior Management

BHP Billiton Coal 0% 50% 52.5% 65.6%

Impala Platinum 25% 35.45 50.6% 74.2%

Lonmin 77.3% 41.8% 52.1% 66.7%

Sibanye Gold Kloofmyn 0 0 37.8% 46.4%

Sibanye Gold Driefontein 0 22.2% 4.8% 52.9%

GFI Mining 0 36.4% 39.1% 49.8%

X-Strata Coal 15.8% 35% 54.2% 75.2%

Cullinan Diamond 0% 0% 46.9% 48.3%

Hillside Mining 0% 55.6% 68.1% 69.4%

Hotazel Manganese 0% 33.3% 45% 72%

Hermic Ferrochrome 33.3% 58.8% 68.8% 76.3%

Middleburg Ferrochrome 0% 50.1% 53.1% 58%

April 19, 2023 9

PRESENTATION OUTLINE

1.Breakdown of housing needs across income bands

2.Indication of where workers are staying

April 19, 2023 10

ANALYSIS OF HOUSING FOR MINE WORKERS IN THE 14 MINING TOWNS Living Out Allowance: 40% of total workforce

on LOA in these SPP areas. Total workforce is 291 944

April 19, 2023 Briefing to the Select Committee on Labour and Public Enterprises 11

Region Number of employees on LOA

Category Income bandsAmount (R)

Free State(Matjhabeng)

12 428 Cat 3 – Cat 8, all income bands (Harmony)

R620 – R2 320

Gauteng (Westonarea, Randfontein, Mogaler City, Merafong)

18 810 Miners, Officials and Management

R1 820 – R3 600

Limpopo (Fetakgomo, Tubatse, Elias Motsoaledi, Lephalele)

10 326 General worker – Management

R1 100 – R7 160

Mpumalanga ( Emalahleni, Steve Tshwete)

70 221 Contractors B1 – B7

R1 214 - R7 532

North West (Rustenburg, Moses Kotane, Madikeng)

70 221 Cat A – B7C4 – C5

R1 769 – R4 622

Total 116 502

ANALYSIS OF HOUSING FOR MINEWORKERS IN THE 14 MINING TOWNS

Region Number of Employees residing in hostels

Free State (Matjhabeng) 5 720

Gauteng (Westonasrea, Randfontein, Mogale City, Merafong

16 019

Limpopo (Fetahgomo, Tubatse, Elias Motsoaledi, Lephalale

194

Mpumalanga (Emalahleni, Steve Tshwete) 0Note: All Anglo hostels dwelling were demolished to maker way for family and single quarters in Mpumalanga

North West (Rustenburg, Moses Kotane, Madibeng) 46 087

Total 68 020

April 19, 2023 12

Number of employees staying in mine provided schemes (Single and Family Units)

Region No. of Single / family units Built

Free State (Matjhabeng) 744

Gauteng (Westonarea, Randfontein, Mogale City, Merafong

15 958

Limpopo (Fatakgomo, Tubatse, Elias Motsoaledi, Lephalale)

947

Mpumalanga (Emalahleni, Steve Tshwete) 2 051

North West (Rustenburg, Moses Kotane, Madibeng)

6 629

Total 26 329

April 19, 2023 13

ANALYSIS OF HOUSING FOR MINEWORKERS IN THE 14 MINING TOWNS HOME OWNERSHIP

Region No. of employees on home ownership scheme

Free State (Matjhabeng) 726

Gauteng (Westenaria, Randfontein, Mogale City, Merafong

6 324

Limpopo ( Fetagomo, Tubatse, Elias Motsoaledi, Lephalale)

1 947

Mpumalanga (Emalahleni, Steve Tshwete) 6 952

North West (Rustenburg, Moses Kotane, Madibeng)

15 908

Total 31 857

April 19, 2023 14

CONCLUSION

Information indicate that majority of employees on Living Out Allowance are in platinum sector followed by the gold sector

This information will be reconciled into the migrant labour system

In view of the aforesaid challenge, the provision of accommodation should be the DMR working with Human Settlement, Should participate in the upcoming Housing Social Accord intended to strengthen intervention in this regard

April 19, 2023 15

THANK YOU

April 19, 2023 16