For years black people have battled to enter the lucrative mining industry. Bars to entry have been access to good ore bodies, access to finance and the willingness of those with experience and skills to share or partner with black people.
Minister of Mineral and Energy Affairs Phumzile Mlambo-Ngcuka has painted a bleak picture of ownership patterns. One white company holds 68% of platinum reserves; two white companies 83% of manganese reserves; and two white companies 51% of gold reserves. One white company controls 95% of South Africa’s diamonds.
This is not sustainable in a democratic South Africa. With other small-scale miners I see the introduction of the Minerals and Petroleum Resources Bill as a mechanism to ensure change.
What disturbs us is that through the media and representations in Parliament, the current owners of mineral rights have been pushing the government to guarantee that they will keep these rights in future, and to remove the mechanism that seeks to push them to include new entrants in their ventures.
They asked that the minister should have no discretionary powers and that they should be able to veto her decisions; that the government should be bound by the so-called Mbulwa Agreement between the government and the Chamber of Mines (which does not represent new entrants and small miners) and should focus more on pleasing external investors than the majority that voted for it.
It would be abominable if the government agreed to perpetuate exclusive minority control by automatically granting old-order rights. What we are asking for is the possibility of sharing the cake.
Though established industry is a major player in the economy, small business provides the future for growth in the economy and employment.
The Cape plc case by asbestos victims shows that established mining companies are not keen to assist workers and residents of mining areas, and to rehabilitate the environment. One hopes that the the minister’s powers in the Bill over environmental management will be enforced.
The Bill also provides for financial assistance to historically disadvantaged persons to conduct prospecting or mining activities. In her budget vote, the minister referred to the Bakubong Initiative established to support junior companies.
We small players believe it is time to focus on us, the victims of history, the majority and the poorest of the poor. Local investment has a significant role to play in developing the economy. If South Africans commit money and skills, foreigners will follow suit because we have demonstrated confidence in our own country.
Vincent Phaahla is the executive chairperson of Sebata Kgomo Mining Pty Ltd