/ 1 April 2003

Minister prods mines over single sex hostels

The South African mining industry’s progress on ending the single sex hostel system is too slow, Minerals and Energy Minister Phumzile Mlambo-Ngcuka said on Tuesday.

“The mining companies need to create a lifestyle for mine workers that is more normal. Single sex hostels need to be ended. The hostel system plays a role in spreading HIV/AIDS–so it is a life and death issue,” she added, speaking at the International Chromium Development Association conference in Sandton, north of Johannesburg.

Under South Africa’s migrant labour system, still prevalent especially in the gold and platinum mining sectors, miners are housed in male only hostels, which has had a number of negative social consequences.

On empowerment, Mlambo-Ngcuka said that a number of empowerment deals had been done by the South African mining industry, even before the finalisation of

the mining charter in October 2002.

“In the South African chrome industry we expect to see empowerment implemented. There have been at least two empowerment deals in the local industry,” she added.

Empowerment company Royal Bafokeng Resources (RBR) recently concluded an empowerment deal with South African Chrome and Alloys (SCE).

“The changes required by the charter and the new minerals legislation are robust,” Mlambo-Ngcuka said.

She added that the chrome industry in South Africa was improving the amount of beneficiation of the chromite ore in the country.

Under the mining charter, South African mining companies will get credit for the minerals or metals they beneficiate.

The South African government is trying to encourage the beneficiation of the country’s 59 metals and minerals to increase employment and foster economic growth.

“At present 66% of chromite ore mining in South Africa is beneficiated into ferrochrome alloy. However, only 7% is used for local stainless steel production, which is a concern,” Mlambo-Ngcuka said.

South Africa is the world’s largest producer of chromite ore and produces about 47% of global annual supply. The country also produces 50% of the world’s

ferrochrome alloy. – I-Net Bridge