Learning for Jobs and Entrepreneurship:

Opportunities in Mining

Presented By: CFO: Rofhiwa Irene Singo

Date: 08 September 2017

VTSD Skills Development Lekgotla

1. Legislative Framework

2. Skills in the Mining Sector

3. Opportunities in Mining

• Local Economic Development and Social and Labour Plans

• Small Scale Mining

• Beneficiation

4. Skills Development and Opportunities in the sector going forward

• The Revised Mining Charter: Transformation of the Mining Sectorthrough Skills Development and Encouraging Black Entrepreneurship

• The Junior Miners Strategy

5. Conclusion and Way Forward

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PRESENTATION OUTLINE

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LEGISLATIVE FRAMEWORK FOR MINING SKILLS

Department of Mineral Resources

(MPRDA) of 2002: Mining Charter and SLPs

Mine Health and Safety Act

Department of Higher Education

and Training

South African Qualifications Authority Act

Skills Development Act

South African Revenue Services/

Treasury

Skills Development Levies

Learnership Allowances

In line with Department of Labour codes, mining and mineral skills interventions and programmes made available in the “DMR family” are grouped as below:

• Coal Mining

• Gold Mining

• Platinum Group Metals (PGMs) Mining

• Diamond Mining

• Other Mining

• Cement, Lime, Aggregates and Sand (CLAS)

• Services Incidental to Mining

• Diamond Processing and

• Jewellery Manufacturing

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SKILLS IN THE MINING SECTOR

PROGRAMME OBJECTIVES SAMPLE OFFERINGS IN 2015/16

Youth and Learner

Development

• Ensuring the development of

skills required for SA’s mining

future

• Addressing the challenges of

youth unemployment and skills

mis-match in the work place

13 971 youth engaged in career guidance workshops

1 010 learners in grades 10, 11 and 12 were supported

with extra curricula tuition in mathematics and physical

science

723 undergraduate learners placed with host

employers for work place experience training

25 young learners, to participate in a two-year

jewellery and watch-making internship programme in

partnership with the IL Tari Design School in Italy.

1 310 learners with financial assistance through the

MQA Bursary Scheme.

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SKILLS IN THE MINING SECTOR

PROGRAMME OBJECTIVES SAMPLE OFFERINGS IN 2015/16

Support for

Literacy

Ensuring there are continued

learning opportunities for employees

in the mining sector

2 364 learners in Adult Education

and Training (AET)

Occupational

Health and Safety

Skills

Interventions

• Ensuring Zero-Harm in the mining

industry

• Providing Occupational Health and

Safety Skills to mineworkers

4,519 trained and empowered in

OHS

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SKILLS IN THE MINING SECTOR

PROGRAMME OBJECTIVES SAMPLE OFFERINGS IN 2015/16

Artisan Development 2014-2024 is the “Decade of the Artisan”

Youth employment opportunities

Portable Skills development, for mineworker

futures

414 artisan

aides were supported through the

Recognition of Prior

Learning (RPL) process.

TVET College

Support

Partnership to accelerate skills development

and training in the sector

Work exposure

opportunities to TVET college lecturers;

and National Certificate Vocational (NCV)

learners placed with host employers

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SKILLS IN THE MINING SECTOR

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OPPORTUNITIES IN MINING_SOCIAL AND LABOUR PLANS

Through Mining Qualification Authority (MQA) 600 unemployedyouth were trained in enterprise development and variousportable skills in the North West in 2016,

In partnership with Bakgatla ba Kgafela, a further 180 weretrained in construction skills, 80 were absorbed in the Bakgatlatraditional house to work on local construction projects and therest are now working as contractors inside and outside theprovince

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SKILLS IN THE MINING SECTOR

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OPPORTUNITIES IN MINING_SMALL SCALE MINING

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OPPORTUNITIES IN MINING_BENEFICIATION

Ownership - New Mining Rights

All new mining rights must have a minimum of 30% black person’s ownership per mining right or in the mining company which holds the mining right/s.

The BBBEE empowerment transaction shall include workers at a non-transferable 8% (in the

form of ESOPS), mine communities (in the form of a community trust) at a non-transferable

8% and black entrepreneurs at 14%.

BENEFICIATION

The only offsetting permissible under the ownership element is against the value of

beneficiation and such offsetting shall account for a maximum of 11% offset against the

ownership target.

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FURTHER OPPORTUNITIES GOING FORWARD

MINING CHARTER

PROCUREMENT:

• Capital goods and consumables are combined into one category of “Mining Goods” with a target of

70% of total procurement budget on locally manufactured goods.

• All locally manufactured goods must be independently validated by an entity such as SABS.

EMPLOYMENT EQUITY

• The reviewed Charter proposes increased percentages across all the various employment levels.

• These increased targets are for both black employees and black females across all levels of

management which must be reflective of national and/or provincial demographics.

• There’s a new introduction of 3% for employees with disabilities and employee representation at

Board level.

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FURTHER OPPORTUNITIES GOING FORWARD

MINING CHARTER

Human Resource Development:

The Mining Charter retains the 5% leviable amount for skills development including research and

development, 2 percentage points of which must be contributed towards the Mining Transformation

and Development Agency (MTDA).

MTDA to invest in communities, and driving skills development and entrepreneurship beyond mine

borders.

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FURTHER OPPORTUNITIES GOING FORWARD

MINING CHARTER

Mineral fields of the North West Province

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FURTHER OPPORTUNITIES GOING FORWARD

Junior Minors strategy

• Strategy to identify and address bottlenecks throughout mining lifecycle

• Mining Toolkit for New Entrants

• Direct Project Support (financial and non-financial)

Intended outcome

• Increased Investment and Job Creation

• Vibrant Small and Medium Scale Enterprises

• Rural Development and Improved Spatial Distribution of Wealth

• Diversification of Economic Activities

• Youth and Woman Economic Empowerment

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FURTHER OPPORTUNITIES GOING FORWARD

Junior Minors strategy

Critical Success Factors

Access to Finance

Skills

Availability of

Geological Information

Compliance

R&D, and technology

Access to Markets

• The Department will continue to partner with the province tosupport VTSD as agreed with Minister Mosebenzi Zwane

• Use partnerships for skills development including Canada,Russia and Japan

• Continue to persue proposals for skills development in Mining asproposed in the Mining Charter

• Work with Mining Companies to link new entrants to jobs andbusiness opportunities in the Mining sector using availableinstruments of legislation.

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CONCLUSION