Economic Transformation Cluster Comrade Masetshego Mofokeng – MPR -SPEAKER 2- Speaking Notes

28 June 2025

Honourable Speaker, Honourable Members, and fellow South Africans

INTRODUCTION

As a nation, we now face a crucial moment, where opportunity and responsibility meet as we consider the Budget. Our vision for the mining and petroleum sector is to transform the lives of people, with a mandate to uplift mining communities and ensure that the wealth beneath our soil becomes a means of prosperity for all. Our task is to present a budget that embodies our unshakeable commitment to transformation and economic growth.

Transformation begins with representation. While we celebrate the mining sector’s progression and continued economic impact, we must confront the reality that a vast majority of our young people remain unemployed. One of the key imperatives of the State of the Nation Address is to drive inclusive growth and Job creation. We remain committed and focused on this cause as the African National Congress. We understand the importance of multi-stakeholder engagement in ensuring that the mining sector plays a part in realising national development goals that are aligned with the MTDP.   

Programme 3

Honourable Speaker, the Mine Health and Safety Inspectorate is critical in safeguarding the well-being of mineworkers and all individuals affected by mining operations. This program is allocated R239 million for the 2025/26 financial year, and the Department has outlined nine key performance targets to strengthen oversight and accountability in the sector.

The programme also commits to maintaining 80% compliance in administering Government Certificate of Competency exams, which is crucial for ensuring qualified personnel in high-risk mining environments. These targets reflect a balanced approach between proactive inspections, timely dispute resolution, and capacity-building initiatives.

As we engage with these objectives, we emphasise the need for rigorous enforcement, adequate resourcing, and collaboration with industry and labour representatives to reduce fatalities, injuries, and occupational diseases. The success of this programme hinges on its ability to translate policy into tangible safety improvements, ensuring that South Africa’s mining sector operates responsibly. We look forward to working with the Department to strengthen these efforts, advocating for transparent reporting, swift corrective actions, and sustained investment in mine safety infrastructure to protect workers and communities.

We must also acknowledge the progress made in the sector’s mine health and safety aspect. This is a cornerstone of the transformative agenda. Mineworkers’ safety must always be prioritised. The Mine Health and Safety Council has reported that 2024 was the safest year in our mining history, a remarkable achievement compared to the days when fatalities numbered in the hundreds annually. Today, the sector employs 76,000 women, up from a mere 11,000 in 2002. Honourable members, these strides are commendable, but we cannot become complacent. The recent fatalities at Harmony Gold remind us that vigilance is paramount, and above all else, mine health and safety will always be an ongoing process. The Department’s allocation of R239 million to the Mine Health and Safety Inspectorate underscores our resolve to ensure that every miner returns home safely.

ADMINISTRATIVE WORK

The oversight conducted by the Portfolio Committee on Minerals and Petroleum Resources in the 7th Administration has revealed both triumphs and challenges. Implementing the cadastral system in the Western and Eastern Cape, which is set to start soon, promises to bring transparency and efficiency to licensing. Yet, the governance shortfalls at Alexkor demand urgent intervention. In this administrative year, the Department must act decisively to stabilise Alexkor and ensure it fulfils its role in the Richtersveld community. The Department’s collaboration with the IDC to revitalise smelters must include community equity stakes, ensuring that workers and locals benefit directly. Furthermore, the delays in transferring Alexander Bay Township to the Richtersveld Municipality exemplify how bureaucratic inertia perpetuates inequality. This must be resolved immediately.

INDUSTRY OBSERVATIONS

Illegal mining and fuel adulteration remain persistent threats to our sector’s integrity. This is in light of the recent allegations against PetroSA for this very practice. The proposal to deploy mobile fuel testing kits, akin to SARS’ successful model, is a pragmatic solution to curb fuel fraud and protect consumers. These measures and the finalisation of key sector legislation will reinforce the regulatory framework needed for a thriving sector.

Illegal mining is a symptom of systemic neglect. Rehabilitative efforts that are envisioned by the department and that are proposed by interested parties should find expression, and we must continuously work together to ensure that we mine sustainably

Honourable Members, in commemorating the Freedom Charter, we continue to echo the fact that the people shall govern. This budget vote is our chance to honour that legacy by ensuring that the mining and petroleum sectors become vehicles of empowerment, not centres of exclusion.

The ANC supports this budget vote and pledges to play an active role in its continued monitoring and evaluation.

I thank you