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Brief Introduction

 

The Department of Mineral Resources (DMR) published the

Mineral and Petroleum Resource Development Act (MPRDA) in 2004 which resulted in substantive changes to the mining sector in respect of their human resource and local economic development planning. The regulatory requirements placed on every mine in the country are depicted in the mine’s Social and Labour Plan (SLP) to be approved by DMR prior to the granting of a mining right. Once granted the mine is required to implement the undertakings and programmes stipulated within the SLP and thereafter report against the respective progress on an annual basis to retain their mining right. These requirements necessitate a substantial amount of data storage on the various aspects of the SLP as well as analysis and management processes to ensure the objectives are achieved effectively. Given the relatively new reporting and management requirements placed on the mining sector in respect of achieving transformation, the vast majority of mining operations are not currently capacitated in respect of appropriate data (both quantitative and qualitative) storage, analysis and reporting. The objectives of the SLP are to:-

 

  • Promote employment and advance the social and economic welfare of all South Africans.
  • Contribute to the transformation of the mining industry, and ensure that all holders of mining rights contribute towards the socio-economic development of the areas in which they are operating. The SLP is viewed as a living document and will be updated on an annual basis within the Annual SLP Report in respect of the following key areas:-

1.Human Resources Development (HRD)

2.Local Economic Development (LED)

3.Management of Downscaling and Retrenchment

4.Financial Expenditure

 

Definition: 

A Social and Labour Plan is a complex, strategic intervention, planning and implementation document consisting of a variety of targets and strategies to promote socio-economic growth and development, promote employment and the advancement of the social and economic welfare and promote the use of skills and empower Historically Disadvantaged South Africans, in the community and area in which industrial activity (mining and production) takes place. It clearly defines commitments made by mining or production related businesses in their quest to earn the right to operate in a geographical area. The Social and Labour Plan is a strategic day-to-day working document that manages the implementation of the plans and strategies mining and production businesses commit to.It is a key document in the application for and retention of a mining or production right. An application for a mining or production right in terms of the Minerals and Petroleum Resources Development Act must be accompanied by a Social and Labour Plan, (Regulation 42).

The objectives of the Social and Labour Plan are to:

Promote economic growth and mineral and petroleum resources development in the Republic of South Africa (Section 2 (e) of the MPRDA)
Promote employment and advance the social and economic welfare of all South Africans (Section 2 (f) of the MPRDA)
Ensure that holders of mining or production rights contribute towards the socio-economic development of the areas in which they are operating as well as the areas from which the majority of the workforce is sourced (Section 2 (i) of the MPRDA); and
To utilize and expand the existing skills base for the empowerment of HDSA's (Historically Disadvantaged South Africans) and to serve the community.

Reporting on the Social and Labour Plan:

The holder of a mining right or mining permit, or the manager of any processing plant operating separately from a mine, must submit to the Director General of the DMR (Department of Mineral Resources), an annual report detailing the extent of the holders compliance with the provisions of section 2(d) and (f), the charter contemplated in section 100 and the Social and Labour Plan on the compliance with the Social and Labour Plan. Note: The Regional Manager (DMR) or Designated Agency may request a progress report (Portfolio of Evidence) as and when required.

The Social and Labour Plan Portfolio of Evidence (POE): (Must include the following Chapters) 

Preamble

o Human Resource Development

o Skills Development Plan, WSP and ABET

o Learnerships

o Core Business Skills Programme

o Portable Skills Programme

o Hard to Fill Vacancies

o Career Progression Plan & Individual Development Plan

o Mentorship Plan

o Internship and Bursary Plan

o Employment Equity Plan

o Participation of Historically Disadvantaged South Africans (HDSA's)

o Women in Mining

o Talent Pool Development and Fast Tracking


                Local Economic Development Programme


o Introduction

o Socio-Economic Background

o Key Economic Activities

o LED Planning - IDP Plan and Planning

o Impact of operation on the area

o LED Programmes and Projects

                Housing and Living Conditions

                Health Care and Nutrition

                Procurement Plan

                Downscaling and Retrenchment

oIntroduction

oFuture Forum

oCommunication with Authorities

oMechanism to Ameliorate the Social & Economic Impacts

oPost Closure Planning

                Financial Provision

                Communication of the SLP

                Undertakings

                Appendixes

                Policies

                Future Forum Minutes

 

 

 

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