VOTE 32 MINERAL RESOURCES BUDGET AND PROVINCIAL BUDGET 2011/12. Lwazi Mahlangu Parliament Research Unit 22 March 2011. Overview. Contextual Background Vote 32: National Budget Provincial Budgets Key Issues for Consideration by Parliament. 1. Contextual Background.
MINERAL RESOURCES BUDGET AND
Parliament Research Unit
22 March 2011
NGP sets a target of 5 million by 2020. Mining sector projects 140 000 jobs by 2020 and 200 000 by 2030 (averaging 15 556 per annum till 2020)
40 000 jobs were lost during the crisis
Role Players and other developments
Programmes of the Department
R (Million) Percentage
TOTAL 1 036.2 100.0%
Free State Provincial economy is performing below national average.
Growth in 2010 in the provincial economy was 1.9% and it is projected at 2.4% in 2011.
The province’s major contributions to the provincial economy come from finance, real estate and other business services.
Boasts of the largest gold-mining complex - the Free State Consolidated Goldfields, with a mining area of 32 918 hectares.
About 82% of the province’s mineral production is derived from gold mining, with gold mines also supplying silver and considerable concentrations of uranium
Twelve gold mines operate from the towns of Welkom, Virginia and Odendaalsrus in the province and roughly 30% of South Africa’s gold is obtained from this region, ranked fifth in the world in gold production.
Northern KwaZulu-Natal’s coalfields are being revived
Miranda Minerals has several projects at different stages of development focusing on the Klip River coalfields around Dundee and Glencoe.
Awaiting the results of the EIA on Burnside area and resources of 35.5 million tons have been indicated and inferred. If Burnside is approved, mining is expected to begin in the last quarter of 2011.
Small scale gold mining in the Umzinto goldfield’s several sites
Carbonates from three large quarries around the Marble Delta Formation inland from Port Shepstone.
High grade material is used as filler in paint, paper, toothpaste, bread and plastic;
lower-grade material is used in rubber, glass and fiberglass and
the third quarry provides limestone for the major NPC-Cimpor cement plant nearby.
Human resource training and development
Bursaries - approximately R72 million on external bursaries and R19 million on internal bursaries for the 2011/12 FY
Learnerships and Internships
Interns and learners should constitute 5% of the total staff establishment of a department.
Continue to offer both the National Certificate (Vocational) and National Education (NATED) programmes in the FET colleges sector
Public Service Academy
The academy will receive R50 million from the National Skills Fund over the next three years for learnerships, apprenticeships and skills programmes in construction, manufacturing and engineering, benefitting public servants and the unemployed.
North West Budget
Departmental activities will directly create more than 160 000 jobs in the 2011/2012 financial year, and 40% of these jobs will be targeted for the youth.
Province has the smallest land area, but contributes over 30% to the economic growth of South Africa.
GDP- per Region declined by R11.3 billion in 2009 and the growth rate by -1.8% as the economy entered recession.
Main contributor to GDP-R are finance and business services sub-sectors (over 25%)
Government, personal and social services sub-sector makes the second highest contributions
Manufacturing is the third largest contributor to GDP-R
Most headquarters are based in GP (e.g. financial institutions and manufacturing)
Monitor progress with regard to the development of the Beneficiation Strategy (due to be tabled)
Filling of all vacant posts (National Level) and ensure that Provinces create jobs in the sector identified (aligned to NGP)
Clarity on the State Owned Mining Company whether it falls under DMR or SOEs
NGP indicators at provincial level (GDP/Absorption rate/ Education/poverty)