CRISIS talks in the mining sector have yielded a commitment on new measures to save jobs and help make the industry more sustainable in the long term.
Chief among the steps agreed between the government, mining companies and trade unions were that SA would promote platinum as a reserve metal like gold; that mines sell off distressed assets instead of closing them down; rehabilitation of mines to keep people employed; and the streamlining of laws relating to labour.
The sector has been hit by rising production costs, work stoppages, sinking commodity prices and labour unrest, which have resulted in retrenchments and closures.
Power outages have dragged down production.
After meetings earlier this month and on Monday, a draft document outlining the far-reaching measures was circulated. It includes shared responsibilities and puts timelines to the measures.
The agreement, to be officially signed by parties on Monday, contains 10 key interventions to assist the sector in the short, medium and long term.
The agreement was set to be signed this week but the Association of Mineworkers and Construction Union (Amcu) asked for time to consult members.
Amcu president Joseph Mathunjwa said on Wednesday that he would have to study the declaration to examine whether the union’s input had been taken into account as he was not present during the drafting of the agreement.
Amcu wanted a complete halt to retrenchments until the social and labour plans under the Minerals and Petroleum Resources Development Act (MPRDA) had been adhered to.
Better promotion of the mining industry abroad and the leveraging of ties to the Brazil, Russia, India and China bloc are among the interventions proposed. Central banks will be lobbied to use platinum as a reserve asset as gold is.
A "Mandela platinum coin" similar to gold Krugerrands has also been punted.
The proposals include the use of platinum fuel cell technology for energy, a move welcomed by the Mapungubwe Institute for Strategic Reflection (Mistra). Executive director Joel Netshitenzhe said a critical intervention would be creating demand for platinum by ensuring that there were more varied uses for it, beyond catalytic convertors.
Platinum fuel cells are already used to power the Chamber of Mines’ headquarters in Johannesburg.
"We have to look for market demand beyond the current uses," he said.
Mistra was also researching the possibility of a "platinum exchange" to "smooth prices".
The mining industry would develop mechanisms to strengthen the industry’s resilience to the cyclical nature of commodity prices and demand, for which it has been roundly criticised by the African National Congress.
The Department of Mineral Resources and Department of Labour would oversee the "streamlining" of section 52 of the MPRDA in relation to the "downscaling of the mining industry" to avoid or limit future job losses. Fiscal instruments to support mining companies that are in distress would be explored.
On delaying possible retrenchments, parties came to a carefully worded agreement, saying that "all stakeholders would not unreasonably withhold the extension of the consultation period as per the Labour Relations Act".
Enhancing productivity was another factor. Mining companies flagged costly stoppages linked to section 54 of the Mining Health and Safety Act as a problem.
However, not much detail was provided.
In the short to medium term, Eskom and municipalities would be "engaged" to ensure that the power supply was managed better to minimise disruptions to productivity.
Under the implementation plan the Department of Mineral Resources has the task of facilitating, where possible, the sale of distressed assets and subcontracting marginal assets.
Retrenched and existing workers would be given preferential access to jobs.
Job losses would be averted through layoff training schemes, possible extended leave, early retirements, a moratorium on current vacancies, retraining employees and voluntary severance packages.
This "immediate" intervention would be overseen by the Commission for Conciliation, Mediation and Arbitration.
Should job losses be unavoidable, support should be provided for workers.
Parties agreed to set up "retrenchment response teams" to help workers access the Unemployment Insurance Fund, counselling, placement in alternative jobs and supporting those wanting to start businesses or co-operatives.
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