SPECIAL PRESIDENTIAL PACKAGE FOR DISTRESSED SPECIAL PRESIDENTIAL PACKAGE FOR DISTRESSED MINING COMMUNITIESMINING COMMUNITIES

IMC INTERVENTIONS IN MINING TOWNS & OTHER PLANS TO ERADICATE INFORMAL SETTLEMENTS

PROGRESS REPORT BY THE DEPARTMENT OF HUMAN SETTLEMENTS

DIRECTOR- GENERAL: T. ZULU 10 March 2015

Confidential

PRESENTATION OUTLINE• INTRODUCTION

• BACKGROUND

• INTER MINISTERIAL COMMITTEE – MANDATE

• INTER MINISTERIAL COMMITTEE – DEPARTMENTS

• SCOPE OF WORK

• PROGRESS TO DATE

• FUNDING ARRANGEMENTS

• RECOMMENDATIONS AND CONCLUSIONS

Confidential

INTRODUCTION

• Mining towns are characterised by wide-scale informal settlements

• Informal settlements are often located on tribal or privately owned land

• Miners do not qualify for government’s housing subsidy programmes

• Many mining companies have reached agreements with unions to pay a living out allowance – largely not used for decent housing and has led to many miners living in terrible conditions in backyards/informal settlements

• High levels of indebtedness exist amongst miners

INTRODUCTION

• Informal Settlement Upgrading projects are typically multi-year projects

• There is a need to accommodate a diverse range of residents in the mining towns requiring a diverse range of housing options/solutions (upgrading of informal settlements, hostel upgrade, private rental/ownership, social housing, partially and fully subsidised housing)

• Overall objective of the intervention = “Transformation of mining towns through creation of sustainable human settlements”

BACKGROUND• SOCIAL ACCORD: In October 2012 the President led the signing of a Social Accord

(not confined to the mining industry) with Government, Business and Labour

referred to as the Special Presidential Package (SPP) which made a number of

commitments :• Part 1:Restoring confidence in labour market institutions, addressing income

inequalities and building social cohesion

• Part 2: Action to combat violence and lawlessness

• Part 3: Addressing socio-economic challenges• FRAMEWORK AGREEMENT: In July 2013 the DP facilitated development of the

Framework Agreement for a Sustainable Mining Industry, as mandated by the President. The Stakeholders are:– Government – Labour (NUM, AMCU, UASA and Solidarity, supported by their Federations: COSATU,

NACTU and FEDUSA)– Business Chamber of Mines (CoM) and South African Mining Development Association

(SAMDA)]

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BACKGROUND • An action plan was developed and consists of the following 5 objectives :

–Ensuring the rule of law, peace and stability (SAPS; Justice & Corrections supported by Dept. SS)–Strengthening labour relations (DoL supported by DMR)–Improving living and working conditions of mineworkers (DoL supported DHS, DOH, SocDev, DED, COGTA)–Providing short to medium term measures to support growth and stability (DMR)–Identifying long-term measures to support growth and stability (DMR supported by DTI, NT) •As per the June 2014 SONA, the Framework Agreement is now led by the President

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IMC: Revitalization of Distressed Mining Communities

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In late 2012, an Inter Ministerial Committee for the Revitalisation of Distressed

Mining Communities was established to address Part 3 of the Social Accord (SPP):

Addressing socio-economic challenges in mining districts and their labour sending

areas. The IMC has focused on:

Integrated and sustainable human settlements, led by the DHS and supported by

its agencies, e.g. NHFC, HDA

Improved socio-economic conditions, led by DCoG, Dept. of Traditional Affairs,

DRDLR and supported by DTI, EDD, Treasury, DBSA, SALGA, IDC, MISA

Improved working conditions of mine workers led by DoL

Decent living conditions for mine workers and meaningful contribution to the

development trajectory of mining towns and labour sending areas, led by DMR

IMC: Revitalization of Distressed Mining Communities

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SCOPE: 15 Towns for the Revitalisation of Distressed Mining Communities

Fifteen mining areas in five provinces and their associated labour sending areas

have been prioritised for the revitalisation of distressed mining communities

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MINING TOWNSPROVINCE DISTRICT MUNICIPALITY LOCAL MUNICIPALITESLimpopo Sekhukhune Fetakgomo, Tubatse, Elias

MotsoalediWaterberg Lephalale

Gauteng West Rand Westonaria, Randfontein, Mogale City, Merafong

North West Bojanala Rustenburg, Moses Kotane, Madibeng

Dr. Kenneth Kaunda MatlosanaMpumalanga Nkangala Emalahleni, Steve TshweteFree State Lejweleputswa Matjhabeng

SCOPE: Twelve Priority Labour Sending Areas for the Revitalisation of Distressed Mining Communities

• Twelve labour sending areas in two provinces have been prioritised for the

revitalisation of distressed mining communities

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LABOUR SENDING AREAS

PROVINCE DISTRICT MUNICIPALITY LOCAL MUNICIPALITYEastern Cape OR Tambo King Sabata Dalindyebo,

Nyandeni, Nquza Hill,

Mhlontlo, Port St Johns

Alfred Nzo Mbizana, Ntabankulu

KwaZulu Natal Zululand AbaQulusi, eDumbe,

Nongoma, Ulundi,

uPhongolo

Progress: Planning for Informal Settlement Upgrading (SPP)

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Province & Municipality

NUSP Priority informal

settlements

Stage of ISU Planning work (January 2015)Total Number of

Informal Settlements within

MunicipalityAssessment & categorisation

Settlement planning

Project packaging Completed

North West Rustenburg 24 10complete in process in process 10Madibeng 30 28complete in process in process 3Moses Kotane 4 4complete in process Matlosana 3 3complete in process Free State Matjhabeng 20 20complete in process in process 3Limpopo Greate Tubatse 7 7complete in process in process 2Elias Motsoaledi 5 5complete in process in process 3Lephalale 2 2complete in process in process Fetakgomo 1 1complete in process in process Mpumalanga 6Emalahleni 8 8in process in process Steve Tshwete 8 8in process Gauteng Westonaria 7 6complete in process in process 2Randfontein 11 11complete in process in process 2Merafong 6 6complete in process in process 1

Totals 136 119

12 municipalities completed 13 in process

10 in process

32 being upgraded

Province & Municipality

NUSP Priority informal

settlements

Categorisation of the settlements after rapid assessments (Jan 2015)

Total Number of Informal Settlements

within Municipality A B1 B2 C tbc

North West Rustenburg 24 10 1 8 1 Madibeng 30 28 10 13 4 3 Moses Kotane 4 4 2 1 1 Matlosana 3 3 1 1 Free State Matjhabeng 20 20 5 1 14 Limpopo Greate Tubatse 7 7 3 1 3 Elias Motsoaledi 5 5 1 4 4 Lephalale 2 2 1 1 Fetakgomo 1 1 1 Mpumalanga Emalahleni 8 8 8Steve Tshwete 8 8 8Gauteng Westonaria 7 6 2 1 3 Randfontein 11 11 1 7 3 Merafong 6 6 1 2 3 Totals 136 119 20 45 7 36 16

Progress: Planning for Informal Settlement Upgrading (SPP)

36 informal settlements will require re-location and cannot be upgraded in-situ

Based on the rapid assessment informal settlements are categorised as follows:A: Full Upgrading = Rapid Formalisation, full services.B 1: Interim basic services = Provision of interim services leading to eventual formalisation B 2: Emergency basic services = Provision of emergency basic services BUT leading to eventual relocation C: Rapid relocation to a site which is already available or imminently available

Progress: Planning for Informal Settlement Upgrading (SPP)

There is a strong correlation between the no. of households living in informal settlements & the no. of employees on LOA in the SPP municipalities.

Alignment of NDHS and DMR information on Informal Settlements and Housing options provided by Mining Companies

SPP Provinces

Total Number of Informal

Settlements within SPP

Municipalities in provinces

Estimated no. of households in the informal

settlements

No. of employees on

LOA (DMR)

No. of employe

es in hostels (DMR)

No. of employees staying in mine

provided housing schemes (DMR)

no. of employees on

home ownership schemes (DMR)

North West 61 80041 70221 46087 6629 15908Free State 20 6331 12428 5720 744 726Limpopo 15 11789 10326 194 947 1947Mpumalanga 16 3006 4717 0 2051 6952Gauteng 24 37834 18810 16019 15958 6324Totals 136 139001 116502 68020 26329 31857

Note: 40% of total workforce on LoA in SPP areas. Total workforce of 291944. (DMR information)

Progress: Human Settlements Projects Implementation

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Province & Municipality

Total number of projects as per business plans

Total no. of projects

underway 2014/15

Progress with project implementation (Jan 2015)

Planned units/sitesCompleted units/sites

No. of ISU projects

North West 36 11 9869 6360 13Rustenburg 19 4 2965 2353 10Madibeng 8 2 4060 2885 3Moses Kotane 9 5 2844 1122 0Free State 15 13 8867 0 3Matjhabeng 15 13 8867 0 3Limpopo 14 10 2644 1374 8Greate Tubatse 6 2 955 903 2Elias Motsoaledi 3 4 837 471 3Lephalale 3 2 750 0 3Fetakgomo 2 2 122 0 0Mpumalanga 14 11 1552 349 6Emalahleni 8 4 185 76 Steve Tshwete 6 4 185 76Gauteng 8 3 720 0 5Westonaria 5 2 570 0 2Randfontein 2 0 0 0 2Merafong 1 1 150 0 1Totals 87 52 24029 8197 35

Budget Allocation of SPP Provinces

PROVINCES GOVERNMENT (Rands) MINING COMPANIES (Rands) TOTAL (Rands)FREE STATE 97 695 445 45 350 000 143 045 445GAUTENG 1 212 190 184 190 222 416 1 402 412 600LIMPOPO 3 485 482 000 681 893 084 4 167 375 084MPUMALANGA 253 400 000 1 283 550 000 1 536 950 000NORTH WEST 1 289 240 000 1 392 150 000 2 681 390 000TOTAL 6 338 007 629 3 593 165 500 9 931 173 129

DHS - Capital Subsidy Funding & Expenditure 2014/15

Mining Towns Summary: Expenditure against budget as at end Jan 2015

SPP Provinces & Municiplaities

2014/15 Ring-fenced Funds Allocated R'000

(Gazetted)

2014/15 Adjusted Ring-fenced allocation

R'000 (Revised BP)Expenditure as at end

Jan 2015 (R'000)% Expenditure of

Gazetted allocation% expenditure of

adjusted allocation

North West

Rustenburg 65 337 128 898 36 375 55.7 28.22Madibeng 69 777 11 916 56 505 81.0 474.19

Moses Kotane 15 977 28 898 47 194 295.4 163.31Free State

Matjhabeng 26 788 176 449 23 892 89.2 13.54Limpopo

Greate Tubatse 1 684 69 946

Elias Motsoaledi 3 255 50 450 Lephalale 4 720 117 207

Fetakgomo 710 31 247

Mpumalanga

Emalahleni 25 507 368 591 53 427 209.5 14.49

Steve Tshwete 10 131 380 888 39 727 392.1 10.43Gauteng

Westonaria 17 141 29 335

Randfontein 8 666 839 Merafong 6 961 14 673 Totals 256 654 1 409 337 257 120 100.18 18.24

Free State: Summary Matjhabeng

A total of 48 projects totalling R146 045 445 •Government = R97 695 445 •Mining Companies = R48 350 000

– 11 contained in the Social and Labour Plans of Mining Companies

– 17 Dept. of Human Settlements– 16 Dept. Social Development– 2 Dept. Rural Development – 1 Dept. of Environmental Affairs– 1 Dept. of Transport

Free State: Summary Matjhabeng

GOVERNMENT(Rands) MINING COMPANIES (Rands) TOTAL (Rands)HUMAN SETTLEMENT 36 590 000 350 000 36 940 000WATER AND SANITATION 46 175 000 0 46 175 000COMMUNITY PROJECTS 5 634 577 4 500 000 10 134 577SOCIAL SUPPORT 1 613 040 0 1 613 040SCHOOL PROJECTS 2 479 185 20 200 000 22 679 185ECONOMIC DEVELOPMENT 1314043 23 300 000 24614043ENVIRONMENTAL PROJECT 11 239 600 0 11 239 600RURAL DEVELOPMENT 4 800 000 0 4 800 000TRANSPORT PROJECT 3 000 000 0 3 000 000TOTAL 74 642 405 48 350 000 161 195 445

Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong

A total of 71 projects = R 1 .402 b

•Government= R1 212 190 184

•Mining Companies = R 190 222 416)

•45 projects contained in the Social and Labour Plans of Mining

Companies

•8 Dept. of Human Settlements

•3 Dept. of Water and Sanitation

•2 Dept. of Social Development

•1 Dept. of Transport

•12 Dept. of rural Development and Land Reform

Gauteng: Summary Westonaria, Randfontein, Mogale City, Merafong

GOVERNMENT (Rands) MINING COMPANIES (Rands) TOTAL (Rands)HUMAN SETTLEMENT 18 000 000 32 900 000 50 900 000WATER AND SANITATION 1 207 000 000 4 000 000 1 211 000 000COMMUNITY PROJECTS 4 974 00 47 000 000 47 000 000SOCIAL SUPPORT 246 000 0 246 000SCHOOL PROJECTS 0 23 000 000 23 000 000ECONOMIC DEVELOPMENT 61 372 000 61 372 000ENVIRONMENTAL PROJECT 0 9 200 000 9 200 000RURAL DEVELOPMENT 0 0 0TRANSPORT PROJECT 3 000 000 0 3 000 000TOTAL 1 228 246 000 177 472 000 1 405 718 000

Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi

A total of 162 projects totalling R4 167b

•Government = R 3 485b and

•Mining Companies = R681 893 084

– 103 contained in the Social and Labour Plans of Mining Companies

– 30 Dept. of Human Settlements

– 4 Dept. Social Development

– 2 Dept. Rural Development

– 17 Dept. of Water and Sanitation

– 5 Dept. of Environmental Affairs

– 1 Dept. of Trade and Industry

– 1 Dept. of Cooperative Governance

– 1 Dept. of Transport

Limpopo: Summary Fetakgomo, Tubatse, Elias Motsoaledi

GOVERNMENT(Rands) MINING COMPANIES (Rands) TOTAL (Rands)HUMAN SETTLEMENT 302 814 000 11 050 000 31 3864 000INFRASTRUCTURE 29 421 000 250 202 268 279 623 268WATER AND SANITATION 3 137 710 000 67 061 750 3 204 771 750COMMUNITY PROJECTS 0 39 058 800 39 058 800SOCIAL SUPPORT 187 000 5 190 000 5 377 000SCHOOL PROJECTS 0 66 540 000 66 540 000ECONOMIC DEVELOPMENT 15 350 000 149 140 266 164 490 266ENVIRONMENTAL PROJECT 0 0 0RURAL DEVELOPMENT 0 0 0TRANSPORT PROJECT 8 000 000 0 8 000 000TOTAL 3 493 482 000 588 243 084 4 081 725 084

Mpumalanga Summary: Emalahleni, Steve Tshwete Total of 62 Projects recorded

•Total costs are: – Government (R253.4m) and– mining Companies (R1, 283.55b)

•Housing:

– There are 32 housing projects initiated by NDHS. Of these, 5 projects have no defined location and all have no indication of budget allocation

– 9 housing projects are contained in SLP’s. 5 of these have been completed.

• Costs= SLP (R107.7m)

– 61 Informal settlements with an estimated 80 041 households. DMR info indicates that there are 70 221 mine employees receiving a living out allowance in the North West

– 45 Informal settlements receiving technical assistance from the National Upgrade Support Programme of DHS

Mpumalanga Summary: Emalahleni, Steve Tshwete

GOVERNMENT (Rands) MINING COMPANIES (Rands) TOTAL (Rands)HUMAN SETTLEMENT 253 400 000 1 283 550 000 1 536 950 000INFRASTRUCTURE 8 300 000 0 8 300 000WATER AND SANITATION 236 000 000 1 450 000 000 1 686 000 000COMMUNITY PROJECTS 0 0 0SOCIAL SUPPORT 0 0 0SCHOOL PROJECTS 0 74 300 000 74 300 000ECONOMIC DEVELOPMENT 0 51 550 000ENVIRONMENTAL PROJECT 9 100 000 4 000 000 13 100 000RURAL DEVELOPMENT 0 0 0TRANSPORT PROJECT 0 0 0TOTAL 506 800 000 2 863 400 000 3 370 200 000

North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana

• A total of 106 projects have been recorded. Total cost is R4 186b

• Government = R2 147b • Mining companies = R 2 039b

– 49 projects are contained in the SLP of mining companies, – 1 joint economic project from dti, EDD and RLM, – 1 Dept. trade and industry– 1 Dept. of Co-operative Governance – 5 SALGA – 36 Dept. Human Settlements – 10 Dept. Water and Sanitation– 4 Dept. Environment Analysis

North West Summary: Rustenburg, Moses Kotane, Madibeng, Matlosana

GOVERNMENT MINING COMPANIES TOTALHUMAN SETTLEMENT 1 289 240 000 1 392 150 000 2 681 390 000INFRASTRUCTURE 0 111 900 000 11 190 0000WATER AND SANITATION 836 000 000 43 700 000 879 700 000COMMUNITY PROJECTS 0 161 500 000 161 500 000SOCIAL SUPPORT 0 0 0SCHOOL PROJECTS 0 280 000 000 280 000 000ECONOMIC DEVELOPMENT 0 0 0ENVIRONMENTAL PROJECT 17 600 000 50 100 000 67 700 000RURAL DEVELOPMENT 0 0 0GOV CAPACITY DEVELOPMENT 4 590 000 0 4 590 000TRANSPORT PROJECT 0 0 0TOTAL 2 147 430 000 2 039 350 000 4 186 780 000

Recommendations and conclusions

• Portfolio Committee notes the Progress Report on Revitalization of Distressed Mining Communities

• Provide relentless support to Government initiatives and interventions whilst providing oversight on the distressed mining communities

• Presidency/DPME continues to ensures alignment with other government departments in order to enhance Joint Programme Implementation (DMR, DHS, DWS, DoL, COGTA, DOH,DED, etc)

• NDHS ensures appropriate dedicated capacity focusing on the mining towns intervention

• Partnerships with mining companies and labour encouraged in line with Social Accord & HS Social Contract sothat Government investment is matched /enhanced by the mining companies

THANK YOU

“We have come a long way – Celebrating 20 Years of Freedom!”