Since the promulgation of South Africa’s Mining Charter in 2004, the country’s mining sector, along with government, has been working towards eradicating single-sex hostels and unsanitary rented shacks, which have become the ‘normal’ living standards for mineworkers in South Africa.

However, in the industry’s attempt to replace single-sex hostels with family-friendly accommodation, migrant labour remains a significant challenge.

According to the Mining Charter scorecard, drafted by the Department of Mineral Resources (DMR), mining companies should achieve 100% conversion and upgrading of hostels to attain the requisite occupancy rate of one person per room, as well as the conversion and upgrading of hostels into family units, by March 2015.

In referencing the rights of human dignity and the privacy of mineworkers, South Africa’s Mining Charter aims to enhance productivity and to expedite transformation in the industry.

Most mining firms are on course to meet the Mining Charter’s targets, and there are some mines that have exceeded some elements of the charter, Chamber of Mines (CoM) head of stakeholder relations Vusi Mabena said last month.

He claimed that companies that had hostels had converted almost 90% of those into single rooms or family units, and some companies had helped their employees buy their own homes through various housing schemes.

Minister in the Presidency Jeff Radebe stated in August at the Mining Lekgotla, held in Johan- nesburg, that government had allocated R2.7-billion to address housing for mineworkers in identified mining towns and that government would partner with the mining industry to further improve their housing and living conditions.

“We believe that this work should be continued, with a clear vision to make family units even more liveable and homely,” said Radebe, adding that mining, as a key economic driver in South Africa, should be committed to the creation of sustainable communities.

He also revealed that government would develop a mining industry initiative as part of the recently launched Operation Phakisa, which aims to fast-track the delivery of priorities outlined in the National Development Plan.

“We will be planning the Operation Phakisa initiative in consultation with all the key stakeholders, including the CoM and organised labour,” Radebe said.

Housing Initiatives

South African mining companies have long been scrutinised for not looking after their employees properly and, in response, have launched housing schemes to address the legacy of inadequate housing for their employees.

Platinum mining major Royal Bafokeng Platinum (RBPlat) officially launched the first com- pleted phase of its Waterkloof Estate Employee Home Ownership Scheme in Rustenburg, in the North West, in September, when the keys of the first 422 units were handed over to the new homeowners. The scheme enables all RBPlat employees to exercise the option of becoming homeowners for the first time.

The company has approved R2.8-billion for the next phase of the project, which will result in an additional 3 000 homes being completed by 2019.

Future plans for the phase include the development of social amenities, such as interim transport, which employees can use at their own cost until the municipality rolls out public transport services.

Meanwhile, with the launch of the homeownership scheme, RBPlat established Royal Bafokeng Resources Properties (RBRP), which manages the employee estate. RBRP’s main objectives are to source funding, develop housing, provide loans and facilitate agreements with the employer for employee home-loan repayments.

RBPlat senior human resources manager Collin Alexander says the company will provide loans at the consumer price index rate plus one percentage point.

Employees will repay R2 900 a month, and repayments on houses that cost R500 000 will rise by 7% a year.

He notes that homeowners’ allowances and living-out allowances will be replaced by a homeowner’s contribution, which will be applied to home loan repayments.

“Increases will be effective from July 1 each year, in line with annual wage increases, and each homeowner will receive a monthly statement,” says Alexander.

He explains that RBRP remains the registered owner of the property until 50% of repayment obligations are met. The owner can then opt to have the property transferred into his or her name, with RBRP registering a bond for the property.

Alternatively, the property will be transferred into the owner’s name after the full amount of the bond has been paid over 18 years.

Social Impact

About 1 200 jobs were created during the first phase of the housing scheme and 120 learners from the Department of Housing were trained during the project.

A total of R560-million will be invested into the Rustenburg local municipality bulk services structure, while additional funding is being raised for educational, health, recreational and commercial infrastructure that will be developed during the second phase.

Meanwhile, platinum mining major Lonmin tells Mining Weekly that, on completion of its hostel conversion programme in December this year – which will transform the old hostel system into one private living unit per employee – 16 000 of its category 4 to 9 employees will acquire decent accommodation close to Lonmin’s operations.

“Together with the capital expenditure for the balance of the work to be completed this year, R387-million will have been spent on the hostel conversion programme,” says Lonmin spokesperson Sue Vey.

She says that requests for proposals have been received for the erection and completion of apartment blocks located on the open spaces in and around the existing converted hostels.

“Four thousand units will be developed and spread over five annual phases, starting in 2015. The scope of the project also involves the transformation of our converted hostels into sustainable and secure employee housing estates,” explains Vey.

Lonmin’s Efforts

In response to the announcement of the Special Presidential Package in August last year, which is designed to improve the living conditions in and around mining communities, Lonmin donated 50 ha of serviced land, called Marikana Extension 2, to the Rustenburg local municipality, in collaboration with the North West Department of Human Settlements, Public Safety and Liaison.

In total, 2 658 units of various typologies will be built in phases. Work on the first phase, comprising 292 Breaking New Ground (BNG) homes and 2 523 Community Residential Units, has started.

The project is funded by the North West province and will benefit Lonmin employees and the wider Marikana community.

Anglo American Platinum

As part of its 2008 commitment to build 20 000 housing units for employees over a ten-year period – through its Employer Assisted Housing Scheme – platinum mining major Anglo American Platinum (Amplats) unveiled its Northam Extension 6 housing units’ show houses, in Limpopo, in 2011.

The project was one of the first affordable- housing projects with more than 200 approved beneficiaries.

The subsidies serve as a deposit on the house, helping employees to manage instalments on their own homes. Northam Extension 6 comprises the first phase, with 310 units. The second phase, Northam Extension 17 comprises 660 units.

Amplats spokesperson Mpumi Sithole says 246 units have been completed and 40 are under construction. Amplats spent R9.3-million to acquire the land, while the bulk services installed on site cost R18-6million.

“The company also spent R8-million constructing a road leading to the housing site,” says Sithole.

She explains that 160 employees currently occupy the units, while others are awaiting bond registration. Employees only take occupation after bond registration to avoid paying occupational rent to the developer.

Besides their need to meet charter requirements, South African mining companies all openly declare their commitment to leaving a lasting legacy of sustainable benefits for stakeholders and employees, and view mine housing development as an important step in the journey to providing decent accommodation and improved living conditions for all mineworkers in the country.

South Africa’s housing legacy has, overall, left a bad taste in the mouth of the mining industry, from government to mining houses and the labour unions, as well as the mineworkers they represent.

Mining companies have shouldered most of the responsibility in terms of improving their workers’ living conditions, having employed various strategies and programmes aimed at facilitating homeownership and taking into account community-specific factors, such as land availability, company circumstances, employee preferences and the availability of bulk services and the necessary utilities.

Providing housing and infrastructure to ensure decent living conditions, says Radebe, should be a straightforward task.