JOHANNESBURG (miningweekly.com) – President Jacob Zuma’s State of the Nation Address (SoNA) on Tuesday evening gave “clear direction” on resolving issues afflicting South Africa’s strike-hit mining sector that was placing a drag on the economy.

Zuma had “raised the profile” of the mining sector and noted that the prolonged and “at times violent” strikes experienced during labour disputes, contributed to the drag on the economy.

The Chamber of Mines (CoM) welcomed Zuma’s move to take the lead and escalate interventions in the mining sector.

The President would take over the implementation of the “landmark” Framework Agreement for a Sustainable Mining Industry, previously led by former deputy President Kgalema Motlanthe, while Deputy President Cyril Ramaphosa would convene a “social partners dialogue” within the scope of the National Economic Development and Labour Council.

“Given the impact of the untenable labour relations environment on the economy, it is critical for social partners to meet and deliberate on the violent nature and duration of the strikes,” Zuma said.

This comes as the five-month strike crippling the platinum sector looked set to end soon as an “in principle” agreement was secured between the Association of Mineworkers and Construction Union and South Africa’s top three platinum producers – Impala Platinum, Anglo American Platinum and Lonmin.

The CoM said it was “encouraged” by government’s move to engender a stable industrial relations environment and restore investor confidence, while promoting more effective community development and mitigating the legacies of the migrant labour system.

“There is significant work that needs to be done to improve the lives of workers and people living in mining communities and to address the negative legacies of the migrant labour system,” the chamber said in a statement.

Zuma said government would, as part of an October 2012 agreement between business, government and labour, build housing and roll out other services to revitalise mining towns, with a focus on Matlosana, eMalahleni, Sekhukhune, Lephalale, West Rand and Matjhabeng.

This led government to establish an Inter-Ministerial Committee on the Revitalisation of Distressed Mining Communities, to be headed up by Minister in the Presidency responsible for Planning, Performance Monitoring and Evaluation Jeff Radebe and comprising the Ministers of Mineral Resources, Water and Sanitation, Trade and Industry, Social Development, Labour, Human Settlements, Health, Economic Development and Finance.

Further, government would continue monitoring the compliance of mining companies with Mining Charter targets of improving the living conditions of mineworkers.

“Companies are expected to convert or upgrade hostels into family units, attain the occupancy rate of one person per room and also facilitate home ownership options for mineworkers [by the 2014 deadline],” Zuma pointed out.

The CoM pointed out that the mining companies had been cooperating with the review process led by the Department of Mineral Resources and it would continue its cooperation with both the Mining Consultative Forum and the Presidential Housing Package, which sought to look into the living and working conditions of mineworkers.

But for the mining sector to “play its part”, the chamber emphasised the importance of establishing a trust-based collaborative partnership for growth and development between business, government and labour.