From Creamer Media in Johannesburg, this is the Real Economy Report.
Gold mining company Sibanye Gold recently handed over 100 family units to employees as part of its housing project aimed at encouraging family living. Leandi Kolver has the story.

Leandi Kolver:
The 100 units handed over Sibanye Gold employees in Libanon, near the company’s Kloof mine, near Westonaria in Gauteng was built at a cost of R31.5-million. Each unit comprises two bedrooms, with an open-plan kitchen and lounge area and are located in the secure Tswelopele and Lehae Park complexes.

Sibanye Gold CEO Neal Froneman tells us more.

Sibanye Gold CEO Neal Froneman:
This is part of a much larger initiative. We have made a commitment of about R700-million which will be spent over the next few years.

To date we have spent R500-million, these are family units and a complex of 100 houses, and it is a phase in the overall SLP.

We have a committee which is represented by both management and organised labour and, as you would have heard, people have put down their names for the houses, some as far back as 2006 if I remember correctly, and they have patiently waited and they have been selected based on their needs and where they are on the list, in a very objective process.

Leandi Kolver:
The 100 family units enables mineworkers to have their families live with them in communities close to the operations. Such developments work towards changing the mining industry tradition of migrant labour. However, Froneman states that migrant labour will not be eliminated completely.

Neal Froneman:
I think there is a place for migrant labour, we have done a number of surveys, and there is probably about 60% of our employees that actually want to live in high-density accommodation. Our challenge is to make that high-density accommodation a lot more palatable, improve the living standards.

But at the same time we have to address the community issues, we have to get those migrant workers home much more often that was done in the past. In my mind that would make migrant labour an acceptable solution.

I think it is here to stay, I think we have to find solutions. We just can’t throw out the baby with the bathwater.

Shannon de Ryhove:
Other news making headlines this week: Localisation will add to solar PV costs, but offers jobs and growth benefits; and the construction industry must deal with the 'great anger' over collusion.

Stipulating higher levels of localisation in the roll-out of solar photovoltaic solutions in South Africa would increase unit costs by between 6% and 9.5%. However, higher levels of job creation, especially in the manufacturing sector, could offset this downside risk, a new study shows.

DTI acting deputy-director general for industrial policy Garth Strachan

The construction industry’s engagement with the Competition Commission and the rest of South Africa remained a work in progress, says Group Five CEO Mike Upton. The commission earlier this year levied R1.46-billion in penalties against 15 companies in the industry for collusive tendering related to projects concluded between 2006 and 2011.

Group Five CEO Mike Upton

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.