Alexkor’s role, projects, challenges and achievements; Stakeholder Engagement Report; with Minister and Deputy Minister

Because the West Coast diamond mining company Alexcor was no longer in the portfolio of the now defunct Department of Public Enterprises, and the Department of Mineral and Petroleum Resources had become responsible for its oversight, the Portfolio Committee convened to be briefed on the entity's background, role in the community, and current challenges. The Members heard that Alexkor had been established as a listed Schedule Two public entity, wholly owned by government, in 1992. However, the land where it was mining successfully, valued at around R10 billion, was claimed by the Richtersveld community, and the deed of settlement stated that all mining rights would accrue to the community. Marine mining rights had remained with Alexkor. Alexkor, with a 51% stake, together with the Richtersveld Mining Company (49%), had established a pooling and sharing joint venture that was conducting mining operations on their behalf, but the resources where the joint venture mines had been operating since 1928 had become severely depleted, and governance instability posed a serious challenge for the company. The Minister said his priority was to put a solid governance structure in place, which would ultimately address all operational risks. The Committee urged the Minister to move expeditiously to fill the imminent vacancies on the board, and resolved to conduct an oversight visit to the entity in Alexander Bay. During the discussion, Committee Members raised concerns and questions about Alexcor's governance, environmental practices, and the social impact of its operations, especially regarding local communities affected by its mining activities. Key points included the lack of stability in leadership positions; the Special Investigating Unit (SIU) report involving misconduct and regulatory compliance; environmental rehabilitation after mining activities; the need for Alexkor to support local communities, including job creation and skills development; how the legacy of apartheid continued to impact communities in the area; the need to explore new ventures, like green hydrogen, that could provide lasting benefits to communities; and challenges like double licensing and production capacity. Thereafter, the Committee discussed a stakeholder engagement report, and debated the inclusion of the mining charter, with particular focus on the need for a scorecard to ensure accountability. Issues were raised related to workplace safety and environmental responsibility, stressing the need for appropriate personal protective equipment for women, and measures to prevent sexual harassment in the work environment, and the need to hold mining companies accountable for the environmental impact of their operations on communities. The Members collectively refined the language around the final phrasing of the mining charter and the scorecard.