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Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)

Notices

Housing and Living Conditions Standard for the Minerals Industry

Housing and Living Conditions Standard for the Minerals Industry 2019

3. Housing Options

 

A mining right holder must ensure that the housing and living conditions plan submitted to the department includes amongst others, the following options:

 

3.1 Private home ownership

This type of home ownership refers to ownership where the is responsible for the payment of the mortgage bond including any subsidies agreed with the employer.

3.1.1 A mining right holder who builds houses or subsidises its employees for building packages or for purchasing an already existing house, either in the place of origin or place of work/residence, must ensure that such housing where feasible is integrated with existing human settlements in line with the Department of Human Settlements Water and Sanitation policies on Sustainable Integrated Human Settlements; and
3.1.2 Where a mining right holder builds houses for home ownership purposes, the mining right holder shall remain responsible for identification, purchasing and rezoning of such land.

 

3.2 Government subsidised home ownership

Government subsidised home ownership (FLISP) is a subsidy instrument intended to assist qualifying households in the affordable gap housing market by providing a once -off payment to those households who have secured mortgage finance or bond to acquire a residential property for the first time.

 

To ensure that employees falling within the affordable gap housing market have access to the FLISP, a mining right holder must:

3.2.1 After consultation with organized labour identify qualifying mine employees falling within this category and facilitate acquiring of FLISP for such mine employees;
3.2.2 Negotiate conducive terms and conditions of the mortgage finance or bond issued by a private financial institution for this category of mine employees; and
3.2.3 Ensure that affordable housing market is integrated with existing human settlements.

 

3.3 Rental Accommodation
3.3.1 A mining right holder must subsidise mine employees for rental accommodation built by the mining right holder or provided by third parties as agreed during collective bargaining and in line with the proposed housing and living conditions plan.
3.3.2 Where a mining right holder is developing rental accommodation, the mining right holder must after consultation with the relevant local government and organized labour identify a land /area or an area zoned for human settlement for purposes of developing rental accommodation for its employees.
3.3.3 The identified land /area must where feasible be integrated with an existing human settlement within a local municipality, metropolitan or a district municipality.
3.3.4 The identified land /area may be owned privately, by a mining right holder or local government.
3.3.5 Where rental accommodation is provided by a third party, the mine employee must submit proof of decent rental accommodation.
3.3.6 A rental subsidy shall not be payable to mine employees without proof of decent rental accommodation.
3.3.7 Rental accommodation must include single and family units based on the needs of mine employees.

 

3.4 Living out allowance for housing purposes
3.4.1 A mining right holder must after consultation with organized labour determine a living out allowance payable to a mine employee who is not receiving any rental or home ownership subsidy from the mining right holder.
3.4.2 A living out allowance shall be payable to an employee who has proof of decent accommodation.