The Congress of South African Unions (COSATU) acknowledges the various debates on critical minerals under South Africa’s G20 Presidency and calls for a multilateral framework that harmonises national interests with sustainable development imperatives.
On 18 and 19 June, the G20 Task Force 1 on Inclusive Economic Growth, Industrialisation, Employment and Reduced Inequality will convene to negotiate texts for three crucial documents:
- G20 Principles for Inclusive Economic Growth, Employment and Reduced Inequality
- G20 High-Level Principles on Green Industrial Policy for Inclusive Economic Growth, Industrialisation, Jobs and Equality
- G20 Critical Minerals Framework
Across the globe, mineral riches have often failed to deliver on their promise of human development, instead relying on exploitation rather than fair distribution. While the industry has created wealth for some, it has done so at the expense of others, in particular workers labouring under dangerous conditions often resulting in horrific accidents, illnesses and deaths; and mine-hosting communities losing access to land, clean water, soil, biodiversity, air and heritage.
In line with the South Africa’s G20 Presidency theme of, “Solidarity, Equity, Sustainability”, COSATU calls on South Africa’s government and other G20 members to embed the recommendations of the UN Secretary-General’s Panel on Critical Energy Transition Minerals in the three documents, and particularly the Framework on Critical Minerals. More emphasis should be placed on the following dimensions:
- More equitable geographic distribution of benefits from the value chain. “Greater efforts must be made to shift processing closer to the source, moving away from the ‘pit to port’ model that has facilitated the extraction of wealth without proper compensation,” says COSATU president, Zingiswa Losi. This opportunity must be exploited to boost and achieve long delayed commitments to beneficiate minerals within South Africa and thus help create and sustain local value chains and jobs.
“This may require importing countries to invest in physical and human capital and enter agreements that allow for technology transfer and learning. To advance equitable growth, mining must create decent jobs throughout the supply chain.”
- The framework must also strengthen governance centered on human development at local, national and international levels. The COSATU president emphasised, “Illicit financial flows, regressive taxation, environmental destruction and violation of human rights undermine the benefits that should accrue from mining, and that inadequate capacities to monitor and enforce standards render initiatives such as the EU’s Corporate Sustainability Due Diligence Directive meaningless.”
The G20’s Framework must require members to commit to Global Tax Cooperation initiatives that enhance transparency and ensure all pay their fair share (e.g. OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting; the Rio De Janeiro G20 Ministerial Declaration On International Tax Cooperation). The Framework must also strengthen monitoring and enforcement of adherence to mining standards. This would require the proper resourcing of relevant institutions, particularly at local, national, and international levels, as well as greater cooperation with labour and civil society.
- Lastly, the framework must embed human rights and sustainability standards in mining practices. Free Prior and Informed Consent (FPIC) should be a non-negotiable requirement for mining licenses. Similarly, licensing requirements must also ensure that plans for mine closure and rehabilitation are developed from the start and implemented. Measures to address the current shortcomings of rehabilitation arrangements must be put in place.
Issued by COSATU
Tengo Tengela (COSATU Trade and Industrial Coordinator)
Mobile: 066 141 6783
Email: Tengo@cosatu.org.za
OR Zanele Sabela (COSATU National Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za