MINISTER’S VISION FOR THE DME

PRESENTATION TO THE PORTFOLIO COMMITTEE ON

MINERALS AND ENERGY - 7 NOVEMBER 2006, PARLIAMENT.

 

Our vision derives from that of government which is the transformation

of - 

 

·                   Society,

·                   Economy,

·                   Poverty alleviation

·                   Job creation

·                   Redress of imbalances

·                   Development including infrastructure

 

This translates into the vision of the Department which is outlined in both the White Papers of Energy and Minerals, summarised as follows: “World class minerals and energy sectors through sustainable development”.

 

The Mandate of the Department is the “Provision of services for effectual transformation and governance of minerals and energy industries for economic growth and development, thereby improving the quality of life”.  

 

ENERGY -  

 

The implementation of legislation in pursuit of self-sufficiency to achieve universal access. Every South African to have access to clean, affordable energy. Priorities include:

 

·                   Security of supply:

o        Energy efficiency,

o        Diversification of energy carriers. Importation of gas on the liquid side (PetroSA). Although in the past it has been our policy position that nuclear will form part and parcel of our energy mix, we have not taken that debate forward. We need to take this debate forward to ensure security of supply because we are one of the largest producers of uranium and we have to take advantage of this. Further more we have expertise in this area which we have developed over years and ways and means therefore should be found that we use this to our competitive advantage. A strategy on nuclear enrichment will be tabled in Cabinet before end of the year. 

  

o        Building of infrastructure generally (refinery, storage)  

 

Energy Summit next year where there will be a need to re-look at the entire energy landscape.

 

Electricity

 

We will move with speed with the implementation of the Electricity Restructuring process. The 6metro REDs are the end-state and next year is the introduction of the EDI legislation. Electricity Regulation A/B has revealed diverse view among the stakeholders.

 

·                   Preparation for 2010

·                   A phased-in implementation to the Electricity Restructuring process.

           (Indication of timelines will be indicated in due course).

·                   Transformation of the sector (access by HDAs)

·                   Participation of the private sector (IPPs)

 

Hydrocarbons -

 

As a non-oil producing country, we need to ensure self-sufficiency in a growing economy and population. We will continue to implement the strategies on –

 

·                   Renewable energy,

·                   Nuclear enrichment, and

·                   Biofules.  

 

All the above strategies will be tabled for approval no later than this year.

 

MINING (MPRDA) -

 

International Law principle (International Declaration of Rights states that “A country’s National Resources are its national patrimony which is the heritage of all its citizens”. This principle has found expression both in the White Paper and the MPRDA. It is therefore important that we put into place a strategy that these resources are utilised for the benefit of all South Africans.    

 

·                   Broadening the base of beneficiaries

·                   Encouraging small scale mining as a vehicle for BEE

·                   Community upliftment / development through Local Government and

Mining synergies in Social and Labour Plans

·                   Safety and security in the mines

 

Minerals are a finite resource and economic activities based on mining therefore should be diversified so as to ensure that once the minerals get exhausted on the ground, economic activities related to mining should continue. Towards this end therefore, we shall in earnest be implementing beneficiation programmes in line with the provisions of the Diamond and Precious Metals Act. This will include the establishment of the State Diamond Trader and the Regulator. This however has to be accompanied by intensive capacity building programmes which is why we have already started jewellery manufacturing training in China and Japan. This will ensure that our natural resources are utilised to create jobs for our country.

 

 

 

Legislation:

 

  • We have completed the suite of legislation in relation to mining. We will however continue to identify areas that need refinement in the course of implementing the law.

 

  • Various pieces of legislation will be tabled in Parliament with a view to ensuring that the legal framework within which both the Electricity Supply Industry and Electricity Distribution Industry restructuring is complete.

 

GENDER -

 

Engendering both the mining and energy sectors (Liquid Fuels Charter

and Mining Charter) – to ensure much more increased participation of women in both these sectors, and also ensure that they are supported in a way that will ultimately result in their being meaningful participants in these sectors.