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Date
: 19/05/2005
Source:Department of Minerals and Energy
Title:Xingwana: Minerals and Energy Dept Budget Vote
2005/2006
Budget Vote Speech, Deputy Minister of Minerals and Energy, Ms Lulu
Xingwana, Parliament
Madame Speaker
Honourable Members of Parliament
Ladies and Gentlemen
The freedom we attained on 27 April 1994 will mean nothing as long
as it does not translate into a better life to the majority of
South Africans. It was in recognition of this realism that the
founders of that perennial document, the Freedom Charter, 50 years
ago envisaged not only a South Africa that belongs to all who live
in it, but also a society where the mineral wealth beneath the soil
shall be shared by all. This was indeed a reaffirmation of the
universally accepted notion that natural resources are the heritage
of all the people of South Africa.
The advent of democracy in our beloved country in 1994 and the
concomitant legal banishment of apartheid from our society laid a
firm foundation for the ideals of the Freedom Charter to thrive and
flourish. Since the government policy programme has been directed
towards the actualisation of the Freedom Charter. My Department, as
a custodian of government policy for the regulation of the mineral
and energy resources, has been engaged in activities aimed at
translating the dream of freedom into reality through the
utilisation of these resources. I am honoured to join the Minister
in reporting back to the people of South Africa on our progress in
this regard.
Integrated National Electrification Programme
A lot of progress has been made towards universal access to
electricity. The Integrated National Electrification Programme has
delivered 232 287 household connections at R582 million, 2233
schools at R100 million and 50 clinics at R118 million. The
programme is focussing on the creation of bulk infrastructure
especially in areas where it has become impossible to connect new
households to the network without reinforcement. The erection of
bulk infrastructure has enabled local development in the nodal
zones like OR Tambo district and Maluti a Phofung in the Free
State. I am happy to announce that backlogs have been completely
eliminated in the Kgalagadi Node and Western Cape schools.
New jobs and small, medium and micro enterprise (SMME)
opportunities in KwaZulu Natal, Eastern Cape and Limpopo have been
created as a result of the non-grid electrification of schools
program. The maintenance of the schools will result in permanent
jobs defined in terms of the non-grid learnerships that have been
started. About 1 100 schools have been completed under the non-grid
electrification program to fast track school universal access. This
represents more than 50% of the total number of schools electrified
in the past five years and this was achieved in one year. School
electrification is done parallel with installation of e-leaning
facilities i.e. satellite dish and educational content and computer
installation, to ensure that our children become computer literate
sooner than later.
Three co-operatives with over 10 permanent employees each have been
started in the Eastern Cape to maintain 8000 solar home systems
installed under the previous electrification program.
Forty thousand households in the Eastern Cape, Limpopo and
KwaZulu-Natal were electrified using the same technology to provide
lighting using the facility for electronic communication.
HYDROCARBONS AND RENEWABLES
Liquid Fuels Industry
The liquid fuels industry will, for the first time, be licensed
this year. The objectives of the licensing framework as detailed in
the Petroleum Products Amendment Act, 2003, include promotion of an
efficient manufacturing, wholesaling and retailing petroleum
industry; facilitation of an environment conducive to efficient and
commercially justifiable investment; promotion of advancement of
historically disadvantaged South Africans; and the creation of
employment opportunities and the development of small businesses in
the petroleum sector.
Gas Trade agreement – Mozambique
The private sector and the Mozambique government have expressed an
interest in building a petroleum pipeline from Maputo to Witbank.
The Gas Trade Commission will facilitate this initiative until a
Petroleum Products Trade Commission has been put in place.
LNG project – Coega
A feasibility study by Eskom, Shell and iGas on the possibility of
a gas-fired power station at Coega is underway. Gas for the
project, if it goes ahead, will be supplied by Shell in the form of
Liquefied Natural Gas (LNG) thus creating significant employment
opportunities during the construction of a regasification terminal.
An engineering study is in progress and the agreement between
participating members is to be finalised shortly.
Integrated Energy Centres (IeC)
In December 2005, I launched an IeC in Matatiele in KwaZulu-Natal.
We plan to launch an IeC in the following local municipalities
between now and March 2006: Moshaweng (Northern Cape) , Ratlou
(North West), Mutale (Limpopo), Greater Tubatse (Limpopo),
Newcastle (KwaZulu-Natal) and King Sabata Dalidyebo (Qunu, Eastern
Cape). I wish to commend Sasol and Total for their continued
commitment to the rollout of IeCs.
The IeCs are a beacon of hope to communities that government is
beginning to deliver on its promise of giving them a wider variety
of energy choices.
Women in Energy in South Africa (Woesa)
My Department, together with its associated institution and
industry, continue to support the women organisations in
energy.
CEF’s Energy Development Corporation has taken a 49% stake in
a R72 million hydroelectric plant near Bethlehem in the Free State.
A shareholders agreement was signed with HydroSA, an affiliate of
Woesa.
Women in Nuclear South Africa
The Department of Minerals and Energy hosted the Annual General
Meeting of Women in Nuclear South Africa (WINSA), which continues
to enjoy increased membership and support. An outreach programme to
institutions of higher learning is planned.
Renewable Energy
A renewable energy strategy to detail implementation plans for each
of the technology options to be introduced during the ten year
period of the target will be released in the third quarter. The key
elements are:
* development of market rules, which provides preferential access
to the grid and customers for renewable energy power
producers
* introduction of incentives to facilitate the development of
viable business cases for the generators. We are in the process of
developing a framework for the generation of power from sugar cane
bagasse and landfill gas
* A roll out programme for solar water heaters has commenced, with
the focus on middle to high income households in Gauteng, Western
Cape and KwaZulu-Natal. This initiative is spearheaded by
CEF.
I am pleased to announce that a positive record of decision for the
Environmental Impact Analysis for the Darling Wind Farm was
obtained. This has paved the way for the establishment of the IPP
and construction of wind turbines.
Paraffin Safety
Madam Speaker the hazards associated with paraffin is a concern to
the Department. The consequences of the accidents can be
devastating on individual consumers and their families.
To address this, we have completed the new National Standard for
Non-Pressure Paraffin stoves and Heaters and are currently awaiting
final approval from the Standards Approval Committee at the South
African National Standards. This is anticipated to be ready
sometime next month. Phansi nge Primus Stove Phansi.
Supplier Development Agency
The charter has resulted in the transfer of over 18% equity to
black hands. All oil companies have complied, with the exception of
Sasol. We urge them to expedite all aspects of transformation. The
industry has now shown further leadership by not only opening up
their procurement but by also developing the suppliers. The oil
industry has come together and contributed to the creation of the
Supplier Development Agency (SASDA). I am proud to report that I
launched the SASDA in Port Elizabeth in December 2004. Now only
four months later SASDA is up and running and potential suppliers
can now log into the database and view the opportunities for the
supply of goods and services by simply logging onto
http://www.sasda.co.za. The opportunities listed range from civil
engineering, through supplying of valves to protective
clothing.
Compliance with charters
Over the last eleven years Government has been emphasising the need
for the management of South Africa mining companies to reflect the
demographics of South Africa. This has been reinforced by the
provision of the mining charter requiring that by 2009 senior
management of these companies most have at least 40 % blacks at
senior management level. Many companies pay lip service to these
requirements.
We have expressed in public when companies faced with the
opportunity to transform, fail to grasp this opportunity. Today we
again express our exasperation and disappointment by De
Beers’s announcement that it will replace one white male
managing director with another white male managing director. This
is the same company whose Board of Directors is lilly white and
male dominated. No single black South African is in the
Board.
I ask De Beers is this how you show commitment to
transformation.
MINING
Rehabilitation
Approximately R120 million has been allocated over the 2005/06 to
2007/08 financial year, towards the rehabilitation of ownerless and
derelict mines. The cleaning up of abandoned and ownerless asbestos
dump sites was the department’s first rehabilitation
priority. To date 65% of the identified 578 sites mainly in the
Northern Cape and Limpopo have been cleaned up.
The rehabilitation programme for 2005/06 includes the
following:
* R48 million has been allocated to asbestos rehabilitation, which
continues to be a priority for our department, as it is a serious
health hazard for our people. For this financial year, R13 million
has been allocated to the rehabilitation of Osizweni/Madadeni in
the Newcastle area, to the T&DB colliery at Witbank and the
rehabilitation of Vierfontein Colliery near Viljoenskroon in the
Free State.
* In North West, Northern Cape and Mpumalanga, the Council for
Geoscience has identified about 490 of these abandoned shafts,
which pose a severe safety risk to nearby communities. The recent
reported incidents of the lady and a child who fell into these old
shafts are a case in point that this matter must be implemented
urgently. It was only by God’s grace that they were found
alive and survived.
* R18 million has been allocated towards the rehabilitation of
abandoned uranium mines in the Karoo and Free State.
* In total, tenders to the amount of R104 million will be put out
as part of the rehabilitation programme in 2005/06. It should be
mentioned that each of the rehabilitation projects will incorporate
dedicated enterprise development and intensive job creation.
Water Ingress into the Mines of the Witwatersrand Basins
Within the KOSH area where DRD gold mines are in the process of
being liquidated, legal proceedings against these mines and other
adjacent mines like Harmony and AngloGold Ashanti are ongoing.
However, the legal proceedings will not resolve the water problems.
Due to DME’s mandate pertaining to social and labour issues,
health and safety as well as environmental issues, which include
water, the DME has investigated the implementation of medium to
long term solutions where the water problem becomes an economic
opportunity. These solutions are supported by all the relevant
mining companies who have committed their support in working
towards the implementation of these solutions.
NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT (NEPAD)
African Mining Partnership
In support of the implementation of mining-related NEPAD issues,
the Department played an important role in conceptualising the
African Mining Partnership, a mining Ministers’ partnership
that drives the minerals and mining agenda of NEPAD. During this
financial year, the Department will continue to participate in the
implementation of projects on Beneficiation, Small Scale Mining,
Environment/Sustainable Development, Human Resource Development and
Promoting Foreign Investment and Indigenous/Local
Participation.
PROGRESS ON SELECTED PROJECTS
Exclusive Economic Zone
A collaborative program amongst coastal states has been put in
place under the auspices of the African Mining Partnership. The
programme provides a platform for African coastal states to share
expertise in the compilation of their respective submissions
supporting their claims to extend their Exclusive Economic Zones.
The submission to the United Nations should be done by May 2009.
The project is led by the South African Council for Geoscience and
Senegal.
The Council for Geoscience has purchased an aircraft equipped with
airborne geophysical instrumentation. This instrumentation measures
properties such as the earth’s magnetic field and the natural
radio activity of the surface of the earth with the use of the
magnetometers and spectrometers. These measurements assist in the
identification of hidden geological structures dykes, faults,
kimberlites as well as alluvium and polluted areas. This airborne
system also has the potential of targeting unknown minerals
deposits, source of ground water and environmental programmes. The
launch of this airborne platform will be held on 23 May 2005 in
Grand Central’s Hangar, Johannesburg.
The Western Power Corridor Project
The Intergovernmental Memorandum of Understanding on the Western
Power Corridor Project (WESTCO) was signed in October 2004. WESTCO
is a NEPAD flagship programme intended to pilot hydroelectric
energy of the Inga rapids site in the Democratic Republic of the
Congo (DRC) and will ensure security of supply in Southern African
Development Community (SADC). The participating utilities are those
of Namibia, South Africa, the DRC, Botswana and Angola. A joint
venture company has been formed to initiate studies determining the
viability of the project, to build, own, and operate the
infrastructure.
African Petroleum Producers Association
PetroSA is increasingly active in African counties exploring and
developing oil fields. Consequently I believe the time is now right
for South Africa to apply for membership of the African Petroleum
Producers Association. This will provide us with a forum for
dialogue and cooperation on oil matters as well as strengthening
the NEPAD programme.
Mine Health and Safety Inspectorate
We wish to pay the tribute to the late Dr Menzi Mthwecu, the former
CEO of the Mining Qualifications Authority. He was a hard working,
selfless cadre, leader, organiser, and educator and dedicated to
bettering the lives of the poor. May his soul rest in peace.
During the year under review, we sadly experienced fatalities in
the mines, an aspect we need to give enormous attention to. Our
heartfelt condolences also go to those mineworkers who lost their
lives in the line of duty.
During the year under review, we sadly experienced fatalities in
the mines, an aspect we need to give enormous attention to. Mining
related seismicity has in many cases been the course of these
accidents.
The following are some of the interventions by the Department to
address to ensure the improvement of health and safety in our
mines:
* improving the placement and design of stabilizing pillars in new
excavations
* developing and installing better roof and tunnel support systems
e.g. backfill and long tendons
* monitoring seismicity to track trends over time. Education and
training of engineers and workers in methods of reducing seismicity
related risks
* sharing information at an international level on best practice
and experience.
Intervention by the Department has lead to a significant reduction
of occupational health hazards from the silicon smelters in
Polokwane. A reduction of sulphur dioxide emissions from the Anglo
Platinum Waterval smelter in Rustenburg was also realised through
the Department’s intervention.
Ladies and Gentlemen, I can only end by quoting out President when
he addressed the nation in February this year “our country as
a united nation has never in its entire history enjoyed such as
confluence of encouraging possibilities, acting together, sparing
neither effort nor strength, we can and shall build a South Africa
that true belong to all who leave in it, united in our
destiny”.
I thank you.
Issued by: Department of Minerals and Energy
19 May 2005
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