Issued by: SA Communication Service
MEDIA STATEMENT BY MINISTER OF R F (PIK) BOTHA, MINISTER OF MINERAL AND ENERGY AFFAIRS
CO-OPERATION BETWEEN SOUTH AFRICA AND ALGERIA
I have just returned from Algeria after having spent over 36 hours in that country. While there, I met with the Algerian Minister of Energy & Mines, Mr Ammar Makhloufi, three of his Cabinet colleagues and the Head of the Algerian Government, Mr Ahmed Ouyihia. I also visited the Algerian Mining & Geology Research Institute and their Institute of Petroleum.
Algeria and South Africa can gain from working together, particularly in the fields of mining, minerals and energy. This would naturally expand into other areas of trade and co-operation. Algeria has the petroleum resources and the expertise to provide crude oil as well as gas and oil technology to South Africa. South Africa has the minerals resources and expertise to provide minerals exploitation technology to Algeria. Trade could expand by South Africa exporting its coal to fire Algeria's nascent steel industry, as well as well as its chrome, manganese and vanadium to make alloys for Algeria to use in manufacturing stainless and specialised steels from its substantial iron ore deposits.
Algeria is an important oil and gas producing and exporting country. Its national oil and gas company, Sonatrach, is the fourth largest marketer of gas in the world. In 1994, more oil and gas was discovered in Algeria than in any other country. Its reserves are still under-explored but it is already 11th in the world league. Algeria is exporting oil and gas successfully to Europe. On the other hand, South Africa is on the verge of developing its gas policy and expanding its gas use. Potential sources are the Kudu field in Namibia, the Pande field in Mocambique and the Waterberg coal-bed metbane deposits in the Northern Transvaal. South Africa does not want to repeat the mistakes of a Mossgas. We can do well to learn from the Algerian experience gained in developing their gas fields.
An important aspect of electricity development which came to my attention was the development, by the countries bordering on the Mediterranean, of the Mediterranean Basin Loop which would enable their electricity to be shared by way of an integrated supply system along the northern as well as southern shores. A matter of concern to me is that the Inga Project on the Zaire River may also be brought into the grid. It will be recalled that in August last year the SADC countries entered into a Memorandum of Understanding on the Southern African Power Pool. The SADC countries would certainly like to consider the role which the Inga Project could play in the future of the Southern Africa integrated grid. It is important that the countries of Southern Africa be brought into the process of developing the Inga hydro-electric source.
Algeria is faced with the problem of supplying remote villages with electricity. South Africa has a similar problem with its programme to install 2,5 million connections mostly in urban areas at the rate of 500 000 connections per year for five years. The recently formed non-profit company REFSA plans to supply solar electricity to another 2,5 million homes too far from the grid to be connected to it. Once again, South Africa and Algeria can both benefit from exchanging their experience, their failures and their successes in this field.
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