10 February 1997
The Department and the Ministry of Mineral and Energy Affairs are together involved in wide-ranging projects and initiatives, details of which follow.
MAJOR POLICY INITIATIVES
MINERALS and MINING POLICY
After extensive discussions with stakeholders and others, a draft Green Paper has been finalised. A fully democratised evaluation and consultation programme is in progress towards a draft White Paper. It will be open to public comment and hearings in the Parliamentary Portfolio Committee on Mineral and Energy Affairs. Thereafter it will be submitted to Cabinet for final approval before publication as an official White Paper.
ENERGY POLICY
The Department, supported by the Energy for Development Research Centre of the University of Cape Town and the Minerals and Energy Policy Centre drew up a South African Energy Policy Discussion Document setting out policy options to stimulate debate. Interested parties made submissions. As with Mineral and Energy Policy, a fully democratised evaluation and consultation programme is in progress towards a draft White Paper. Thereafter the process for Energy Policy will be similar to that of Minerals and Mining Policy.
MINING and MINERALS
MINERALS DEVELOPMENT BRANCH
1.1 Small Mining
The Department Committee on Small Mining is encouraging and assisting small scale miners. Its members are Departmental officials from the Mining Economics and Legal Sections as well as from the Regional office and includes experts from the Council for Geoscience. The Small-scale Mining Component to be set up in terms of the new structure of the Department will start operating soon.
1.2 The Diamond Sector
In view of the industry's decline and other problems in the sector, a Commission of Enquiry into all aspects of the diamond industry has been set up. Mr Justice Levy has been appointed Chairman. He will be assisted by two assessors Mr J Feinstein and Adv M Khoza. In terms of the original requirements the assessors are "experts in law, economics and taxation". All three members are required to be independent of the diamond industry. The Commission will be starting its hearings on 19 February 1997.
The Diamond Board has also been reconstituted and the Minister's Mining Adviser, Ms Linda Makatini, is at present the Chief Executive in an acting capacity.
1.3 Liaison with the Provinces
1. Despite Mineral and Energy Affairs not falling under the provinces in terms of Schedule six of the Constitution, a process of co-operation with the provinces is underway. 2. The Minerals Bureau (a branch of the Department which provides a mineral-economic information service to government, industry and public) has compiled a mineral potential report for each Province. 3. The Council for Geoscience continues to provide provincial planners with basic geological data. 4. Regional offices have been restructured and their areas of jurisdiction have been amended to conform with provincial boundaries.
1.4 Regional and International
1. The SADC Mining Protocol: Consultants have developed a working draft which is open to tripartite submissions. The consultants will then finalise the draft in the light of the submissions before taking steps to integrate the ideas and wishes of other SADC members into the draft Protocol. 2. SADC, with the assistance of the Council for Geoscience, has set up a SADC Mining Sector Home Page on the Internet. It links up with the data bank of the Finance Investment Co-ordinating Unit of the Department of Finance and the South African Reserve Bank, on macroeconomics, finance and investment information. 3. The Ministry and Department are supporting South Africa's private sector in their increased activities in Africa, especially West Africa.
MINE HEALTH AND SAFETY BRANCH
2.1 Continuous Mining
The prospect of introducing continuous mining is awaiting the outcome of the Policy Process. This issue needs to be agreed on between management and labour before government will act.
2.2 Mine Health and Safety
The Mine Health and Safety Act: The Act came into effect on 15 January 1997. An extensive and comprehensive regulations-drafting exercise is underway. This process will take some time. In the meantime those regulations without which the new Act would not have been able to function, have been drawn up and were put into effect with the Act. The existing health and safety regulations which previously fell under the Minerals Act now fall under the Mine Health and Safety Act. Departmental Project Teams are busy on different aspects of the regulations and will submit the results of their work to MRAC, the tripartite Mine Regulations Advisory Committee. Regulations are required on matters such as: machinery, occupational hygiene, ventilation, dust control, ergonomics, gas control, transport/ tramming, explosion control in coal mines and codes of practice guidelines.
The Onus of Proof section of the Mine Health and Safety Act: Sub-Section 86(2) and (3) which deal with the onus of proof have not been promulgated. Labour and the Chamber of Mines are still negotiating on the clause in the Act which determines the culpability of owners and managers for accidents occurring on their mining premises. The eventual solution may well involve a system of administrative penalties. If the parties have not agreed by 15 January 1998, the existing sub-sections will then come into force.
The Mine Inspectorate Trainee Scheme: This is a scheme in terms of which 50 mining inspector trainees are embarked on a three-year course. The intention is to strengthen the Mining Inspectorate and at the same time to make it more representative. The course is proceeding well.
ENERGY
The Liquid Fuels Sector
A report by Professor Lambrechts reconciling the views of business, labour and government, was completed. It has been submitted to Nedlac where we await the recommendations of the tri-partite process. The organisation of this sector should be thoroughly examined with a view to seeing whether better ways of doing things can be found.
Aviation Fuel: There is unhappiness amongst international airlines about high aviation fuel prices at Jan Smuts Airport. Since jet fuel is not controlled, Government can only play a facilitating role. The matter needs to be resolved between the Airport Company, IATA, Petronet and the oil companies. The objective is to have as competitive a jet fuel price as possible.
Unleaded Petrol
Unleaded petrol has been available at all service stations since May 1996. Market penetration is just under 10%. An air pollution monitoring programme is keeping track of air pollution due to motor vehicles.
Electricity
The drafting of the new Electricity Regulatory Bill has been completed. It will soon be submitted to Cabinet whereafter it will go before Parliament.
The Electrification Programme: The urban electrification programme has been overcoming certain problems such as financing, low usage by new users, the pace of the housing programme and the restructuring of the electricity industry itself. Government remains committed to providing as many as possible with electricity at the maximum possible sustainable pace. Eskom achieved its 1996 target of 300 000. The local authorities' figures are still coming in, but in 1995 they connected 118 000. Total connections since the start of the programme in 1991 are 1,9 million.
The rural off-grid electrification programme: The CEF subsidiary, Renewable Energy for South Africa (Refsa), is implementing demonstration projects on the financing of photovoltaic cell electrification in rural communities. Should the pilot plants be successful and the funds obtained, wide scale application of the process is planned.
The Restructuring of the Electricity Supply Industry: The Electricity Restructuring Inter-Departmental Committee (ERIC), consisting of representatives from Trade and Industry, Finance, Housing, Public Enterprises and Provincial Affairs and Constitutional Development, was briefed to develop a Government position for the new structure of the Electricity Distribution Industry, the part financing of local authorities and the financing of the Electrification Programme. Recommendations have been made to the six Ministers of the Departments concerned.
An Energy Efficiency Publicity Campaign was launched via television and newspapers, schools competitions and publicity materials to local authorities. Further actions are planned to maintain momentum. There are plans to involve industry and commerce on a voluntary basis. The objective is to improve the nation's energy efficiency by 1% per year.
Gas
A proposed national gas policy is included in the Draft Energy Policy White Paper. A draft of the National Gas Regulatory Bill has been completed. South Africa is also discussing the harmonisation of regional gas policy with her neighbours. There are ongoing negotiations with Mozambique and Namibia on the exploitation of the Pande and Kudu gasfields respectively.
Coal
A comprehensive study is in progress to reassess the extent of our coal reserves, using the latest technology. There will be a test run of the data-gathering technique to be applied. This will be completed by the end of the year. If this is successful, the overall project should be completed by the end of 1999.
Traditional Fuels (Blomass/Fuelwood)
An Inter-Departmental Working Group with the Department of Water Affairs and Forestry and other relevant Departments is co-ordinating the sustainable community forestry programme. Agriculture Extension Officers from the Department of Agriculture are actively involved. These programmes are part of an overall rural development strategy to produce firewood for the energy needs of rural communities, in harmony with other fuels.
Other Forms of Energy
Other aspects of energy use are being actively studied and used where practicable, for example: building design, solar heating, wind energy, hydro-electrical, tidal power. All new forms of energy technology are being assessed.
Regional and International Issues
The SADC Energy Ministers Meeting in June 1996 in Swaziland accepted the proposals of consultants that an Energy Commission replace SADC's existing Technical and Administrative Unit (TAU). The Energy Commission will be smaller: 9 members instead of the current 50 members of TAU. The EC will also be a facilitating administrative unit, not an executive unit as the TAU is now.
The SADC Energy Policy and Strategy Document (a working document applying the SADC Energy Protocol) was approved by the SADC Heads of Government Summit in Maseru on 24 August 1996.
The Southern Africa Power Pool has been signed by Zaire and all members except Zambia. The electricity utilities of the various member countries are now driving the process. Various studies on the extension of the transmission network are taking place.
The programme for the rehabilitation of Cohora Bassa is proceeding according to schedule. Cahora Bassa power should be flowing by mid-year.
PROGRESS IN PEOPLE DEVELOPMENT, ERADICATION OF POVERTY AND DEPRIVATION, AND THE CREATION OF BETTER LIVING CONDITIONS
People Development
The Department holds numerous training courses for its personnel. (See E.) One such course introduced cleaning and associated personnel to computers. The Department's associated institutions have people-development programmes: - Mintek, which researches and develops minerals processing and markets, offers 30 to 40 undergraduate bursaries. It also partners private enterprise in offering a year's free tuition in science, mathematics and English plus board and lodging for post-matric students to upgrade their results in these subjects. The Council for Geoscience (geological engineering, mapping and research services) has a CD-Rom system on geological and earth science education for schoolchildren. The Atomic Energy Corporation (AEC) is active in the Brits Training and Entrepreneur Centre which teaches skills to the unemployed and promotes small business literacy, development and socio-economic upliftment; the AEC supports the Atteridgeville Education Centre which provides bridging training and education for secondary school teachers and children in science and mathematics; and it has established the Pelindaba Institute of Co-operative Education which houses and teaches 160 trainee technicians at the AEC for 12 months as part of their 4-year Technikon diploma.
Eradication of Poverty and Deprivation
The electrification programme is doing much in this regard (see C.4). In the rural areas, a three-pronged programme is being planned to provide solar energy for lighting to 16 000 rural schools (Eskom), 2 000 clinics (Independent Development Trust) and 2,5 million homes.
The Council for Geoscience is conducting a countrywide study, using all available geological, geophysical and satellite data, to identify water sources for rural communities. The Atomic Energy Corporation manufactures a purification unit for contaminated surface water in rural areas in order to provide drinking water for rural communities.
Creation of Better Living Conditions
There is an ongoing publicity campaign under the auspices of the Paraffin Safety Association for the introduction of child-proof paraffin bottles to prevent children from accidentally poisoning themselves.
The Council for Geoscience ensures that land is suitable for housing (e.g. no sinkholes); optimises town structure plans, waste-disposal zones and cemetery sites; provides environmental management plans for quarries and small mines as well as carrying out pollution investigations. The Council's magnetic and radiometric maps of the Transkei and Ciskei will help to find ground water, identify mineral resources and assist in finding out why there is a high incidence of oesophagus cancer in this region.
The Atomic Energy Corporation has developed a brachytherapy unit for treating cancers of the oesophagus, cervix and colon among semi-urban communities. It produces large scale radioisotopes for radiotherapy. The AEC also produce radioluminescent (non-powered) light for safety signs in mines, cinemas and theatres as well as a portable radon-monitor to enable this poisonous gas to be detected in our gold mines. The AEC's radiation treatment sterilises medical products and foods, thereby contributing to health.
INSTITUTIONAL CHANGES TO THE DEPARTMENT
The jurisdictions of regional offices of the Department now conform with the new provincial boundaries. The Minister has appointed Directors in the various regions. The other regional posts can now be filled. The Department's affirmative action programme is proceeding according to plan. 23 posts at management and other levels have been identified and advertised with the aim of promoting representivity and affirmative action. A further 144 posts have been advertised both internally and externally. Progress reports on the Department's affirmative action programme for 50 pupil inspector of mines are impressive, particularly with regard to their potential and aptitude.
Other Departmental programmes are: a training programme for newly appointed officials charged with mineral rights administration, rehabilitation and environmental management; a pre-Technikon course for long-serving employees who do not meet the basic educational requirements for registration as pupil inspectors of mines; a Minerals and Energy Policy Centre financed six-months full-time course for six new employees from disadvantaged groups to study for a career in Energy Policy Analysis.
214 of a total of 661 Departmental staff are Black. Under the Government of National Unity, the percentage of Blacks on the staff has increased from 7,6^ to 32%. 66 white officials of the Department have successfully attended African language courses.
ASSOCIATED INSTITUTIONS
The Atomic Energy Corporation (AEC)
The AEC has developed a range of over 200 nuclear and related commercial products. It generated commercial income of R226 million during its 1994/95 financial year. Its annual state grant is now R665 million less than it was in 1990 - a 73% reduction. A unique AEC technology which adds up to seven times the value of zirconium-based minerals, stands to provide R300 million per year in foreign exchange.
The AEC's molecular laser isotope separation (MLIS) uranium enrichment process is being developed together with the giant French energy firm, Cogema. Successful development of this process could enable South Africa and her partner to earn hundreds of million of rand through sales of the enriched uranium for peaceful purposes and the licensing of the technique internationally under International Atomic Energy Agency safeguards.
The Council For Nuclear Safety (CNS)
The CNS is formulating a national radioactive waste management policy in collaboration with the mining industry, the AEC and ESKOM and within the context of the broader Energy Policy Process.
The CNS is a member of the International Atomic Energy Agency (IAEA) Group of Experts working on the Draft International Nuclear Waste Convention. It is designed to end the dumping of nuclear waste throughout the world. The signing of the Convention is planned for September 1997 at the IAEA General Conference.
The Council for Geoscience
Responsible for geological engineering, mapping and research services with achievements recognised throughout the world, the Council is assisting countries throughout Africa in pursuance of South Africa's commitment to the economic development of this continent.
CEF (Pty) Ltd - The State's Oil Arm
The CEF Board has been reconstituted, together with those of its subsidiaries which now consist of the same members as CEF itself. In addition to the Board's normal functions, it will be required to make proposals concerning the future role of CEF and its subsidiaries. Mossgass: Mossgas' independently verified investment in the satellite fields near the main F-A field as well as the installation of compression has been proceeding as planned. Soekor: Soekor's Oribi oilfield should be producing within a few months.
Mintek
Mintek is active with its mining and minerals technology development and its promotion of beneficiation. A Mintek process is being used by Harmony Gold Mine in its new gold refinery which it has recently established.
The above sets our only some of the salient features of the Minister's and the Department's activities.
The Ministry of Mineral and Energy Affairs 7th floor 120 Plein Street Cape Town Phone: (012) 4622310