Procurement study for nuclear completed, says Mantashe
Consultations with Eskom and Treasury are under way, says mineral & petroleum resources minister
12 July 2024 - 05:00
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Mineral & petroleum resources minister Gwede Mantashe. Picture: FREDDY MAVUNDA
The department of mineral & petroleum resources is moving ahead at pace with plans to procure nuclear energy.
This emerged from the budget vote speech that the minister of mineral & petroleum resources, Gwede Mantashe, gave to a mini plenary of the National Assembly on Thursday.
He said the government was on course with the procurement of 2,500MW of a nuclear new-build programme “which would be implemented at a pace and scale that the country can afford.
“Having completed the procurement framework study, the department is currently engaged in extensive consultations with various key stakeholders, including Eskom and National Treasury, on the optimal ownership models for the implementation of the programme.
“Once consensus is reached with these stakeholders, cabinet will be approached for approval with an intention to issue the request for proposals soon thereafter.”
Mantashe also announced that amendments to the Mineral & Petroleum Resources Development Act (MPRDA) were in the offing. The aim was to review the licensing regime to reduce red tape and improve the business environment for investors.
He said the 30-year mark since the promulgation of the act provided the opportunity to reflect on its performance.
“In this reflection, it became evident that it has largely delivered on its intended goals but has not been without challenges and shortcomings. To this end, the department is currently drafting amendments to the MPRDA aimed at ensuring that areas that have been identified as weak and those that have been challenged legally are strengthened against international best practice.
“The amendments will also review the licensing regime to reduce red tape and improve the business environment for investors, while keeping in sync with SA’s social and economic fabric.”
Implementation of the project for a cadastral system was under way, with the aim to complete the migration to the new system by June 2025. The PGM Consortium was the successful bidder for the design, implementation and maintenance of a mining licensing system.
DA mining spokesperson James Lorimer criticised how long it is taking to get the long-promised cadastral system operational.
On the review of the Integrated Resource Plan (IRP), Mantashe said the public comments received on the draft plan had been considered by the department, which was undertaking a remodelling based on additional data received from stakeholders. The intention was to submit the final IRP to the cabinet for approval in October.
The minister said the exploration fund established in June by the department in partnership with the Industrial Development Corporation to support emerging and junior miners had received 15 applications so far. The first funding call focused on copper, nickel, lithium, rare earth elements and graphite. The funding window will close on Friday.
“We intend to intensify our engagements with several fund managers and the investor community to secure additional financing to sustain the fund into the future.”
Also in the offing are amendments to the Mine Health & Safety Act, which would be submitted to the cabinet for approval in September. The Petroleum Products Amendment Bill was ready for submission to the cabinet to obtain approval for it to be published for stakeholder comments.
The SA National Petroleum Company Bill, which aims to create a state-owned company for oil and gas projects, is ready for submission to the cabinet for transmission to parliament. The company has already been registered in terms of the Companies Act, with an interim CEO appointed to get governance arrangements going.
Stakeholder consultations on the Gas Amendment Bill will be taken through Nedlac consultations in August, after which it would be submitted to the cabinet.
Also ready for submission to the cabinet is the General Laws Amendment Bill, which Mantashe said defined illegal mining as a criminal act, thereby empowering the police to enter illegal mines and arrest the miners.
The Upstream Petroleum Resources Development Bill has been adopted by both houses of parliament and is ready for President Cyril Ramaphosa to sign.
Mantashe said the formation of the ministry of mineral & petroleum resources had put an end to the neglect of the petroleum sector, which he planned to promote. His department was working on the development of a critical minerals strategy as the blueprint policy for the exploitation and processing of SA’s minerals, which would be launched in October.
Mantashe said the Central Energy Fund (CEF) had concluded a transaction on the sale of assets located at the Sapref precinct, and the Strategic Fuel Fund, a subsidiary of the CEF, had acquired the majority stake in a liquefied petroleum gas company, as well as the storage terminal that had been previously owned by BP in Cape Town to store and supply diesel.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Procurement study for nuclear completed, says Mantashe
Consultations with Eskom and Treasury are under way, says mineral & petroleum resources minister
The department of mineral & petroleum resources is moving ahead at pace with plans to procure nuclear energy.
This emerged from the budget vote speech that the minister of mineral & petroleum resources, Gwede Mantashe, gave to a mini plenary of the National Assembly on Thursday.
He said the government was on course with the procurement of 2,500MW of a nuclear new-build programme “which would be implemented at a pace and scale that the country can afford.
“Having completed the procurement framework study, the department is currently engaged in extensive consultations with various key stakeholders, including Eskom and National Treasury, on the optimal ownership models for the implementation of the programme.
“Once consensus is reached with these stakeholders, cabinet will be approached for approval with an intention to issue the request for proposals soon thereafter.”
Mantashe also announced that amendments to the Mineral & Petroleum Resources Development Act (MPRDA) were in the offing. The aim was to review the licensing regime to reduce red tape and improve the business environment for investors.
He said the 30-year mark since the promulgation of the act provided the opportunity to reflect on its performance.
“In this reflection, it became evident that it has largely delivered on its intended goals but has not been without challenges and shortcomings. To this end, the department is currently drafting amendments to the MPRDA aimed at ensuring that areas that have been identified as weak and those that have been challenged legally are strengthened against international best practice.
“The amendments will also review the licensing regime to reduce red tape and improve the business environment for investors, while keeping in sync with SA’s social and economic fabric.”
Implementation of the project for a cadastral system was under way, with the aim to complete the migration to the new system by June 2025. The PGM Consortium was the successful bidder for the design, implementation and maintenance of a mining licensing system.
DA mining spokesperson James Lorimer criticised how long it is taking to get the long-promised cadastral system operational.
On the review of the Integrated Resource Plan (IRP), Mantashe said the public comments received on the draft plan had been considered by the department, which was undertaking a remodelling based on additional data received from stakeholders. The intention was to submit the final IRP to the cabinet for approval in October.
The minister said the exploration fund established in June by the department in partnership with the Industrial Development Corporation to support emerging and junior miners had received 15 applications so far. The first funding call focused on copper, nickel, lithium, rare earth elements and graphite. The funding window will close on Friday.
“We intend to intensify our engagements with several fund managers and the investor community to secure additional financing to sustain the fund into the future.”
Also in the offing are amendments to the Mine Health & Safety Act, which would be submitted to the cabinet for approval in September. The Petroleum Products Amendment Bill was ready for submission to the cabinet to obtain approval for it to be published for stakeholder comments.
The SA National Petroleum Company Bill, which aims to create a state-owned company for oil and gas projects, is ready for submission to the cabinet for transmission to parliament. The company has already been registered in terms of the Companies Act, with an interim CEO appointed to get governance arrangements going.
Stakeholder consultations on the Gas Amendment Bill will be taken through Nedlac consultations in August, after which it would be submitted to the cabinet.
Also ready for submission to the cabinet is the General Laws Amendment Bill, which Mantashe said defined illegal mining as a criminal act, thereby empowering the police to enter illegal mines and arrest the miners.
The Upstream Petroleum Resources Development Bill has been adopted by both houses of parliament and is ready for President Cyril Ramaphosa to sign.
Mantashe said the formation of the ministry of mineral & petroleum resources had put an end to the neglect of the petroleum sector, which he planned to promote. His department was working on the development of a critical minerals strategy as the blueprint policy for the exploitation and processing of SA’s minerals, which would be launched in October.
Mantashe said the Central Energy Fund (CEF) had concluded a transaction on the sale of assets located at the Sapref precinct, and the Strategic Fuel Fund, a subsidiary of the CEF, had acquired the majority stake in a liquefied petroleum gas company, as well as the storage terminal that had been previously owned by BP in Cape Town to store and supply diesel.
ensorl@businesslive.co.za
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