COMMUNICATION CHIEF DIRECTORATE

1
DEPARTMENT OF MINERALS AND ENERGY
Minerals and Energy for Development and Prosperity
Presentation to the Joint Budget
CommitteeTuesday, 18 November 2003
PRESENTATION BY THANDEKA ZUNGU (Ms) ACTING
CHIEF FINANCIAL OFFICER 012-3179448/320 thandeka_at_m
epta.pwv.gov.za
2
Department of Minerals and Energy

• MANDATE / VISION

• Mandate
• To provide services for effectual governance of
  minerals and energy industries for economic
  growth and development thereby improving the
  quality of life.
• Vision
• Sustainable development and growth through
  minerals and energy resources for the benefit of
  all South Africans.
• Medium Term - Key Strategic Objectives
• Develop and maintain appropriate admin measures
  and systems to enhance efficiency and
  productivity that will ensure attainment of
  targets set by the Charters and effectively
  monitor the systems.
• To contribute towards effectual and sustainable
  development of minerals and energy resources.
• To govern these industries to be safe and healthy
  working environments.
• To redress the past imbalances, to promote
  equitable redistribution of benefits from
  exploitation of minerals and energy resources.
• To implement mineral and energy policies to
  ensure optimum utilisation of minerals and energy
  resources.

Minerals and Energy for Prosperity and Development
3
Department of Minerals and Energy

• SUMMARY

• Participation in the expanded public works
  programme
• Towards improving the regulatory environment
• Accelerating learnerships and skills
  development
• Our broad-based black economic empowerment
  strategy
• Partnerships (Sectoral and local development).
• Challenges/conclusion

Minerals and Energy for Prosperity and Development
4
Department of Minerals and Energy

• PARTICIPATION IN THE EXPANDED PUBLIC WORKS
  PROGRAMME

• INTEGRATION OF MAJOR MINING PROJECTS INTO THE
  EXPANDED PUBLIC WORKS PROGRAMME.
• LABOUR INTENSIVE INTEGRATED NATIONAL
  ELECTRIFICATION PROGRAMME TO ENSURE MAXIMUM JOB
  CREATION ACROSS ALL PROVINCES.

Minerals and Energy for Prosperity and Development
5
Department of Minerals and Energy

• TOWARDS IMPROVING THE REGULATORY ENVIRONMENT

• Improvement of the regulatory framework through
  the implementation of the following legislation
• Mineral and Petroleum Resources Development Act
• Petroleum Products Amendment Bill
• Petroleum Pipelines Bill
• Gas Act
• Energy Regulator Bill
• Energy Bill
• Electricity Regulation Bill

Minerals and Energy for Prosperity and Development
6
Department of Minerals and Energy

• ACCELERATING LEARNERSHIPS AND SKILLS DEVELOPMENT

• THE PILLARS OF THE MINING CHARTER
• To increase the learnership in the mining
  industry to 5000
• MINING QUALIFICATIONS AUTHORITY
• Promote access to skills in the mining sector.
• Improve the life of ordinary people through
  sector education and training.
• Address targets as set out in the Mining Charter
  HRD, learnerships,
• INTERGRATED NATIONAL ELECTRIFICATION PROGRAMME
• To ensure learners are trained during the roll
  out of the programme.

Minerals and Energy for Prosperity and Development
7
Department of Minerals and Energy

• OUR BROAD-BASED BLACK ECONOMIC EMPOWERMENT
  STRATEGY

• MINING CHARTER
• Regulatory framework for introducing Broad Based
  Socio-Economic Employment Charter with clear
  targets and set time lines.
• LIQUID FUELS CHARTER
• Regulatory framework to drive the transformation
  of the Liquid Fuels Industry.
• INTERGRATED NATIONAL ELECTRICITY PROGRAMME
• Already R175m and R181M paid out to BEE
  companies, past 2 years.
• Target is overall 30 of the Programme
  expenditure earmarked for BEE and SMMEs.

Minerals and Energy for Prosperity and Development
8
Department of Minerals and Energy

• PARTNERSHIPS (SECTORAL AND LOCAL DEVELOPMENT)

• SECTORAL (Job creation and retention in the
  mining industry)
• Minerals and Mining Development Board.
• During 2000-2002, 4520 jobs saved.
• Discussions underway to avert further
  retrenchments.
• INTERGRATED NATIONAL ELECTRIFICATION PROGRAMME
• Participation in the IRSDP and URP programmes.
• To date R360m spent on identified nodes
• Continuing engagement with municipalities IDPs

Minerals and Energy for Prosperity and Development
9
Department of Minerals and Energy

• CONCLUSION

• Challenges over the next Medium Term (and
  beyond)
• Adequate resources (personnel, skills
  development, IT systems, information management,
  etc) to ensure successful implementation of all
  the transformation legislation in our sector(s).
• To achieve universal access to electricity,
  within the targeted timeframe and with limited
  resources (finance and skills).
• Electricity infrastructure maintenance and
  refurbishment programme need to balance
  increased connections against healthy electricity
  plant infrastructure.
• Restructuring of the electricity industry that
  cuts across more than one sphere of government
  working in partnership with all role players,
  negotiating and re-negotiating priorities and
  finally agreeing on what is best for the people
  of South Africa.

Minerals and Energy for Prosperity and Development