20 May 2021
Let me take this opportunity to express my profound gratitude that we are assembled here today to present the Budget Vote as allocated to the Department of Mineral Resources and Energy for the 2021 – 2022 fiscal year.
We bring this budget vote here with full appreciation that both mining and energy have a direct impact on citizens located in Provinces. It is our objective that all mining and energy projects must benefit South Africans across the length and breadth of the country. Over a century, mining has been the bedrock of our economy and we believe that this sector will continue contributing immensely to the economy for years to come. The saying that “if it is not grown, it is mined” cannot be disputed. It is therefore not an exaggeration to say that the modern world would not be able to function without mined resources, but this needs to be supported by a stable and reliable energy supply, and this is our daily pre-occupation.
The business of the day is about the budget allocated to the Department, let me hasten to outline our budget allocation for this fiscal year. The main appropriation for the Department of Mineral Resources and Energy in the 2021/22 financial year is a total of R9.2 billion. Earmarked transfer payments to public entities, municipalities, and other implementing institutions account for R7.5 billion or 81.6% while the allocation for operational activities, inclusive of procurement of capital assets accounts for R1.7 billion or 18.4%. A substantial portion of the transfer payments is allocated to implementing agencies as follows:
Our public entities are budgeted to receive a combined allocation of R2.1 billion, with
Comparative to the indicative allocation of R9.6 billion confirmed during the 2020 Budget, the 2021/22 main appropriation of R9.2 billion is 4.1% lower due to the implementation of budget reductions across government, particularly on the compensation of employees.
An allocation of R70 million in 2021/22 is earmarked for the development of the National Electrification Master Plan to assist with the implementation of the electrification programme.
Honorable Chairperson, with this budget we will be able to deliver on our programs as follows:
Creating an enabling environment through investor-friendly legislation
At the centre of our mandate is the responsibility to create an enabling environment for investments into both the mining and energy sectors. To this extent we have:
Security of energy supply
As government and its social partners work hard to revive and grow the economy, we are cognisant of the fact that energy security is the nucleus of this growth. Two days ago in the National Assembly, we gave a detailed breakdown of our efforts in this regard. Let me also share with this house details of the interventions we will be implementing in this fiscal year, over and above the projects, we implemented in 2020/21 to create the much-needed additional generation capacity.
Between August 2021 and January 2022, the Department will issue additional Requests for Proposals for,
The Department intends to issue the Request for Proposal (RFP) for the procurement of two thousand five hundred megawatts (2 500MW) by the end of the current financial year, subject to regulatory approvals. This follows the twenty-five (25) submissions received in response to the Request for Information (RFI). The Koeberg Nuclear Power Plant 20-year extension project is also underway.
On mining application backlogs
It is our endeavour that we accelerate the processing of mining applications which in turn will contribute to local economic development. We intend on clearing the backlog and improving the turnaround time of applications with the new system. We continue to do our work albeit with difficulties. Between January 2021 and April 2021, we have issued 33 Prospecting Rights; 4 Mining Rights; and 7 Mining Permits.
Today’s presentation represents highlights of the work of my department, and not the totality thereof. Full details of our work are available and can be accessed in both the Strategic Plan and Annual Performance Plan. Since the advent of the current government administration, we have been preoccupied amongst others with the merger between the former Departments of Energy and Mineral Resources.
Following the implementation of the Start-Up-structure during 2020/21, the DMRE is now in the process of reviewing the current structure. That work should be finalised within 12 months. As it stands, we are better poised to move with greater speed in discharging our mandate as a unified Department.
I am confident that we will further the aims of our national transformation agenda as enjoined by the Constitution whose preamble speaks to healing the divisions of the past. As we expand our work both in the mineral resources and energy sectors, we will be mindful of the need not only to attain economic growth but, the redistribution of wealth.
As I conclude, I wish to express my appreciation for the opportunity to have this session about the future of mineral resources and energy sectors in our country.
Allow me to also thank the President, the Deputy President, my Cabinet colleagues, and the Select Committee for their continued support of the work of the department.
I thank you all honourable members for your presence here today and look forward to further engagement on this but most importantly the urgent implementation of all our scheduled programmes.
Lastly, I wish to thank my family for their unwavering support of my work. I thank the Director-General and “Team DMRE” who continue to work tirelessly and under difficult conditions to ensure that we deliver on our mandate.
I thank you!