Questions and Replies

Reply:

The only subsidy available from government is the electrification subsidy which is targeted at the electrification of indigent households. The subsidy covers the connection to the grid including the ready board and associated metering as per the technical designs of Eskom.

Reply:

 

The Department investigated the complaints. The outcomes of the investigation were that Khwezela Colliery air blast and ground vibration exceeded the limits of 125dB and 5mm per second, respectively.  

The Department issued Khwezela colliery with instruction to comply with the air blast limit of 115 dB and ground vibration limit 5 mm per second. Secondly, colliery was instructed to conduct a follow up structural survey on all the affected houses in proximity of the mine, determine if the damages to the houses were caused by blasting from the mine and fix all the houses that were damaged due to mine blasts. The mine must also review their blast design to ensure that they are able to comply with the air blast and ground vibration limits. The mine was also issued with an instruction to reduce the dust levels that were emanating from the dragline.

Reply:

a) The department is finalising the Upstream Petroleum Bill to further augment the regulations governing the oil and gas sector.

b) As per the Integrated Resource Plan (IRP 2019), South Africa continues to pursue a diversified energy mix that reduces reliance on a single or a few primary energy sources. Natural Gas forms part of the country’s energy mix.

Reply:

a) The department has sealed three shafts in and around Plastic City informal settlement in 2019.

b) Through the Department’s continuous monitoring and evaluation initiatives, it has been made aware that illegal miners have mined under some roads, causing it to collapse. To this end, the Department with the assistance of MINTEK is investigating this issue further. Furthermore, the SAPS together with Ekurhuleni Municipality will be consulted to have a lasting solution in this regard.

c) The Department will continue enforcing the laws that prohibit mining without the necessary authorisations (mining right and environmental authorisation) together with other law enforcement agencies. The Department is also participating in joint law enforcement forums aimed at strengthening investigations and prosecutions of these types of organised crimes that deprives the country of its mineral resources-based revenues, causing massive environmental damage with impacts on society.

Reply:

The 5000 MW referred to in the question is in relation to potential from users generating their own power and not power available to be procured by the State.

With regard of procurement of additional power by the State, the Department is currently finalising the evaluation and appointment of preferred bidders for 2000 MW of power under the Risk Mitigation Independent Power Producer Programme.

The Department also plan to procure additional power in line with the already gazetted Section 34 Determination as follows:

Reply:

Although the primary aim lies along advancing development premised on the principles of sustainable development, where any proposed mining along and within seabed could potentially pose severe and/or irreversible damage to ecosystem in question even with mitigation measures in place such application cannot be granted or approved.

The provisions of section 48 of the MPDRA which list out area over which prospecting or mining is prohibited. If the area constitutes such an area as per the assessment made, the Minister can invoke the provisions of section 49 of the MPRDA and restrict or prohibit mining over such relevant seabed.

Reply:

a) The general public can view the locality of applications. Members of the public will need to register as a user of the system, select relevant province and commodity/ies to able to view.

b) The South Africa Geographic Information System facility has always been available.

Reply:

a) As part of government’s response to combating the COVID-19 pandemic, a temporary fuel cell system was deployed at 1 Military Hospital in Gauteng, which is utilised to support the Department of Defence. There is also one installed at the Science Center in Comimvaba (Eastern Cape).

b) The Seven Hydrogen Fuel Cells temporarily deployed at 1 Military Hospital has a total installed capacity of 35kW. The fuel cells deployed at a Science Centre in the Eastern Cape has a capacity of 5kW.

c) Post July 2021, the fuel systems currently at 1 Military Hospital will be redeployed as follows:

1. One fuel cell system will remain at 1 Military Hospital for use by the Department of Defence (DOD) for training purposes;
2. One fuel cell system at Mandeni Local Municipality, ILembe District in KZN, with a connection to the Youth Centre and Small, Medium and Micro Enterprises (SMMEs) Stalls;
3. One fuel cell system at MINTEK with a connection to the Home Affairs offices in Randburg;
4. One fuel cell system at Masia Village in Limpopo;
5. One fuel cell system at the Department of Science and Innovation;
6. One fuel cell system at the Trevenna Building, Department of Mineral Resources and Energy.

There is also ongoing work to incorporate the deployment of fuel cells in public buildings through the existing policy instruments, which include Energy Efficiency and Demand Side Management (EEDSM) grant programme and the Public Works and Infrastructure Green Building Policy.

Reply:

The Department of Mineral Resources and Energy is responsible for the regulation of the mining industry through the Mine Health and Safety Act (MHSA), No 29 of 1996. The Department of Health (DoH) governs the compensation of the mine employees diagnosed with Occupational Lung Diseases through Occupational Diseases in Mines and Works Act (ODMWA) 78 OF 1973 regulated by the Medical Bureau for Occupational diseases (MBOD).

Tshiamiso trust has been established to carry out the terms of the settlement agreement reached between amongst six mining companies and claimants to compensate current and ex-mineworkers for silicosis and TB. The trust works together with the MBOD in certification of mineworkers who have lodged claims. The certification process to identify ex-mineworkers with silicosis was apparently hampered by Covid-19 pandemic in 2020 as lung function tests could not be carried out because of the risk of increasing exposure to COVID-19 infection. Outreach programmes are reported to be carried out to cater for outstanding compensations in areas like the Eastern Cape.

Reply:

The matter referred to in the question should be addressed to the Department of Environmental Affairs, Forestry and Fisheries who handle Environmental impact issues, as well as the Department of Employment and Labour as the responsible Department for the investigation of industrial accidents.

Reply:

ENTITY	what (a) is the (i) breakdown of all legal matters against the various entities of his department	(a)(ii) cost to the taxpayer in each case	(b) are the reasons that his department has not, to date, used its own internal processes against those individuals who offset the specified cases, such that they are personally liable for the specified legal costs
NECSA	On or about 12 August 2019, Mr Vusi Malebana, erstwhile Necsa Chief Legal Advisor filed an urgent application seeking a declaratory and interdicting order setting aside his suspension and stopping the disciplinary proceeding against him. The Labour Court ruled that the suspension of Mr. Malebana by the South Africa Nuclear Energy Corporation (Necsa) was declared to be unlawful and constitutes an occupational detriment.	Necsa was ordered to pay the costs of Mr. Malebana in pursuing the urgent application, which costs were to include the costs of two (2) counsel. The bill of costs as per the Taxing Master certificate were R352 486.14 which Necsa honoured in full in January 2021.	Following the court interdict, Mr. Malebana was subjected to a disciplinary hearing and eventually dismissed. He took the matter to the CCMA whereby the CCMA ordered that his dismissal was procedurally and substantively unfair and awarded six months compensation amounting to R679 444.86. Mr Malebana subsequently served Necsa with a Notice of Motion together with the founding affidavit on 12 December 2020 in essence outlining his intentions to review the arbitration award issued by CCMA on 26 October 2020.
CGS	The Council for Geoscience has no pending legal matters emanating from the scenario outlined in the question.	N/A	N/A
MINTEK	Mintek does not have any litigation matters that were started by persons who are no longer at the company. The only legal matters currently active relates to labour issues such as unfair dismissal and unfair labour practice.	N/A	N/A
NNR	No outstanding litigation against NNR	N/A	N/A
NRWDI	The National Radioactive Waste Disposal Institute (NRWDI) is not involve in any litigation matters and therefore the questions are not applicable to NRWDI.	N/A	N/A
SDT	The SDT has no litigation matters at present. No such matters were dealt with in the past. Consequently, the entity has incurred no costs in this regard.	N/A	N/A
SADPMR	The SADPMR has no former or current employees who were involved in any litigations of which the Regulator was responsible for paying their legal costs.	N/A	N/A
SANEDI	SANEDI is currently opposing one labour relation matter	R253,998.25	Matter is still pending

CEF (SOC) and its subsidiaries, NERSA and the MHSC responses listed separately below:

CENTRAL ENERGY FUND AND SUBSIDIARIES

ENTITY	what (a) is the (i) breakdown of all legal matters against the various entities of his department	(a)(ii) cost to the taxpayer in each case	(b) are the reasons that his department has not, to date, used its own internal processes against those individuals who offset the specified cases, such that they are personally liable for the specified legal costs
CEF (SOC) Ltd	CEF SOC Ltd and SFF jointly handled the stock rotation litigation matter	R11, 922, 752.15.	After the A&O Report, Application was made for a declaratory order declaring that the sale of strategic stock was invalid.
SFF	Stock Rotation already reported as stated above. Krone is suing SFF for payment, which they allege, is due in terms of the contract. Krone was required to install a metering system, which was aimed at improving accuracy levels of measuring of oil volumes. In the recovery of proceeds for the sale of diesel to Line Petroleum, a default judgment was granted in favour of SFF,	R4 500 685.00 R 43, 400.43	SFF is withholding payment on the grounds of non-performance under the contract. A legal opinion is being sought because Line Petroleum does not have attachable assets in South Africa.
iGas	No litigation to report on.	N/A	N/A
PetroSA	PetroSA is claiming damages from Odjfjell for the pipeline damages. PetroSA has instituted liquidation proceedings against Two Oceans for failing to honour payments for product sold PetroSA has obtained judgment against Fantastic View and a writ of execution has been issued	R 11,462, 280.93 R 1,457,266.26 R 738,755.57	Judgment is pending
AEMFC	The supplier being Innovent was found to have misrepresented AEMFC on registration with the Financial Service Board. AEMFC concluded a settlement agreement with NUM in 2017 at the CCMA which was made an Arbitration award and amongst the item agreed upon was that AEMFC will pay the 13th cheque each December. In 2019 there was another agreement which states that it supersedes all the previous agreements and a new bonus scheme which was performance bonus was introduced. Bargaining employees in 2019 as per the new agreement received 50% of their CTC as performance bonus and the 13th Cheque was not paid. NUM has now obtained an Arbitration award against AEMFC demanding the 13th Cheque for December 2019. Persuant to the Arbitration award, NUM applied for enforcement order of R2.9M which was granted and AEMFC property was attached by the sheriff. AEMFC has applied to the Labour Court to stay the enforcement order pending the rescission of the of the Arbitration award. The argument by AEMFC is that, the 2017 agreement was superseded by the 2019 agreement and further that the 13th Cheque must be from the employee’s salary and not at employers costs. An AEMFC former Senior Employee concluded a collecting Agreement with NUM in terms of which AEMFC will pay the risk allowance to employees who worked during the lockdown. In terms of the AEMFC LOA the collective agreement must be recommended by EXCO to the board for approval. The submission to the board by the former employed did not disclose that a collective agreement is already signed but created the impression that AEMFC must make a once off payment of R2.6 million for 5 weeks lockdown. AEMFC made a once off payment and the union lodge a grievance with the CCMA to enforcement the collecting agreement signed with the former employee. AEMFC disputed the validity of the collective agreement since it was not approved by EXCO and board and an urgent court application was filed to interdict CCMA to proceed with the matter pending review of the decision by AEMFC former employee to sign a collective agreement without authority.	R 241 016.43 R 192, 510.00 R 283,496. 62	The contract was classified as Irregular expenditure by National Treasury.

NATIONAL ENERGY REGULATOR OF SOUTH AFRICA (NERSA)

No.	Type of Litigation Matter	Breakdown of Legal Matters	Related Costs	Reasons for not using own internal processes
1.	Judicial review	ESKOM- Case arises from the decision of the Energy Regulator approving the MYPD3 RCA5 and Eskom is unhappy with the outcome. Eskom has taken the decision on judicial review.	R1 750 000.00	Only lawyers in the practising roll can appear in court. Despite NERSA legal advisors are all admitted attorneys/advocates, they cannot appear in court.
2.	Judicial review	AFGRI/PHILAFRICA- The judicial review case arises from the decision of the Energy Regulator not to amend or revoke the distribution licence of Maluti a Phofung Local Municipality licence.	2 900 000.00	Only lawyers in the practising roll can appear in court. Despite NERSA legal advisors are all admitted attorneys/advocates, they cannot appear in court.
3.	Judicial review	Drakenstein Local Municipality. The judicial review arises from the decision of the Energy Regulator not to approve some of the tariffs of the municipality during 2019/20 because of the impact that it would have had on the customers.	R2 200 000.00	Only lawyers in the practising roll can appear in court. Despite NERSA legal advisors are all admitted attorneys/advocates, they cannot appear in court.
4.	Judicial review/ Implementation of order pending appeal/ leave to appeal	Eskom- The appeal follows the judgement of the Pretoria High Court to substitute the decision of the Energy Regulator on the Eskom MYPD4 Year 3. This case has already had three judgements (review judgement, leave to appeal judgement and implementation of review judgement pending appeal judgement)	R7 400 000.00	Only lawyers in the practising roll can appear in court. Despite NERSA legal advisors are all admitted attorneys/advocates, they cannot appear in court.
5.	Judicial review	Sunrise- the matter arises from the judicial review brought by Sunrise against what they call improper formulation and reading of the Petroleum Pipelines Operating licence issued by NERSA to Avedia	R2 200 000.00	Only lawyers in the practising roll can appear in court. Despite NERSA legal advisors are all admitted attorneys/advocates, they cannot appear in court.

MINE, HEALTH AND SAFERY COUNCIL (MHSC)

what (a) is the (i) breakdown of all legal matters against the various entities of his department	(a)(ii) cost to the taxpayer in each case	(b) are the reasons that his department has not, to date, used its own internal processes against those individuals who offset the specified cases, such that they are personally liable for the specified legal costs
Investigation into allegations of financial misconduct	1 006 475,00	The matter is not finalised
Dispute at the Labour Court between employer an employee	233 770,00	Recovery if any will be based on outcome of the labour court
Challenging the recruitment process of the HR head at the Labour Court	45 007,55	Recovery if any will be based on outcome of the labour court
Termination of the Contract and recovery due to non performance	456 046,00	The matter is not finalised
Dispute at the Labour Court between employer an employee	301 357,44	Recovery if any will be based on outcome of the labour court
Dispute at the Labour Court between employer an employee	86 766,63	Settlement paid by MHSC
Dispute over employment Contract	153 060,00	Assessment still to be done pending the outcome of disciplinary hearing- employee on suspension

Reply:

ENTITY	(b) entity reporting to him makes use of private security firms	(i) name of each firm,	(ii) purpose	(iii) value	(iv) duration of each specified contract?
CEF (SOC) Ltd	CEF, iGas and SFF do not make use of private security firms. PetroSA and AEMFC utilise the services of private security firms.	PetroSA: Quattro Security (Bloemfontein and Tzaneen depots); Fidelity Security Services (Parow Offices) Excellerate Security Services at the GTL Refinery and surrounding sites in Mossel Bay AEMFC: Protea coin t/s Bidvest Security	PetroSA is making use of private security guards armed and unarmed in its Depots (Bloemfontein and Tzaneen), GTL Refinery and its surrounding sites in Mossel Bay and Parow (Head Office).	PetroSA: Quattro Security (Bloemfontein and Tzaneen depots) – R1,243,371,41 Fidelity Security Services (Parow Offices) – R,414,893,84 Excellerate Services (GTL Refinery and sites around Mossel Bay) – R70 000 000.00 AEMFC: R 25,847,324.00	PetroSA: Quattro and Fidelity – 01 October 2018 – 30 September 2021 GTL Refinery and surrounding sites in Mossel Bay – 15 January 2021 – 14 January 2024 with an option to extend for one year. AEMFC: 01 December 2020 – 30 November 2023
NECSA	The South African Nuclear Energy Corporation (NECSA) does not make use of private security firms.	N/A – NECSA uses in-house security	N/A	N/A	N/A
CGS	Yes. The Council for Geoscience has established an in-house security capacity in Head Office, Donkerhoek Core shed and Bellville regional office through mass in-housing process, whilst other regional offices are still protected through contract security	Polokwane regional office: Field Security Services   Upington regional office: ADT Fidelity Security Services Pietermaritzburg regional office: Peter Security Services	Polokwane Regional Office: 24/7 Security guarding services – one grade C armed guard during the day shift and similar during the night shift. Upington regional office: Providing armed response services only– alarm monitoring services Pietermaritzburg regional office: Providing armed response services only – alarm monitoring services	Polokwane Regional Office: R345, 000.00 Upington regional office: R88,252.04 Pietermaritzburg regional office: R19, 297.80	Polokwane Regional Office: 26 September 2020 – 26 September 2021 Upington regional office: 01 December 2020 – 30 November 2023 Pietermaritzburg regional office: 01 October 2019 to 30 September 2022
MINTEK	Mintek utilizes the services of three (3) companies for their security	Mfanyana Trading Enterprise Fidelity Security Services MI 7 Security Group	Mfanyana Trading Enterprise: General security services at Mintek Campus (24/7) Fidelity Security Services: Protection of Mintek’s Technology demonstration plant (Savmin) at Sibanye Gold Randfontein MI 7 Security Group: Tactical, Surveillance and protection services for derelict/ownerless holings closure (open shaft). These open shafts are used by illegal miners and syndicates to pursue Illegal mining activities.	Mfanyana Trading Enterprise: R375,898 p/m Fidelity Security Services: R R39,930 p/m MI 7 Security Group: R19m (total contract value. Payment based on use) Services are only used on adhoc basis as and when required	Mfanyana Trading Enterprise: 4 year contract Fidelity Security Services: month-to-month contract MI 7 Security Group: 3 year contract
MHSC	The MHSC does not make use of Private Security firm	N/A	N/A	N/A	N/A
NERSA	Yes	Imvula Security Services (Sub-contracted by AFMS Group)	Building Security	R2,347,538	2 years
NNR	Yes	RAMS Fire, Security and Cleaning Services (Pty) Ltd	Building security	R5 268,218.20	01 May 2018 – 30 April 2021
NRWDI	NRWDI does not make use of private security firms.	N/A	N/A	N/A	N/A
SDT	Yes	Rise Security Services (Pty) Ltd	For the provision of armed guarding services for its diamond premises, and to provide access control services	R38 934.36 monthly, VAT inclusive	Three (3) years (1 September 2018 to 21 August 2021)
SADPMR	Yes	Fidelity Securities EOS Empire All System	Fidelity Securities: Armed response and static guard services EOS Empire All System: Maintenance of security equipment	Fidelity Securities: R1,284,126,.72 EOS Empire All System: R70 000 plus R345.00 call out, excluding travel claims	Fidelity Securities: 12 months EOS Empire All System: 6 months
SANEDI	SANEDI does not make use of the services of a private security firm.	N/A	N/A	N/A	N/A

Reply:

1. Whether, with reference to the proposed new nuclear build, his department conducted any (a) feasibility studies and/or

The Department has in the past, conducted at least 13 feasibility studies towards a framework for the realisation of the Nuclear New Build Programme. These include amongst others the International Atomic Energy Agency’s peer review expert mission on Integrated Nuclear Infrastructure Review. As result of this, a number of studies and strategies were developed to address identified issues raised for preparation toward procurement of the 9600MW nuclear programme previously. These feasibility studies provided the necessary foundation from which to prepare for the procurement of the 2500MW nuclear new build programme. Some of the relevant feasibility Studies included:

1. Study on comparative analysis of Shale Gas to power versus Nuclear Power in SA
2. Benchmark of Procurement Framework
3. Cost of Nuclear Power
4. Owner-Operator and Financing Structures
5. Finance Options Models Solutions
6. Economic Impact of Localisation of Nuclear New Build Programme

(b) business or financial case studies for new nuclear generation in the past two years; if not, why not; if so, in each case, what are the relevant details;

Having those relevant studies as a basis, following the IRP2019 call for the smaller capacity of 2500MW the Department sought to update its information with the latest developments in the nuclear industry by testing the market appetite for the deployment of the Nuclear New Build Programme in South Africa. In June 2020, Department went out to test the market by issuing a non-binding Request for Information (RFI) for the 2500 MW of nuclear capacity. The process of finalising the RFI assessment is underway and this will culminate to into the implementation strategy, roadmap and procurement framework.

2. In view of the fact that the Integrated Resource Plan 2019 (IRP 2019) makes no provision for the procurement of new nuclear generation as indicated on table 5 on page 42 of the gazetted IRP, on what basis has he committed to procure 2500MW of new nuclear generation by 2024 in his Ministerial Performance Agreement;

The Department has been implementing the IRP2019 since it was promulgated in 2019 to provide sustainable energy mix to address the country energy needs with various energy technologies that are being rolled out. The IRP does not pronounce on procurement. It is a plan for electricity that is based on least cost calculations and policy adjustments. There are a number of steps in the IRP development process, one of the final steps is policy adjustment. The policy adjusted decision of an approved Integrated Resource Plan of 2019, Decision 8 states: “Commence preparations for a nuclear build programme to the extent of 2500 MW at a pace and scale that the country can afford because it is a no-regret option in the long term”. The Minister’s Section 34 Determination in terms of the Electricity Regulations Act No. 4 of 2006, as amended, is where provision for procurement of electricity generation is made. The policy Decision 8 of the IRP2019 provides the basis upon which the Minister has committed to procure 2500MW of new nuclear generation by 2024 in his Ministerial Performance Agreement;

The preparations leading to the procurement in 2024 have already started taking into account:

1. That the 2500 MW Nuclear Build Programme is contained in the DMRE 2020-2025 Strategic Plan and the Annual Performance Plan
2. That the 2500 MW Nuclear Build Programme is contained in Policy Position 8 of the IRP 2019
3. That the 2500 MW Nuclear Build Programme is contained in the Performance Agreement of the Minister.
4. That the 2500 MW Nuclear Build Programme is contained in the 2019-2024 MTSF Priorities.

The preparation for nuclear power plant is long lead-time infrastructure project and takes up to about 12 years from the planning until the commission power plant to the grid to generate electricity. These preparatory activities include but are not limited to design, siting, procurement, construction and commissioning of the nuclear power station beyond 2030. Most of the baseload coal fired power plants will be decommissioned beyond 2030 and based on the long lead times for a nuclear programme, starting the process early will yield a no regret option taking into account that nuclear is a clean baseload source of power.

3. Why is he prioritising nuclear power generation ahead of other generation solutions despite ESKOM’s admission that nuclear energy is neither a least-cost, nor a short-term solution to the electricity crisis in the Republic? NW828E

The Department has a responsibility to implement the approved IRP in totality to ensure security of energy supply for the country. It is not true that nuclear is being prioritised. Since the promulgation of the initial IRP 2010-30 and the subsequent revised IRP 2019, the only other technologies to be commissioned in line with these plans have not included nuclear. We have procured more renewable energy technologies and we continue to do so and nuclear has not been one of those. Even with the section 34 determinations following the IRP 2019, Nuclear energy is being subjected to a robust public participation process prior to NERSA’s concurrence. It is therefore not true to imply that nuclear is brought in as short-term solution despite it having policy adjusted into the IRP post the modelling process. It must be noted that the IRP does not factor in a number of issues such as hidden costs including the grid costs, balancing costs, systems costs, job creation, local industry development, geopolitics, labour movement dynamics and other related aspects. In addition, the IRP modelling process used the average capital cost of nuclear projects as US$5000/kWe whilst unlike other energy sources, nuclear projects have shown to have a wide range from as low as US$2000. After testing the market, we may arrive at a cost far lower than any other energy source possible, and this is the reason why it will be prudent to move forward with procurement of nuclear power. In addition, unlike most other energy sources which have lifetimes and loans suit limited private investor positions of short-term returns, nuclear power plants have lifetimes exceeding 60 years. Koeberg is a prime example of this and has shown to be the cheapest of all energy sources currently on the grid. Even after 20 years when a nuclear plant has been paid off (due to market limitations on loan durations), the plants will continue to generate electricity at the lowest operational cost. Each energy source must be looked at for its merits, and hence a balanced energy mix of all sources is good for South Africa.

Reply:

No.

South Africa has not taken a decision to be part of the Extractive Industries Transparency Initiative.

Reply:

(1)(a)(i) The Department‘s records reveal that no mining permit or mining right has ever been issued over an area that constitutes a proclaimed heritage site. The records however shows that only one prospecting right was erroneously issued within the core of the Mapungubwe World Heritage site, but there is no evidence of any activities having been undertaken.

(ii)The Department‘s records reveal that no mining permit or mining right has ever been issued over an area that constitutes a proclaimed heritage site. The records however shows that only one prospecting right was erroneously issued within the core of the Mapungubwe World Heritage site, but there is no evidence of any activities having been undertaken.

(b)The Department‘s records reveal that no mining permit or mining right has ever been issued over an area that constitutes a proclaimed heritage site. The records however shows that only one prospecting right was erroneously issued within the core of the Mapungubwe World Heritage site, but there is no evidence of any activities having been undertaken.

(c)The Department‘s records reveal that no mining permit or mining right has ever been issued over an area that constitutes a proclaimed heritage site. The records however shows that only one prospecting right was erroneously issued within the core of the Mapungubwe World Heritage site, but there is no evidence of any activities having been undertaken.

(2)As indicated above, other than the prospecting permit that was issued erroneously, no mining permits were issued within a heritage site.

(3)As there were no permits within the heritage sites, there are no studies for mining within heritage sites.

 

Reply:

a) It is government policy to provide free basic electricity to the indigent through licensed electricity distributors (Eskom and Municipalities). The free basic electricity provision is independent of the source of generation of the electricity (Eskom or IPPs).

b) See response to (a.) above.

c) See response to (a.) above.

 

Reply:

(a) (i) 55.23% women,

(ii) 20.11% youth,

(iii) 0.94% persons with disabilities,

(b) The Department has made the following provisions to ensure employment equity, especially of persons with disabilities:

• Employed a dedicated focal point responsible for Gender, Disability Transformation and one for Youth,
• In the process of appointing the Employment Equity Committee for the newly established Department of Mineral Resources and Energy,
• In the process of appointing an Employment Equity Manager for the Department
• Responsibility for EE will be incorporated in the Performance Agreements of Branch Heads,
• Drafted an EE Policy and Plan.

(c) The name of each entity reporting to the Minister who has not complied with the provisions of employment equity with regard to the employment of persons with disabilities:

Entity	(a)(i)	(a)(ii)	(a)(iii)	(b)	(c)
CGS	214	153	7	N/A	N/A
MINTEK	268	228	12	N/A	N/A
MHSC	40%	21%	2%	N/A	N/A
NERSA	57%	26%	1.3%	N/A	N/A
NNR	50%	18.3%	2.7%	N/A	N/A
NRWDI	62.5%	21.9%	6.25%	N/A	N/A
SDT	10	7	3	N/A	N/A
SANEDI	23	11	0	N/A	SANEDI currently has no employees who are persons of disabilities
SADPMR	68	20	1 male	N/A	N/A

CEF Group and its subsidiaries

Entity	(a)(i) % of Women	(a)(ii) % of youth	(a)(iii) % of People living with Disabilities	(b) Provisions or strategy per entity to ensure employment equity, especially of persons with disabilities is achieved
PetroSA	30%	19%	1.7%	The business continues to look at the optimisation of resources with minimal recruitment processes until the implementation of the new Corporate Plan and business model. When the organisation does have opportunities for movement in the future, the placement of women and people with disabilities will be given priority in filling afore-mentioned positions.
AEMFC	26%	55%	0.22%	AEMFC is setting targets for the achievement of its targets for people living with disabilities and women. This will be in the updated EE plan for 2021
PASA	31%	27%	2%	EE Committee monitoring quarterly barriers to ensure representation
SFF	31.2%	28%	Current exercise underway internally to establish number of persons with disability	Employment Equity Terms of Reference currently being reviewed and new committee will be established in 2021.   2020/2021 Strategy includes an assessment of persons with disability internally and recruitment with persons with disability.   SFF advised that they are working with the university to bring in youth with disability.
CEF SOC	45%	40%	2%	Women representation has improved and exceeded the 30% target. Similarly, youth target of 30% has also been exceeded.
CEF Group	31%	28%	1%	The Group gender representation is 69% male vs 31% female. The gender representation at Group Top Management has increased from 25% Female representation in Q1 to 33.3% in Q2 2020/21. Youth representation is below 30% target while the organisation has regressed in terms of representation of people living with disabilities

 

Necsa and its subsidiaries

Necsa

(a) (i) Proportion of person employed by the institution who are women is 673, which represent 37.7%

(ii) Persons who are youth, herewith defined as employees who are not older than 35 years of age - 461

(iii) Persons with the disabilities – 25

NTP

(a) What proportion of persons employed by NTP fall under the category of:

(i) Women: 41%

(ii) Youth: 32%

(iii) Persons with disabilities: 0.26%

Pelchem

(a) What proportion of persons employed by NTP fall under the category of:

(i) Women: 30

(ii) Youth: 0; permitted 10 students

(iii) Persons with disabilities: 1

 

Reply:

1.

a) An independent technical audit of Ekurhuleni was done in January 2006. Another audit was done in 2020 but the focus was on the business assessment.

b) The report on the independent technical audit was submitted in the same year in May 2006. Due to COVID induced travel restrictions that was in place when the business assessment was done, the site inspection on the audit conducted in 2020 will be done in early 2021.The draft report of the business assessment will be sent to the Licensee by the end of November 2020.

c) It was recommended that:

1. There must be investment in the maintenance and the refurbishment of the networks and on skilled staff.
2. The Department must operate as an integrated entity.
3. The maintenance and refurbishment plans must also be integrated.

d) According to our knowledge, there were 45 intake points in 2005/6 and there are now 55 intake points.

Increased Infrastructure

The Department of Energy has since 2006 increased its infrastructure in the various Depots in Ekurhuleni as follows:-

Electrification of Subsidized Households	High Mast Lights	Street Lights	Substations
92 161	977	15 458	Upgrading/Construction of 13 Substations

The 92 161 additional connections excludes town planning development connections for non-subsidized households, which also forms part of the electricity grid and infrastructure to be maintained by the Department.

2. NERSA requests all audited licensees to develop Corrective Action Plans so that this can be monitored. The same will happen with Ekurhuleni Metro when the site inspection has been done and a final report has been shared with the Licensee. One of the objectives of the NERSA audits is to encourage licensees to do self-monitoring so that the networks do not deteriorate.

Reply:

1. Yes, the NRS 047 and the relevant NRS 048 specifications are attached.

2. In terms of the license condition 5.4.1 the Energy Regulator is entitled to collect information such as the maintenance plans of the licensee, the process of collecting and examining such information is always undertaken during the annual compliance audits that the Regulator conducts on selected licensees each year. The City of Ekurhulenihad not been audited before, and had therefore not submitted its maintenance plants. It is however on the list of the licensees to be audited during this financial year.

3. According to license condition 5.3.2, the licensee is required to always prepare the maintenance plans annually and adhere to this, however it is not the requirement for the licensee to submit the report to the regulator annually. The maintenance plans are scrutinised when the licensee is selected for a compliance audit.

Reply:

1. Saldanha Terminal

(1)     For each storage facility owned, leased and/or operated by the Strategic Fuel Fund, (a) on what date was the last (i) maintenance and (ii) refurbishment undertaken on the storage tanks and (b) what was the cost of such maintenance and/or refurbishment in each case;

• Saldanha Terminal is made of Concrete Underground Closed tanks which do not require maintenance or refurbishments on the Saldanha tanks. There are however scheduled inspections to test the tanks structure and roof supports. In all inspections done to date there were NO abnormalities that were detected. This include the tank settlement test that was done in 2016, where no discernible changes since commissioning were observed.

(2) (a) on what date was each specified facility last audited for environmental compliance and (b) what were the findings of the last environmental audit in each case;

(a) The last full recertification Audit was conducted by SABS on ISO14001 2015 on the 10TH to the 13TH March 2020

(b) One “minor” finding was issued and cleared by SFF Saldanha and we have thus been recertified under the new ISO 140001 2015 StandardCertificate}.

(3)   whether there are any indications of seepage into the ground and/or the groundwater table; if not, what is the position in this regard; if so, what are

the relevant details of the seepage?

A “Ground water sampling” exercise is done bi-annually and the last one was done in May 2019 and there is no seepage detected to date.

​​2. ​Milnerton Terminal

1. For each storage facility owned, leased and/or operated by the Strategic Fuel Fund;

a) on what date was the last Maintenance:

(i) Maintenance of the SFF Milnerton tank farm is an on-going exercise based on a schedule created as per the operating and manufacturers specification of a particular equipment. These schedules are distributed from the Maintenance planner’s office to the relevant staff (electrical or mechanical). Another form of maintenance is “adhoc” as and when a breakdown occurs it is attended to.

(ii) 1999 - 2002

• During this period 11 tanks were refurbished.

​b) For each storage facility owned, leased and/or operated by the Strategic Fuel Fund, what was the cost of such maintenance and/or refurbishment in each case:

• SFF paid market related costs as obtained following its approved tender process.

2. On what date was each specified facility last audited for environmental compliance:

a) An “Environmental Legal Compliance Audit” is conducted bi-annually and the last audit was done in June 2019.

b) The results of these audit was 2 minor findings that were closed-off and terminal received certification.

3. Whether there are any indications of seepage into the ground and/or the groundwater table; if not, what is the position in this regard; if so, what are the relevant details of the seepage?

• A “Ground water sampling” exercise is done bi-annually and the last one was done in December 2019 and there is no seepage detected to date,

 

Reply:

1. The Department of Mineral, Resources and Energy does not conduct any environmental audits, as these fall under different departments.

2. The refinery is not operational at the moment, however in terms of the Petroleum Products Act, the refinery was compliant prior to the incident.

Reply:

1. The Department does not have specific date at which the refinery is scheduled to start operating, what was shared with the Department from Astron Energy is that the assessments of the incident arestill ongoing and there is no firm date of when the refinery would come back to be operational.
2. Safety and environmental inspectionsand/or audit do not fall within the ambit of the Department of Mineral, Resources and Energy.

Reply:

a)  (i) The temporary electricity distribution licence granted to City of Ekurhuleni is still valid as it has two extension letters of which the second extension letter, dated 8 May 2007, extents the licence until 36 months after the promulgation of the Licensing Regulation made under the Electricity Regulation Act, 2006 (Act. No 4 of 2006). Until the Minister of Mineral Resources and Energy promulgates the Licensing Regulations, the temporary licences remain valid.

(ii)Refer to (i) above.

b) There are no legal implications for the City of Ekurhuleni operating with a temporary licence, as it was issued and extended by NERSA in line with section 4 (a) of the Electricity Regulation Act, 2006 (Act. No 4 of 2006).

Reply:

a) The requirements as it relates to borrow pits are not informed by the nature of ownership of the land over which they are to be undertaken, but the distinction revolves around the entity that intends to undertake such borrow pit activities. The distinction is in the following manner.;If a natural person or an entity that intends to undertake the borrow pit activities does not form part of those that are not exempted in terms of Section 106 of the Mineral and Petroleum Resources Development Act (Act 28 of 2002), they will be required to lodge an application for either a mining permit(Where the area does not exceed 5 hectares and the period of activities may not be longer than the period for which a mining permit can be valid for) or a Mining right (Where the area exceeds 5 hectares and the activities may take longer than the period provided for mining permit). It is important to highlight that the applications for either mining permit or mining right are to be lodged simultaneously with the application for Environmental Authorization in terms of the National Environmental Management Act (Act 107 of 1998).

In case of entities, that are exempted from applying for either a mining permit or a mining right in terms of Section 106 of the MPRDA, they were previously only required to submit the application for an environmental authorization, however following the delisting of this activity from the listing notices, they are currently under no obligation to submit such unless if any of the activities to be undertaking over and above the mining of material may fall under the listing notices.

b) As indicated above, the requirements are not informed by the nature of land ownership. Whether it’s Private or State-owned land, the requirements as outlined above would apply.

(c) The Department of Mineral Resources and Energy is the authority responsible for ensuring compliance by the entities/persons that are undertaking borrow pits activities. It is however imperative to highlight that following the delisting of activities exempted in terms of Section 106 of the MPRDA IN 2017, the activities that are currently undertaken by the exempted State Owned Entities are excluded from this compliance monitoring, although the DMRE and the Department of Environment, Forestry and Fisheries have now embarked on a process of effecting the amendments to overcome this gap. The draft documents are already in place and DEFF is in the process of finalizing the same to enable the DMRE to resume this responsibility of regulating the entities that are exempted from applying for either mining permits or mining rights.

d) The measures to ensure compliance are invoked as necessitated by the nature of non-compliance and differs from one case to the other. This may amongst others include, a Compliance Notice being issued in terms of Section 31L of NEMA with the instructions for corrective measures/steps to be effected. Failure to adhere to these administrative measures in terms of NEMA may also lead to Criminal measures being invoked.

In a case where the said borrow pit would have necessitated that the mining permit or mining right be issued (those that are not exempted in terms of Section 106 of the MPRDA), the said activity may also be suspended in terms of MPRDA. In severe cases of non-compliance, such a mining permit or mining right may be cancelled in terms of Section 47 of the MPRDA, after all the due administrative processes have been followed.

e) Firstly, if the nature of non-compliance warrants that the DMRE should take the appropriate steps as provided for in the legislation, such a family may bring the aspect to the Department’s attention, so that the measures as outlined above can be considered.

(2) With regard to the six children who have reportedly died in three borrow pits in the Moretele Local Municipality, North West, in the past few years, what (a) measures is his department taking to ensure that there is stricter compliance and enforcement and (b) support will his department provide to the families of the deceased children if the deaths were found to have been preventable and due to negligence and/or non-compliance?

Reply

1. The Department will conduct an investigation to establish the facts before responding comprehensively.

(b) It is imperative to be familiar with the actual circumstances in order to offer appropriate assistance.

 

Reply:

Before a mining right is granted, a thorough consultation with interested and affected parties including other government department is conducted. In a situation where there are communities, and are to be relocated, a consultation process/Public participation should be undertaken by the mine or by an applicant for a mining right.

An all-inclusive method(s) should be utilised to ensure that community groups can take part in the consultation process in a fair and transparent manner.

 

Reply:

1. In line with similar prognosis on supply and demand, the IRP2019 recognises that there is risk of load shedding in the next 18 to 24 months.

It is for this reason that as one of the 9 (nine) decisions in the IRP2019 we committed to the following:

Decision 1:Undertake a power purchase programme to assist with the acquisition of capacity needed to supplement Eskom’s declining plant performance and to reduce the extensive utilisation of diesel peaking generators in the immediate to medium term. Lead-time is therefore key.

Decision 2: Koeberg power plant design life must be extended by another 20 years by undertaking the necessary technical and regulatory work.

Decision 3: Support Eskom to comply with MES over time, taking into account the energy security imperative and the risk of adverse economic impact.

We in addition to these decisions made provision for distributed generation by allowing electrify consumers to generate their own electricity. We have in this regard taken following steps:

• • The department has enabled generation for own use by removing the licensing requirements for certain category of generation facilities under one megawatt (1 MW). 139 requests for registration have been processed by NERSA to date with capacity of 59. This capacity excludes installations under 1MW that register direct with local municipalities.
  • The department has also eased the licensing of generation for own use above 1 MW which is mainly to supplement power supply to commercial and industrial customers including the mines. The IRP 2019 now makes provision for distributed generation for own use above 1MW, which takes away the need for a Ministerial approval for deviation from the IRP before NERSA can process a generation license application. 5 Licences have been issued to date. The Department has invited applicants experiencing challenges to engage DDG responsible for Programmes and Projects.

2. These initiatives have already beenpublicly pronounced.

 

Reply:

(1)(a)

(i) The total number of households electrified over the past five financial years is 1,266,240.

(ii) Provincial breakdown of number of indigent households electrified in last 5 years:

(b) The Mixed Developer Policy Guideline was introduced in October 2018. Before this date, all applications received by the Department on mixed developer projects were treated as normal Bulk and Households applications. Funding for infrastructure under the mixed development category is provided for on a pro-rata basis based on the percentange consumption of indegent customers within the development. If the percentage power consumption of indegent customers within the development is 70% and above, the bulk infrastructure qualifies for fullfunding through the INEP Grant.

All indigent customers qualify for free basic electricity as per the Free Basic Electricity policy.

(2)

(a) A total of 214 517 households were electrified in the past financial and these households have electricity meters installed.

(b) No outstanding meter installations have been reported by our electrification programme implementing agents (Eskom and Municipalities).

Reply:

The Minister makes annual declaration of Financial Interest to Parliament through Parliamentary Ethics Committee. The Member can, if she is interested, make a request to access such declaration from the Committee.

Reply:

The Minister makes annual declarations to Parliament through the Parliamentary Ethics Committee. The Member can, if she is interested, make a request of the Ministers Declaration of Financial Interests from the Committee.

 

Reply:

(a) No Regional Offices of DMRE are still closed under Level 2.

All sixteen (16) Regional Offices of the Department of Mineral Resources and Energy are operating during lock down level 2. However, these offices are operating at the capacity of 30% to curb the spread of Covid-19.

Reply:

List of application for Prospecting Rightlodged in Limpopo for the past two years

DATE LODGED	COMPANY	MINERAL
16 Feb 2018	KADOSH MINING PTY LTD	COPPER,DIAMOND (GENERAL),DIAMOND,DIAMOND (ALLUVIAL),GEMSTONE EXCEPT DIAMONDS,GOLD,PHOSPHATE,PGM
01 March 2018	DE BEERS CONDOLIDATED MINES PTY LTD	DIAMOND (INKIMBERLITE)
14 Nov 2018	RAZORBILL PROPERTIES 12 (PTY0 LTD	DIAMOND,DIAMOND(GENERAL),DIAMOND (KIMBERLITE)
14 Nov 2018	RAZORBILL PROPERTIES 12 (PTY0 LTD	DIAMOND,DIAMOND(GENERAL), DIAMOND(KIMBERLITE)
27 Nov 2018	BOLDMAN MINING ENTERPRISE (PTY) LTD	COAL,COPPER,DIAMOND,MAGNESITE,URANIUM
15 March 2019	GABBINS HOLDINGS PTY	DIAMOND (GENERAL),DIAMOND,DIAMOND (INKIMBERLITE),DIAMOND ALLUVIAL),GOLD,PGM,SILVER
09 April 2019	KDB MINING PTY LTD	DIAMOND (GENERAL)
15 April 2019	WIZA MINING PTY LTD	Chrome,andalusite,diamondgeneral,iron,manganese,pgm
15 April 2019	BASADZI PELE MANAGEMENT CONSULTING AND PROJECTS	Chrome,andalusite,diamondgeneral,iron,manganese,pgm
27 May 2019	ANGLO EXPLORATION HOLDINGS PTY LTD	CHROME,COPPER,DIAMOND(GENERAL),GOLD,IRON,LIMESTONE,MAGNESITE,MANGANESE,SILVER,TIN,ZINC
03 June 2019	VHARANANI MINING PTY LTD	DIAMOND, GOLD
22 Aug 2019	NKUZI YA MANANGA GROUP PTY LTD	GEMSTONES EXCEPT DIAMONDS, GOLD ORE, TUNGSTEN ORE, ZINC ORE
21 Oct 2019	YUGASET PTY LTD	DIAMOND (ALLUVIAL)
22 Oct 2019	Atok Mining House Pty Ltd Limpopo	COPPER ORE , DOLOMITE, GEMSTONES EXCEPT DIAMONDS, SILICA SAND (GENERAL)
10 Dec 2019	ANOITED MINING (PTY) LTD	CHROME,COPPER,DIAMOND (GENERAL),DIAMOND,DIENSION STONE, GOLD,IRON,MAGNESITE,MANGANESE,METALLURGICAL,NICKEL,PGM,SILICA SAND (GENERAL),SILICA SAND (SILICA) SILICON,SILVER
17 Dec 2019	BARWA BA PHALADI MINING AND PROJECTS CC	DIAMOND,DIAMOND (ALLUVIAL),DIAMOND(KIMBERLITE),GRAPHITE,MAGNESITE
17 Dec 2019	ON REEF INVESTMENTS (PTY) LTD	DIAMOND,DIAMOND (ALLUVIAL),DIAMOND(KIMBERLITE),GRAPHITE,MAGNESITE
25 Feb 2020	BOO WANDO HOLDINGS	AGGREGATE,CHRONME,COBALT,COPPER,DIAMON (GENERAL),DIAMOND,DIAMOND (KIMBERLITE),GOLD,GRAVEL,IRON,NICKEL,PGM,RARE EARTHS,SILVER,SULPHUR(IN PYRITE)
27 Feb 2020	SAMIN GROUP (PTY) LTD	BRYTES,CHROME,COAL,COBALT,COPPER,DIAMOND (GENERAL),DIAMOND,DIAMOND (ALLUVIAL),DIAMOND (KIMBERLITE,GOLD,GRAPHITE,IRON,NICKEL
27 Feb2020	SAMIN GROUP (PTY) LTD	BRYTES,CHROME,COAL,COBALT,COPPER,DIAMOND (GENERAL),DIAMOND,DIAMOND (ALLUVIAL),DIAMOND (KIMBERLITE,GOLD,GRAPHITE,IRON,NICKEL
04 Mar 2020	MIHLOTI MINING (PTY) LTD	DIAMOND, DIAMOND (ALLUVIAL), DIAMOND (IN KIMBERLITE)
27 Mar 2020	TSHIKUNDA MINING (PTY) LTD	NICKEL,LEAD,IRON,GRAPHITE,GOLD,GARNET(GEMSTONE),GARNET(ABBASIVE),DIAMOND (KIMBERLIET), DIAMOND (ALLUVIAL), DIAMOND, DIAMOND (GENERAL),COPPER,CORUNDUM, COBALT,BRYTES
24 April 2020	MAFURI MINING CONSTRUCTION (MPUMALANGA) PTY LTD	COPPER, GEMSTONES EXCEPT DIAMONDS, GOLD, Phosphate, URANIUM, VERMICULITE
09 July 2020	MBOKOTO MIINING GROUP (PTY) LTD:	BRYTES, COBALT, COPPER ORE, CORUNDUM, DIAMOND (ALLUVIAL), DIAMOND (IN KIMBERLITE), GARNET (ABRASIVE) ,GARNET (GEMSTONE) ,GOLD ORE ,IRON ORE, LEAD, NICKEL ORE
10 July 2020	MAKANYAGO GENERAL BUSSINESS ENETERPRISE	DIAMON (GENERAL) DIAMOND DIAMOND (ALLUVIAL) DIAMOND (IN KIMBERLITE)
17 July 2020	MAMPURU RED GRANITE INVESTMENTS	COBALT, COPPER ORE, DIAMON (GENERAL), DIAMOND, DIAMOND (IN KIMBERLITE), GOLD ORE, IRON ORE, MANGANESE ORE, NICKEL ORE QUARTZ (GEMSTONE), SILCRETE (SILICA), SILICA SAND (GENERAL) URANIUM ORE, VANADIUM ORE, VERMICULITE, ZINC ORE
29 July 2020	MARALE COMPANY PTY LTD	AGGREGATE, COAL, DIAMOND, PSEUDOCOAL, TORBANITE/OIL SHALE

 

Reply:

1. Answer:The GPS co-ordinates, MHSC has experienced various delays in the finalisation of the projects especially on the approval of site location after the City of Joburg change in position on their original approval of site location for the projects. The details will be provided at the later stage the location of new MHSC offices is confirmed.

2. Answer: (a) Initial total project amount is confirmed to be R4 800 000,00 inclusive of value added Tax.

(b) Total amount paid to the service provider is R4 457 741.14 on original project plan. This excludes the additional costs incurred for additional technical R 191 291.32 for more technical work and storage costs.R 104 291.32 was spent onNew Site Additional Costs (Drawings, Design & Artworks) for Johannesburg Land Company application requirements R 87 000.32 Storage Costs as Result of Delays in Installation of the Monument. Therefore the total amount paid to date on the project is R 4 649 032,46.

Reply:

(1) Two prospecting rights were issued

(b) There is no specified timeframe with regard to issuing of rights.

(2) Please see (1)(b) above

(3) No mining rights were issued since 01 April 2020

(4) Please see (3) above

DDG: MR

Date:

Recommended / Not Recommended

Advocate TS Mokoena

Director General: Department of Mineral Resources and Energy

………………/………………/2020

Approved/Not Approved

Mr SG Mantashe

Minister of Mineral Resources and Energy

Date Submitted:-……………/………………/2020

Reply:

 

1. The Department have developed a Free Basic Electricity (FBE) Policy which aims to protect the indigents by provision of lifeline tariff to indigent households as part of government initiative of poverty alleviation. The amount of free basic electricity provided is deemed sufficient to provide basic lighting, basic media access, cooking and basic water heating. The following measures are also available to protect the poor:

• The Department isfacilitating access to electricity through government subsidised Integrated National Electrification Program (INEP) that is improving the quality of life of all citizens through electricity infrastructure and provision of FBE to indigents;
• Free connections provided to Eskom’s low consumption residential customers;
• Lower price increases applied to low consumption domestic customers; and
• Inclining block tariffs (IBT) prescribed in the Electricity Pricing Policy and being implemented by municipalities.

2. Installation and maintenance of electricity prepaid meters is provided by the utility or distribution licence holder.

3. The Free Basic Electricity Policy provide for targeting of indigents or targeted customers by giving them limited free basic electricity. Municipalities develop indigent register or use targeting criteria as prescribed by the Free Basic Electricity. The proposed level of service is for a grid based system for qualifying domestic customers.Terms of use and distribution are different in every Municipality;however, municipalities restrict FBE to a minimum of 50kwh per household per month as prescribed by the policy homes while other Municipalities uses 20 Amps meters as the qualification criteria for Free Basic Electricity.

Reply:

a)  After consultation with Nersa the following information, relating to the prepaid charge on prepaid electricity was provided:

1.1 Domestic Tariffs

• 1. Domestic Standard Supply Single & Three Phase: Conventional & Prepaid

Tariff blocks	c/kWh
Block 1 (0-100 kWh)	170.28
Block 2 (101 – 400 kWh)	199.28
Block 3 (401 – 650 kWh)	217.11
Block 4 (>650kWh)	234.06

 

1.2 Domestic Indigent: Conventional & Prepaid

Tariff blocks	c/kWh
Block 1 (0-100 kWh)	169.89
Block 2 (101 – 400 kWh)	195.43
Block 3 (401 – 650 kWh)	214.42
Block 4 (>650kWh)	228.79

 

1.3 Lifeline: Prepaid

Tariff blocks	c/kWh
Block 1 (0-100 kWh)	169.89
Block 2 (101 – 400 kWh)	195.43
Block 3 (401 – 650 kWh)	214.42
Block 4 (>650kWh)	228.79

1.4 Domestic Three Phase Demand Supply: Convention & Prepaid

Domestic Three Phase Demand Supply

• Basic charge: R644.89/month
• Energy charge:130.76c/kWh
• Demand charge: R120.29/kVA

2. Agriculture and Farm Land: Conventional & Prepaid

2.1 Agriculture Tariffs Conventional

• Energy charge: 211.21c/kWh

3. Non - Domestic Single - Phase: Prepaid

3.1 Single Phase: Prepaid (≤ 60A)

• Basic charge: R1 047.12/month
• Energy charge:181.19c/kWh

3.2 Single Phase: Prepaid (≥ 60A)

• Basic charge: R1 309.18/month
• Energy charge: 181.19c/kWh

b) The metro has indicated that it does not pay metering companies for the sale of electricity. However, resellers buy electricity in bulk and resell to their customers.

Reply:

 

1. Government does not have intentions or policy to sell Eskom, however, several interventions to date have been undertaken to restore Eskom Balance Sheet, recovery losses and deal with inefficiencies. Establishing a new company will require a review of the current existing legislation, the government and Eskom have focused on seeing through the turnaround strategy of Eskom to see its full implementation. Also, plans are ongoing on the two new build power stations to be fast tracked for the completion and commission. The Government has also allowed for small scale embedded generators to be installed, allowed for procurement of new generation capability under the IPP program. The current Eskom financial burden and the Covid 19 pandemic might delay the recovery. Municipalities will also be allowed to do their own procurement. This is to help with electricity interruptions as the government commitment in ensuring electric supply. The approved IRP acknowledges the need for new additional capability which will be needed and which type of technology.

2. Eskom as a generator can participate in new generation bidwindows to address some of their inefficiencies. In terms of capacity needed going forward,Government has opened the door for Private participants, that include Eskom and private sector is part of the program. Government will continue to look at existing legislation in order to enable Eskom and other stakeholder’s advances in a manner that benefits Eskom, customers and investors.

 

Reply:

 

1. See Conditions of Licence: Section 5 (5.1 – 5.4) as reproduced below.

2. Distribution Licence attached as Annexure “A”.

CONDITIONS OF LICENCE

The licensee shall be bound by the following conditions to this licence:

5.1. LEGAL CONDITIONS

5.1.1 The licensee shall supply electricity within the area of supply mentioned in schedule I below to every applicant who is in a position to make satisfactory arrangements for payment thereof.

5.1.2 The licensee shall not reduce or discontinue the supply of electricity to a consumer unless -

(i) the consumer is insolvent; or

(ii) the consumer has failed to pay the agreed charges or to comply with the conditions of supply and has failed to remedy the default within 14 days after receiving from the licensee a written notice by post calling upon him to do so.

5.1.3 Where the licensee is undertaking an electrification programme which has been approved based on a one year fixed and three year rolling programme in terms of the Integrated National Electrification Programme, the licensee's programme shall set out the approximate dates on which potential consumers will receive their electricity supply, the licensee shall supply electricity to such potential consumers in accordance with the approved electrification plan.

5.1.4 The National Electricity Regulator shall be entitled to settle disputes between the licensee and another supplier, or between the licensee and its consumers or prospective consumers regarding -

i. the right to supply;

ii. the quality of such supply and the provision of services in connection therewith;

iii. the condition on and prices at which electricity is supplied;

iv. the installation and functioning of meters;

v. the suitability of the equipment of the licensee;

vi. delays in or refusal to supply by the licensee;

vii. any other matter in respect of which the licensee or its consumers requests the National Electricity Regulator to act as mediator.

5.1.5 Any decision of the regulator on a dispute as contemplated in 5.1.4 above is binding on the parties to the dispute.

5.1.6. This licence is not transferable without the approval of the National Electricity

Regulator.

5.2. FINANCIAL CONDITIONS

5.2.1 The licensee shall maintain separate electricity distribution business affairs from the licensee's other affairs so that the revenues; cost; assets; liabilities; reserves and provisions for the electricity business are separately identifiable in the books of the licensee from those of any other business.

5.2.2 The licensee shall prepare on a consistent basis from such accounting records in respect of the financial year of the licensee, and each subsequent financial year, accounting statements comprising -

i. an income statement;

ii. a balance sheet.

together with notes thereto, and in appropriate detail the amounts of any revenue, cost, asset, liability, reserve or provision which has been charged from or to any other business together with a description thereof.

5.2.3. The licensee shall annually submit audited copies of such accounting statements to the National Electricity Regulator within 180 days of the end of the licensee’s financial year. This shall include an asset register, purchase value and current value.

5.2.4. The National Electricity Regulator shall determine the prices at which the licensee shall supply electricity to its consumers.

5.2.5. The licensee is not permitted to charge any consumers with other tariffs than those specified in the schedule of approved tariffs set out in schedule 2 hereto, as revised from time to time, without the approval of the National Electricity Regulator.

5.2.6. The licensee shall pay the bulk supplier from whom it purchases its electricity.

5.2.7. Ensure that monies allocated for statutory National Electricity Regulator purposes in the licensees’ budget are utilised for such purposes.

5.2.8. Ensure that electricity tariffs increases are promulgated through appropriate media.

5.3 TECHNICAL CONDITIONS

5.3.1 The licensee shall supply electricity to its consumers in compliance with quality standards/criteria as the National Electricity Regulator may from time to time prescribe. Currently such applicable standards are, NRS 048 and NRS 047.

5.3.2 Prepare and adhere to plans, which protect customers and ensure the effectiveness of the industry such as:

i. Maintenance Schedules;

ii. Standards of Service (NRS 047) and Quality (NRS 048);

iii. enquiries and complaints management;

iv. licence compliance management;

v. consumer/public and staff safety/education; and

vi. system losses reduction.

5.3.3 Explore demand management strategies before augmentingor expanding a distribution system.

5.3.4 Ensure that metering, billing and revenue collection are effective, efficient and accurate.

5.4 GENERAL CONDITIONS

5.4.1 The National Electricity Regulator shall be entitled to collect such information from the licensee or its consumers as it deems necessary.

5.4.2. The licensee shall supply the NER on a quarterly basis with new electrification connections completed during the previous three months, starting in April of each year.

5.4.3. The National Electricity Regulator, or any person authorised by it in writing, may enter upon premises of the licensee and inspect any plant, machinery, books, accounts and other documents found there.

5.4.4. The National Electricity Regulator may call upon the licensee to furnish to it such periodical or other returns in such form as the National Electricity Regulator may from time to time prescribe, and such particulars in respect of the undertaking as the National Electricity Regulator may from time to time demand.

END

Reply:

1.  The Department has promulgated a Guideline for the Compilation of a Mandatory Code of Practice for the Mitigation and Management of Covid-19 Outbreak. For instance, the Guideline requires the employers to ensure that employees returning from areas which are regarded as hotspots of COVID-19 are quarantined for 14 days before they return to work. Also, there must be vigorous screening and testing at the mines as well as to ensure that hygiene practices and the provision of adequate personal protective equipment (PPE) are maintained.

Further, the Department conducts inspections to ensure that effective measures are implemented on the mitigation and management of COVID-19 and issue instructions where necessary to ensure compliance with the legal provisions.

2. The Guideline issued by the Department does not require for only screening to be done but for employees to also be tested. In fact, most of the cases reported by the sector were asymptomatic and were as a result of the DMRE requirement for testing to be done.

The mines are also required through the Guideline to work in collaboration with the Department of Health (DOH) when conducting contact tracing.

 

Chief Inspector Mines

Date:

Recommended / Not Recommended

Advocate T S Mokoena

Director General: Department of Mineral Resources and Energy

………………/………………/2020

Approved/Not Approved

Mr SG Mantashe, MP

Minister of Mineral Resource and Energy

Date Submitted:-……………/………………/2020

Reply:

1. The department did not award tenders for Covid-19

Not applicable

Not applicable

Not applicable

1. The is no procurement facilitated through deviations for Covid-19

Not applicable

Not applicable

1. There were no tenders awarded

Reply:

1. The feel reserves at each of the refineries and depots are a function of the market share of each of the oil companies as well as company policy.
2. No domestic shortages are foreseen, Currently all the refineries are operational with the exception of the Milnerton Refinery which is on a planned maintenance shutdown. It is expected to be back online by the first week of July 2020.
3. Yes. Oil Companies have individual contracts with neighbouring countries such as Namibia, Lesotho, Swaziland and Botswana, and they supply them accordingly

Reply:

(a) The Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002) as amended, allows any person (legal/natural) to apply for either mining rights, prospecting rights or mining permits. The department has a Small Scale Mining Section which is responsible to assisting those who are struggling financially to apply for permits or rights. Applications can be accepted and processed only where there is no existing applications or rights issued for the same mineral and land. Illegal activities that are taking place in Namaqualand are in respect of areas that are part of rights already issued to other entities. It is unfortunate that others resort to conducting illegal mining instead of approaching the Department for assistance.

(b) There was a process initiated by the department to engage the legal right holders before national lockdown to work on a plan to accommodate the illegal miners in the area. The department also advised the illegal miners to form Cooperatives so that they can be collectively assisted (where possible), and only on areas where no entity holds a right or permit. NW1493E

DDG: MR

Date:

Recommended / Not Recommended

Advocate TS Mokoena

Director General: Department of Mineral Resources and Energy

………………/………………/2020

Approved/Not Approved

Mr SG Mantashe

Minister of Mineral Resources and Energy

Date Submitted:-……………/………………/2020

Reply:

a) The members in Ghunu Diamonds CC are Martins Bernardo Paolo Sergio who is a 50% member’s interest holder and Cloete Ghusain who is also a 50% member’s interest holder. All members are South African residence.

b) The corporation holds a prospecting rights with bulk sampling to prospect for diamonds.

c) The right was issued on the 10th September 2015 under reference number NC 30/5/1/1/2/10090 PR to prospect for Diamond (Alluvial) in respect of a Portion of the farm Brazil No 329, in extent of 4043.9282 hectares, situated within the administrative district of Namaqualand. The right was issued for a period of two years ending on the 9th September 2019. The corporation applied for a renewal under reference number NC 30/5/1/1/2/12024, which is now granted pending execution.

d) The rehab amount requested is R210 000.00 and is deemed adequate.

 

DDG: MR

Date:

Recommended / Not Recommended

Advocate TS Mokoena

Director General: Department of Mineral Resources and Energy

………………/………………/2020

Approved/Not Approved

Mr SG Mantashe

Minister of Mineral Resources and Energy

Date Submitted:-……………/………………/2020

Reply:

2.. The single buyer model cannot be sustained, in respect of which Eskom is the sole aggregator and dispatcher of all the energy generated in the interconnected power system. This is due to Eskom’s poor balance sheet and its inability to carry the risks relating to long term power purchase agreements with other generators, without further encumbrance of the national revenue fund.

In the circumstances, it has become critical to find alternative models for the delivery of new generation capacity as required under the integrated resource plan. The entity that the Minister referred to at the Mining Indaba is aimed at complimenting the role that Eskom is unable to fulfil, in relation to new generation capacity. It is noteworthy that the entity could play the role of Buyer as well as developer of new power capacity, with or without private sector partners.

3. (a) (b)(c) work in regard to the structure has not been finalized and it would be premature to answer questions like mandate and timelines.

4. See (4) above

Reply:

1.  Payments were made to (a) (b)  Central Lake 149 Trading / Empire Technology (Pty) Ltd, no payment were made to (c) Edson power group

• (i) R 22 800 000 (ii) 01/07/2016
• (i) R 23 940 000 (ii) 28/09/2017
• (i) R 51 642 000 (ii)  03/02/2017
• (i) R 12 500 000  (ii) 19/092019
• (i) R 51 568 000 (ii) 12/02/2019
• (i) R 4 275 000  (ii) 26/03/2020
• (i) R 4 275 000  (ii) 31/03/2020

 (iii)              Programme 5: Nuclear Energy

Responsibility    CD: Nuclear Safety & Technology

                   Objective:          Nuclear Safety & Technology

                  Item:                 CNS: BUS & ADV SER RESE & ADVISORY

2.         The Department does not know the role the certain individual played because the Department participated in terms of Treasury Regulations Section 16A6.6. on the contract which was secured by another organ of State, i.e. Provincial Treasury in Free State

3.         Please refer to response in under 2 above.

 4.         what are the relevant details of the process that was followed in the awarding of the contract;

• The Department participated in terms of Treasury Regulations Section 16A6.6. on the contract which was secured by another organ of State, i.e. Provincial Treasury in Free State

5.         whether the Auditor-General has made any findings with regard to the specified process that was followed in awarding the contract; if so, what were the findings? NW936E

• Yes -  The Auditor General raised an audit finding in the 2016/17 financial year

Reply:

(1) (a) 45 Tanks;

(b) 6 Tanks operational;

(c) (i) 45 Million barrels operational;

(ii) 7,8 Million barrels not operational;

(2) (a) 2 tanks;

(b) 15 Million barrels;

(3) (a) 4 tanks;

(b) 30 Million barrels;

Reply:

1. Yes, the department will offer some form of relief/ assistance.

2. (a) The Covid 19 assistance will be allocated to qualifying businesses in line with the Small-Scale Mining Implementation Framework.

(b) All qualifying small scale mining companies will be assisted.

DDG: MPPP

Date:

Recommended / Not Recommended

Advocate T Mokoena

Director General: Department of Mineral Resources and Energy

………………/………………/2020

Approved/Not Approved

Mr SG Mantashe

Minister of Mineral Resources and Energy

Date Submitted:-……………/………………/2020

Reply:

(1) SFF has filed the papers and supplementary papers after the investigation. Report has been handed to the Law Enforcement Agency (Hawks) for further criminal investigation;

(2) At this stage the report cannot be shared with any member of the public as advised by the Law Enforcement Agency (Hawks);

(3) (a) Report is being reviewed internally for any evidence of misconduct and any recommendations will be implemented;

(b) As in (1) above the investigation is still with the Hawks;

(c) Report is being investigated by the Hawks and also internal review for any misconducts. Recommendations from the 2 investigations will be implemented;

NW877E

Reply:

a) There are 36 South African National Standards (SANS) and 2 South African Bureau of Standards (SABS) referenced in the Mine Health and Safety Act No 29 of 1996, as amended. The list is in Annexure 1.

b) The monitoring and enforcement is done by the Department’s Engineering Inspectors.

c) (i) The total number of compliance inspections conducted in 2016/2017 was 9 363 which included the mine equipment inspections.

(ii) Similarly, the total number of compliance inspections conducted in 2017/2018 was 9 425.

(iii) The total number of inspections conducted in 2018/2019 was 8567.

d) Where there were non-compliances observed during the inspections, to deal with dangerous conditions or non-compliance with mine standards or provisions under the Act, Inspectors issued sections 55 and 54 instructions as per the Mine Health and Safety Act, No. 29 of 1996 as amended. For instance, during the reporting period 2018/2019, there were 1399 section 55 instructions and 963 section 54 instructions issued, respectively.

Chief Inspector Mines

Date:

Recommended / Not Recommended

Advocate T S Mokoena

Director General: Department of Mineral Resources and Energy

………………/………………/2020

Approved/Not Approved

Mr SG Mantashe, MP

Minister of Mineral Resource and Energy

Date Submitted:-……………/………………/2020

Reply:

1. The Department has consulted with organised labour and organised business regarding the possible impact of COVID-19 in the mining sector.

2. The Department has made inputs into the recent amendments of the Regulations of the Disaster Management Act (DMA), issued in terms of Section 27(2) of the same Act and published by the Minister of COGTA on the 17th April 2020. Please take particular note of the insertion of Regulation 11K which deals with Mining Operations.

2.1 Regulation 11K.(1) of DMA states:

Mining operations, as referred to in paragraph 22 of Part B of Annexure B, must be conducted at a reduced capacity of not more than 50% during the period of lockdown, and thereafter at increasing capacity as determined by direction issued by the Cabinet member responsible for mineral resources and energy.

2.2 Regulation 11K.(2) of DMA states:

The following conditions apply to the starting and increasing of capacity:

a) A rigorous screening and testing program must be implemented as employees return to work;

b) The mining industry must provide quarantine facilities for employees who have tested positive for the COVID-19;

c) Data collected during the screening and testing programme must be submitted to the relevant authority;

d) Mining companies must make arrangements to transport their South African employees from their homes to their respective areas of operations;

e) Workers from neighbouring Southern African Development Community countries must be recalled to their place of employment at the end of lockdown in their respective countries in accordance with these Regulations and regulations applicable in those countries.

2.3 Regulation 11K.(3) of DMA states:

The monitoring and impact assessment of seismicity through the Council for Geoscience must be intensified with immediate effect.

3. The Department through the Chief Inspector of Mines has also directed the South African Mining Industry (SAMI) to prevent the spread of COVID-19 in the following communique issued to mining companies:

3.1 Guiding principles on prevention & management of COVID-19 in SAMI

3.2 Request for protocol on prevention & management of COVID-19 in SAMI

3.3 Safe start-up procedure of mines by employers and employees.

4. The Department has identified all Inspectors of Mines as essential service and were issued with Lockdown Permits to ensure that health and safety of mineworkers is not compromised even during this pandemic.

5. Inspectors of Mines remain on duty during the lockdown and conduct mainly unannounced visits at various mines particularly at high risk mines, to check the mines compliance to the Mine Health and Safety Act and other relevant prescripts such as “Lockdown” regulations.

Chief Inspector Mines

Date:

Recommended / Not Recommended

Advocate T S Mokoena

Director General: Department of Mineral Resources and Energy

………………/………………/2020

Approved/Not Approved

Mr SG Mantashe, MP

Minister of Mineral Resource and Energy

Date Submitted:-……………/………………/2020

Reply:

Reply

1. (i)The number of applications received in the last five years from 2015 to 31 March 2019 are 56

Year	Total No of Applications	Applications issued
2015	15	04
2016	07	01
2017	17	03
2018	10	01
2019	08	01

(bb)
(bb) Applications received from 1 April 2019 are 08

(ii) There are no applications issued in this category

(ii) There are no applications issued in this category

(b) Nigel, Brakpan and Benoni.

 

DDG: MR
Date: 27 FEB 2020

Recommended

Advocate TS Mokoena
Director General: Department of Mineral Resources and Energy

Approved

Mr SG Mantashe
Minister of Mineral Resources and Energy
Date submitted: 09/03/2020