Questions and Replies

Reply:

(a) (b) Yes, inspections have been conducted.

(i) 1737 mining inspections and 1188 petroleum inspections were conducted during period January till September 2023 to monitor compliance to legislative requirements.

(ii) Inspections took place in all nine provinces of the Republic of South Africa.

(iii) Total amount spent thus far on inspections is R4 379 264.46

Reply:

Small-Scale Embedded Generation (SSEG) project are “behind the meter” solutions and not subject to regulator approval, but simply require a generator to register with the Regulator. The financial viability of SSEG projects is subject to a generator securing a concomitant power purchase agreement with a prospective buyer of the electricity produced.

Where the electricity is required to be wheeled, the wheeling agreements are subject to approval by the respective distributor (Municipality or Eskom) through whose distribution infrastructure the energy is evacuated from the point of production to the point of consumption.

To assist municipalities/Eskom to structure and price wheeling agreements, a National Wheeling Framework has been developed and is currently being reviewed by NERSA

Reply:

The country is committed to a fair transition, and this is supported by the Integrated Resource Plan (IRP) of 2019. The IRP 2019 pursues a balanced energy mix made up of coal fired power stations, green energy power projects and other technologies. It is shown in IRP that green energy when combined with other technologies will be able to provide the necessary energy security of supply.

Reply:

No, the Department does not conduct economic verification audits at mines. However, Mine Economic inspections are being conducted which focuses on the evaluation of financial statements to ascertain the company’s overall performance. Statistical returns are also investigated for data relating to employment and earnings per month as well as operating costs and production and sales.

Reply:

a) No, I was not informed.

b) No, I was not informed.

Reply:

The Department does not have information on the owner of Portion 71 of the Farm Groenkloof in the Bojanala District, North West. Saferro Chrome and Resources Limited are not the holder of a mining right or mining permit. Section 28 (2) of the Mineral and Petroleum Resources Development Act, 2002 applies to the rightful holders of a mining right or mining permit.

1. Please refer to the above paragraph
2. Please refer to the above paragraph
3. Please refer to the above paragraph

The National Environmental Management Act, 107 of 1998 (NEMA) provides for regulation of activities which cannot be undertaken without an Environmental Authorisation, such listed activities includes mining and prospecting activities. If any person conducts a listed activity without an approved Environmental Authorisation they are committing an offense in terms of section 49A of NEMA and can be prosecuted following an investigation.

 

 

Reply:

With regard to 1 (a) the status is as follows:

• Two (02) projects reached Legal Close on 30 August 2023 and are working towards reaching financial close;

• Project Agreements for two (02) additional projects are being prepared for legal Close. One (01) of the 2 projects is experiencing port access issues which are currently being attended to in conjunction with the relevant authorities; and

• One (01) project is experiencing difficulties with its project economics and bankability.

With regard to 1 (b) in so far as the department’s role in assisting all the projects including Karpowership, we have engaged, to the extent permitted by law, the Ports Authority to facilitate logical resolution of the port access challenges. What remains is for the projects to engage the relevant authorities and finalise all the outstanding matters.

Reply:

The Department does not have the authority to regulate the processing of residue deposits at the Jagersfontein dam. This is as a result of the De Beers court judgment over Jagersfontein mine residue deposits (De Beers Consolidated Mines Ltd v Ataqua Mining (Pty) Ltd & others, case no. 3215/06, Free State Provincial Division, 13 December 2007). The judgement held that historical mine residue deposits (those created before the coming into operation of the Mineral and Petroleum Resources Development Act, 2002 (MPRDA) on the 01st of May 2004) are not minerals as contemplated in the MPRDA and such they are not regulated under provisions of the MPRDA. The processing of historical mine residue deposits does not constitute mining and the area where they are situated is not classified as a mine. This was again confirmed by the court judgment in the case of Ekapa Minerals (Pty) Ltd & Others vs Lucky Seekoei & Others (2057/2016) [2017] ZANCHC 5 (13 January 2017).

However, The Department engaged the Minerals Council South Africa to provide assistance to the affected community even though the facility is legally not a mining operation. About R2.75 million was spent by the Minerals Council on the following emergency relief through three Public Benefit Organisations, namely Gift of the Givers, Soul Provider and the Red Cross:

• Distributing 15,000 food parcels, each providing an average of 25 meals totalling 375,000 meals at a cost of R1,250,000. An estimated 4,500 people received nutritious meals for four months. The percentage of black South Africans benefiting from the programme is 100%.
• Providing running water from water boreholes at two schools for learners and the surrounding community at a cost of R1 million.
• Distributing mattresses, blankets, clothing, underwear, sanitary packs, water and cooking utensils at a cost of R500,000.

Following a series of meetings by the Minerals Council with the Kopanong Local Municipality and the Free State Government, 6 projects were initially earmarked. Further assessments identified 3 of the 6 projects being potentially sustainable and within the objectives and mandate of the Fund:

1. Working towards a sustainable water solution for the Jagersfontein community. The assistance does not include services that are the responsibility of local, provincial and national government.
2. Aiding local schools and learning centres to enhance learning and education in the community. The assistance does not include services that are the responsibility of local, provincial and national government.
3. Establish an internet and Wi-Fi service for the community at the Jagersfontein library.

Reply:

1, The entity referred to has no mining authorisations issued by this Department, furthermore the Department has no records pertaining their application to beneficiate minerals. However, section 26 of the Act was meant to promote beneficiation of mineral in the Republic. Section 26(3) requires any person who intends to beneficiate any mineral outside the Republic to do so with written notice and in consultation with the Minister. The constraints on electricity generation have limited the ability to facilitate local beneficiation.

Reply:

(1) Response: Seawalls are generally created using sea – sand excavated directly from the sea mining block to allow the enclosed area to be pumped out and drained. The pumping creates a semi-dry working environment so that work can be carried out safely and efficiently. In most cases, particularly in the case of diamond mining, seawalls are created as temporal structures, they collapse as mining activities proceed from one block to the next. In cases where the mining block is set to have a longer lifespan, the sea – sand (i.e., seawall) is reinforced with rocks often collected on the coast and tailings material. There would be minimal impact on the sea and surrounding environment as there is no harmful or hazardous material introduced to create the seawalls. Naturally, when the seawalls collapse, they create high turbidity in the immediate area that often creates murky water, but given the strength of ocean currents, the sediment is swiftly dispersed. In cases where the mining block is situated in heavy mineral sands, the tailings may appear reddish-brown in colour due to the presence of the zircon element and this is often mistaken as a black slurry.

2. Response: According to the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002) as amended, the residue stockpile “means any debris, discard, tailings, slimes, screening, slurry, waste rock, foundry sand, beneficiation plant waste, ash or any other product derived from or incidental to a mining operation and which is stockpiled, stored or accumulated for potential re-use, or which is disposed of, by the holder of a mining right…”. Seawalls do not fall into this definition as the material used will not be reused or disposed of. However, the environmental impacts arising out of any mining/prospecting activities subject of a mining right or any right/permit issued in terms of the Mineral and Petroleum Resources Development Act, 2002, falls within the competent jurisdiction of the Minister of Mineral Resources and Energy.

Reply:

Yes, the DMRE has established a Small-Scale mining component with officials at nine regional offices whose functions is to handle enquiries, guide and advice and assist with the application process. Furthermore, a policy was gazetted in 2022 to develop the mechanisms to formalise artisanal and small-scale mining operations and bring them within the mainstream economy.

Reply:

a) Since 2018 the department has rehabilitated thirteen (13) derelict and ownerless mines.

b) Eleven (11) of those mines are in Limpopo, one (1) in Mpumalanga, and another one (1) in the Northern Cape.

Reply:

Yes, DMRE was involved in the installation of the SHSs

a) DMRE installed eighty-eight (88) Solar Home Systems (SHSs) at Dr Beyers Naude in the 2020/21 financial year through one of its appointed service providers. Twenty (20) SHSs were installed in Vondeling.

b) The DMRE conducted an inspection with the service provider and the municipality officials on 28-29 April 2021. During the inspection two (2) of the installed SHSs were found to be not working and the service provider was instructed to repair, and they were repaired.

All SHSs (88 in total) installed were working when the inspection was concluded on 29 April 2021.

c) None

d) There installed SHSs are covered by the service provider for a period of one (1) year post the installation period through warranties as per the contract signed between the DMRE and the service provider. Once the one year period has elapsed, the repairs and maintenance of the SHSs becomes the responsibility of the municipality.

Reply:

1. Section 26 of the Act was meant to promote beneficiation of mineral in the Republic. Section 26(3) requires any person who intends to beneficiate any mineral outside the Republic to so with written notice and in consultation with the Minister. The constraints on electricity have limited the ability to facilitate local beneficiation.

(a) There is no company and/or individual in the Bojanala area that has submitted written notice and consulted with the Minister.

(b) Please refer to 1(a)

(c) Please refer to 1(a)

2. Beneficiation of minerals outside a mining arear is managed in terms of NEMA.

Reply:

1. The Department has been informed of the unfortunate incident. Preliminary investigations shows that the area where the incident happened falls outside coordinates of any Licensed mine. The Mining company in the vicinity decided to assist on purely humanitarian grounds and this assistance has also been acknowledged by the child’s family. The Department remains seizes with this matter to prevent the occurrence of such an incidence from happening again.

2. The Department has the database of mines that need rehabilitation. These are legacy mines that have been abandoned by the previous mine owners prior to the introduction of the Minerals Act (1991) and Mineral and Petroleum Resources Development Act (MPRDA, 2002). To this end, the department has prioritized the rehabilitation of these Derelict and Ownerless (D&O) mines.

Reply:

The Republic of South Africa has not made any financial contribution to the Grand Inga 

Hydropower Project and there are no financial commitments made.

Reply:

(a)The Department of Mineral Resources and Energy has a programme to rehabilitate derelict and ownerless mines. Annually National Treasury allocates funds for the rehabilitation of these mines. In the current financial year, R143 million has been allocated for this purpose. With these amounts three derelict and ownerless mines are rehabilitated as outlined in the Annual Performance Plan.

(b) There is nothing in law or otherwise that preclude small scale miners or local communities and Artisanal miners to participate in mining activities. In furtherance of small-scale mining the department is providing technical and financial support with respect to permit applications and other relevant matters

Reply:

The Department is participating in the process of developing the General Laws amendment (GLA) Bill by creating provisions in the Mineral Petroleum Resource Development Act (MPRDA, the Diamond Act and the Precious Metal Act that will strengthen penalties and criminalise illegal mining.

Reply:

a) The National Environmental Management Act, 107 of 1998 (NEMA) provides for regulation of activities which cannot be undertaken without an Environmental Authorisation, such listed activities includes mining and prospecting activities. If any person conducts a listed activity without an approved Environmental Authorisation they are committing an offense in terms of section 49A of NEMA and can be prosecuted following an investigation.

b) The Department is working with law enforcement authorities to deal with the scourge of illegal mining. There are several multi-disciplinary and intelligence led operations which include the Depart of Home Affairs (Immigration) that have been successfully undertaken in various provinces in this financial year.

c) It should also be noted, especially with recent experiences in illegal mining, that the scourge has become an organised crime often led by sophisticated crime syndicates. Further operations are being planned together with law enforcement authorities to respond to challenges caused by illegal mining activities in the country.

d) The South African Police Service has also set up the Economic Infrastructure Task Team (EITT) which role is to address the scourge of crimes within the non-ferrous metals, essential infrastructure, critical infrastructure, extortion, and illegal mining. The Department of Minerals and Energy is working together with the envisaged unit with the immigration teams.

Reply:

1. As stated previously, the details of the partnership between Eskom and South African Renewable Energy Technology Centre (SARETEC) could best be responded to by the relevant department. In so far as the JETP, the department continues to work with the Presidential Climate Commission (PCC) and provides comments as and when it is necessary to do so.

2. The department is on record in saying that the transition programme is not an event but a process that should not be rushed as it has to adequately respond to the needs of the people, central to which is the issues of retention of jobs, skills and reskilling of people and ensuring that no one is worse of. To this effect, the department is conducting analysis on social impacts not only understand the extent of the impact, but to also inform the decision-making process on the protection of jobs, and the required skills and reskilling, including the issues of health.

3. The department has developed a Just Energy Transition Framework which forms the basis for developing indicators for monitoring the socio-economic impacts of the transition.

4. The analysis we are currently conducting on socio-economic impacts and the definition of indicators to monitor such impacts will outline the details of what actions the department will be taking in the next financial year.

5. Similarly, the analysis should inform us on this by the end of this financial year.

Reply:

(a)(i) The Department conducts monitoring and enforcement inspections on implementation of community development projects by mines as per the annual performance plan. 237 Social and Labour Plan inspections were conducted in the previous financial year (2022/2023) and directives were issued for various reasons of non-compliance.

(ii) Yes, but if the company continues not to implement SLP, the right can be suspended or cancelled and if they apply for renewal of the mining right, the application can be refused.

(b) See (a)(i) above

Reply:

1. (a) and (b) The projects could not be awarded the preferred bidder status, the basis being Eskom the grid owner and operator confirmed to the department that grid capacity was exhausted in areas where the said projects locations were proposed. The grid that was available could only accommodate 1000MW of projects in their respective proposed locations.

1. (a) and (b), Eskom the grid owner and operator is the custodian of such information ( Eskom GCCA ) and it’s available to the public. (2) (c), Eskom as the custodian of the national grid, is best placed to address the actions that are being taken to resolve grid capacity constraints for future projects.

1. The REIPPPP Bid Window 6 has closed and cannot be re-opened, as this is not provided for in the Request for Proposals (RFP) and public procurement prescripts.

Reply:

1. (i) De Beers ceded their Mining Right to Cullinan Diamond Mine (Pty) Ltd in June 2008. The annual financial assessment review for 2023 was submitted on 30 March 2023. The current environmental assessment was calculated at R252 231 057.00. The financial provision that is held by the Department in a form a guarantee amounts to R347 879 259.00.

(ii) De Beers last Social and Labour Plan before ceding was for the period 2006 to 2010. The said Social and Labour Plan was fully implemented.

1. The financial provision is fully funded and has a surplus of R96 648 202.22

Reply:

It is important to point out that the Department is obliged to conduct its procurement process in compliance with all legislative and regulatory prescripts of the laws of South Africa.

With regard to 1 (a)(b) The grid constraints that affected BW6 procurement were in specific areas and there is no linkage with Karpowerships.

With regard to 2 (a) Please see response 1 above(b),for all the remaining Preferred Bidders under the Risk Mitigation IPP Procurement bid window, the Department intends to conclude all procurement decisions before the end of this financial year.

With regard to 3 (a) and (b) The Department is not responsible for the allocation of grid, this is the mandate of Eskom as the custodian of the national grid.

With regard to 4, The lists of procured projects and the list of preferred bidders for each of the bid windows are available on the IPP Projects website at www.ipp-projects.co.za  The Department can provide the list if so required.

Reply:

On 26 May 2023, the President transferred the administration, powers and functions entrusted by the Electricity Regulation Act (Act no.4 of 2006) to the Minister of Electricity in terms of section 97 the of Constitution.

Both Departments (Mineral Resources & Energy and Electricity) are working closely to manage the transition through effective coordination; and dedicated focus on programmes that will alleviate the electricity shortage in the short term and enable long-term security of supply.

 

Reply:

1. (a) Since the withdrawal of the Gas Amendment Bill, the Department has been working on finalizing the revision of the Bill with the incorporation of all these factors and inputs. We are currently finalising inter-departmental consultations to solicit further inputs. At the conclusion of this process, we will follow the prescribed broader stakeholder consultation which will lead to the re-submission of the Bill in Parliament.

(b) The development of the Upstream Petroleum Resources Development Bill and gas discoveries which came after the Gas Amendment Bill was drafted necessitated that we align the legislative frameworks for regulating the gas sector and ensure that there are no contradictions and overlaps.

2. Yes, the goal of drafting or amending legislation is to precisely govern the sector. However it is also important to amend such that the country has legislation that is keeping with the latest developments which sometimes include technological advancements.

Reply:

The Department of Mineral of Resources and Energy (DMRE) is legislatively not responsible for compensation of employees. There are two Departments in the Republic of South Africa that are responsible for compensation of employees. These are the Department of Health and the Department of Employment and Labour. Silicosis compensation is specifically the responsibility of the Department of Health through the administration of the Occupational Diseases in Mines and Works Act (ODMWA) as amended.

The Tshiamiso Trust is established under the National Department of Health, through its Statutory Body called The Medical Bureau for Occupational Diseases, which is responsible for compensation of all occupational lung diseases incurred by mineworkers and ex-mineworkers.

However, the DMRE supports the respective Departments on their respective programmes including on compensation.

Reply:

(a). The current system of lodging applications for mining licenses is ELECTRONIC. The DMRE launched an online system, referred to as SAMRAD Online Application System, in 2014 where all applications for mining licenses are lodged. Furthermore, the online system was launched to make it easier for companies and individuals to lodge applications in the comfort of their company offices or homes.

(b). The DMRE through the Small-Scale Mining directorate has been assisting Artisanal Small -Scale Mining (ASM) miners through providing financial provision for rehabilitation to qualifying Historically Disadvantaged South African (HDSA). The environmental licenses are evaluated and granted by the DMRE (Competent Authority) whilst the Department of Forestry, Fisheries and the Environment (Appeal Authority) deals with objections and appeals of environmental licenses.

Reply:

a) The Bill was withdrawn to address the inputs received from stakeholders during the Parliamentary consultation processes. Additionally, the Department also considered other developments which have taken place in the gas industry over time. These were found to be crucial for reflexion in the legislation going forward.

b) The Bill will be introduced to Parliament after following the prescribed broad stakeholder consultation.

Reply:

In terms of the RFP issued for the Risk Mitigation IPP Procurement Programme, the Bidders assume responsibility to obtain all environmental consents. As such it is the responsibility of Karpowership to engage with the NGOs as well as other Interested and Affected Parties with regard to objections that they may have in the process of the environmental authorisations aligned with the provisions of the National Environmental Management Act.

Government continues through existing environmental legislation provision to consult and engage with key stakeholders.

Reply:

a) Kalgold Mine, Kalahari Gold Ridge Mining Company Ltd) near Kraaipan in the North-West, is a mining right holder of NW 30/5/1/2/2 77MR. The Social Responsibility Programme implemented in the past 10 years, which from the perspective of the provisions of the Act, is a Social and Labour Plan, that is part of the mining right holder’s obligation, are as follows:

• Reverse Osmosis Water Project in Kraaipan village.
• Community Skills Development and SMME Facility in Kraaipan village.
• Setlagole RDP Houses Settlement Formalisation for Setlagole village.
• Mining Education Infrastructure in Ratlou community – renovated one classroom into computer laboratory at Aaron Letsapa Primary.
• SMME Development in Ratlou – Sewing project in Kraaipan village.
• Refurbishment of Centre for Itereleng Self-Help Group in Madibogo.
• Broad-Based Livelihood Vegetable and Livestock in Ratlou.
• Youth Development Mobile Centre (ICT) at Ratlou Municipality.
• Madibogo Tyre and Wheel Alignment.
• Kraaipan Bricks and Aggregate Manufacturing.
• And contributions towards various CSI initiatives (Donations of Laptops to top matric leaners, NGO Capacity building), Renovations of Resegofetse Early Learning Centre, Renovations of three classrooms)

In addition to the above, Kalgold Mine has offered 17 external bursaries, 05 external learnerships, 14 internships to the external candidates also.

b) The Department issues administrative orders in terms of section 93 to remedy non compliances.

Reply:

The department has been addressing and will continues to address all complaints brought forward, either from the mine communities or any other affected parties in this regard. Recently, the department was invited by Public Service Commission to participate in the Public Service Citizens Forum in Mogalakwena Local Municipality whereby, the communities of Mogalakwena were accorded an opportunity outline the challenges that they are experiencing with regard to Mining companies operating in Mogalakwena. The Department responded and provided clarity to all the issues/questions raised by the communities.

Social Labour Plans, Granted Environmental Authorisation and approved Environmental Management Programme are monitored during compliance inspections conducted by the Department, where a Mining Company is found to be non-compliant, a directive/ notice are issued by the Department instructing the company to remedial the contraventions, if the non-compliance persists, the department will issue another directive/ notice which indicates our intentions to cancel the mining right. The mining companies are mandated to adhere to the implementation of Social Labour Plans, Granted Environmental Authorisation and approved Environmental Management Programme.

Reply:

1. The Department does not have any record of an application lodged by Kwernsig Twaalf (Pty) Ltd and the property description is incomplete.
2. There is no prospecting licence or BAR issued for the said application as it is still in process.
3. There is no Mining Permit or EIA issued for the said application as it is still in process.

Reply:

The National Energy Crisis Committee (NECOM) resolution has already found expression in National Treasury announcement of allowing tax rebates in as far as rooftop solar installation by households and The Small, Medium and Micro Enterprises (SMME).

Reply:

1. The Mine health and Safety Council (MHSC) identified the Workers Museum and Mary Fitzgerald Square as the most appropriate locations to install the memorial for the fallen mineworkers. Permission to continue with the project on the site was given by the City of Johannesburg (CoJ), then the project was initiated. However, the initial permission was not honoured as a result of the changes of officials and administrators at the CoJ. In this regard, the monument will be placed at the MHSC Office Building whilst there is ongoing engagements regarding the identified sites at the City of Johannesburg.

2. The total project amount was R4 800 000,00 inclusive of value added Tax. The cost of R1 513 333.06 for additional concept and technical designs that were required for installation of the monument at the identified location was incurred, bringing the total to R6 313 333.06.

 

Reply:

There is no intention to rescind the decision to table the said report in the National Assembly as the fact-finding report was intended for internal use by management.

Reply:

Energy Availability Factor is currently around 50%. This is a dynamic number highly dependent on operations. Department of Public Enterprises who oversees Eskom operations could provide you with updates regularly on EAF and their respective plans to increase plant availability upon request. In line with the 2019 IRP, we are continuing with procurement of additional MW to augment energy generation capacity pursuant to security of supply.

 

Reply:

Yes, Eskom has launched a number of incentive-based demand side response mechanism customised for different market segments. This is over and above the long standing DMRE lead demand side tax incentive scheme pursuant to Income Tax Regulation12L. Department of Public Enterprises who oversees Eskom operations would be willing to provide you more information in respect of their programmes should you request.

Reply:

a) In the current year 2023/24, the focussed research on the clean coal technology intervention through the Carbon Capture, Utilisation and Storage (CCUS) is undertaken through ring-fenced partnership funding between the South African government and the World Bank. It may be necessary to allocate a budget dedicated to this research in support of the just energy transition policy more sustainably.

b) The clean coal research represents a partnership amongst the DMRE, National Treasury, Eskom and the World Bank. The Council for Geoscience was elected as an implementing agent in 2021 to lead the research and implements the same through strategic partnerships to optimise the research outcomes and its application to use the abundant coal resources responsibly and in line with our multi-lateral commitment on climate mitigation measures.

Mintek currently has the following coal-related research projects: (1) Gasification of waste coal fines and co-gasification of low-grade coal and (2) Rare earth elements (REE) leaching from coal discards. We are currently in discussions with a funding agency to extract REE from acid mine drainage. Recent publications from Mintek research activities include:

1. Literature review on the extraction of ultra-clean coal and rare earth elements from coal discards by ultrasonic-assisted chemical treatment,
2. Characterisation of coal for the simultaneous extraction of rare earth elements and ultra-clean coal,
3. Co-Carbonization of Discard Coal with Waste Polyethylene Terephthalate towards the Preparation of Metallurgical Coke, and
4. Mineralogy and distribution of rare earth elements in the Waterberg coalfield high ash coals.

Mintek has budgeted R10 million for the next three years of its funds in coal-related research, and the funding is anticipated to increase as more funds are being sought.

Reply:

Department of Minerals Resource and Energy

(aa) Total procurement for 2021/2022 financial year amounted to R1 168 164 849,84 of which R278 887 344,36 was spent on SMMEs.

(i) Percentage allocated to SMMEs = 24% (R278 887 344.36)

➢ Qualifying small enterprises = 7% (R77 835 797.00)

➢ Exempted Micro Enterprises = 17% (R201 051 547.36)

(ii) Cooperatives = 0%

(iii) Township enterprises = **

(iv) Rural enterprises = **

** The information for township enterprises and rural enterprises was not kept separately. The two categories are included in the QSE and EME as part of the qualification criteria for preferential purposes in line with the Preferential Procurement Regulations 2017.

bb) Figures from 1 April 2023 will be available by end of the first quarter.

COUNCIL FOR GEOSCIENCE (CGS)

(aa) Total procurement spend for the financial year 2021/22 amounted to R 234 968 715 of which R99 819 497 (42%) was spent on small, medium and micro-enterprises which includes cooperatives, rural enterprises and township enterprises.

(bb) The amount expensed towards the SMME cohort for the current year since April will be consolidated at the end of the quarter ending June.

MHSC

MHSC have in total appointed 103 service providers / companies during 2021-22 financial and from 1 April 2023 to 12 May 2023. The percentages are as follows:

1. Small – 48 companies were appointed from 103 service providers equal to 47%.
2. Township Enterprises - 60% (29) of the small companies of 48 are township enterprises.
3. Medium - 26 companies were appointed from 103 service providers equal to 25%.
4. Micro – 12 companies were appointed from 103 service providers equal to 12%.
5. Big – 17 companies were appointed from 103 service providers equal to 17%.
6. Cooperatives – No appointments made to the cooperative companies.
7. Rural enterprises – No appointments made to the rural enterprises.

NERSA

(b) (i) NERSA’s spend on Qualifying Small Enterprises and Exempt Micro Enterprises was as follows (aa) 2021-22 - R31 288 179 (bb) 2022-23 - R69 159 653 (cc) Since April 2023 – The reports are prepared quarterly. The first report will be available at the end of June 2023 (ii) Cooperatives – None (iii) Township enterprises – No data is kept on the category (iv) Rural enterprises – No data is kept on the category

SDT

For the financial year that ended 31 March 2022, the State Diamond Trader spent a total of R5,597,000 on procurement of goods and services, with the percentages allocated as follow

1. Small-, medium- and micro-enterprises: 91%
2. Co- operatives : 0%
3. Township enterprises : 0%
4. Rural enterprises :0%
5. Other: 9%

NECSA

(aa)(i) The total values for procurement with small, medium and micro-enterprises for the FY 2021/2022 period are as follows:

Necsa Group: R84 936 240, 28 (9%)

[Necsa: R 43 531 148.59 (12%)

NTP: R 25 994 130.96 (6%)

Pelchem: R 15 410 960.73 (12%)]

(bb)(i) The total values for procurement with small, medium and micro-enterprises for 01 April 2023 to date are as follows:

Necsa Group: R11 086 614 (16%)

[Necsa Company: R 7 681 574.29 (15%)

NTP: R 2 996 467.22 (26%)

Pelchem: R 408 572.34 (6%)]

(aa)(iii) The Necsa Group conducts business with enterprises that are situated in the townships under a broad umbrella of enterprises that are at least 51% Black-Owned and the figures of expenditure for the FY2021/22 period are as follows:

Necsa Group: R175 169 709.52 (18.7%)

[Necsa: R 72 387 163.52 (19%)

NTP: R 64 299 294.54 (15%)

Pelchem: R 38 483 251.46 (30%)]

(bb)(iii) The figures for the business conducted with enterprises that are situated in the townships under a broad umbrella of enterprises that are at least 51% Black-Owned for the period 01 April 2023 to date are as indicated below:

Necsa Group: R28 035 116 (40.6%)

[Necsa Company: R 20 741 548.04 (41%)

NTP: R 4 619 747.17 (40%)

Pelchem: R 2 673 820.39 (42%]

(aa)(ii), (bb)(ii), (aa)(iv) and (bb)(iv)

The Necsa Group does not currently conduct business with cooperatives and rural enterprises.

NNR

(aa) The NNR’s total procurement budget for the 2021/2022 financial year was R74 842 438 of which 68% was spent on the designated groups, equalling R46 056 045.

(bb) Since April 2023, the NNR has spent R5 536 879, which is 84% of the total budget of R6 571 080 on designated groups.

NRWDI

The National Radioactive Waste Disposal Institute, which is a Schedule 3A public entity, conducts its procurement in line with the applicable procurement regulations and prescripts as issued by the Office of the Chief Procurement Officer, National Treasury.

Such procurement is conducted in alignment with the PPPFA, and BEE levels have been considered in terms of preference points in the awarding of bids. As a result, there is no information that is requested or captured in the entity’s records that reflects (i) small-, medium- and micro-enterprises, (ii) cooperatives, (iii) township enterprises and (iv) rural enterprises.

SADPMR

No, the SADPMR will not be able to furnish the details required. The Procurement Regulations 2017 were applicable from 1st of April 2022 until 15 January 2023 and the procurement thereof was aligned to the requirements. With effect from 16 January 2023 the new Preferential Procurement Regulations 2022 came into effect and are implemented accordingly. An internal policy with specific preferential procurement goals has been put in place, these goals include enterprises owned by black people, enterprises owned by black women, enterprises owned by youth, enterprises owned by people with disabilities, local content and production as well as Small, Medium and Micro enterprises. A minimum of three of the goals are applicable for each bid or tender that is issued by SADPMR.

SANEDI

 

Comprehensive breakdown of the procurement allocation
	2021-2022 FY	2022-2023 FY	2023-2024 FY
(i)Number of Small-, Medium- and Micro-Enterprises.	65 SMMEs	22 SMMEs	0
(ii)Number of Cooperatives.	0	0	0
(iii)Number of township enterprises.	0	0	0
(i) Number of rural enterprises.	0	0	0

There is no Skills Development and Localization policy in place and going forward SANEDI will have an approved policy in place.

Mintek

Mintek is a research council that is mandated to promote mineral technology, and to foster the establishment and expansion of industries in the field of minerals and products derived therefrom through research, development, and technology transfer. The annual budget allocation from the Department is primarily allocated to human capital development, research activities, and industry development broadly; namely, small-, medium- and micro enterprises and large enterprises. As a Schedule 3B government business enterprise, Mintek procures in accordance with the PPPFA and the PFMA. As a result, Mintek does not pre-allocate its procurement budget as per the specified categories (i.e., small-, medium- and micro-enterprises, cooperatives, township enterprises and rural enterprises).

CENTRAL EENERGY FUND

Reply:

Rail and port operations are the responsibility of Transnet which reports to the Department of Public Enterprises. The Department continues to raise the issue of port and rail constraints with relevant parties.

Reply:

The Renewable Energy Independent Power Producer Procurement Programme has to date contracted 115 Projects with a total capacity of 9218 MW. 92 projects have reached COD totalling 7209 MW and 24 Projects are still under construction.

Reply:

The joint-venture partnership which has been granted environmental authorisation for exploration drilling in the west coast block comprises TotalEnergies, Shell and PetroSA. TotalEnergies is the operator for the joint-venture, hence the environmental authorisation is directed to TotalEnergies but the license is for the joint-venture which includes the state owned company, PetroSA.

a) It is premature to provide estimate of the financial benefits that would accrue to the state and our people if the exploration was to be successful as this would depend on the actual size of the discovery. We know though that licensees must pay royalties to the fiscus for the oil and gas they extract or produce. The revenue to the fiscus will benefit all our people. If the efforts are fruitful, the project will create permanent employment for some of our people.

b) The state, through PetroSA, has capacity for exploration and production of oil and gas as demonstrated by PetroSA’s 20 years track record in producing oil and gas in the south coast which was used as feedstock to the gas-to-liquids (GTL) refinery in Mossel Bay. PetroSA continues to build its capacity to play a more meaningful role in the upstream oil and gas sector as envisaged in Upstream Petroleum Resources Development Bill, 2021. (The UPRD Bill sets the mandatory state participation at 20% carried interest). PetroSA’s participation in the west coast block recently licensed for exploration is an example of how they continue to build their capacity.

Reply:

Based on the Department’s assessment and the Report of the Portfolio Committees on Mineral Resources and Energy, Home Affairs and Police on the Joint Oversight Visit on Illegal Mining to Five South African Provinces, dated 25 November 2022, the department in consultation with interested and affected parties has begun work to identify gaps on the MPRDA and Precious Metals Act that may need to be amended. The intention is to submit these Bills for tabling in Cabinet during 2024/25 financial year. Work to amend the Diamond Act No. 56 of 1986 is underway and public consultation is planned for Quarter 2 this financial year.

Reply:

a) The process of developing the IRP is mainly a technical modelling activity of the power system. Inputs assumptions into the model consider all commercially viable and proven generation technology options. The output of modelling is the proposed energy generation technologies are a function of cost, environmental impact and lead time. The output is also a function of energy availability factor of the existing generation plant including the decommissioning plan.

b) At the Policy level the output of the technical model should take into account energy security and energy sovereignty and the needs of South Africa as a developing country. The preferred plan should therefore consider the impact on the economy as a whole. It therefore must not be only about least technology cost but about the least cost to the economy.

Reply:

a) The Department is not aware of any specific cases related to respiratory diseases and resulting deaths attributed to the mine relating to the community or its employees. The Department will continue to investigate all complaints received within the prescripts of the prevailing legislation.

b) The Department has been actively involved in facilitating discussions between all stakeholders in due consideration of the Departments regulatory role. The choice to seek alternative relief away from the existing engagements and structures created to facilitate these engagements is the choice of specific individuals and NGO’s.

The Mine continues to engage those who are directly affected in respect of relocations and has signed agreements with a majority of the identified officials. They have advised that they continue to engage those with whom they have not yet reached an agreement. The Mine has also indicated that they will abide by the decisions, directives or requests of the Court accordingly.

Reply:

1. Solar PV, wind and CSP with storage present an opportunity to diversify the electricity mix, to produce distributed generation and to provide off-grid electricity. Renewable technologies also present huge potential for the creation of new industries, job creation and localization across the value chain. As of 31 January 2023, 134 IPPs have been selected as preferred bidders with 11 904MW of electricity capacity procured, of this, 6 105 MW is already operational from 89 IPPs with 82397Gwh of energy generated from renewable energy sources. The IRP(2019) plan for wind from 2019-2030 is a total of 17742MW.

2. The Wind Atlas developed for South Africa provides a basis for the quantification of the potential that wind holds for power generation elsewhere in the country, over and above the prevalence of the wind resource around the coastal areas. Most wind projects have been developed in the Western Cape and Eastern Cape, so far.

3. The Integrated Resource Plan (IRP) 2019 targets a total installed electricity generating capacity of 77,834MW. This total installed electricity generation capacity is expected to comprise of the following technologies; Coal (43%), Wind (22.53%), Solar PV (10.52%), Gas & Diesel (8.1%), Storage (6.35%), Hydro (5.84%), Nuclear (2.36%) and CSP (0.76%).Wind generation is targeted to make up 17,742MW of this installed electricity generation capacity by 2030.

End.

Reply:

(1) PetroSA has indicated that the rand value of prepayments are as follows:

(a)(i) R4,083,366,060.00

(ii) None

(iii) None

(b) Volume of diesel

(2) See attached table

(a) The main discrepancy in shipping diesel or petroleum products is due to allowance for temperature differentials, undischargeable product, product remaining in the ship’s lines and the potential for apparent losses due to evaporation.

(b) Yes, if there are any product shortfalls or over delivery the balance is recovered or reimbursed.

Reply:

a) The ex-mineworker’s compensation fund programme is the government’s national campaign that tracks, traces and pay former mineworkers' unclaimed benefits, including provident funding and compensation for lung diseases contracted on the job. The Department of Health is responsible for providing compensation benefits to eligible current and ex-mineworkers for occupational lung diseases caused by hazardous exposures in the mines. It also administers the Fund in accordance with the Occupational Diseases of Mines and Works Act, 78 of 1973 which provides for the compensation of occupational injuries or occupational diseases contracted by employees during the course of their employment or death caused by such injuries or illness.

b) 77 403 claims to current and ex-mineworkers or their beneficiaries (if the mineworker is deceased) have been paid as of 27 March 2023 amounting to R2 470 806 271, 00 in South Africa and other countries.