IFP PRESS STATEMENT BY: 
MR ERIC LUCAS MP
IFP MINERALS AND ENERGY SPOKESPERSON

6th June 2008

The IFP's, Mr Eric Lucas MP, today said that the energy crisis and the high fuel prices are just some of the issues that are having a detrimental effect on the SA economy and that innovative leadership and planning is needed from the Department of Minerals and Energy.

In a debate on the Minerals and Energy Budget in Parliament, Mr Lucas said:

"The energy crisis and the high fuel prices are just some of the issues that are having a detrimental effect on our economy and society, and this department can and must play a leading role in providing some relief in this regard. Innovative leadership and planning are needed. These crises must spur this and all departments and relevant role players into action to contemplate our long term energy needs and issues and take the necessary actions needed to ensure that our future with regard to energy is bright.

This period of crisis must be used to consider and examine all aspects of our energy and not just our energy security. Other aspects like technology, innovation and the environment, with regard to energy, must also be examined."

Mr Lucas continued: "While the ever increasing prices of petrol and diesel get attention, that of paraffin does not. We seem to forget that many South Africans, especially the poor and those living in rural areas, are still reliant on paraffin for their energy needs. This department, together with the oil companies and all other relevant stakeholders, must consider all options including the provision of subsidies, to make paraffin more affordable and ease the pain and suffering of the many people who are still dependant on it. This would be real socially responsible and acceptable behaviour.

"Issues concerning the environment have taken on greater importance in recent times, and this must be kept in mind when expanding our generating capacity. I do understand that in the short to medium term renewable energy sources will not be sufficient to meet our energy demands but I do believe that we must invest more time, resources and effort into the investigation and development of renewable energy sources that will complement our unique African circumstances and not compromise the food security of our people.

"The promotion of small scale mining operations and the beneficiation of our natural mineral resources have been on the national agenda for many years. These two sectors can and must play a bigger role in the economic and social development of South Africa. The progress with regard to their promotion has, however, been too slow and this is resulting in valuable opportunities being lost.

"With regard to small scale mining operations, there are still too many obstacles and entry barriers to overcome for people and organisations wishing to enter this field. Chief among these barriers is the large capital outlay required to start up an operation and the difficulty in obtaining affordable financing as well as a lack of technical support. If the department is really serious about the promotion of small scale mining, and I think it is, then it must make a greater effort to provide the support, both financial and technical, required by potential entrants hoping to participate in small scale mining ventures.

In conclusion Mr Lucas said: "Mining has played a leading role in the development of our economy and country so it is unfortunate that after all these years we have still not made any great inroads into beneficiating our wealth of natural mineral resources. The beneficiations of our minerals is an opportunity that must be exploited as it can open up new avenues, and provide a much needed boost for the mining sector and the economy as a whole. The department must increase its efforts at the promotion of beneficiation."