E249 : 23rd June 2009

Honourable Chairperson,

I'd firstly like to congratulate the Minister of Mining and the Minister of Energy on their recent appointments. Issues of mining and of energy play an important role in the social and economic development of South Africa so the separation of mining and energy into two separate ministries is welcomed.

The amount allocated to the Department increases from R3.79 billion in 2008/09 to R4.65 billion in 2009/10. It is important to note that while the Department of Minerals and Energy did under-spend by R27.5 million during the 2007/08 financial year, it has generally managed its budget well in the past. It is therefore vital that the funds which have been allocated to mining and energy are spent wisely and managed efficiently.

With regard to small scale mining, access to funding remains a major obstacle to the growth of this important sector. While it is relatively easy to obtain a prospecting licence, there is great difficulty in doing the actual prospecting as many miners do not have the funds to engage in the prospecting which will enable them to get a mining licence. There needs to be better co-ordination in this regard and improved access to finance for small scale miners.

The IFP is very concerned with the number of deaths in the mining industry. While we do understand that this is a very dangerous job, we must find ways of minimising the dangers which lead to the loss of so many lives and rob so many families of their loved ones. In this regard the Department and the private sector need to work together, particularly with regard to the mining inspectors. I have been led to believe that the shortage of mine inspectors has been aggravated by the fact that the private sector poaches these inspectors from the department by offering them better salaries and improved working conditions.

The last point that I would like to make on mining is of the illegal mining activities which seem to be rife in South Africa. I do acknowledge that the Minister has taken a strong stance on this matter; but I believe that it is important that the people who buy product from illegal mining activities are targeted and brought to book. They are the ones who are creating a market for this illegal and dangerous activity.

The beneficiation of our raw materials needs to be increased as this is an important means of creating employment opportunities. I am therefore pleased that the portfolio committee has  agreed to pursue the beneficiation debate so that we all sing from the same page.

The shortage of electricity in our country needs special attention as it negatively affects our long term growth and development prospects.  At a recent committee meeting we were informed that the agreement to supply electricity to our neighbouring countries will be renewed soon.  The present agreement was long term and at a much lower tariff. I am sure that the new agreement will certainly correct this situation.

The IFP is pleased to note that the issue of solar water heating has been taken seriously as we have been calling for increased use of solar water heating for a while. We also hope that architects and local governments work together to encourage energy saving methods before passing public plans. We also need to pay more attention, and allocate more resources, to rural electrification. The cost of electricity in these areas must be looked at again. The people who live in rural areas are amongst the poorest members of our society, and this must be borne in mind when costing electricity in these areas.

In an effort to expand our energy mix and not rely so heavily on coal, nuclear energy must be considered as a viable long term option. In this regard, the public need to be educated and informed about the important issues surrounding nuclear such as the storage of waste as well as the potential benefits and challenges of nuclear. While we do have an abundance of coal, we are aware of the negative effect that it has on the environment when used with the current technology. It is therefore important that research into new technology to reduce the negative impact of coal on the environment is intensified. Also, the PBMR has been on the cards for a long time now, we need to know when, and if, it will be used.

We need to explore all options of efficient electricity use and the Department has given us assurance that they will be looking into daylight savings and the effect that this would have in assisting our electricity problems.

Another issue of importance is the high price of crude oil and the negative effect that this has on our economic growth and on the lives of the masses. Viable forms of renewable energy must be explored if we are to limit our reliance on crude oil.

One of my colleagues has brought to my attention that a group of investors are exploring the possibility of mining in his area.  However, there has been no communication between the investors and the affected community and this is causing much concern. This is an issue which I wish to bring to the Minister's attention and once I have collected more information I will communicate further with you.

The IFP supports this budget vote.

I thank you.