Latest news with #MineralsandPetroleumResources
The Citizen
2 days ago
- Business
- The Citizen
Concerns over Mantashe's changes to draft mineral resources bill
Mantashe's changes to mining legislation have provoked backlash for favouring the industry over public interest. Minerals and Petroleum Resources Minister Gwede Mantashe was lashed for omitting a requirement for Black Economic Empowerment (B-BBEE) participation in applications for prospecting rights. Mantashe recently gazetted two corrections to the Draft Mineral Resources Development Bill and also nullified a provision for ministerial approval for change of control in listed companies that own mining rights. Mining expert David van Wyk asked why the minister backed down. Environmental concerns 'The prospecting companies make huge profits after prospecting reports are out. They sell the prospecting reports to the highest bidder. 'We have a serious problem with the change of control in listed companies. It is what ultimately allows mining companies to walk away from their environmental responsibilities and their responsibility to close and rehabilitate mines,' said Van Wyk. 'This is why we have more than 6 000 abandoned mines. When control of companies changes and the minister, as the custodian of the minerals which, according to the Act, belongs to the public, is not informed of these changes, he is unable to assign responsibility to the owners as he will not know who they are.' ALSO READ: 'Is it greed or jealousy?': Ramaphosa fires back at critics of BEE, Transformation Fund Call for state-led mining and revenue transparency The solution to the problems of environmental and social responsibility, as well as mine closure and rehabilitation, was to establish public ownership not just of the minerals in the ground, but also of the mining process and the extracted minerals, with the state as the custodian and the revenue accruing in a sovereign fund, Van Wyk said. South Africa does have a stateowned mining company and a sovereign fund, but the share of that company in the overall mining sector is minimal. There was no account of how much money has accrued in the sovereign fund since its inception, Van Wyk said. Christopher Rutledge, director at the Mining Affected Communities in Action, said the organisation was concerned. 'Pressure of elite interests' 'Following a mere signal of dissatisfaction from the mining sector, Mantashe swiftly amended the draft of the Bill, specifically the removal of the requirement for B-BBEE participation in prospecting rights and the omission of provisions for ministerial oversight of changes in control of listed companies holding rights. 'As we have previously warned, the main purpose of the Amendment Bill represents a further retreat from the constitutional mandate of transformation, accountability and justice for mining-affected communities. 'Rather than correcting the draft Bill, the minister has capitulated even further to the pressure of elite interests, in particular the Minerals Council South Africa, confirming the extent to which the state has aligned itself with industry over people.' Rutledge said the removal of BEE from the prospecting regime was not a technical correction, but a political decision to sell-out transformation. ALSO READ: Starlink proposal: Mashatile says Cabinet holds final say on policy changes Prospecting was the gateway to mining and excluding it from transformation requirements ensures the ownership and control of mineral resources remains concentrated in the hands of historical beneficiaries of apartheid-era privilege, he said. 'This opens the door to unchecked mergers, takeovers and asset stripping with no regard for affected communities, workers, or environmental responsibilities. We reject the illusion that deregulation is a form of reform,' Rutledge said. Industry engagements Union federation Cosatu spokesperson Mathews Parks said it was critical that legislation is in sync with B-BBEE to avoid contradictions. 'Cosatu will engage with the minister to get a better understanding of the objectives of the amendments.' Minerals Council South Africa Allan Seccombe said the organisation would continue to review the Bill and submit its perspectives by 13 August. 'The Bill in its current form does not encourage or sustain the growth and investment that the mining industry needs.' NOW READ: Cosatu says debate on B-BBEE is needed for beneciaries' benefit
The Citizen
2 days ago
- Business
- The Citizen
Is the ANC quietly rewriting empowerment
Gwede Mantashe's removal of B-BBEE rules for prospecting rights has ignited criticism from labour and activists, raising fears of a shift in policy. Is the ANC-led government of national unity (GNU) about to sell out on the principle of broad-based black economic empowerment (B-BBEE), the policy which has formed the bedrock of ANC policy and which has been in the crosshairs of its critics recently? That's the question which arises from the decision of Minerals and Petroleum Resources Minister Gwede Mantashe to remove the requirement for B-BBEE participation in prospecting rights. According to some NGOs involved in the mining sector, Mantashe caved in to pressure from the mining lobby, not only on the prospecting licence rules, but also on the requirement that the minister must approve any change in control of listed companies that own mining rights. The latter means that the government would be unable to track owners and assign responsibility to them for cleaning up mining sites once an ore body has reached the end of its profitable life. That, say Mantashe's accusers, means potential environmental damage on a huge scale. ALSO READ: 'Is it greed or jealousy?': Ramaphosa fires back at critics of BEE, Transformation Fund But it is the amendment to empowerment rules which has angered groups like organised labour, because there seems to be no logical reason for the deviation. The latest development comes after Communications and Digital Technologies Minister Solly Malatsi was pilloried for allegedly trying to soften empowerment law to allow Elon Musk's Starlink to operate in South Africa. That this was an incorrect reading of both the law and what Malatsi said made no difference to his enemies, who claimed the DA minister was 'selling out' B-BBEE. There is also some concern about whether the ANC is feeling the pressure of people like the right-wing lobby and its powerful friend, US President Donald Trump, who view empowerment laws as apartheid in reverse. It seems unlikely the ANC would roll back these laws because it would be punished at the ballot box. Which leaves another question: What is Mantashe up to? NOW READ: Cosatu says debate on B-BBEE is needed for beneciaries' benefit
IOL News
27-05-2025
- Business
- IOL News
South Africa in talks with Zambia and Zimbabwe to run Grand Inga transmission line
The Inga hydroelectric dam. Image: Reuters Minister for Minerals and Petroleum Resources Gwede Mantashe said South Africa is initiating discussions with Zambia and Zimbabwe on the possibility of running the electricity transmission line from the Democratic Republic of Congo (DRC) under the Grand Inga project, through which 2 500 megawatts are envisaged for the country. Mantashe was responding to questions from members of the Portfolio Committee on Minerals and Petroleum Resources on Tuesday, who had asked about the status of the project and what the country was doing to harness regional collaboration following the decision to postpone participation in the project. "The Grand Inga project is not ours; it's a DRC project, given to the Spanish and Chinese. We have a right to buy equity in it, which would have to be approved by the DRC. We have not bought that equity, so we can't really pretend to be managing the Inga project. It is not our project. We have committed ourselves to a quantity of electricity that will be taken up by South Africa, but the driving of the project is out of our jurisdiction," Mantashe said. MKP MP Crown Prince Adil Nchabaleng objected to the Minister's stance, indicating that South Africa still considered the project feasible. "You can't expect to tell us that you are going to power South Africa from the Grand Inga project. Is South Africa talking about a concession to resell in that market with regard to the 2 500 MW as an investment partnership? You cannot power South Africa from the Grand Inga project," he said. Mantashe maintained that there were ongoing discussions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ "In the plan for Grand Inga, there is a plan for a transmission line to go through two countries to South Africa, so it is possible. Electricity is not loaded in a truck; it is transmitted through a line that can cross borders. In our discussions, we have explored the possibility of involving Zimbabwe and Zambia, as the transmission line will cross their territory. So, it is possible to get electricity from Grand Inga," Mantashe maintained. The Grand Inga Hydropower Project, a massive dam construction on the Congo River in the DRC, is intended to generate a large amount of electricity, with South Africa being a key off-taker. This project is envisioned as a major source of clean energy for the region and potentially for the entire African continent. South Africa has expressed interest in importing electricity from the Grand Inga project, particularly from Inga 3, the first of the new hydropower facilities. South Africa's energy planning assumes the country will import 2500 MW from Inga by 2030, with the potential to double this to 5 000 MW. A long transmission line, passing through Angola, Namibia, and Botswana, would be needed to deliver power from Inga to Gauteng, South Africa's economic heartland. South Africa and the DRC have signed agreements on receiving electricity from Inga, and the project is in the process of finalizing an agreement and securing financing. Meanwhile, Mantashe clarified that the launch of the South African National Petroleum Corporation (SANPC), which resulted from the restructuring of the department into two entities, may seem like a negative intervention to many, but gave the department space and opportunity to prioritise petroleum appropriately. He noted that petroleum is a source of 80% of the world's energy but currently plays second fiddle to renewables. BUSINESS REPORT
IOL News
08-05-2025
- Business
- IOL News
Fuel price decrease brings relief to South African households and businesses
The agriculture sector, economists, and workers' trade unions have responded well following the news of a decrease in the petrol price which came into effect on Wednesday. The agriculture sector, alongside economists and trade unions, have expressed optimism following the recent announcement of a fuel price decrease in South Africa. Minister of Minerals and Petroleum Resources Gwede Mantashe, revealed on Friday that the reductions apply to all grades of petrol and diesel, with petrol prices seeing a reduction of 22 cents per litre and diesel dropping by as much as 42 cents per litre. An economics professor at the North-West University, Waldo Krugell, said even modest reductions in fuel prices can lighten household budgets. 'In the macro picture, it also helps to keep the average inflation rate low. It is good news for households and businesses,' Krugell said. 'In addition, we were worried about the impact of the VAT rate increase, but that is now off the table. With these positives, consumption spending may still make a significant contribution to driving economic growth this year.' Abigail Moyo, spokesperson of the trade union UASA, said that the decrease in fuel prices was excellent news for motorists, commuters, and businesses, especially those in agriculture. 'Lower fuel prices provide financial relief to South Africans and substantially impact inflation, which affects the overall cost of living.' Moyo added that for the agriculture sector, the lower cost will help reduce production costs during increased fuel demand due to the summer crop harvest and the planting of winter crops. 'Fuel accounts for nearly 13% of input costs in grain production. UASA is pleased that this decrease in fuel prices will help contain food inflation and overall headline inflation, providing the South African Reserve Bank with the opportunity to lower or maintain interest rates at beneficial levels for consumers.' Congress of South African Trade Unions (Cosatu) spokesperson Matthew Parks said the fuel price decrease will provide relief for millions of workers and commuters struggling to cope with the rising costs of living. 'Whilst appreciating this relief, it's critical that the government returns to engagements at Nedlac on further measures to reduce the costs of fuel,' he said. Parks added that it's equally critical that measures to support Eskom to provide affordable electricity be expedited and similarly measures to ensure Transnet and Metrorail return to full productivity to help shield food and passenger rail from inflation. Mervyn Abrahams, co-ordinator for the Pietermaritzburg Economic Justice and Dignity (PMBEJD), said that petrol was one of the important components in the food ecosystem because it ensured the movement of goods from the production point to the consumption point, with other factors also coming into play. 'Our household affordability index has shown that food prices continued to climb in April. While this fuel price drop is the fourth one in the year, this does not seem to have filtered through to consumers. We would like to see consumers benefiting from the fuel drop.' Abrahams added that there should not be a compromise on food and access to food because of fuel prices. Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz), said that the easing of the fuel price came at a critical time for South Africa's agriculture. 'Fuel consumption generally occurs throughout the year, but harvesting is one of the highest usage periods. We are harvesting grains, oilseeds, and citrus. The underpinning driver of the decline in fuel prices is the decrease in Brent crude oil prices, which are influenced by increased oil output in major producers, among other factors,' he said. BUSINESS REPORT
