This Ministry has indeed been the pioneer in leading BEE Mining Charter which was a forerunner for charters in other sectors. Since the advent of the charter we have witnessed several mining empowerment deals which have opened access to previously disadvantaged businesses. However, the impact of an appreciating rand exchange rate has seen rand revenue reduced resulting in pending job losses at marginal mines. The launch of the African Mining Partnership is crucial to integrating Departments initiatives into the NEPAD framework.   The Anglo American and Ashanti gold mine project in Ghana is but one example of investment into Africa.

With regards to mine health and safety, the training expenditure allocation of R 3.5 m for the current financial year is inadequate especially if the capacity of the inspectorate needs to be upgraded.

The ID notes with concern the huge backlogs for electricity connections which will take 12 years to wipe out. Given that Regional electricity distributors have not been appointed further delays are likely. This only seeks to exacerbate the problem of illegal connections which is costing Eskom millions of rands per annum.

The capitalisation of the Electricity Distribution Industry Holding Co (EDI Co) is supported as it will give direction to restructuring of the electricity industry as Eskom currently operates as a monopoly.
While providing free electricity to the poor, the cost implications must be carefully considered.

While the ID recognises cost efficiencies of nuclear energy, safety and environmental aspects must not be neglected. In this context the Pebble Nuclear reactor project needs careful review.

With regards to the mining sector, complaints by smaller operators in rough diamond buying business, suggest anti competitive buying practices by dealers aligned to large diamond houses. These alleged practices must be careful monitored as it should not defeat empowerment objectives of creating thriving SMMEs in the sector.

Petro-SA has shown impressive pre-tax profits of R5.billion, as it positions the Western Cape as strategic oil hub for rig maintenance and repairs, for West African oil fields.  We wait with anticipation of the pending announcement of the BEE deal.

Regarding the corporate petroleum sector; the ID looks forward to initiatives by the Ministry to transform a highly rigid and untransformed sector of our economy and we pledge our support for such initiatives. To date PDIs have literally been thrown the crumbs of this industry and the ownership representation of the petroleum industry does not reflect the patronage this sector receives from those very people.

Generally there seems to be an alignment between DME budget and measurable key objectives.


I Thank You.