Mineral and Petroleum Resources Committee Holds Successful Stakeholder Engagement

The Portfolio Committee on Mineral and Petroleum Resources looks forward to exercising impactful oversight in the mineral and petroleum sector following a successful engagement with non-governmental sector stakeholders on Tuesday.

The committee viewed the engagement as a capacity-building exercise to gather as much information as possible about issues, challenges and opportunities confronting the sector. It is confident that the engagement session was insightful and empowering.

The stakeholders that participated were, among others, the South African Mining Development Association, Mineral Council South Africa, Junior Mining Council, Green Connection, South African Oil and Gas, Fuels Industry Association of South Africa, Women in Oil and Energy South Africa, Mining Affected Communities United in Action, National House of Traditional and Khoisan Leaders, and Solidarity.

Committee Chairperson, Mr Mikateko Mahlaule, said that the committee needed to engage comprehensively with all sector stakeholders to listen to and collaborate with them through ongoing communication. “We are aware that different stakeholders represent different interests within the sector, but what is common with us is that the committee represents the interests of all South Africans; hence, working together is of utmost importance,” said Mr Mahlaule.

One key issue that emerged strongly from the stakeholders was that mining could be a sunrise industry again. However, a lot still needed to be done, such as a review of the Mineral and Petroleum Resources Development Act (MPRDA), support for the Junior Mining Industry, and implementation of the Artisanal and Small-Scale Mining Policy. It was also proposed that the department enforce the “use it or lose it principle” as some companies allegedly hold onto the mining prospecting rights. There were strong views that communities affected by mining do not benefit from the mining operations adjacent to them. It was reported that some mines do not implement the social and labour plans as agreed with the department. “The Committee made a deliberate decision to focus on implementing the social and labour plans during the current administration,” the Chairperson said.

From a petroleum industry perspective, stakeholders are concerned that the country is a net importer of crude oil. They stressed the need to invest in the upstream petroleum industry and address the declining refining capacity. The stakeholders said the country is headed for a gas crisis. Hence, investment in exploration is critical for the country.

It was underscored that as the country develops the mining and petroleum industry, it must consider climate change and the Just Energy Transition. Resources should be extracted in an environmentally responsible manner, and the communities should be meaningfully consulted.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.