Deputy Minister Phumzile Mgcina: Mineral and Petroleum Resources Dept Budget Vote 2025/26

House Chairperson,
Minister of Mineral and Petroleum Resources, Mr Gwede Mantashe
Chairperson of the Portfolio Committee on Mineral and Petroleum Resources, Honourable Mikateko Mahlaule
Honourable members
Distinguished guests
Members of the media

It is with a great sense of joy and pride to be participating in this important sitting. This is an opportunity to outline our plans for the current financial year and their financial implications, but most importantly, to report back on the work we have done during the previous financial year.

The Minister has succinctly outlined the strategic priorities of this newly reconfigured Department of Mineral and Petroleum Resources (DMPR), and the allocation of funds to the specific programmes of the department and its entities.

House Chairperson, allow me to briefly report back on the work we have done during the course of the previous financial year, which was centred around three strategic priorities of government that were outlined by President Cyril Ramaphosa in his Opening of Parliament Address, namely; driving inclusive economic growth and job creation, reducing poverty and tackling the high cost of living, as well as building a capable, ethical, and developmental state.

Honourable members, building on the success of the 6th administration, wherein at least eight of the eleven state-owned entities that were reporting to the erstwhile Department of Mineral Resources and Energy (DMRE) obtained either a clean or unqualified audit outcome in the 2023/24 financial year, our concerted efforts that are aimed at building a capable, ethical, and developmental state resulted in all entities reporting to the department obtaining either a clean or unqualified audit. Of these entities, at least seven are currently reporting to the DMPR, including Alexkor – which is an additional entity that was transferred from the erstwhile Department of Public Enterprises to the DMPR.

This is a clear demonstration that where there is a sharp focus on good governance, both the operational and financial risks will be kept to their bare minimum, if not completely eliminated.

In cognisance of the dangers associated with derelict and ownerless mines, Mintek has made significant strides in addressing this pressing issue. The derelict and ownerless mine rehabilitation programme has gone beyond the rehabilitation to include the closure of hazardous openings, including old shafts and openings created by illegal mining activities. Given the additional funding of R180 million for the derelict and ownerless mine rehabilitation programme during the previous financial year, I can report to you that Mintek has successfully rehabilitated at least four asbestos mines in Limpopo and Northern Cape and closed a total of 280 mine openings.

These efforts have not only led to improvements in environmental and health outcomes but have also provided a positive economic impact. On average, each rehabilitation site has created 60 job opportunities for local community members contributing to local economic growth.

Honourable members, if we are to address the legacy of derelict and ownerless mines across the country and contribute to a safer and healthier environment, much more work remains to be done, hence we welcome the additional funding for this programme during the current financial year.

Following the enactment of the Artisanal and Small-Scale Mining (ASSM) Policy 2022, Mintek, in partnership with the Mining Qualifications Authority (MQA), has made notable progress in supporting aspirant artisanal and small-scale miners by empowering them with the expertise required to participate in the mining industry through the skills training programme. By the end of the previous financial year, at least 300 learners across the country have been equipped with valuable skills for a career in mining. This initiative exemplifies our commitment to fostering inclusive economic growth, gender equality, and social empowerment in the mining sector.

Given the fact that coal will continue to play a strategic role in ensuring energy security and sustaining economic growth, the Council for Geoscience (CGS) has made tremendous progress on the characterisation of geological sites for the permanent storage of carbon dioxide. Focusing on Mpumalanga as a pilot site, the Carbon Capture, Storage and Utilisation (CCUS) project has outlined the preliminary findings on suitability to store carbon in a safe manner. Further research on the capture and utilisation aspects of carbon will continue, as well as how this could relate to the establishment of carbon trading markets in South Africa. To realise this ambition, a collective approach by all social partners – government and business in particular coal miners – will be greatly required.

House Chairperson, despite the long history of diamond mining in South Africa, the diamond sector is facing a myriad of challenges which threaten its much-needed contribution to inclusive economic growth. The tough competition from lab-grown diamonds, economic and geopolitical risks, access to finance for emerging beneficiation businesses, and the decline in production at the De Beers’ Venetia Mine are among the major challenges that are confronting this industry.

To ensure the resilience and competitiveness of South Africa’s diamond trade, the South African Diamond and Precious Metals Regulator (SADPMR) will implement a turnaround strategy that integrates digital technologies to enhance trade efficiency, transparency, and accessibility. To this end, funding has been allocated to ensure the successful implementation of these strategic initiatives, including the promotion of natural diamonds through effective marketing such as the diamond show which was hosted by the State Diamond Trader (SDT) in February this year.

As part of government’s concerted efforts to ensure that every mineworker returns home unharmed every day, the department and the Mine Health and Safety Council (MHSC) hosted a tripartite summit in October 2024 where stakeholders adopted new milestones that will contribute to the mining sector ultimately achieving the goal of zero harm. The milestones include initiatives to enhance the health, safety and security of women in mining. Furthermore, the department gazetted the guidance note for the management of gender-based violence and femicide (GBVF). The guidance note sets out the roles and responsibilities of the various persons involved in the processes to ensure GBVF, safety and security challenges for women in mining are improved.

The 42 fatalities recorded in 2024, which is the lowest record in the history of mining in South Africa, and the decrease in occupational injuries is a clear demonstration that through collaboration we will attain the goal of zero harm sooner than we can ever imagine.

I thank you.