1. PRESENTATION TO THE PORTFOLIO COMMITTEE Wednesday, 19 March 2003
DEPARTMENT OF MINERALS AND ENERGY
Minerals and Energy for Development and Prosperity
PRESENTATION TO THE PORTFOLIO COMMITTEE Wednesday, 19 March 2003
PRESENTATION BY:
Ms M Hermanus
Acting Director-General

2. SUMMARY OF THE PRESENTATION
Slogan of DME.
Mandate of DME
Vision of DME
Mission of DME
2002/03 Key Strategic Objectives.
Mine Health and Safety
Mineral Development
Hydrocarbons and Energy Planning
Electricity and Nuclear.
Minerals and Energy Budget.
Restructuring of the Department.
Conclusion.
End.
Department of Minerals and Energy
Minerals and Energy for Prosperity and Development 2

3. “MINERALS AND ENERGY FOR DEVELOPMENT AND PROSPERITY”
SLOGAN
“MINERALS AND ENERGY FOR
DEVELOPMENT AND PROSPERITY”
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 3

4. MANDATE Minerals and Energy for Prosperity and Development
PROVISION OF SERVICES FOR EFFECTUAL TRANSFORMATION AND GOVERNANCE OF MINERALS AND ENERGY SECTORS, FOR SUSTAINABLE DEVELOPMENT THEREBY IMPROVING THE QUALITY OF LIFE.
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 4

5. VISION Minerals and Energy for Prosperity and Development
SUSTAINABLE DEVELOPMENT AND GROWTH THROUGH MINERALS AND ENERGY RESOURCES FOR THE BENEFIT OF ALL SOUTH AFRICANS.
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6. MISSION Minerals and Energy for Prosperity and Development
TO ENSURE RESPONSIBLE EXPLORATION, DEVELOPMENT, PROCESSING, UTILITSATION AND MANAGEMENT OF MINERALS AND ENERGY RESOURCES.
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7. Department of Minerals and Energy
2002/03 KEY STRATEGIC OBJECTIVES
Position Minerals and Energy industry for global competitiveness.
Contribute towards effectual and sustainable development of Minerals and Energy Resources.
Govern these industries to be safe and healthy working environments.
Address past imbalances to promote equitable redistribution of benefits from exploitation of Minerals and Energy Resources.
Formulate and implement an overall minerals and energy policy to ensure optimum utilisation of minerals and energy resources.
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 7

8. MINE HEALTH AND SAFETY MS HERMANUS CHIEF INSPECTOR OF MINES
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 8

9. MAJOR ACHIEVEMENTS IN 2002/03
Implementation of Public Service Regulations.
Implementation of the Minimum Information and Security Standard (MISS).
Alignment of structure with objectives and priorities of the Department.
Developing and maintaining effective policy, legislation and enforcement capacity in the Mine Health and Safety Inspectorate.
Reducing occupational injuries and ill health.
Limiting the impact of HIV/Aids in the Mining industry.
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Department of Minerals and Energy 9

10. STRATEGIC OBJECTIVES AND PRIORITIES 2003/04
Establish national policy, legislation and systems to regulate, monitor, audit, train and provide technical support to ensure health and safety in the mining industry.
Comprehensive policy and legislative framework to support the Mine Health and Safety Act.
Implement strategy to address current occupational health and safety concerns.
Mining Qualifications Authority outputs support health and safety, human resource development and transformation of the mining sector.
Improve health and safety in the mining sector.
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 10

11. Minerals and Energy for Prosperity and Development
MAJOR PROJECTS FOR 2003/04
Continued protection of employees and public from hazards associated with mining – Inspectorate – R92,085 mil.
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 11

12. MINERAL DEVELOPMENT MR MOLOI DEPUTY DIRECTOR GENERAL
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 1 2

13. MAJOR ACHIEVEMENTS IN 2002/03
National Mining Promotion system.
Mineral and Petroleum Resources Development Act signed.
Mining Industry agreed on a Broad – Based Socio-Economic Empowerment Charter
Improving mining information management and access to information.
Administrative component of NMPS in place.
Environmental management mechanisms fully tested and existing.
Social plan programme capacity installed.
Broad Based Socio Economic Empowerment Charter Finalised.
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Department of Minerals and Energy 13

14. OBJECTIVES NOT FULLY ACHIEVED
Essential outstanding requirements to fully implement Mineral and Petroleum Resources Development Act:
- Money Bill.
- Regulations.
- Mining Titles Registration Bill.
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Department of Minerals and Energy 14

15. STRATEGIC OBJECTIVES AND PRIORITIES 2003/04
Research and provide relevant information that will enhance global competitiveness and attract new investment into SA Mineral and Beneficiation Industry.
Effectively manage and control mineral resource utilization to contribute to the sustainable socio-economic development of the country.
Promote mineral development opportunities through SMME’s.
Successfully implement the new Minerals and Petroleum Resources Development Act.
Integrate targets of the Broad Based Socio Economic Empowerment Charter with regulatory process.
Integrate mineral resource utilization with local economic development (rural development, urban renewal, poverty alleviation).
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Department of Minerals and Energy 15

16. Minerals and Energy for Prosperity and Development
MAJOR PROJECTS FOR 2003/04
Implement Minerals and Petroleum Resources Development Act including:
Implementation of Social Plan – R4,410 mil.
Develop and support of SMME’s.
Regeneration of local economies and rural development.
Small-scale mining and promotion of beneficiation:
New Directorate to provide economic and technical advice –
R18,717 mil
Small-scale mining projects –
R15,1 mil.
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Department of Minerals and Energy 16

17. ROLE PUBLIC ENTITIES PLAY IN SUPPORT OF DME COUNCIL FOR GEOSCIENCE
PREPARING FOR MINERAL DEVELOPMENT BILL IMPLEMENTATION
Amended business plan to develop logistical and physical infrastructure for implementation of bill.
Developed physical infrastructure and bibliographic reports database for management of exploration reports and access systems to the reports.
Exploitation data is validated from technical and financial viewpoint.
National Geoscience Database will incorporate the exploration data and information of such data.
Development of exploration target identification and project profiles will be major planning activity.
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Department of Minerals and Energy 17

18. ROLE PUBLIC ENTITIES PLAY IN SUPPORT OF DME
MINTEK
Minister of DME and Mintek CEO signed a compact which outlined Mintek’s deliverables.
These included:
Beneficiation of minerals and other commodities.
Regional strategies for Mineral Processing Sectors.
Development of SMME’s.
Export of mineral technologies, capital goods and services.
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Department of Minerals and Energy 18

19. ENERGY MANAGEMENT DR CROMPTON DEPUTY DIRECTOR GENERAL:
HYDROCARBONS AND ENERGY PLANNING
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Department of Minerals and Energy 1 9

20. MAJOR ACHIEVEMENTS IN 2002/03
Petroleum Pipelines Bill approved and Gas Money Act passed.
Petro SA formally launched.
Draft White Paper on Renewable Energy.
Integrated Energy Plan.
Energy Bill.
WSSD Participation.
Annual Petroleum Industry survey, charter implementation – Empowerment reaches 13,8%.
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Department of Minerals and Energy 20

21. OBJECTIVES NOT FULLY ACHIEVED
Petroleum Products Act Amendment Bill delayed.
LPG regulation delayed.
Non-cooperation from Coal Mines and Eskom on low smoke fuels.
Kudu gas field – geological disappointment.
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Department of Minerals and Energy 21

22. STRATEGIC OBJECTIVES AND PRIORITIES 2003/04
Petroleum Products Amendment Act and Regulations.
Petroleum Pipelines Act and Regulations.
Poverty Alleviation: Regulation of Paraffin and LPG prices.
Gas Act Regulations.
Renewable energy strategy.
Energy information management system.
Energy efficiency strategy.
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Department of Minerals and Energy 22

23. ENERGY MANAGEMENT MS MAGUBANE DEPUTY DIRECTOR GENERAL:
ELECTRICITY AND NUCLEAR
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 2 3

24. MAJOR ACHIEVEMENTS IN 2002/03
Continued implementation of Integrated National Electrification Programme.
Continued restructuring of the electricity distribution industry.
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Department of Minerals and Energy 24

25. OBJECTIVES NOT FULLY ACHIEVED
ESI Regulatory Bill – Process slower than expected.
EDI Restructuring Bill – Process slower than expected.
Free Basic Electricity Policy – To gain insight into self targeting option, Minister approved extension of EBSST projects.
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Department of Minerals and Energy 25

26. STRATEGIC OBJECTIVES AND PRIORITIES 2003/04
Integrated National Electrification programme.
ESI and EDI Restructuring Bill.
Electricity Supply Industry Restructuring.
Radioactive Waste Management.
Restructuring of NECSA.
Pebble Bed Modular Reactor.
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Department of Minerals and Energy 26

27. Minerals and Energy for Prosperity and Development
MAJOR PROJECTS FOR 2003/04
Continued implementation of Integrated National Electrification Programme: Universal household access to basic electricity services within 10 years – R1,062 billion.
Establish EDI Holdings Company to enable creation of REDs – R45 mil.
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Department of Minerals and Energy 27

28. INTEGRATED NATIONAL ELECTRIFICATION PROGRAMME
CONNECTIONS FOR 2002/3 (UN-AUDITED)
HOUSEHOLDS
SCHOOLS
CLINICS
PLANNED
ACTUAL
Eskom
838
906
Municipalities
81 864
57 138 -
TOTAL 9
Total number of houses electrified ,2%
Houses still to be electrified ,8%
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Department of Minerals and Energy 28

29. INTEGRATED NATIONAL ELECTRIFICATION PROGRAMME (continues)
INEP BUDGET
2003/04
R’000
2004/05
2005/06
National (Eskom)
Local (Municipalities)
TOTAL
Average number of connections per year over the MTEF Period: grid and non-grid households
1 349 schools and clinics.
Priority areas to be electrified are Eastern Cape, KwaZulu-Natal and Limpopo Province.
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 29

30. CHIEF FINANCIAL OFFICER
MS PITYANA
CHIEF FINANCIAL OFFICER
Minerals and Energy for Prosperity and Development
Department of Minerals and Energy 30

31. MINERALS AND ENERGY BUDGET
PROGRAMMES
2002/03
R’000
2003/04 %
CHANGE
Administration
72 963
91 575
25,5
Promotion of Mine Safety and Health
86 361
92 085
6,6
Mineral Development
94 219
21,9
Energy Management
13,8
Associated Services *
(41,4)
Mintek
76 410
82 439
7,9
Nuclear Energy *
(62)
National Nuclear Regulator
7 282
7 610
4,5
Geoscience
66 384
72 019
8,5
Assistance to Mines
31 100
7,5
Cahora Bassa Audit fees
312
349
11,9
Government Motor Transport
950
210
(77,9)
TOTAL
(3,5)
*Decrease in strategic loans of NECSA from R265,548 million to R1,407 million.
Department of Minerals and Energy
Minerals and Energy for Prosperity and Development 31

32. MINERALS AND ENERGY BUDGET (continues)
STANDARD ITEMS
2002/03
R’000
2003/04 %
CHANGE
Personnel
15,9
Administrative
56 567
66 296
17,2
Inventories
5 165
5 001
(3,2)
Equipment
10 753
19 353
79,9
Land and buildings 1 -
Professional and special services
63 569
58 566
(7,9)
Transfer payments *
(6,5)
Miscellaneous
100
TOTAL
(3,5)
*Decrease in strategic loans of NECSA from R265,548 million to R1,407 million.
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Department of Minerals and Energy 32

33. Minerals and Energy for Prosperity and Development
MINERALS AND ENERGY BUDGET (continues)
ALLOCATIONS ABOVE BASELINE ALLOCATION FOR 2003/04
R’000
2003/04 Baseline
Changes to baseline
Expanded post structure
12 000
INEP (Output tax – Vat)
EDI Holdings company
45 000
Tripartite Mining HIV/AIDS Committee
945
Infrastructure and development
21 400
Mintek
1 528
Geoscience
1 992
Inflation related adjustments
15 120
Department (Salaries and related expenditure)
12 232
1 548
1 340
TOTAL MTEF ALLOCATION
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Department of Minerals and Energy 33

34. RESTRUCTURING OF THE DEPARTMENT
NUMBER OF NEW POSTS CREATED
SENIOR MANAGE-MENT
MIDDLE MANAGE-MENT
OTHER POSTS
TOTAL
Administration 6 21 14 41
Mine Health and Safety - 17 2 19
Mineral Development 55 26 87
Energy Management 7 34 47 99 76
194
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Department of Minerals and Energy 34

35. Minerals and Energy for Prosperity and Development
RESTRUCTURING OF THE DEPARTMENT (continues)
FUNDING FOR NEW POSTS IN 2002/03
R’000
MTEF allocation
10 000
Reprioritization
11 588
TOTAL
21 588
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Department of Minerals and Energy 35

36. Minerals and Energy for Prosperity and Development
RESTRUCTURING OF THE DEPARTMENT (continues)
NUMBER OF NEW FUNDED POSTS IN 2002/03
SENIOR MANAGE-MENT
MIDDLE MANAGE-MENT
OTHER POSTS
TOTAL
Administration 4 7 5 16
Mine Health and Safety 3 -
Mineral Development 39 8 52
Energy Management 2 19 48 20 87
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Department of Minerals and Energy 36

37. Minerals and Energy for Prosperity and Development
RESTRUCTURING OF THE DEPARTMENT (continues)
FUNDING FOR NEW POSTS IN 2003/04
R’000
MTEF Request
22 742
Additional MTEF allocation
12 500
Included in baseline
5 000
TOTAL MTEF ALLOCATION
17 500
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Department of Minerals and Energy 37

38. Minerals and Energy for Prosperity and Development
RESTRUCTURING OF THE DEPARTMENT (continues)
NUMBER OF POSTS TO BE FILLED IN 2003/04
SENIOR MANAGE-MENT
MIDDLE MANAGE-MENT
OTHER POSTS
TOTAL 2 27 34 63
36,5% of the posts will be allocated to Mineral Development for the implementation of the Mineral and Petroleum Resources Development Act.
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Department of Minerals and Energy 38

39. Minerals and Energy for Prosperity and Development
CONCLUSION
Commitment of the Department to achieve its Vision and Mission and fulfill its Mandate.
Challenge to meet the commitment with limited resources.
Track record of spending our budget is a good indication of delivering on our mandate.
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Department of Minerals and Energy 39

40. Minerals and Energy for Prosperity and Development
END
QUESTIONS.
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