The Ad Hoc Committee on Minerals and Energy, having considered Budget Vote 31 – Minerals and Energy, reports as follows:

A: Terms of Reference

The Committee resolved to conduct budget briefings on 2, 3, 9 and 14 June 2004. The objectives of the briefings were to:

B: Introduction

At a workshop on 2 and 3 June and the subsequent briefings at Parliament the Committee engaged the Department on its presentations of its programmes with regards to Mine Health and Safety, Mineral Development, Energy Planning and Hydrocarbons, Electricity and Nuclear, Finance, Administration and Support Services.

Representatives from the following Associated Institutions participated in the discussions:

C: Departmental Programmes

  1. Mine Health and Safety

The purpose of this programme is to regulate and promote health and safety in the mining industry to the highest standards in the world, thereby improving the quality of life of those employed in industry and those affected by industry’s activities. Its measurable objective is reduction of mining, related death, injuries and ill health. A further number of output targets had been set. The expenditure on this programme has increased from 2003/04 to 2004/05 by 13.4%

Key issues raised by the Committee

2. Mineral Development

The main aim of this programme is to effectively promote, manage, transform and regulate the mineral resources industry that is globally competitive in order to achieve equitable and sustainable development for the benefit of all South Africans. Its measurable objective is the increase in the number of new entrants, particularly HDSA’s in the sector. The budget for this programme increased significantly from last year, a nominal increase of 33.7% (R159,8 milllion) A breakdown in allocation to the key priority areas was presented.

Key issues raised by the Committee

3. Electricity and Nuclear

The purpose of this programme is to ensure an efficient, safe and cost effective electricity and nuclear industry in South Africa. The measurable objective is to ensure the optimum and safe use of the electricity and nuclear resources through the development of policies that contribute to economic growth and development. The expenditure for this programme, combined with Hydrocarbons and Energy Planning, has increased from R43, million in 2000/01 to R66,4 million in 2003/04 and R73,6 million in 2004/05.

Key issues raised by the Committee

4. Hydrocarbons and Energy Planning

This programme aims to promote the environmentally sustainable use of energy through intergrated energy planning and policy development, and the appropriate promotion and regulation of petroleum products, coal, gas, renewable energies and energy efficiency. The measurable objective is to ensure the optimal use of all energy resources (electricity, nuclear, hydrocarbons and renewables through the development of policies that contribute to economic growth and development.

Key issues raised by the Committee

5. Administration

This programme provides administrative support to the Ministry and the Department with regard to Financial, Information and Supply chain Management; Legal, Human Resource and Security risk management; Communication; Audit Services; and Compliance. There has been a gradual increase in the programme budget and this growth could be attributed to the increase in personnel to improve capacity. Employment Equity has always been one of the Department’s focus areas and representivity has improved from 0% Black Senior Management representation in 1994 to 72% as March 2004. Female representation at both Senior and Middle Management levels stood at 0% in 1994 and has now improved to 23% as at March 2004. During the same period the disabled persons’ representation moved from 0% to 0,66%

Key issues raised by the Committee:

Money allocated to the Department for this year has increased from R1,8 billion to R1,9 billion. A major part of this allocation goes to the Associated Services, whose purpose it is to provide related services in support of the Department, mandate through funded and non-funded statutory bodies and organisations.

D. Acknowledgement:

The Committee noted that the Department was able to achieve the following performance targets

E. Conclusion

The Committee resolved to follow up with the Department on an on-going basis with regard to the key issues raised, which needed more information or clarification. The Committee undertook to strengthen its oversight and monitor the implementation of programmes and projects as highlighted in the DME’s strategic plan. The DME’s annual report will have to reflect to what extent the Department had delivered on its services efficiently, effectively and economically and whether these services had impacted or made a difference in terms of the strategic priorities identified.


Report Adopted.