South Africa’s Mining and Energy Sectors: Progress, Achievements, Challenges, and Investments

by
1 min read
south africa mining

South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, has provided insights into the country’s mining and energy sectors. In this article, we discuss the progress, achievements, challenges, and investments within these industries.

Universal Access to Electricity

One of South Africa’s notable achievements in the energy sector is the connection of 673,946 households to the national electricity grid. The government plans to link an additional 243,054 households during the current fiscal year, bringing the country closer to achieving the United Nations’ Sustainable Development Goal of ensuring universal access to electricity. The government is also working to amend the Electricity Regulation Act, which aims to create a competitive supply and demand market for electricity while fostering the development of the green economy.

Renewable Energy

South Africa has launched several renewable energy projects, with a total of 7,786 MW procured through the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) and the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). However, the unavailability of the electricity grid presents a significant challenge, as 3,200 MW of the 4,200 MW wind capacity has not been allocated due to this issue.

To address the electricity supply and demand gap, the Integrated Resource Plan (IRP) 2019 is currently under review. Additional procurement of generation capacity will be undertaken during the current financial year. This process will include the issuance of requests for proposals covering renewable energy, battery storage, gas-to-power, and nuclear energy projects.

Mining Contributions to GDP

The mining sector has made a meaningful contribution to South Africa’s Gross Domestic Product (GDP), despite recent declines in production. Between December 2021 and December 2022, the sector created 23,552 jobs and contributed R89 billion in corporate tax and R28.45 billion in royalties during the 2021/22 financial year.

To further enhance the industry’s economic contributions, Mantashe highlighted the need to address constraints in electricity, rail, and port systems.

Investments in Mining and Energy Sectors

Significant investments in the mining and energy sectors have been made, including a R16.5 billion investment from De Beers for the Venetia Mine, R6 billion from Exxaro in Grootegeluk, R636 million from Impala Platinum in the Two Rivers operation, and R175 million in the Steelpoortdrift Vanadium Project. These investments showcase the potential for the mining sector to further bolster South Africa’s economy in the coming years.

International Exploration Investments

The Department of Mineral Resources and Energy is focusing on attracting international exploration investments. Plans are in place to establish an exploration fund for junior miners in collaboration with the Industrial Development Cooperation (IDC). The fund, which will consist of a combined investment of R500 million from the DMRE and the IDC, is anticipated to be finalized by the end of June 2023.

In conclusion, South Africa’s mining and energy sectors have demonstrated significant progress and achievements in recent years. Challenges still remain, and ongoing investment and infrastructural development will be essential for the country’s economic growth moving forward.

Tags:

You might be interested in

A Russian-Spanish journalist and Cape Town native, channels his lifelong passion for South Africa into captivating stories for his local blog. With a diverse background and 50 years of rich experiences, Serjio's unique voice resonates with readers seeking to explore Cape Town's vibrant culture. His love for the city shines through in every piece, making Serjio the go-to source for the latest in South African adventures.

View all

Leave a Reply

Your email address will not be published.

south africa stem education
Previous Story

Boosting STEM Education in South Africa: Mobile Science Laboratory Handover at University of Mpumalanga

south africa western cape
Next Story

Enhancing Community Safety: Graduation of Peace Officers in Mossel Bay and George

Latest from Blog

eskom soweto

Decoding the Charges: Eskom and the Rising Dissent in Soweto

In Soweto, South Africa, Eskom, the main electricity provider, is facing allegations of corruption, with residents accusing staff members of deliberately damaging local infrastructure and demanding payments for repairs. Eskom has responded with an internal investigation and operational steps to prevent energy and revenue losses. However, the situation has escalated, with threats of death made against Eskom employees involved in power disconnections, and mini substations vandalized. Eskom has called upon customers to report any employee or contractor demanding cash payments for reconnection. The ongoing situation highlights broader societal issues pertaining to service delivery and accountability in South Africa.

south african parliament state of the nation address

The Pulsating Heart of Cape Town in Anticipation of a Monumental Date

The State of the Nation Address is a significant political event in South Africa that marks the unofficial start of the parliamentary agenda. Accredited media plays a crucial role in documenting the event, and the Parliament emphasizes the importance of media participation, providing an onlinebased accreditation process for interested parties. The event offers insight into the government’s plans for the upcoming fiscal year, and President Cyril Ramaphosa’s SONA is set to unveil the government’s primary legislative goals and expected outcomes for the year.

civic honours cultural heritage

Celebrating the Pillars of Cape Town: A City Rich in Diversity and Cultural Heritage

Cape Town’s Civic Honours ceremony celebrated the city’s diverse cultural heritage and recognized notable individuals who have made significant contributions to society, both locally and globally. The event, held at the City Council Chambers, awarded the Civic Honours to living and posthumous recipients who have demonstrated exceptional service to the public. The ceremony also included the presentation of the Mayor’s Medals, which recognized outstanding dedication and sacrifice in service to their communities. The event highlighted the city’s commitment to recognizing and celebrating its diverse talents and social activists.

furniture manufacturing entrepreneurship

Embarking on a Revolution: The Journey of 14 Entrepreneurs in the Furniture Light Manufacturing Enterprise Development Programme

The dawn of 5th December 2023 painted a regular picture of Cape Town, with its usual hustle and bustle. However, an extraordinary event was unfolding in the heart of the city. Fourteen ambitious entrepreneurs, all part of the Furniture Light Manufacturing Enterprise Development Programme, were ready to instigate a revolution in the furniture industry. Having successfully navigated the demanding rigours of the programme, they stood on the cusp of a thrilling new chapter.

south africa drinking water quality

South Africa’s Deteriorating Drinking Water Quality: A Call for Action

South Africa is facing a crisis in drinking water quality, with nearly half of the nation’s water being unsafe for consumption. The situation is a public health concern and requires immediate action. Recent government action plans aim to address the issue, but the Northern Cape region has the highest percentage of drinking water systems performing poorly. Ensuring safe drinking water for all South African citizens is a challenging task that requires collective effort and continuous scrutiny.