Speech on Budget Vote 34: Mineral Resources and Energy
Speech by ACDP MP, Wayne Thring

Issued by the ACDP Parliamentary Media Office

SA’s Just Energy Transition must include coal in the energy mix

Jul 11, 2024

The ACDP notes the budget decrease in 2023/24 to R8.8 billion in this current financial year.

The budget increase in the Policy Development Management sub-programme of over 110% is to promote and encourage investment in the mining and energy industry. In this regard, the ACDP echoes concerns of bottlenecks that exist in the issuing of mining rights, permits and prospecting rights. Additionally, pertaining to the subject of illegal miners, the ACDP raised the need to address the current legal conundrum or lacunae and will welcome legislation in this regard.

Honourable Chairperson, if there is any department capable of implementing the policy of beneficiation, it is this one. South Africa continues to export the bulk of its precious raw material and then imports the finished products while having one of the highest unemployment rates and youth unemployment rates in the world. The Minister, in response to my question, raised as an impediment to beneficiation, the high cost of energy. While this may sound plausible, it is unacceptable. Interventions can and must be made to significantly increase the amount of raw materials beneficiated in South Africa, thereby increasing our employment ranks locally.

On the Nuclear Non-proliferation and Radiation Security sub-programme, the ACDP’s concern regarding nuclear energy plants was always the consideration for safety, particularly when it comes to toxic nuclear waste, its longevity and the limitations in dealing with this waste.

Honourable Chairperson, the ACDP asserts that a Just Energy Transition that excludes the use of coal in the energy mix, would be unjust. The EU is the second largest destination for South African coal, after India. Our coal exports to the EU has increased by over 720%. As of July 2022, China had more than half of the world’s new coal power station capacity, with 1118 coal power stations, building two coal power stations per week during 2022/23.

The USA has 285 coal fired power stations, and India 225. South Africa has 14 coal power stations, an energy crisis, high unemployment, poverty and inequality, and 200 years worth of high quality coal beneath our soil. To not use this coal with clean coal technology to protect our environment, would be unjust and tantamount to deliberately sabotaging our economy.

I thank you.

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